Second-generation owner/operators of a family-owned specialty manufacturing company wanted to provide liquidity and an exit opportunity for a majority of shareholders. One shareholder wanted to continue building the company and retain an equity position. All parties valued the family-run legacy of the business and wanted to preserve that culture.
Pre-market strategic consulting followed by a targeted auction process was run for a majority equity recapitalization:
- Assisted the family in reorganizing the management structure to mitigate the impact from the departure of selling shareholders.
- Worked with the family to craft an equity incentive and retention plan for key non-family executives to ensure maximum management continuity.
- Ran a collaborative marketing process to a highly tailored buyer group with all stakeholders (family and non-family) involved.
- Leveraged deep sector expertise and a phased market approach to ensure that acquirers providing optimal combination of financial and non-financial criteria were deeply engaged early on.
- 12 competing LOIs in a highly competitive valuation range, enabling sellers to evaluate the suitors on financial and non-financial criteria.
Successfully closed a majority equity recap with an employee-owned strategic acquirer at xEBITDA, providing liquidity for exiting shareholders, retaining a meaningful stake for the continuing management team, and preserving the family legacy of the combined company.