Buyer Case Studies

The Situation

Acquisition of a Plastics Company

The two owners of a niche silicone converting company wanted to diversify into other types of materials converting to expand their business.

The Alpha Omega Solution

Alpha Omega reviewed the client’s capabilities and recommended a strategy for roll-up of thermoplastic processing companies with the objective of creating a much larger company that would benefit from the benefits of size and allow the overhead of acquired companies to be consolidated therefore increasing the profitability of the entire enterprise. Further and equally important is the fact that the acquisitions would be made at “small company” multiples but after consolidation, the resulting entity would enjoy a value far greater than the sum of its individual parts. Alpha Omega conducted a search of multiple databases to locate companies that fit the proposed acquisition criteria (thermoplastic profile extruders with sales from $2.5 to $10 million located in the continental United States.) Alpha Omega then wrote letters to all companies that fit the criteria and spoke with the owner of every company that responded to qualify them and determine if there was a fit. We then exchanged non-disclosure agreements, obtained and analyzed financial information, and if appropriate, arranged meetings.

The Results

Using the strategy proposed by Alpha Omega, the client was able to locate and purchase three plastics companies that fit the acquisition criteria. With the assistance of Alpha Omega, over 45 companies have been identified and qualified as possible acquisition candidates with negotiations continuing.

Disclaimer

All project history examples are guaranteed factual. In some cases, names of companies are excluded at the request of the client or can only be disclosed after execution of a non-disclosure agreement acceptable to the client.