Case Studies

The Situation

Sale of a Construction Equipment Dealership

The sole owner of a successful equipment sales and service dealership was not far from retirement age and his wife was encouraging him to transition ownership. The owner was in good health and enjoyed working, but he understood the wisdom of making the transition when he wanted to versus when he might have no choice. Since his wife was not involved in the business, he also understood her fear of becoming responsible for it in the event of his demise or disability. Neither of his sons was interested in the business.

The Alpha Omega Solution

Alpha Omega recommended a third party sale, and valued the business based on past performance. Alpha Omega developed a comprehensive Offering Memorandum and marketed the business on a confidential basis to both individuals and strategic opportunities. We were able to bring two offers to the owner simultaneously, one from each type of buyer. The strategic buyer was in the same business and anxious to expand into the owner’s territory. They ended up outbidding the individual.

The Results

An offer well above the owner’s asking price was negotiated that included creative tax reduction provisions and continuing employment for the owner. The owner was able to realize his investment, maximize his after tax proceeds, reward his key employees, and rid himself and his wife of all contingent liabilities associated with the business. He was able to continue the work he still enjoyed, but have the flexibility to retire when he sees fit.

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.

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