Metal manufacturing

From Corporate Executive to Business Owner

Our client had worked for an organization for the majority of his career, but he had aspirations to be a business owner himself. Most people in his situation begin to look at known businesses for sale, but often they can’t find a match for their interests, industrial knowledge, skill sets, passion, risk tolerance, or whatever their goals may be.

Business owner in a work apron standing with arms folded in his shop
10+ Businesses Evaluated
3 Financing Sources
1 Acquisition Completed

The situation

Our client had worked for an organization for the majority of his career, but he had aspirations to be a business owner himself. Most people in his situation begin to look at known businesses for sale, but often they can’t find a match for their interests, industrial knowledge, skill sets, passion, risk tolerance, or whatever their goals may be. They begin to get frustrated that they are not looking at the right kind of companies. Our client realized that only looking at companies that happened to be for sale today did not work. He decided to proactively start to look at companies that meet his specific acquisition criteria. He wanted to align himself with a professional to help him not only search out the right kind of opportunities but also to help him evaluate each company, and to put together a deal structure, and find the right financing to close the transaction.

What we did

Next Point worked closely with the client to establish acquisition criteria and identify privately held businesses that matched his objectives. We researched potential acquisition targets and arranged introductions and meetings with business owners, helping our client evaluate more than 10 opportunities before selecting a suitable acquisition candidate. Once a target was identified, Next Point assisted in evaluating the proposed purchase, preparing the Letter of Intent (LOI), and managing the due diligence process. Next Point also helped structure a transaction involving a combination of buyer equity, bank financing, and seller notes. We solicited financing proposals from several banks and assisted the client in evaluating the alternatives to identify the most attractive financing proposal. Throughout the process, we coordinated communications and information requests among the parties to help move the transaction toward closing.

The outcome

Our client successfully acquired a privately held business through a financing structure combining buyer equity, bank financing, and seller notes. The transaction enabled him to transition from corporate employment to business ownership, with the opportunity to apply his professional experience and potentially build a family enterprise.

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