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| Organization: Manufacturer of construction machinery and related industrial equipment. | need: Expert guidance to navigate the complexities of selling your business. | result: The owner received twice the price of the initial offer to sell the company. |
understanding the situation
The two owners of a Minnesota-based company that manufactures equipment for the construction and related industries successfully grew their business over the years, but eventually ran out of space.
As they were debating what to do next, a professional connection expressed interest in acquiring their company. Their first inclination as successful entrepreneurs was to explore this opportunity on their own.
CLA has been supporting clients with a variety of services for many years. Aware of the direction the owners were considering, his CLA proactively introduced the firm’s investment banking team and encouraged the owners to consider a second opinion. Through modeling, the owners realized the potential to go far beyond their initial offer.
Explore issues
The owners agreed that engaging a professional team to resolve the complexities of the sale made more sense than going it alone. CLA’s investment banking team was a natural fit to explore paths to higher returns and reduce risk due to our long history and practical business knowledge.
CLA brings the same high level of innovation and quality to the sales process that our clients bring to their own customers.
The first step was educating the owners about the process of selling the company. Rather than simply telling owners what to do, a member of the CLA team shared her deep experience of the M&A world from both the buyer and seller’s perspective.
Owners had many questions about their tax burden, and CLA modeled a variety of transaction structures. We also created a sell-side earnings quality workbook to help owners understand areas to improve their company’s valuation and business attractiveness.
The company was then marketed to a variety of strategic, semi-strategic, and financial buyers with aligned interests. The whole process took about a year.
achieve results
By leveraging CLA’s investment banking team rather than attempting the transaction process themselves, the owners received 27 offers in addition to their initial offer. This competitive process resulted in the owner receiving twice his amount of the initial offer.
Not only has this provided financial security for the owners and their families, but it has also allowed them to be extremely generous to their team and launch mission-based community impact initiatives.
inquiry
Explore the potential value of your business before selling. To connect with CLA, please fill out the form below.
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