GenServe Inc. New Owners See Bright Future for Generators
Bay Shore, New York, USA (March 24, 2010)
Everyone wants a recession-proof business these days. The Wall Street Journal once cited liquor stores and hair replacement as the only safe bets. Bob Fortunato, Chairman of GenServe, Inc. and co-founder and partner in Anvil Capital, LLC, thinks they may have left one out. Generators. Early in 2009, when many private equity firms were flocking to the sidelines, Anvil Capital recognized a quiet opportunity and moved forward.
GenServe, an industrial generator sales and service company, has been in business since 1990. Previously an affiliate of TransService, an international logistics business, GenServe had grown to be one of the largest generator service companies in the Metro New York area. Also serving New Jersey, Long Island and parts of Pennsylvania, Connecticut, Deleware and Marlyand, GenServe now has more than 40 service vans on the road.
“It’s a growing business,” says Mr. Fortunato. “It’s recession resistant because generators have to be serviced.” Add that to the ever-growing demand for power and dependable back-up for that power, and the result is a predictable profit with impressive growth potential. With a strong foothold in one of the North East’s most concentrated populations, GenServe is well-positioned to capitalize on market demands.
“I knew what generators did,” said Mr. Fortunato. “As a private equity investor and management specialist, that’s all I needed to know about the industry to know we could help expand this company and boost its profitability.” Mr. Fortunato has been involved in growing businesses for the past 38 years as a senior executive for a variety of industries, a business development consultant and a partner in a private equity firm.
Mr. Fortunato and his partner at Anvil Capital, LLC, Benjamin Giess, search out small to mid-sized service or manufacturing companies in the North East that are poised for market growth. They then leverage their combined talents and expertise to maximize the company’s profitability.
As Chairman of GenServe’s board of directors for the past year, Mr. Fortunato now knows a great deal about the industrial generator business, and he’s used his management experience to implement some immediate organizational improvements. “One of the first things we did was to strengthen the dedicated sales staff,” he said. At the same time he recognized the company had no automated service dispatching system and a very antiquated financial system. Working with a leading business solutions software company, GenServe recently installed financial and service industry systems that will enable the company to improve productivity and profitability.
Two of GenServe’s previous owners have remained as partners and as members of the board, and most of the employees have stayed with the company. “This is an exciting but challenging time for this business,” Mr. Fortunato says. “Everyone is enthusiastic about the opportunities and eager to pitch in and make it work. We have a great team and a very bright future ahead of us.”