As part of an ownership succession plan, the owners of a plastic injection molding company (the “Company”) became interested in selling their business and transitioning out of their day-to-day management roles. The owners desired to find a buyer that would help achieve the following objectives:
- Continue to foster the legacy, reputation and culture of the company, centered on quality products and excellent customer service
- Take care of the employees and provide ongoing career opportunities
- Provide an administrative infrastructure that fosters the continued growth of the business
- Enable the owners to achieve liquidity and create a solid financial future for their families
The Company initially met with Baker Tilly Capital, LLC to discuss the potential sale of the business. However, at that time, there were a few financial and operational milestones the owners wanted to achieve before committing to taking the Company out for sale. The Baker Tilly Capital team stayed in contact with the owners, and in 2017, the team was chosen as the Company’s investment bank to market the Company to prospective buyers.
Baker Tilly Capital Solution
Baker Tilly Capital worked closely with Baker Tilly Virchow Krause, LLP’s accounting and tax teams to provide a cohesive transaction strategy for the Company’s owners. With their knowledge and understanding of the manufacturing industry, the Baker Tilly Capital team ran a robust sale process, focusing on strategic and financial buyers that could meet the objectives and criteria set forth by the owners.
As a result of the sale process, the Company’s owners selected a strategic buyer (the “Buyer”) that met their objectives, while providing a purchase price that exceeded the owners’ expectations. The Buyer provides a similar culture and set of values, a reputation for high-quality products and a focus on prioritizing customer service. In addition, the Buyer provides the administrative infrastructure the Company desired.
As part of the transition, the Buyer asked that the Company’s owners stay on to help facilitate the transition of the employees and operations to the new owners.
“The Baker Tilly Capital team was there with us from the first day we were interested in selling our Company. They took the time to understand our business and our needs, as well as our goals and expectations in finding a buyer. More importantly, they understood our desire to place our employees in a great position moving forward. Baker Tilly Capital helped us find the right buyer and we are excited about the opportunities that lie ahead.”
For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team.