| Strategic deal completed by our experienced M&A team |
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The owners of one of our clients (seller) contacted us for assistance when an industry leader (buyer) approached to purchase the company. The seller manufactures products and provides services to the construction industry. The buyer had strategic interest for several reasons. The seller has many repeat customers in the Northwest with little crossover into the buyer's customer base. Customers know the seller for high quality products and rapid service. The buyer wanted to implement proprietary production techniques developed by the seller into other markets across the nation. The buyer also desired to utilize excess capacity at the manufacturing facility to produce their products for its existing customer base and cross sell into the seller's base.
The buyer wanted to move quickly so they offered an attractive price and terms corroborated by our valuation analysis. Management decided to move forward with the transaction so two BP partners assisted with negotiations and transaction structuring. We also referred the client to a trusted M&A attorney with whom we have had previous success. The owners, management, the attorney and BP worked together to ensure the final price, price allocation, terms and deal structure maximized after-tax proceeds to the seller. We also assisted with due diligence procedures to complete a successful transaction.
Result #2: The buyer purchased a turn-key strategic opportunity to expand geographical territory, obtained a new customer base, gained the ability to sell a new line of products through its existing national customer base, added production capacity, integrated proprietary production processes, and employed skilled and dedicated employees to generate immediate profitability and cash flow.
We are specialists in buying, selling or valuing a business or an interest in a business, and in the process of successfully completing ownership transition to maximize personal and financial results. Please give Allan Vander Hamm, Principal, Business Valuation and Transition Services, a call at 425.454.7990 to discuss the issues and the integrated team-focused process at no charge. |
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425.454.7990 fax: 425.454.7742 |
Local Tax Services, Darcy Kooiker, testified against the bill before the House of Representatives Finance Committee and suggested they remove the section affecting contractors. The House followed the suggestion and re-wrote the legislation to minimize the impact by allowing qualifying contractors to receive seller's permits, thus eliminating the tax prepayment and credit requirements for most contractors. The CFO of a large construction company wrote a thank you note to Darcy stating, "It would have been difficult to get the results we achieved without the insight you brought to the table."
