The owners of All Type Electric were introduced to VR Business Sales by their Financial Planner.
All Type Electric has been established for over 30 years and is primarily involved in electrical instrumentation and electronic controls for the oil & gas and aggregate sector.
The owners were interested in slowing down and preparing for their retirement, but they were aware of all the potential for growth in the business. The financials have recovered from the recent recession and profits were back to normal levels again, indicating that the business was not ready to slow down.
All Type generated a total of 65 inquiries, with 6 offers to purchase. Although there were many interested buyers, the ideal buyer turned out to be an investment banker from New York who was looking to acquire a business in Western Canada.
Due diligence on the business took some additional time due to the distance of the buyer but was completed in approximately 3 months and the deal proceeded to closing. One of the major challenges this business experienced was a lack of financing available to the buyer from Canadian banks. The Sellers were not prepared for any earned outs, but agreed to a bridge financing that will allow the buyer to close the transaction and then to obtain financing from the banks once he enters in Canada. This method successful and within a few weeks after the deal was closed, ATB offered the buyer a term sheet based on their new “Goodwill Financing” program. This is a brand new financing program by ATB, and VR facilitated ATB’s first term sheet on this program.
Part of the transition included the Seller’s staying on with the business for up to a year with full compensation and benefits package.
VR facilitated all aspects of the transactions – from the initial valuation through closing.
All Type Electric has been established for over 30 years and is primarily involved in electrical instrumentation and electronic controls for the oil & gas and aggregate sector.
The owners were interested in slowing down and preparing for their retirement, but they were aware of all the potential for growth in the business. The financials have recovered from the recent recession and profits were back to normal levels again, indicating that the business was not ready to slow down.
All Type generated a total of 65 inquiries, with 6 offers to purchase. Although there were many interested buyers, the ideal buyer turned out to be an investment banker from New York who was looking to acquire a business in Western Canada.
Due diligence on the business took some additional time due to the distance of the buyer but was completed in approximately 3 months and the deal proceeded to closing. One of the major challenges this business experienced was a lack of financing available to the buyer from Canadian banks. The Sellers were not prepared for any earned outs, but agreed to a bridge financing that will allow the buyer to close the transaction and then to obtain financing from the banks once he enters in Canada. This method successful and within a few weeks after the deal was closed, ATB offered the buyer a term sheet based on their new “Goodwill Financing” program. This is a brand new financing program by ATB, and VR facilitated ATB’s first term sheet on this program.
Part of the transition included the Seller’s staying on with the business for up to a year with full compensation and benefits package.
VR facilitated all aspects of the transactions – from the initial valuation through closing.
SUMMARY OF FACTS
| Business Name: All Type Electric No. of Inquiries: 65 No. of Offers: 6 Sold Date: April 2013 | Industry: Electrical Contractor Services No. of Qualified Buyers: 17 Deal Duration: 692 days VR Associate: Jey Arul, MBA, CBI |