Final sale value blows an early offer out of the water
Company: Manufacturing
Time to sell: Within 3 months
Offers: 6
Sold: $7.5M
Customer
This company was a long-established manufacturer located in regional NZ. With a management and staff team of 20, the business serviced customers nationwide.
Background
Our clients wanted to retire. A trade buyer had previously approached them with an offer to purchase the business. Terms and a price were agreed, and a national accounting firm was engaged in conducting due diligence on behalf of the buyer. After several months the buyer abruptly pulled out before completing the transaction.
Brief
LINK Enterprise were approached to take the business to market and establish the best value achievable for an all-cash sale and 100% exit for the owners.
Our approach
LINK Enterprise marketed the opportunity across NZ and Australia without identifying the business. Because of the value of the transaction, high net worth investors, private equity and trade buyers were targeted. Most marketing activity involved direct approaches to potential buyers utilising LINK Enterprises’ extensive databases of potential buyers for high-value businesses. The opportunity was also advertised online and in selected print media.
Result
Over 60 expressions of interest were received resulting in 6 firm offers to buy, with purchasers competing to put their best offer terms forward. The final price achieved was at a 35% higher value than the original trade buyer was prepared to offer. Our client was delighted and has gone on to enjoy a well-funded and well-deserved retirement.
