Case Study

Our Methods Find the Best Value for Business Owners

Case 1 – Background: Manufacturing Company had three equal partners-1 managing the business and 2 partners serving on the Board of Directors. A potential buyer approached them and they engaged in conversations without the help of an investment banker. After several months of negotiations, the Buyer tried to re-negotiate the price, which was substantially below the owners’ expectations. Consequently, the owners came to the understanding that they did need the support of an M&A advisor and reached out to Osage to help sell the business. Together, we developed a plan to achieve the owners’ goals, marketed the business, received multiple offers, and negotiated the final terms of the contract-including several benefits that the client would not have considered without the expertise of Osage.

Osage Plan:

  • Positioned the business as a unique acquisition opportunity to potential buyers.
  • Prepared a confidential, detailed pitch book on the business that showed potential buyers the Company’s strengths, historical and predicted performance and market opportunities .
  • Identified multiple financial and strategic buyers in and around client’s industry.
  • Ran a controlled and confidential competitive bidding process and obtained multiple offers while maximizing value.
  • Handled negotiations with potential buyers.
  • Assisted client through the due diligence process through closing.

Results:

  • Multiple offers were received.
  • Acquisition made by a public company looking to enter client’s industry as part of their overall growth strategy.
  • Final purchase price and terms exceeded the client’s expectations.
  • Operating owner able to transition out on his terms.

Timing: 8 months from initial agreement to deal closing

Case 2 – Background: Tool manufacturing company, founded in 1958, provided tooling accessories to the Spring manufacturing industry. After 45 years, the owners decided it was time to sell the business and contacted numerous companies in the area about buying it. However, the owners were unable to generate meaningful interest and any offers received were significantly below expectations. Following months of frustration, the owners engaged Osage to help them find the right buyer that would meet their value expectations and provide job opportunities for their loyal and long-term employees.

Osage Plan:

  • Positioned the business as a potential growth opportunity for strategic buyers currently not in the client’s market.
  • Enhanced the company’s value by restating its financial statements with documented owner add-backs and adjustments.
  • Prepared a detailed confidential offering memorandum highlighting the company’s strengths and value drivers including detailed industry research.
  • Identified and contacted a broad range of potential strategic and synergistic buyers outside the clients’ industry.
  • Handled negotiations with potential buyers.
  • Provided support and assistance throughout the due diligence process until the closing of the transaction.

Results:

  • Received several offers from qualified buyers.
  • Sold company to private family-owned strategic buyer at a multiple of over 30% higher than previous offers and within 20 miles of its facility, exceeding client’s expectations.
  • Jobs were offered to long-term employees.
  • The older of the two owners was able to retire and cash out. The younger owner was offered a long-term employment agreement and decided to continue working.
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