Sale of a Family Business to an Industry Player

We represented the founding, multi-generational family in the sale of an electronic connector manufacturing company that they had owned for over sixty years

• Multiple objectives of five family members
• Entrenched management
• Outdated manufacturing profile
• Solid reputation in some specific sectors
• Limited universe of potential buyers

The sale process required confidentiality and creativity

• Focused on strategic buyers only
• Analyzed range of industry participants who could benefit strategically from this acquisition
• Minimized confidentiality risk by limiting disclosure of proprietary information only to serious buyers
• Received 4 offers from 23 prospects
• Well defined due diligence process yielded a final transaction that was unchanged from original LOI

Final value was over 16x reported earnings, with most of our anticipated integration savings accepted by the buyer

Key Takeaway: A successful transaction depends on the ability to balance owner/management objectives as well as find the right buyer who can realize the full potential of a business combination.