Challenge
In this case study, the owner listed his business for sale with us but due to an illness in his family he needed to move to a different state to be closer to his daughter who was suffering. The business was a great collectables business with over $6 million in manufacturing assets, $7 million in revenue and over $1 million in cash flow, but the assets were not located in this country. While the business was doing about $7million a year in sales it was serviced primarily by only two major clients, which meant the banks and other lending institutes would not consider the business for any type loan even though the owner was looking to sell for only $2.5 million.
Solution
Working with an out-of-state company, we kept the listing for the business and interviewed over 1,000 potential buyers until we were able to locate the right person. We worked with the buyer and his funds to find a middle ground that was tenable to both parties. Since the buyer was able to make the commitment in funds and time to take on the project, we structured a deal that allowed the seller to stay on in a reduced capacity and consult with the new owner while taking the necessary time off to be with his family.
Resolution
The new owner is pleased with his purchase and the company is flourishing under new ownership.
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