Owners of a family-owned company asked Elliott Davis to help answer: We received an unsolicited letter of interest from a sophisticated buyer. Can you provide the necessary guidance for us to maximize our outcome?
Context
Family-owned, leading worldwide provider of training and compliance solutions to the power industry received an unsolicited letter of interest (LOI)
- Limited previous transaction experience
- Needed support in due diligence process with sophisticated buyer to maximize outcome for family and other owners
Our Phased Approach
Phase 1 - Respond to LOI
- Provided sell-side advisory services and response strategy
- Assisted with evaluating and assessing the offer
- Analyzed financial and non-financial information to prepare for negotiations
- Assisted with seller valuation defense and communication of value drivers, strategy, and forecast to buyer
Phase 2 - Defensive Due Diligence
- Advised in negotiation, assisted in response to buyer inquiries, and participated in due diligence meetings
- Analyzed buy-side Quality of Earnings and working capital analysis
- Offered guidance and insights into negotiation points
Phase 3 - Definitive Documents
- Coordinated with legal and tax advisors in agreement execution
- Advised in negotiations of agreements and definitive contracts
- Inspected and annotated final documents for valuation, structure, tax, working capital, and other considerations
- Assisted with negotiated final post-close working capital true-up and earn-out
Customer Impact
- Seller successfully navigated sophisticated buyer’s exhaustive due diligence process
- Minimized deal risk and increased close probability
- Seller understood options and scenarios to sell business with confidence
- Family owners received two years of compensation with minimal post-close responsibility
- Increased valuation by nearly 50% from original offer
We Can Help
For more information on this and other topics, contact a member of our team.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
