The CFO of a conglomerate based in Middle Tennessee was referred to CAPSTONE by Brentwood Capital Advisors due to our experience with the home security industry and smaller middle-market companies. CAPSTONE was advised that the parent company had made the decision to exit the home security business and desired to sell their block of this business. CAPSTONE was engaged to perform an assessment of value to set the proper expectations. The assessment based on historic data projected a $1,000,000 value.
Thirty days later, CAPSTONE was engaged to sell the business. During the process of collecting data and preparing a potential buyers’ list, the company began to shut down this block of business resulting in the loss of subscribed customers. On March 23rd, a prospective buyer indicated a desire to purchase the customer list and various equipment under normal industry transaction guidelines related to life of contracts.
With the declining nature of the business, CAPSTONE suggested the prospective buyer purchase the business “as is” without the normal warranty and representations. The seller made an offer of $650,000 if it could be closed on April 3rd. On Tuesday, March 31, the seller accepted the terms, and the transaction was closed on Friday, April 3rd. All parties were pleased with the transaction.
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