Unsolicited Buyout Offer

· We are representing the sole shareholder of a specialty apparel manufacturer:
- 100% owned by a single shareholder
- Nearing, but not at, retirement age
- Revenue of $30+ million
- Consistently profitable, in business more than 35 years
- Excellent business manager but no experience in M&A

· Owner was approached by a private equity firm to discuss a buyout:
- Approached by private equity backers with extensive transaction
  experience
- They owned a larger company in a related product and planned to
  combine the two
- Extensive negotiations and due diligence took place
- Due to developments unrelated to our client, the buyer backed away

· The process we undertook to sell the business proved prescient:
- We represented the seller in the original negotiations
- We had a back-up plan in place, ready to go
- We immediately went out to 15 private equity firms who we had
  pre-screened
- We have 6 bids in hand, and they are at higher valuations

Key Takeway: Having professional representation can help owners meet their objectives, even when unforeseen problems appear.