They say the riches are in the niches, but in the M&A world, that also means finding the perfect buyer who understands the intricacies of that niche. Challenge number one was clear: finding that needle in the haystack.

When GillAgency took on this engagement, customer concentration was at 48%—not ideal, but manageable. However, as the business grew, concentration with their largest client skyrocketed to 90%, making this challenge number two. Buyers were understandably hesitant about the risk involved with such reliance on one customer, even though it was a dominant player in the industry.

Challenge number three was the company’s workforce. While experienced, the entire staff were contractors, not employees—a structure that many buyers shied away from.

And finally, challenge number four: financing. Given the complexity, we needed an SBA lender willing to navigate the hurdles.

But after 28 months of perseverance, multiple strategies, and unwavering dedication from our client, we finally closed the deal with the right buyer and lender.

The road wasn’t smooth. We had two LOIs fall apart. The first was due to a buyer trying to renegotiate the price just days before closing, reaching out directly to our client—a clear breach of process. If he had come through us, we could’ve found a way to salvage the deal.

The second LOI fell apart with a PE firm that initially accepted the client concentration but later demanded introductions to key personnel from the client’s biggest customer—a big no-no in M&A. Despite negotiating alternatives, the PE firm continued dragging their feet, and our client rightfully ended the LOI.

At GillAgency, we pride ourselves on guiding our clients through every twist and turn—no matter how complex—and getting the deal across the finish line.