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M&A Case Study

Situation

A $45M automotive tier 1 supplier was in the midst of a turnaround and owned by a Private Equity company.

Despite the turnaround their most significant customer (accounting for 80%+ of their business) was not supportive of PE ownership within their direct supply base and desired the company to be owned by a strategic competitor.

Solution

- Kept the team focused to continue executing the turnaround

- Worked with investment bankers to prepare management presentations to market the company

- Led plant tours and assessments in the plant in Central America

- Met with prospective buyers and led management presentations on the status of the business and operational improvement plans for the future

- Kept the team focused over an 18 month time frame even after two rounds of sale negotiations broke down at the last minute

Satisfaction

* The company was sold to a strategic competitor

* Turnaround efforts were successful, yielding a much higher price for the business than originally anticipated.  Third round price was much higher than first round price

* Even through all the turmoil, employee turnover remained low, which helped get the final deal done