February 1, 2024
Woodbridge recently facilitated the sale of a distribution company, where the majority of their business was through repeat customers. The owners, a husband and wife, decided to sell, believing they had maximized the business’s potential and were ready to retire and travel.
After creating a custom list including both strategic and financial buyers, we received interest from 111 potential parties that wanted to learn more after viewing our teaser. Once confidentiality was established, and the groups had the opportunity to review our marketing materials, we received 12 bids for the business. Following a thorough vetting process of all potential parties, we strategically presented our client to the top 5 buyers, emphasizing those with the highest likelihood of closing and the strongest strategic fit.
Our client selected a large strategic buyer in Canada they never heard of before. Early in the process, we connected our clients with a wealth management team to conduct high-level planning which proved fortuitous; there was a material issue that arose in due diligence which caused a renegotiation in the buyer’s favor and the Wealth Management Team helped the Client to realize with reduced cash at closing they still met their financial goals. Realizing time kills deals and nobody can predict the future, our client proceeded with the transaction and the deal closed; from start to finish this transaction took 135 days.
Several factors contributed to the swift close; our client’s financials were buttoned up, both legal teams were very efficient and everyone involved bought into the timeline and was held accountable. Additionally, the wealth management team helped our client see “the forest through the trees” in that with a reduction in cash at closing, they were still fine financially and a “bird in hand is worth more than 2 in the bush.”
For business owners considering selling, it is crucial to deploy a team of professionals who add value to the deal