Our client owned multiple businesses and had not paid full attention to the needs of some of the smaller entities. He eventually realized that investments were needed to upgrade his equipment and website in order to keep one of his smaller holdings competitive. Our client also determined that the real estate space that the company used would be more valuable to him for his other business pursuits.
Finding the Right Buyer
WE HAVE HELPED OWNERS LIKE YOU
Finding the Right Buyer
The Situation
The Process
When we first met with our client, he believed that he would need to grow the small company in order to sell it. We proposed that we look for a company of a similar size, one that had already made the investments in upgraded equipment but required additional sales and gross margin to support the investment. We proposed a targeted search for a company that would realize economies to scale and could drive operating costs out of the accretive business due to their upgrades in equipment, technology, and operating processes. Next Point conducted a limited, targeted, search for companies operating in the same manufacturing and geographical space as our client.
The Turning Point
In this case, Next Point was able to identify the perfect match for our client. In fact, the buyer was already selling to many of the same customers. The buyer purchased our client’s book of business and a few pieces of equipment. He would pay the seller a percentage of sales over time. The added volume running through the buyer’s operation helps him pay for the equipment upgrades and investments he made in his business. Our client repurposed the space that the company was occupying for another one of his business investments. The buyer and the seller liked each other and got along well, they were each doing the other a favor, and as a result, the transaction was completed quickly and smoothly to everyone’s advantage.
A true example of a win-win negotiation.
Services Performed
- Management Buy-Out
- Divestiture Services
