Decision Fatigue

The Situation

Our client, in the machining industry, was constantly berated with daily problems requiring his immediate attention, to the point that he dreaded going into the office. Every single day he was faced with decisions regarding labor issues, vendor issues, equipment issues and more, to the point where it seemed to him as though the world were crashing down around him.

Some investments made in projects resulted in very little return. The company required significant business development investments that the owner simply did not have the resources or energy to fulfill.

For all of these reasons, our client made the decision to sell the business.

The Process

Next Point met with our client and understood that the goal was to get out, growing the company to increase its enterprise value was not an option. After completing an enterprise value estimate of what the company could achieve on the market as a going concern, it was clear that the pieces would be more valuable than the whole. The real estate alone could be sold at a higher value than the company. The equipment could be sold at auction, and Next Point could search for a strategic buyer to sell the book of business.

The Turning Point

Next Point conducted our divestiture process to find a strategic buyer for the book of business and our client would collect 10% of sales to his clients over the next 5 years. We also assisted our client with the wind-down of his business, we helped collect his A/R and pay off his A/P as well as guide him on how to inform his employees, customers, vendors, the bank and other stakeholders of the changes. We helped our client evaluate auction and equipment brokers to liquidate the company’s assets. We even introduced him to a commercial real estate broker to help him get the most value for the building and property.

By selling off the pieces instead of the company as a whole, we helped our client achieve top dollar value.

Services Performed

Management Buy-Out
Divestiture Process

Decision Fatigue