August 4, 2022
The owner, a successful entrepreneur of a manufacturing company was used to getting unsolicited sales calls to buy his business. He’s operated a profitable business since 1988 and has a reputation of manufacturing high quality products at a reasonable price. The owner decided to take one of those unsolicited calls as he and his wife contemplated life after the business. They wanted to spend more time with their grandchildren and horses. For over 38 years the business was the owner’s life, and now it was time to enjoy more leisure time.
Conversations with a Private Equity group (PEG) were going well. The PEG was in the process of rolling up smaller companies onto their platform of similar type companies. Revenues nearly doubled in 2021 from the previous year, generating a record $3 million EBITDA. The owner felt it was the right time to sell but speaking to only one buyer made him uncomfortable. He did not want to just settle for a deal without knowing what value other potential buyers would place on his business.
After the entrepreneur read Woodbridge’s book “Selling Your Passion”, and talked to Don Krier at Woodbridge, his skepticism eased, and he hired Woodbridge in the first quarter of 2022.
During the sale process, the owner asked us to recommend a Financial Advisor capable of managing $12 million of net sale proceeds. We provided a few introductions, and the owner ultimately chose an advisor he and his wife were comfortable with.
The deal was running smoothly and ahead of schedule. Three days prior to closing, the owner let us know that his bank needed to approve the change in ownership. The Financial Advisor was instrumental in letting the owner know the importance of telling the closer. With no time to spare, Woodbridge and the bank worked together to seek approval and close the deal in record time: 133 days from start to finish! The owner ended up selling to a buyer he had never heard of before.
When we have a motivated seller operating a company with a bright future story, our process finds the best price and most options the market delivers. In this case, our client had 7 options to choose from to begin a new phase of his life on his ranch and playing with his grandchildren.