A distribution company hired MWA to provide due diligence support and transactional assistance after receiving an offer from a potential buyer. The company projected the sale price to be $25,000,000 when MWA was hired to consult on the sale, but we were confident the sale price could be increased with our involvement.
Although it was well equipped with quality legal counsel, the client still needed our help to package its financials in a way that would obtain maximum sale value. The negotiations with the buyer lasted for a year and involved multiple rounds of EBITDA debate, due diligence gathering, and balance disputes. The client often felt backed into a corner by the buyer, and it needed a strategic advocate and motivator throughout the long and difficult process.
The Right Solution
MWA is very experienced in handling due diligence for sale transactions and debates concerning EBITDA adjustments, and we built the most substantiated due diligence package the buyer had ever seen. The positive EBITDA adjustments achieved during the due diligence process allowed the client to obtain an increase in sale price of nearly $3,500,000.
Above and Beyond Results
The client’s lack of operational tracking systems was extremely problematic for the buyer, so to keep the deal on track we broke everything down to a per unit basis and moved every unit for an entire year through the financials at this incredibly detailed level. Our solution substantiated the higher value of the client’s business to the buyer and ultimately enabled the parties to finalize the sale.