We recently completed a transaction of a company that was purchased as a bolt-on acquisition for a larger company, backed by a partnership of private equity groups. We started this project a year and a day before the closing.
When we went to market we had a number of interested acquirers – all were backed by private equity. As the process ran its normal course, we narrowed the field to the best fit and worked through the endgame to the closing.
During the letter of intent negotiations, we discovered that the acquirer and its backers had an exploratory conversation with our client a year before we entered the picture. The two companies talked and decided not to pursue it further.
Flash forward a year – with a professionally prepared offering package detailing the company’s operations, offerings and markets, as well as clearly framing the opportunity, we were able to complete a transaction that was beneficial to all stakeholders. Incidentally our client has an ongoing relationship with the new company, with significant upside potential.
A professionally run marketing process and experienced intermediaries handling the process can make the difference between a sub-par transaction or none at all and a successful company sale.