Background

• A $250 million client wanted to grow through acquisitions and identified a $35 million private company with a leading edge technology coveted by several multi-billion dollar competitors.

Problems

• The other bidders were much larger than the client and could afford to pay a significantly higher price for the private company.

Resolutions

• The owners of the private company were encouraged by the client to talk openly about their future plans and aspirations for the company after the sale.
  
  
• It was discovered that the owners had three objectives in the sale that were not previously voiced. The owners:
  
  
  • No longer wanted operating roles
  • Preferred cash over stock
  • Would like the name of the company to live on
    
    
• The client was able to meet all of the sellers' personal objectives and its own needs by:
  
  
  • Paying cash vs. the higher stock offers of competitors
  • Having the owners remain as consultants while bringing in operating managers
  • Retaining the company name as the division name