Case
Study
Equipment Industry
Designed Conveyor Systems
Designed Conveyor System's owners ran two successful, unrelated businesses, and when the recession hit, both were negatively impacted. One year into the recession, the owners made the decision to engage CFA Nashville to sell one of the businesses. When Designed Conveyor went to market, there was considerable interest from both strategic buyers and private equity firms. And then something interesting happened: orders started pouring in. So, with an upsurge of orders, two questions needed answering. One, how do you properly value a project based business taking into account a surge of new orders, and, two, how can the deal terms fairly compensate both parties with revenues from this order windfall?
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Solution
One potential buyer stood out among all the potential suitors. Ambassador Enterprises, LLC and Designed Conveyor Systems shared similar business philosophies and cultures. In this case, the whole was greater than the sum of the parts and negotiations began. Ambassador was willing to work with Designed Conveyor to make sure a large part of the earnings from the order surge was retained by the seller. The two companies experienced a long courtship before finally tying the knot, but the result was truly a win-win for all parties to the transaction.
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