SALE OF A MANUFACTURING COMPANY – THE M&A PLAN IS ALTERED
Company descriptionCNC Manufacturing Company
Marketsmilitary, optical, aerospace and medical
Year in business25
PEN EngagementThe scope of The PEN Group, LLC.’s engagement began in 2012 with the task of selling the company.
The initial sales strategy was to follow the traditional approach to market the company for sale to strategy buyers. The company has a history of growth and profits however; a disproportionate of their sales was in the military market. The military market and product technology underwent several sudden abrupt changes that adversely affected the company sales and profitability for 2 sequential years. The owner faced with a major sales rebuilding challenge decided to test the market for the sale of the company. PEN was successful in securing 2 LOI however, the net proceeds did not appeal to the owner.
Working closely with the owner PEN developed a different approach to sell the company. The new plan was to locate a manager/buyer who was interested in acquiring the company over a period of years. The buyer would assume the operational management and work closely with owner to learn the business and assist in the rebranding and development of new markets to replace the military dependence. A qualified buyer was located and the sales structure was established.
The owner now has a successful exit strategy that meets his targets and ensures the on-going success of the company.