Douglas Pendleton, Advisor with George & Company (G&C), successfully navigated the sale of a thriving Aerospace MRO facility.

Company Sales – $3.8 million

EBITDA – $1.7 million

Anticipated Value Range – $6 – $7 Million

Sold for $7.1 Million (stock sale)

The Company, a closely held MRO Aerospace Facility, was expected to be highly sought after.   After effectively positioning and presenting the company to the marketplace, George & Company received over 100 inquiries and 18 offers. 

Prior to taking the business to market, George & Company identified the key factors required to successfully sell and transfer it. 

1. To effectively transfer the company’s certifications, the FAA would require a stock sale.
2. With a lack of middle management, buyers would require the seller’s post-sale involvement. 
3. Further complications included the lack of historical data relative to the company’s inventories. 

Knowing these items, it was anticipated that both financial and legal due diligence would be extensive.  The Sellers, who were actively involved in running the day-to-day of the business, would also be tasked with investing additional time towards selling their business.   To successfully reach closing, finding the right buyer who remains committed to the purchase and works patiently with the Sellers throughout the process would be critical. 

Instead of selecting a strategic buyer with the highest offer, a buyer who might look at the purchase as just another investment in their portfolio, with the guidance of George & Company, the buyers choose a financial buyer with engineering expertise.  A Buyer who would be an owner/operator as they were.  A buyer they believed would be personally invested in both the process of buying the company and running it.   With multiple offers to choose from, the Advisor suggested picking the buyer whom they would be most excited to introduce to their employees. 

This strategy proved fortuitous, as the competing legal advisors battled over the definitive documents for 9 months.  Despite and because of the challenging legal processes, the clients and the well-chosen buyer maintained good-faith relations.  Facilitating mutual trust and respect ultimately enabled all parties to reach the closing. 

The successful sale of the business underscores the value of working with an experienced brokerage firm that understands the importance of identifying and selecting the right buyer, and of hiring an Advisor with the know-how to keep the transaction on track amid the complexity of events and emotions that often kill deals. 

What this transaction shows

• Identifying and selecting the right Buyer is essential.
• The highest offer is not always the best offer.
• Never underestimate the effects of overzealous lawyers.
• Facilitating the process between Buyers and Sellers is critical.

George and Company was pleased to help bring this transaction to a successful close for their clients.