The owner of a recycling processer was anticipating his retirement and contacted us to assist him with the process of finding a qualified buyer for his multi-generation family business. Due to the geographic desirability of his business, the recent decline in revenues, along with his timeline for retirement, competitors were the only potential buyers to consider, as they could justify a higher value than the earnings dictated. Our focus was to help potential buyers recognize opportunities related to the size of the property and the proximity to three major cities.

Challenge: Marketing the business to competitors without exposing the identity of the company. As presentations progressed to the second largest circle of competitors outside the company’s marketplace, a large regional competitor became interested and we negotiated a strong offer for the privately owned processor. However, since the two companies had vastly different cultures, mentalities, expectations, and key personalities, there were problems with the negotiations. In addition, the buyer had directly contacted the owner a few years earlier and had made a less than satisfactory offer that the owner refused. The owner had doubts that we would convince the buyer of the value he was after.

Solution: VERCOR's broad experience enabled them to successfully reach agreement in the areas of conflict and produce the value the owner expected, while insulating him from the time-consuming process and roller coaster ride of negotiations. The seller was able to stay focused on maintaining day-to-day business operations, thus protecting the company during the protracted negotiation process. As a result, the transaction was closed in ninety days, allowing the owner to realize his goals.