Mergers & Acquisitions | Business Valuations | Divestitures | Business Advisory Services
 
 

Case Studies


 
 

Case 1:

 

Our client approached us with the desire for one of the 50% owners to exit the business for retirement while at the same time bring in new capital to grow potential of the company.   The other 50% owner was a sales engine, new product developer and had strong relationships with many of the big box companies.  However, the ownership structure was complex with multiple companies, some on a cash basis, including two C corporations.    We worked with the owners and brought in additional CPA/tax and legal assistance to develop an exit strategy that recapitalized the company and retained the non-retiring 50% owner.   Further ownership was given to some senior employees.   The recapitalization was supported by a private equity buyer who not only supported our proposed structure but also provided funding for future growth.  In our planning we used such strategies as personal goodwill and a 338 h 10 election on the S Corps.

 

Case 2:

 

Our client was the president and owner of a 50 plus year old manufacturer.  The manufacturer operated out of two C corporations and a real estate business.   Our owner was looking to retire but have the flexibility to work with the buyer on new product development.   Detailed planning was required to achieve our client’s objectives, which were to identify a buyer committed to growing the business, purchasing the manufacturing plants, retaining the employee base, willing to work with him on product development and keep the 50-year old brand.  A substantial effort was required by the deal team of the attorneys and MMCA in working through some patent ownership issues and tax planning around the C corporations.  Through a team effort we were able to find an appropriate family office buyer who valued the people, the product developed over 50 years and the advantage of working with the seller post ownership.   While a complex case it was a positive outcome for all involved.