ts-creative

Goals of Ownership

  • Desire to sell majority ownership position in company after achieving strong growth and profitability for estate planning purposes – goal of diversifying net worth as vast majority was tied up in company
  • Find acquirer or partner to provide capital to facilitate growth into new products and markets and fund prospective acquisition opportunities
  • Create opportunity for senior (non-owner) employees to obtain ownership stake
  • Maintain meaningful ownership stake in business

Situation

  • Company had been repeatedly approached by potential acquirers and pursued several opportunities on its own, but was unable to negotiate transaction that satisfied owner’s expectations.
  • Experiences led owner to seek assistance from experienced investment banking firm – owner subsequently interviewed three firms and selected De NES Partners to lead process that would best benefit owner and executive management team

Transaction

  • 19 potential strategic and financial partners made preliminary offers; 6 groups selected to meet with ownership
  • Completed deal with Private Equity Firm with over $1 billion in capital under management – assured ample capital and resources to accelerate growth in current markets, including the independent retail pharmacy channel, as well as to expand into new markets
  • Post-transaction, owner retained a meaningful ownership stake
  • Owner removed from all personal guarantees from bank and credit lines
  • Senior executives received opportunity to personally invest in transaction
  • Private Equity Firm created an additional stock option pool for senior employees (including stock options available to recruit new executives)