Insights
The founder of a commercial HVAC wanted to:
- Position the company for a timely sale
- Participate in the continued growth of the business
- Retain an equity interest in the company
- Provide peace of mind for the future of his family
The Company had already received an IOI from a strategic acquirer at an attractive price, but with unfavorable terms
Action
A Newport partner served as the exclusive financial advisor to the company
- The partner set preliminary valuation expectations with the founder
- The partner assisted the Owner in assembling a seasoned deal team
- Transaction sale documents were prepared (teaser, CIM, updates)
- Due diligence materials were provided in virtual data room
- A buyer list was developed and a defined sales strategy was executed
- Over 12 management meetings were conducted with potential investors and seven LOI’s were received.
- A strategic acquirer was identified whose LOI provided substantial cash consideration, equity in the Buyer, and continued employment of the Owner as president of the local business.
Results
Newport ran the sales process and executed a successful sale on favorable terms at a price 33% higher than the original IOI the Owner had received with cash consideration greater than 65% of the total transaction.
- The founder will continue with merged company
- The Newport partner managed the entire sales process and successfully closed on time
- The founder is extremely happy with the outcome and enjoys working with new leadership team
