Business Situation
A boutique investment bank was engaged by a privately held industrial manufacturing company to advise its sales to a strategic buyer. The company, a market leader in niche engineered components, was family-owned and had limited experience engaging with institutional investors.
The client required comprehensive sell-side advisory support to effectively position the company, run a competitive process, and maximize valuation. Key requirements included:
- Preparing robust marketing materials, including a Confidential Information Memorandum (CIM) and management presentation
- Conducting valuation benchmarking and identifying the right set of strategic and financial buyers
- Managing due diligence and virtual data room (VDR) workflows
- Coordinating buyer outreach and competitive bidding to optimize transaction terms
SGA Approach
Early-Stage Preparation
- Conducted valuation benchmarking using public comparable and precedent transactions in the industrials sector
- Created a detailed CIM, articulating the company’s strong customer base, operational efficiency, and long-term growth potential
- Designed management presentation materials tailored to highlight strategic synergies for different buyer profiles
Mid-Stage Execution
- Compiled a targeted buyer list by mapping strategic acquirers and relevant private equity firms with industrial portfolio companies
- Coordinated buyer outreach and developed teasers to gain early-stage interest
- Managed data room setup and ensured accurate, structured, and timely flow of information to interested parties
- Supported the management team in Q&A coordination as well as filtering and prioritizing queries from multiple buyers
Late-Stage Finalization
- Assisted in preparing management presentations, drafting process letters, and managing multiple bidding rounds
- Provided valuation analysis and negotiation support to help the client assess offers and counterproposals
Key Takeaways
Key Takeaways
- Maximized Valuation: The competitive auction process drove strong buyer interest, resulting in a transaction value higher than the client’s initial expectations
- Professional Marketing: High-quality CIM, management presentations, and process management helped elevate the company’s profile
- Efficient Execution: End-to-end support streamlined the sell-side process, minimizing disruption to day-to-day business operations
- Successful Exit: Enabled the family owners to achieve a favorable outcome, transitioning the business to a global strategic buyer while ensuring continuity for employees and customers
