Case Study: Strategic Sale of Environmental Service Company

Case Study: Strategic Sale of Environmental Service Company

“We wanted to prepare our high-tech instrument development and integration business to sell the business and maximize our proceeds…I would recommend Austin Dale Group to other technology company owners who need assistance with developing and selling their business.”

Dr. Ralph Brewer, Industrial Monitor and Control Corporation

Background
The owners of an environmental service company wanted to optimize their company value and sell it as a step towards retirement. Their primary business was designing, manufacturing, and integrating systems for detecting chemical compounds for industrial processes and open air environments. They also produced specialized hardware and software for unique environmental monitoring applications.

Challenges
The company lacked some characteristics that are important to potential buyers, including robust financial systems and protection for their intellectual property. Also, the company’s identity was closely associated with the owners who were well-known in the industry. This was a special challenge for a company in which the founders were world-class experts in a highly technical field.

Solution
Austin Dale worked with management and guided them to improve areas that would be important to potential buyers, including:

  • Protect intellectual property
  • Streamlined major business processes, implemented new ERP system, and hired a financial administrator and senior technical staff
  • Developed a transition plan for the owners to ensure that the value of the business would remain after their retirement

 

After the key changes were accomplished we worked with the management team for over one year to enhance the value of the company prior to contacting buyers. When the company was ready we contacted potential buyers around the world and found two strategic buyers who understood the industry, the tremendous opportunities, and roles of the founders. The buyers came together to form a joint venture which acquired the company and developed a plan in which the founders could train their replacements, reduce their workload, and continue to stay active in the business. This approach of anticipating what buyers want and making incremental changes before going to market can be beneficial to any company.

Results
The founders were able to achieve their exit goals of selling their business and funding their retirements. They stayed active in the business at a reduced level of time and responsibility, and their staff were taken care of and had more growth opportunities.

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