Frontier Windows & Doors
The client company was less than five years old. However, the partners felt that they had grown this start-up operation as far along as they had the resources and energy for. If they could obtain a reasonably strong price in the marketplace, they were ready to hand it off to a next generation of ownership. This distribution company had experienced strong growth trends, with performance (earnings) that were strong too considering its short history. It was perfectly positioned in growth markets and in an attractive location for living.
The AdvantEdge Solution
We were engaged to put the best face on the business and to deploy our proven marketing strategies.
A relatively inexperienced, but very motivated mid-west buyer, emerged from our networks within weeks of placing it on the market. As intermediary, we were afforded the opportunity to assist the buyer in overcoming several obstacles, including a strong fear of the risks involved and we assisted with financing. The sellers ended up receiving a very strong multiple of earnings for their industry (3.8X), which is top dollar and all cash. One partner was able to address mounting health concerns and pursue other less demanding business interests and the other received sale proceeds to diversify his investment portfolios and yet remained in a long-term employment relationship with the buyer. The buyer at the most recent contact indicated he was enjoying record sales and had already moved into an expanded facility. The business was sold and the owners were off the firing line within three months of going to market.