Transformation Case Study:    Business Valuation

Challenge

• Privately held and well established manufacturing company in a traditional and mature market being considered for sale
• Company considered contracting a business broker to conduct an auction

Outcome Achieved

• Business valuation completed after comprehensive review of the business revealed the company was being impacted by decreasing revenues, operational inefficiencies, and recurring quality issues
• Valuation, which indicated a value much lower than owner’s expectation, validated through a focused, controlled approach to potential high value owners, instead of a shotgun approach typical of business brokers who would have compromised confidentiality
• Owner decided not to sell and enjoyed the benefits of a 25% revenue increase resulting from the comprehensive review

Engagement

• Conducted comprehensive review of the business to demonstrate value to potential buyers
• Identified, obtained approvals and implemented actions that could immediately improve the business
• Completed valuation and developed low risk engagement of potential high value owners
• Executed appropriate documents and presented to potential buyers

Why the Solution Enterprises Team?

• Principal structured and implemented the project as well as executed the solution beyond completion of the initial engagement
• Thoroughness and persistence led to a rejuvenation of the business and growth in profits
• Satisfaction led to Principal being requested to pursue other benefits available in the business