October 1, 2024
We recently completed the sale of a high-rise construction business that had been in operation for 18 years. The owner felt the company was performing strongly and that the timing made the most sense to capture life-changing money. The owner was also done dealing with the potential liability of owning this type of construction business and was looking for a partner to help with it. Once the deal was closed, we referred them to a financial advisor who is now helping with the post-sale liquidity.
After preparing all the materials and sending them out confidentially to strategic and financial buyers, we received 18 bids for the business. Our team then vetted these buyers to evaluate their strategic angle, likelihood of closing, and sources of funding. We set up management meetings with the 5 best buyers. Earlier in the process, Woodbridge facilitated a one-day management meeting workshop that got the owner to think like a buyer – it’s like they were on Shark Tank! We know how buyers will challenge our clients and what they are looking to hear, so time is optimized, and we can make the best impression.
From those management meetings, we received 3 letters of intent, which gave our client options and leverage. For the owner, it wasn’t about which buyer was offering the most cash, but rather the one that provided the best strategic fit. The owner felt so confident in our team that they based their decision on our recommendation. Our client ended up going under exclusivity with a $500 million strategic buyer backed by an $8 billion family office. Over the last 3 years, the strategic company had made 19 acquisitions, and our client was seen as a perfect fit.
There’s no seller who “likes” due diligence; inevitably, issues arise. One of the issues that came up here was that 3 years ago, the owner accidentally gave his key person in the company 10% equity without realizing it. Working with both legal teams, our team was able to resolve this issue, and once the deal closed, the owner bonused the employee for their cooperation.
In total, this deal took a little over 9 months, and our client ended up with a great outcome, where we exceeded his financial objectives while finding a buyer he believed could take the company to the next level. Our client is in his late 40s, so he has plenty of gas in the tank and will now focus on the parts of the business he enjoys, while being incentivized to grow it further.
Woodbridge, A Mariner Company is now simply Mariner.
Brand Update: Last year, Woodbridge joined the Mariner family, combining our M&A Experience with Mariner’s comprehensive wealth, estate, and tax advisory services. As the final step in this integration, we are transitioning our name from Woodbridge, A Mariner Company to simply Mariner. You’ll continue working with the same team you know and trust, with the same commitment to your success — now under one unified brand.