Industry/Sector: Fabricated Metal Products Manufacturing
Deal Type: Bridge to Value
FourBridges Team: Andy Stockett, Chris Rowe
Client Profile: The Company operates as a fabricated metal products manufacturer. The Company serves several distinct end markets and offers value-added machining and engineering as complements to its manufacturing business. A majority stake in the Company had recently been acquired by an investor group.
Client Objectives: The Company was unexpectedly approached by an industry leader about selling, and investors and management were unsure whether or not a sale made sense. In order to decide, they first needed to answer questions about the Company’s preparedness for a sale, its valuation, who might be an interested buyer, and whether now was the right time to consider a sale. They therefore approached FourBridges about its “Bridge to Value” due diligence service for companies contemplating a sale.
The Challenge: FourBridges’ first challenge was to collect a significant amount of information about the Company with minimal distraction to management. FourBridges then had to perform extensive financial and qualitative analysis in a very compressed time frame, given the 4-6 week goal for project completion. Finally, FourBridges had to formulate relevant, concise conclusions that would enable investors/management to make an informed “sell now” or “sell later” decision.
The Process: FourBridges collected existing financial and business information from the Company for review and analysis. FourBridges also provided management with a questionnaire about 10 key areas of their business to supplement the document request. FourBridges used all of this information as the basis for a half day management interview exploring the critical topics a buyer would want to understand. FourBridges then summarized its findings with a financial model adjusted to normalize operations, a market-based valuation analysis, and a final presentation delivered for management, investors, and board members.
The Result: With an objective, third-party analysis in hand, investors and management had the confidence to make an informed decision about the right course of action for the Company.
The team did a great job putting this together. It acted as a thought stimulator for us as well as helping us more fully understand the process.” – CEO
“This was similar to the analysis we performed when we were evaluating an investment in the company. It was helpful to have an updated objective assessment based on current market conditions and company specific factors.” – Investor
FourBridges Capital Advisors is a middle market investment bank providing sell-side, buy-side, capital raising, restructuring, and strategic advisory services primarily to closely-held and family-owned businesses. FourBridges is based in Chattanooga, Tennessee, and serves clients in cities across the Southeast, including Atlanta, Nashville, Birmingham, Memphis, Knoxville and Huntsville.
Past performance is no guarantee of future results, and there can be no guarantee that these results will be duplicated in the future. Any testimonials presented herein may not be representative of the experience of other clients.