When the Owner is Too Close to the Sale
Deliverables: Corporate Development: Create documents to present to likely acquirers, lead all negotiations and preparation of term sheet, represent investors during diligence and closing, work with management team, accounting and legal professionals to effect an error-free transaction.
Entrepreneur and Ph.D pharmacist Sheila had invented a vertical industry segment within the health care staffing category. Starting from her kitchen table, she successfully grew her company over 25 years to become the leader in her industry, with thousands of professional temp pharmacists on payroll and a full time headquarters staff of 100 generating many millions in revenue.
Her success had not gone unnoticed. Large public companies and competitors had repeatedly bid to buy the company. Several times over the years she had accepted offers, only to see each and every deal unravel. She wanted to sell and move on with life. But she was too close to the transaction and too emotionally invested to both run the company and pursue the sale dispassionately to a successful closing. Finally, she interviewed many traditional investment bankers, but ended up rejecting all.
What she really wanted in her heart of hearts was to have her own internal corporate development team or director. And it didn’t make sense to go through a laborious hiring process for what was a temporary need.
She hired RedFlash as her in-house corp dev director. We provided all the benefits of investment banking and negotiation know-how, but acted more like a member of her management team than as an outside banker with dozens of engagements to manage simultaneously.
Under her direction, we targeted buyers, led negotiations, closed on terms with the best and highest bidder, then continued to lead negotiations through all due diligence activities, seven days a week, helping guide the company through all accounting and legal issues to a successful on-time close. This was all done while sparing her the emotional ups and downs of the process.
After four previous failed attempts to sell, she finally had the outcome she desired at the price and terms she wanted. As her COO said of us: “you were the light at the end of the tunnel.”
- Bob was very instrumental in helping to successfully complete the deal between our company, RPh and Soliant (a division of Adecco). Initially I hired Bob to write an offering document to present to any companies that were interested in buying our company. We had about four interested parties and not only did Bob write an excellent offering document (written in three weeks) but he negotiated with the four companies and kept the deal moving quickly. After we got our Letter of Intent Bob worked very closely with our lawyer and many times Bob was instrumental in coming up with creative ideas when the agreement had some unacceptable terms. I feel that he saved the day at least twice and I would probably not have done the deal if not for Bob’s creative ideas. I highly recommend Bob Jordan as someone with care, concern and integrity when it comes to any merger and acquisition situations.- S. Liberman (CEO, RPh on the Go USA, Inc.)
- You were the light at the end of the tunnel.- L. Stevens (COO, RPh on the Go USA, Inc.)