Project Innovation
When Project Innovation, an established metal machining, fabrication, and welding company, approached True North Mergers & Acquisitions, we saw an opportunity to help three retiring owners secure their legacy while positioning the business for future growth.
During preliminary discussions, it was immediately clear that the company’s specialties in laser cutting, fabrication, precision machining, and design made it an attractive acquisition target. And with 40+ years of experience producing precision parts, the company had built a strong reputation across multiple industries, including:
- Original Equipment Manufacturers
- Construction
- Medical Device Manufacturing
- Automotive
- Airline
- Electronics
To exit, our client needed to find a buyer who could leverage the company’s strengths and expand its reach. After a rigorous nine-month merger and acquisition process, we found an ideal buyer and closed the deal. Here’s how the process unfolded.
Our team knew this was an ideal time to bring our client to market. Several key factors were driving private equity interest in our client’s sector, including:
- Rebounding demand in oil and gas equipment
- Growth in green energy
- Stabilizing steel prices following the 2021 economic reopening
- Strong industry consolidation trends
Additionally, we knew our client’s steady revenue growth, diverse client roster, and experienced management team would make the company even more attractive to buyers.
Based on these factors, we began laying the groundwork, identifying over 125 qualified prospects, including strategic buyers and private equity groups.
Through our proprietary QuietAuction™ process, we conducted a targeted 13-week marketing campaign. Our efforts generated more than 20 indications of interest, leading to negotiations with three serious parties.
True North executed a 13-week marketing campaign, engaging over 125 strategic and financial buyers across multiple channels.
Our proprietary three-phase QuietAuction™ process initiated 20+ indicator of interest process letters and negotiations with three engaged parties before an accepted letter of intent.
In the final stages of the transaction, the True North Mergers & Acquisitions deal team managed a comprehensive due diligence process, including an in-depth quality of earnings audit. Additionally, we worked diligently with the buyer and their funding partners to close the transaction.
Our team managed a comprehensive due diligence process to showcase the company's potential to buyers.
Key activities included:
- Site tours highlighting our client’s specialized manufacturing capabilities
- Management presentations showcasing operational excellence
- Quality of earnings audit validations
- Detailed operational and financial reviews
- Close coordination with buyer's funding partners
After a successful due diligence process, our team secured an attractive letter of intent from the lead buyer.
After an intense nine-month merger and acquisition process, we found the ideal buyer—an investment firm with a strong track record of growing companies similar to our client’s.
By leveraging the private equity group's resources and expertise, the company can now expand its capabilities, drive innovation, and continue delivering exceptional value to its customers.
