Hardwood & Plywood Distributor.
The Challenge
The owners of two different established companies in the hardwood distribution market approached Next Point to help them structure a joint venture agreement. The two companies were eager to merge into a unified operation to help solidify their space in the market in the face of national competition, moving into the area. Next Point completed a valuation of both companies and negotiated a buy-out of the smaller organization by the larger.
Fast forward a year or so and the owner of the smaller company has retired after a transition period, and the majority owner of the combined operation is doing very well. The owner is approached by an international, publicly owned, industry leader about selling them the company. The owner again turned to Next Point to help evaluate the potential proposal, to assist him in the decision to sell, and to negotiate the deal with the significant strategic player that had approached him.
Our Solution
Next Point was hired to evaluate and negotiate the potential deal. But, negotiating with a single buyer does not offer an opportunity to compare offers and leaves little room for negotiating an improved deal value. Next Point suggested contacting another publicly held strategic competitor and bringing the potential opportunity to their attention. While we did not run our traditional divestiture process, we were interested in providing our client with multiple offers to consider.
The Turning Point
Both strategic players expressed interest in buying our client’s company and Next Point was able to negotiate a very attractive purchase and sale agreement on behalf of our client.
Services Performed
