The Company is the premier distributor of products used to remove hazardous materials in New England and Florida. Customers turn to the Company as a one stop shop for all their specialized supply needs when performing a full building rehab; removing mold, asbestos, lead paint; or following a water, fire or smoke related disaster.
He had been in the business for 30+ years. While he still enjoyed selling, the management of a growing business with two locations a plane ride apart had become more of a challenge than he was looking for at this stage of his life.
Beacon Equity Advisors assisted with the valuation, marketing, deal negotiations and due diligence necessary to bring about a deal with a strategic buyer well known to the seller. In addition to the deal making services, Beacon also uncovered a fraud resulting in increasing the margins and profits of the business.
The seller contracted with Beacon after a failed acquisition with a strategic buyer. The deal failed due to poor communication between the parties during due diligence.
At the seller’s request, Beacon approached a select group of strategic buyers and competitors to gauge their interest in the acquisition.
Three buyers provided offers, one of which the seller found attractive. After receiving the preliminary offers, Beacon approached the buyer involved in the failed transaction from the prior year to gauge his interest in rekindling discussions.
Both buyer and seller from the failed transaction still saw synergy in a combination of the two businesses. The challenge was that neither side had completed a buy/sell transaction and they didn’t want to risk the existing business relationship by failing a second time.
With Beacon shepherding the communication during due diligence, the two sides arrived and a mutually agreeable transaction enabling the seller to continue in a sales role but with the buying power and management of a larger entity. The seller received cash at closing, eliminated the risk of business related bank debt and has a three year employment contract with attractive salary, benefits and sales incentives which provide a path to retirement.