Filmwerks Case Study
By Susan McLean
Filmwerks International, a production services company founded by Michael Satrazemis and Susan Mc Lean, specializes in providing power generation and distribution, uninterrupted power supply, temperature control services, temporary structures, and scenic elements for live broadcasts and events, with a particular focus on sports broadcasting events. Their clientele included prestigious events such as the Super Bowl, US Open Tennis, PGA Championships, NCAA Final Four, Presidential Debates, live news, musical festivals, and fashion shows worldwide.
Michael's relationships in the entertainment industry and entrepreneurial spirit complemented Susan's attention to detail, organizational skills, and focus on profitability. This combination of strengths made them a formidable team in building Filmwerks into a successful enterprise.
However, given the company's size, capital intensiveness, transportation regulations, and the stress associated with live broadcasts, coupled with Michael's desire to diversify, the couple began exploring private equity options to minimize risk. With the assistance of Cornerstone Business Advisors, they engaged in multiple rounds of negotiations with various private equity firms, ranging from closely held investment firms to larger, more complex funds.
Each transaction provided valuable insights, enabling Susan to enhance the company's profitability and leverage her negotiation skills. Ultimately, in 2018, Filmwerks accepted a lucrative offer from Seaport Capital, a private equity firm that also included the founders retaining a small equity stake in the business. This successful engagement with Seaport Capital, coupled with Susan's continued advisory role during the transition stage until 2020, ensured a smooth handover, while Michael maintained client relationships and provided ongoing guidance to the company.
In a strategic move, Filmwerks divested its power generation and distribution division to Sunbelt Rentals in 2022. This forward-thinking decision, guided by the company's desire to focus on its core strength, the structure and scenic division, positions Filmwerks for continued success in the competitive world of live broadcast and event production.