Problem Our Client Had
The Company is a family owned and has a great stable of interesting products. They have historically grown through adding distribution resources to acquired product lines. They have strong national distribution are able to increase sales through running products through this platform. It had done this successfully for a line of office products and home décor products. Due to its growth success, it was looking to ramp up acquisitions and was working with an East Coast M&A Advisory firm. The firm was hired to build a pipeline of acquisition prospects. The engagement with the other firm was for 6 months. The M&A firm did not bring them any acquisition prospects over this time period.
Why They Came to Us
Attract Capital and this Company had previously worked together on a financing and there was great mutual respect between the companies. Although the target acquisition was not closed, Attract ran a successful financing process for them and had multiple lenders lined up to fund the purchase. Attract added acquisition search services to its firm back in 2013 and had spoken to the owner about helping them with their search needs. Management was frustrated with the lack of production of the other firm and came to us to help them find deals that fit their criteria. Management was particularly excited about our ability to offer one stop shopping through finding the acquisition prospect and then bringing in the lender to fund the purchase.
How we Helped Them
Immediately upon engagement, we activated an acquisition search through our proprietary deal platforms and connections in the broker community. Within 30 days of activation, we built a pipeline of 20 prospects for them. Within 45 days of activation, we had identified 2 targets that our client had a high degree of interest in. We helped them write letters of intent to purchase these companies. We also helped them value the companies and develop a structure for the purchase price that they could afford. We helped them with the negotiation so that they were able to offer the seller a good deal that worked for both parties. Within 60 days of the engagement, a seller signed our LOI and we are now in the due diligence and legal closing stage. We continue to bring new acquisition leads to our client as they are interested in doing a new acquisition every six months. Our service quickly produced strong deal flow to satisfy their acquisition needs.