The Challenge: If Not Now, Then When?

Our client manufactured biologically-based cleaning and degradation products. The company was fielding multiple unsolicited offers to purchase. But the owner wasn’t sure he was ready to sell.

Our Approach: Take the Long View

PROVIDE AN ESTIMATE OF VALUE

We provided an initial estimate of value, including likely deal structure, so the owner had an accurate idea of what his company could bring on the open market.

RECOMMEND VALUE DRIVERS

We identified several value drivers—such as pushing more dollars to the bottom line and diversifying revenue streams—that would help him earn a greater return down the road

MARKET WHEN TIMING WAS RIGHT

Three years later, on our recommendation, the owner was ready to market his company. He decided the timing was good, and he wanted to retire. Interest was strong, with 13 expressions of interest and four Letters of Intent coming from a pool of 80 qualified buyers.

NEGOTIATE FOR MORE THAN MONEY

The initial round of LOIs exceeded our client’s expectations. But he was interested in more than financial returns. We created a list of the seller’s priorities—things like preserving employee jobs, keeping one of his businesses entities, and maintaining ownership of the real estate—and negotiated from there. (Exit on your terms.)

RESULTS: EXCEED EXPECTATIONS

When we first evaluated the business, the initial estimate of value was $3MM. After we worked with the client and he implemented our recommendations to prepare his business for sale, the end result was a business value well over $5MM. Today the owner remains actively involved in the company he founded and now has the opportunity to pursue other business and personal interests.

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