Project Talos
After more than five decades of success, the owners of a bronze bearings and bushings manufacturing company were ready to sell the business and retire. They turned to True North Mergers & Acquisitions to find a buyer who valued the company’s legacy and the vision to carry it into the future.
We made it happen, facilitating a deal that closed 17% above the target sale price. Here’s how the deal played out.
Private equity groups and other buyers are looking for profitable industrial manufacturing companies that are part of the US reshoring trend. Our client’s business was attractive thanks to its:
- State-of-the-art equipment
- Inventory of raw materials that had appreciated with rising market prices
- Skilled workforce comprised of 48 full-time and 16 part-time employees
- Large client base with no single customer accounting for more than 3% of total revenue
While our client wanted to maximize profits, they also wanted to sell to a buyer who valued their company beyond just the financials. With that in mind, our team constructed a comprehensive target list through research, industry trend analysis, and merger and acquisition buyer activity in the sector.
Our team did not put a price on the company before going to market. Instead, we ran a three-phase QuietAuction™ process, which attracted:
- Over 90 interested parties signed non-disclosure agreements to review the opportunities
- Eight parties submitted Indications of Interest (IOIs)
- Two parties submitted Letters of Intent (LOIs)
True North Mergers & Acquisitions led the way through tough negotiations, conducting due diligence, quality of earnings review, and net working capital discussions before closing the transaction.
Our client accepted the offer from one of over 90 interested parties. The buyer, a family office fund, was selected based on the following criteria:
- A healthy balance sheet
- Investment criteria that matched the business’s strong financial performance
- A commitment to preserving the company's 50-year legacy
- Midwestern roots and shared company cultures
- Values centered around integrity and teamwork
In the end, the True North Mergers & Acquisitions team helped our client sell their business for 17% more than their target price. We also found a buyer who shared our client's values and vision. This transaction not only showcases our ability to maximize financial returns but also achieve better outcomes that balance monetary gains and personal values.
