The professionals of Heritage & York have successfully completed strategic and financial transactions for small and middle-market companies nationwide. This snapshot represents an introduction into our experience and ability.
The Transaction
The Story
Divestiture of division with buy-in from senior managers
A leading manufacturer of radio-frequency identification (RFID) systems - The products are targeted chiefly at high-traffic retail applications where the risk of equipment failure must be minimized .Its corporate parent challenged us to design a sale process that would achieve full valuation while also allowing the company to retain its progressive corporate culture. The parent company also indicated that the senior management of the divestiture, who already had a minority stake in the business, should be given a strong voice in the sale process.
Company sale providing exit for one shareholder and reinvestment by others
A manufacturer of heavy-duty specialized equipment used by county and municipality governments across North America - During the years leading up to the sale, the company implemented a strategic exit planned process that gave the company a leading market position.The CEO, who owned a majority of the company, wanted to cash out and retire. This dynamic presents a challenge in M&A and financing transactions because possible buyers and investors often attribute the company’s success to its leader. Left alone, this perception can drive buyers away or cause them to discount the value of the business for “succession risk.” Consequently, we needed to show potential buyers that the other senior managers were capable of executing the company’s growth plan.
Debt recapitalization to enable buyout of family members
An independent beverage company - Its family-owners were divided over the issue of reinvesting cash flow to finance growth. We assisted one part of the family in buying out the other.
Sale of an entrepreneur-owned company to a foreign strategic buyer
A plastic injection molding company operating in a highly fragmented industry - The sale of the company to a strategic buyer in a highly synergistic transaction allowed the owner/CEO of the company to diversify his assets and become the CEO of a much larger, more diverse business.
Sale of non-core division for a larger corporate client
A food process and packaging company – Its parent company’s core strategy was in the manufacture and marketing of prepared foods. The third business line presented a strategic challenge. In addition to its manufacturing operations, the parent company operated a distribution business that made in-store deliveries to grocery stores. Our analysis of the distribution division on a stand-alone basis allowed prospective buyers to understand and value the business.
Debt recapitalization to enable buyout of institutional partner
A leading manufacturer of general-purpose and specialty paper products - A private equity firm had acquired control of the company several years prior to our involvement. We were retained to arrange a transaction that would provide an exit for the private equity firm and enable senior management to regain control of the company at an agreed-to valuation. We crafted a thorough memorandum and approached a wide variety of senior and subordinated debt lenders. The company received funding from senior lenders, and from a subordinated debt lender.
Sale to a strategic buyer in an accelerated process
A leading designer and manufacturer of custom components for the medical and industrial industries, as well as others - It built a successful business model around domestic design, engineering, manufacturing, and distribution capabilities. The company’s model was further supported by its Chinese sourcing and supply ability.
Raising of growth capital to assist in nationwide expansion
A growing restaurant chain establishing an inviting, sophisticated, and high-energy atmosphere – As part of our customized fundraising process, we developed an Offering Memorandum and Management Presentation that effectively positioned the company to consumer-focused institutional investors. The company received multiple indications of interest for a wide variety of alternatives, including an accepted two-tranche transaction to facilitate the growth.
Sale of company that required substantive preparation before going to market
The successful sale of a Department of Defense manufacturer, benefited from our thorough preparation and, during the sale process, our navigation of several issues that may have otherwise derailed the transaction. In our positioning of the company to prospective buyers, we addressed important challenges the company was facing. These included raw material cost increases, upcoming regulatory changes, high concentrations of revenue in certain customers, and post-transaction senior management vacancies.
The sale of a private company to a direct competitor
In this case, the cost synergies of combining two overlapping companies drove a strong valuation. The seller wanted an all-cash exit at a strong valuation, and a competitor expressed immediate interest. The combination of the two competing companies would create a market force within their region. The promise of cost-saving synergies put the buyer in a position to value the seller at a relatively high price.
Note: As used above, the terms “we” and “us” refer to the professionals of Heritage & York either during or prior to their affiliation with Heritage & York.