Situation and Objectives:

• John is 61 years old, the President and majority shareholder of regional plumbing and heating company with $55 million in sales.
• He receives weekly unsolicited calls from business brokers and investment bankers with offers to buy or sell the company.
• He knows that he needs to plan for his eventual exit from the business and the calls are a constant reminder that he hasn't done anything yet.
• John is concerned that the callers' best interests may not be his.

Solution:

• Company owners, directors and key employees now think like a buyer...
• With a clear understanding of the company's value and the key drivers of the valuation, John and the other shareholders and Board of Directors concluded that although today was not the right time to take the company to market, it would be ready to go to market in the next 12-24 months.
• Restructuring the company saved significant taxes upon sale and facilitated a less complicated sale transaction.
• A "Stay Bonus Plan" was implemented to entice the company's key employees to stay through closing and add employment restrictions to prevent value dilution from a buyer's perspective.
• John was now armed with the tools to choose the right investment banker to sell the company on his schedule and on his terms.