Case Study: Pat Tank
Background:
Founded in 1945, the second generation of a company founded by a single owner wanted to pursue a 100% sale of the company while the third generation of the family was operating the business day-to-day. The collective ownership group believed they had a salable company and wanted to fully explore options. An important part of the company’s 70+ year history was its significant reputation for high integrity and high quality workmanship.
Focus Strategies Service:
Focus Strategies was engaged as their exclusive advisor to pursue an extensive sell-side process. Focus Strategies worked with ownership to complete due diligence and sell-side marketing documentation and materials. In parallel, Focus Strategies assembled not only the traditional buyers for an energy company sale list consisting predominantly of Texas, Oklahoma and Louisiana prospects, but extended their reach nationally to include an audience of more than 100 pre-selected strategic and financial buyers. A significant response of more than 10 Indications of Interest (IOIs) were received. As Focus Strategies assessed all of the prospective groups, they found one that stood out from all of the rest. Based in Pittsburgh, PA this buyer had recently purchased a similar company in New England and wanted to acquire another company in the same niche. Moreover, they were willing to pay a premium for the company when compared with more traditional buyers in Texas, Oklahoma and Louisiana. Focus Strategies’ extensive network and ‘above and beyond’ marketing approach yielded a great result for both parties.
Outcome:
The buyer was able to realize best practices across both of their acquisitions and has since sold the company at a significantly improved price relative to their original purchase.