Over the years, a small business has become a big company that has retained its original family character. Unfortunately, however, there is no successor, and the time has come to sell the company.
What started as a local company has become a major player in the field of curtain walls and facades, supplying its services to world markets. Although the company has grown significantly over the years, the owners have managed to preserve its family character. Unfortunately, however, there is no successor, either directly from the family or from the company’s team. Due to increasing administration demands and age, the owner came to the decision to sell the company.
The owners’ idea of a prospective buyer and method was clear from the beginning. They were searching for a strategic investor in the industry that would buy a 100% stake and secure the future of the company and its employees. The end result of the transaction surprised the owners very much and today it is evaluated positively, although the owners initially did not expect something like this in their wildest dreams.
The owners’ expectation versus reality and our recommendations
It took us less than two months to find the right investor to buy the company. However, it took us at least the same amount of time to convince the owner that:
- We are a good partner for finding a solution to their problem
- There were others, more appropriate investors than those they considered ideal
- It is worth considering also other entities besides those that have been choosen by the owner during the selection process
The owner accepted our expert advice and the investor – a financial investment fund – was approved. This happened despite the fact that it was not an industry investor and less than 100% stake was taken over. The new investor purchased the majority of the company and the founders retained a minority stake under the agreed conditions, with the option to appreciate part of the funds obtained through the sale.
