Ideal Match: Buyer Acquires Family-Owned Building Materials Business

Overview

In this case study, we explore the successful acquisition of a family-owned aggregates and building materials business. Our client, the buyer, found a solid fit that aligned with their expertise and values. This strategic acquisition, completed in eight months, demonstrates the importance of consistent communication and a strong match in ensuring a successful business transition.

Key Deal Metrics

• Advised the: Buyer
• Type of Deal: Full Acquisition
• Timeline: 8 months
• Earnings Multiple: 3.5

Objectives & Reasons for the Deal

Buyer’s Objective

The buyer, seeking a business aligned with their work history and area of expertise, found this acquisition to be an ideal fit geographically and historically. They quickly bonded with the seller, further solidifying the match.

Seller’s Objective

The seller, while focused on financial considerations, prioritized finding the right fit to care for long-standing staff and customers. They immediately liked the buyer, aligning on key values.

What Went Right

Consistent Communication

Throughout the process, communication and dedication to closing remained consistent. While the deal took longer than anticipated, the alignment between both parties ensured a positive outcome.

Prepared Financial Data

The selling broker provided well-prepared financial and other data, enabling quick pre-approval. This preparation was crucial in establishing trust and facilitating a smooth acquisition.

Areas for Improvement

Closing Delays

Delays during the closing process were frustrating for both sides, partly due to the time of year (end of year and into the first quarter). Unforeseen circumstances also contributed to the delays, but all parties worked together to overcome these challenges.

About the Business

The company, founded in the early 1990s and passed from father to son, employs over 20 people, with many having been with the business for over a decade. This stability and legacy made the right fit essential.

Deal Partner Highlight

We were introduced to our client through our deal partner. Our client had been searching for a year without success, highlighting the value of trust built through doing business the right way.

Conclusion

This acquisition underscores the importance of strategic fit and consistent communication in business transitions. Our brokerage’s ability to align buyer and seller needs, even amidst delays and unforeseen circumstances, ensures successful outcomes. By focusing on expertise, values, and efficient execution, we facilitate strategic acquisitions for our diverse clients.