A business unit of a F50 company was being carved out for sale, and was on an accelerated deadline to prepare. The management team, already busy with the day to day operations, was now being asked to spend significant time discussing the business drivers and providing data and insights for the CIM. The business was fundamentally strong, and the opportunities to invest and realize value were significant. However, market conditions were fluctuating and it was imperative that they go out that quarter to meet with buyers.   

The company knew that if the story was told well, this would be an attractive offering for both financial and strategic buyers. However, the data didn’t tell the whole story. There was significant goodwill value in the business that the data didn’t explain.

We were brought in to work with the management team and the bank on a presentation that told the story behind the numbers. We began by listening in on the bank interviews with the management team. Then we went back and used behavioral interviewing techniques to learn the rest of the story.

  • The company had a strong pipeline of new business that would not be captured in a conservative financial statement; we learned that the process for vetting new projects was such that the R & D team invested only where a customer had a need and there was significant profit in the project. We were thus able to create a narrative of new business opportunities that were “sure things” but not captured in any financial statement.
  • The commercial and technical sides of the business had developed deep customer relationships through years of collaboration, but listing customers didn’t demonstrate incidence. Our work uncovered how customers came back again and again and paid top dollar for the company’s superb technical capabilities and ability to bring the product all the way through the manufacturing process. 
  • The global manufacturing footprint was only part of the value; the leadership team had successfully improved employee engagement to drive exceptional manufacturing standards across the globe, a de facto cost advantage that was not called out in the financials.

Our team worked collaboratively with the M & A team and the investment bank through numerous versions of the presentation to fully integrate the story and the data into a seamless presentation. We developed a story that could be told flexibly to various types of strategic and financial buyers. The result was that all 7 of the serious buyers who were vetted by the bank, went on through the next phase to the data room, and the company had numerous offers at or above the anticipated price.

Read about our M&A Consulting Process

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