Leveraged Buy-Out / Capital Sourcing / Accretive Synergies

The Challenge:

The largest competitor of a local manufacturing company was going to be put up for sale – a “spinoff” of a public company.  The manufacturing company approached Statesman for advice.

Statesman’s Value Add:

  • Exclusive buy-side M&A advisor
  • Complex financial modelling of accretive synergies between the combined entities
  • Sourced strategic commercial bank financing
  • Sourced strategic, creative mezzanine financing
  • Negotiated extensively with the seller, a public company
  • Ensured regulatory approvals were not necessary
  • Assisted in due diligence and closing
  • Post transaction true up consulting

The Solution:

Statesman helped to submit an offer for the competitor at an acceptable price, draft the Letter of Intent (LOI), secure senior and mezzanine debt financing, and facilitate a due diligence process.

The Impact:

Upon execution of the purchase, synergies associated with the transaction resulted in the Company to be valued at 5X+ the value of the Company prior to the transaction. The local manufacturing Company is now the dominant player in the marketplace for its quality manufactured products, and the owner’s net worth has more than quintupled.  An accretive acquisition such as this allowed for the combined synergies to positively, significantly increase earnings per share.

“Their ability to assist with the required capital sourcing, negotiations, and due diligence was immeasurable.”

Leveraged Buy-Out / Capital Sourcing / Accretive Synergies
Download PDF
< Back