Experience is not the best teacher. Someone elseâ€™s experience is.
OLD-What We Deliver
VERTICAL INTEGRATION ¢ APPROACHED BY BUYER ¢ MULTI-FACETED NEEDS & COUNSEL
CAREER CHANGE ¢ UNSUCCESSFUL BUSINESS BROKER ¢ BUSINESS BREAK-UP
FAMILY BUSINESS ¢ CONFLICT RESOLUTION ¢ BUSINESS CLOSING ¢ SALE IN DEFAULT
DISTRESSED SITUATION ¢ BANKRUPTCY, TURNAROUND AND SALE ¢ FINANCIAL MANAGEMENT
The owner of a successful wholesale distribution company wanted to assess the opportunity to acquire one of his suppliers. To leverage the owner's time and the executive team's expertise, CAPSTONE was engaged to assist in the assessment and valuation of the supplier's business, including the potential financial impact the acquisition might have on the client's business moving forward. A valuation was agreed upon and an offer was made. Ultimately, CAPSTONE's client retracted their offer due to inexperience on the part of the seller and the seller's actions in the negotiation process.
APPROACHED BY BUYER
The president of a wholesale distribution company had been approached by a potential buyer about selling a division of the distribution company. The president recognized that his internal resources did not have the ability or time to develop financial statements according to the potential buyer's desire to view and value the particular division. CAPSTONE was engaged to assist the president and his staff in developing the appropriate financial information for the buyer.
MULTI-FACETED NEEDS & COUNSEL
The owner of a wholesale distribution company had a desire to develop and execute a plan to market her business for sale to a strategic buyer. The owner had been disappointed in the outcome of her previous interviews of œadvisors to assist her in this process. CAPSTONE was engaged to perform a valuation of her business, develop and execute a strategy for selling her business and assist her in developing a business plan to spin off a division of her existing company to fund with the proceeds from a sale of the primary business.
The owner of a local printing company sold part of his business, an office supply division, to a company engaged in an industry roll-up. The owner realized he wanted to be a publisher, not a printer, and decided to sell his $2,000,000 printing business so he could start his new venture. The printing business was sold to a local printer who wanted the additional market share. The seller received cash and notes.
UNSUCCESSFUL BUSINESS BROKER
The owner of a successful aesthetics clinic had engaged a franchise business brokerage to œlist her business for sale. After her disappointing two year experience, we were engaged to properly assist her in meeting her objectives. The clinic was marketed to a community of prospective buyers. During our process, the owner's personal circumstances changed and we introduced an expert in taxation to complement our process and insure that the owner's new personal and financial objectives were also reached. We were able to close a transaction in eight months. The client stands to realize 60% more than her targeted sale price.
A group of dentists developed a small group of offices and wanted to take advantage of position during an industry roll-up period. The four owners all had different reasons to convert their assets. The practices were sold, as a group, to a publicly traded company as part of the Initial Public Offering process.
The owner of a manufacturing company with significant market potential wanted to sell his business to pursue other interests. The business had been established by his deceased father. Included in the manufacturing business was a powder coating operation whose primary customer was a high-end appliance company. The businesses were separated. The manufacturing portion was sold to a private equity group and the powder coating operation was sold to a conglomerate.
The partners of a CPA firm needed assistance with resolving conflict within their firm. Their objective was to make it through the upcoming tax season and then develop an exit strategy with the dissolution of the partnership as their target. Weekly meetings were held to resolve the conflict, clarify operational roles of the partners and key employees within the firm. A strategic plan was developed and implemented in order to manage the tax season. Ultimately, a dissolution of the partnership was executed through a buyout.
The owner of a veterinary clinic was diagnosed with a debilitating health condition. She could no longer participate in the day-to-day operations and management that the business required. An assessment was conducted of the financial and operational status of the clinic. Despite the discovery of a significant amount of unbilled services, substantial personal debt and living expenses commingled with the business financials for several years, the realization of little to no overall profitability of the clinic, and a recommendation to close the clinic and liquidate all assets, the owner wanted to try and keep the door open until a buyer could be secured. We quickly found a buyer and facilitated the sale.
SALE IN DEFAULT
A business owner died, leaving his long-time business partner as the executrix of his estate. Among other things, his estate contained a corporation which was doing business as a retail franchisee. As the estate was in probate, ownership had not been transferred in compliance with the franchisor's required time from the date of the owner's death, placing the franchisee in default and facing a discounted purchase offer from the franchisor. CAPSTONE was engaged to gain clarification of the situation from the franchisor, work in concert with the client's attorney, and submit recommendations on regaining compliant status with the franchisor and developing options for a sale. Within three months, we gained clarification and cooperation from the franchisor, an extension was granted and we were able to identify buyers, negotiate and close a transaction in excess of three times the original offer made by the franchisor.
We were introduced to the owner of a well-known distribution company whose business had been in decline. He had recently received a visit from the special assets division of his primary lending relationship and he wanted to discuss his options moving forward. We conducted a valuation of the business and found that the company's financial commitments exceeded total assets by over two million dollars. Our recommendation was to explore possible opportunities with strategic buyers in the industry. Due to the situation with the lender, CAPSTONE advised the client to gain approval of any and all activities with the lender prior to any future activity. The client did not elect to follow CAPSTONE's advice. The business was closed and the lender seized all assets.
BANKRUPTCY, TURNAROUND AND SALE
CAPSTONE was engaged by a bankruptcy trustee to oversee the financial management of a nursing home whose management company had recently filed for bankruptcy and left the home to survive on its own until a new owner could be found. CAPSTONE engaged an expert to design and implement new stand-alone I.T. and accounting infrastructure, and we engaged a CPA with experience in nursing home cost reports to file the proper governmental reports. CAPSTONE improved the nursing home's liquidity by managing accounts receivable and bringing accounts payable in line. Once a new owner was secured and the nursing home was sold out of bankruptcy, we settled all accounts receivable and accounts payable so that the former legal entity could be closed.
The fourth-generation owner of a printing company needed assistance with financial management of his company and his personal interests. As a referral from his attorney, the owner engaged Rich Miles of CAPSTONE to assist in this role. Rich assists the owner with financial oversight, overall financial management, forecasting and budgeting.