Why Use Benjamin Ross Group? 2021-09-23T12:55:13-05:00

Why Use Benjamin Ross Group?

Background/Issue

A recent client of ours, a Commercial and Industrial Mechanical HVAC Company, had their company up for sale with a previous business broker. The previous broker had overseen the sale process for 12 months without presenting an offer to our client. It was also critical to our client that the sale process remain highly confidential.

This business was established over 35 years ago. The company is a Commercial and Industrial Mechanical/HVAC company, specializing in the installation, maintenance, repair and emergency servicing of mechanical/ HVAC and process systems. They serve a broad range of clients including: Commercial, Industrial, Institutional and Public including Municipal, County and State Governments. Revenues were over $5.2 million.

Solution

We had an in depth meeting with the owner. The purpose of the meeting was to explain our confidential valuation and sale process and answer any questions the client had. We also wanted to better understand their business, the operations, financials and structure of the business. After this meeting, we were then able was to perform a valuation of the company.

After completing the valuation, we reviewed it with the client and agreed upon the sale price. The decision was made to move forward, therefore, we collected additional financial documents, wrote the offering memorandum, and proceeded to go to market. Because we receive many potential buyer inquiries each day, we have an extensive database of pre-qualified buyers interested in various industries. We confidentially exposed the business to potential candidates in our buyer database. Within weeks we had multiple full price offers. We reviewed each offer with our client and selected the perfect candidate to move forward. We worked with the buyer and seller through the due diligence process, managed the accountants and attorney involved and also arranged the SBA bank financing.

Results

Multiple offers were presented to our client within weeks of Benjamin Ross Group’s engagement. The transaction was successfully completed with an SDE (Seller’s Discretionary Earnings) multiple that was attractive to our client. No earn-out and reasonable involvement was required from our client post sale. All of this was done with the sale process remaining confidential. Total transaction value was $3,750,000.

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