Well-established electrical contractor initially developed a succession plan for the next generation of the family. When next generation’s careers took a dramatic change, they sought a sale of the business.
A broad auction process was run across four states to find acquirer of the business:
- Prepared marketing materials to promote the business, highlighting long-term, recurring relationships with large residential development companies
- Developed prospect buyer list of more than 300 potential buyers, including small private equity groups with similar portfolio companies and other electrical areas across CO, NM, NE, and TX
- Engaged with prospects to gauge interest and develop conversations
- Engaged with high-net-worth individual to get under LOI and to quickly complete purchase agreement and ancillary documents
- Negotiated final terms
- Closed transaction in 60 days
Brothers received maximum possible enterprise value (above market for the business) for the company, consisting of up-front cash and a small seller carry. Seller carry has since been satisfied.