The focus client for this case study previously owned and managed a permanent staffing placement company that operated out of the Midwest. Our client’s company was run by two managing partners who wanted to shift away from handling the day-to-day operations of the staffing and recruitment industry. Consequently, they sought opportunities to divest and sell their stake in the business. One of the owners, who had been handling the sales initiatives for the company, was interested in completely exiting the business. The other owner, who managed the company, was seeking a minority stake and active role in the company when it eventually sold.
Before contacting GillAgency, our client had unsuccessfully attempted to list and sell their business on the open marketplace. Despite garnering interest from around the world, they were inundated with requests for information from unqualified buyers. They simply didn’t know who to divulge confidential information to and whether or not it was even worth their time to set up meetings with potential suitors. With limited knowledge of the vetting, selling, due diligence, and closing process, they could not find a buyer on their own (especially one who fit their specific criteria of keeping one of the owners on board as a stakeholder and employee). Ultimately, they reached out to our firm to receive professional guidance and consultative services.
Solutions and Results
Prior to re-listing their business on the market, we walked the client through our detailed, thorough, and efficient vetting process to ensure any potential lead was qualified to make a purchase of this magnitude. We highlighted how we’d maintain confidentiality throughout the experience and would keep our client in the loop with any and all decisions along the way.
Over the course of eight months, we worked hand-in-hand with our client to locate the most appropriate buyer for their business. Considering their unique expectations of the sale, we always considered their primary goals throughout the engagement. We stepped up to address challenging or uncomfortable situations with potential buyers with complex requests or demands and never faltered in our objective to find them the best possible buyer. After receiving numerous LOIs, speaking to many highly qualified investors, and fielding multiple offers, we were able to raise the asking price of the client’s company to match demand and interest. Ultimately, our client chose an offer that best met the company’s and the owners’ individual needs.
We conducted the due diligence for the deal within 30 days as we mandated in the agreement, but the closing took extra time, which we did not anticipate. Regardless, we kept the ball rolling and ensured that all parties were communicated with and fully updated throughout the closing process. We successfully secured a job offer and minority ownership stake in the business for one of the two owners while allowing the other owner to free themself from the company altogether.
Our clients are incredibly pleased with the results achieved, and the strategic buyer is beyond enthusiastic about having acquired a very profitable company that fits their portfolio and business goals.