Project Storm
In an industry where Mother Nature dictates consumer demand, our client, a Minnesota-based storm damage restoration company, had quite literally weathered the ups and downs to become a national leader.
With operations spanning 27 states and a workforce of over 60 employees, they had built their company into a leading brand in an industry valued at over $40 billion. After years of industry success, the owners were ready to make an exit.
True North Mergers & Acquisitions helped them not only close a deal with a higher enterprise value than initially targeted but also maintain 10% equity in the company with the possibility of receiving a second payout in the future.
Here's how our team made it happen.
Our client was looking for a buyer that was both financially and culturally aligned. With that in mind, our team began researching industry trends and buyer activity, narrowing our search to a targeted list of qualified buyers.
During the prep phase, we also analyzed our client’s performance, which showed:
- A strong management team
- Steady revenue growth
- Scalability potential
- A sustainable percentage of EBITDA with a healthy balance sheet
In simple terms, our client met the investment criteria for many national firms, including private equity-backed strategic buyers with a footprint in the sector.
To generate interest without disrupting our client’s operations or compromising confidentiality, we implemented our QuietAuction™ process. This approach quickly generated ten indications of interest, with the highest bid coming in at more than twice the lowest.
Our team analyzes industry trends, identifies potential buyers, and develops a targeted list of prospects. This thorough preparation ensures we position businesses for maximum value.
Our QuietAuction™ process allows us to engage multiple qualified buyers while maintaining strict confidentiality. This approach creates competitive tension among buyers, ensuring our clients receive the best possible offers.
By conducting multiple rounds of negotiations, we build on that initial buyer tension, often driving up the price while creating a clear runway that ensures we close with optimal terms and minimal disruption.
Having a range of competitive offers gave our team leverage to negotiate a deal with a favorable cash component at closing. Ultimately, our negotiations allowed our client to exit while maintaining a 10% equity share in the company—plus retain the possibility of a second payout in the future.
The success of Project Storm showcases our team’s ability to deliver exceptional results in complex markets.
We not only attracted multiple competitive offers but secured a deal that exceeded the client's initial target—all while minimizing disruption, maintaining confidentiality, and driving up the sale price.
The outcome of this deal is a testament to our team. By combining deep market knowledge with skilled negotiation, we achieved an outcome that satisfied our client’s immediate financial objectives and long-term interests.
