Ability to Accommodate Unique Characteristics
The owners of NutriScience, a large, global distributor of branded and commodity ingredients to the largest food and supplements companies, were ready to sell but concerned with confidentiality.
The CEO did not want to run an auction and sought to retire as soon as practical, always a challenge for prospective buyers.
CWC ran a sales process that approached buyers in stages to limit exposure, negotiated an early departure for the CEO by facilitating the management transition to an energetic and capable CEO, and ultimately sold the company for an attractive valuation to a buyer excited to propel the company’s growth.
Pebble Tec is a global designer and manufacturer of high quality swimming pool finishes. Its Australian owners sought to liquidate their ownership but were not sure how to unwind its seven global subsidiaries and supply agreements.
CWC ran a full auction process to private equity and strategic investors and ultimately sold the company to investors capable of meeting the client’s needs for tax efficiency and risk management while liquidating its entities and real estate assets.
The direct-to-consumer probiotic pioneer Nutri-Health was approached with an unsolicited offer from Atrium Innovations, a publicly traded Canadian company.
CWC was engaged to handle the exclusive negotiations with Atrium, begin an auction sale process to create competitive pressure, and provide a back-up option for Nutri-Health.
CWC ultimately delivered a closed transaction with reduced risk to shareholders and a 32% valuation increase over the original offer. Shareholders were extremely pleased and the serial entrepreneur executives Fred Auzenne and Tracy King were able to move on to their next venture.
MSi Testing & Engineering was owned by two partners with different goals: Dave desired an immediate retirement, while Mitch sought to retain his role and grow the company with the help of new ownership.
CWC sourced offers from strategic and financial buyers, selecting a huge global company based on valuation and their enthusiasm to retain Mitch as the division leader.
In addition to negotiating attractive sale terms, CWC fought for and succeeded in optimal employment agreements, each tailored to the owners’ varied goals and employment terms.
Global Health Industries
Entrepreneurs Kim and Rhonda Wheelwright grew their contract manufacturer, Global Health Industries, beyond their expectations, shifting its focus to probiotics and building a world-class management team.
CWC ran a full auction process with buyers best suited to understand GHI’s strategic value, helped create analytics to highlight its growth, and positioned around trouble customers and other concerns to enhance valuation.
Ultimately, GHI was sold for a premium to a buyer excited to own the company’s capabilities, infrastructure and quality reputation.
The transaction structure allowed the Wheelwrights to retire while day-to-day management retained their roles and equity, achieving the goals of each participant.
New York Pizza Dept
New York Pizza Dept is a Phoenix-based casual dining pizza chain with twelve locations throughout Arizona.
The Founders desired a complete liquidity event, while the managers Richard and Nicole preferred to continue managing the company and aspired for more equity.
CWC ran a process to secure capital for the management buyout of the exiting shares, and with the help of a debt and equity provider, Richard and Nicole were able to increase their ownership from 15% to 55%.
Televerde is a B2B outsourced teleprospecting company providing lead generation services to Fortune 1000 technology companies.
CEO Jim Hooker sought a partial liquidation that transitioned the business to new ownership over time while allowing minority shareholders to completely exit.
CWC identified multiple capital sources and negotiated final terms with the selected provider of debt and equity financing for a transaction that allow Management to retain a controlling interest.
C7 Data Centers
The owners of C7 Data Centers, Inc. sought a capital partner excited to invest in the growth of the company but wanted to retain ownership and limit their dilution as much as possible.
CWC identified a variety of non-bank lenders willing to analyze the credit on a run rate EBITDA basis, allowing aggressive leverage. CWC ultimately raised $18 million of uni-tranche debt and $2 million of equity, allowing the owners to capitalize on customer growth and build out a new facility while greatly limiting dilution in their ownership.
ConnectionsAZ is a physician-led crisis psychiatric services provider that sought to build medication-assisted treatment clinics.
The company had credit risk associated with a 95% customer concentration with two government funded contracts, but CWC positioned the credit in a manner to get investors comfortable with its contract “stickiness” and growing demand.
CWC procured 14 term sheets and ultimately closed with a senior lender offering significantly lower interest expense than the mezzanine loan pricing that Management was anticipating. The robust and competitive process ultimately saved the company more than $700,000 in estimated annual interest expenses over initial expectations.
Baywood International, marketer of functional beverage and nutraceutical products, engaged CWC to sell its LifeTime brand to raise capital quickly in an effort to satisfy creditors, pay off debt and recapitalize the company in preparation for the planned growth of its New Leaf line.
After a full auction process, CWC sold Lifetime to Nutraceutical International, a public company capable of moving quickly.
CWC created a resolution among various creditors and shareholders to restructure the notes and negotiate a sale in terms resulting in more cash and a shorter timeline to close.
Auto Safety House
Auto Safety House is a leading fleet operator servicing company helping municipalities, school districts, public utilities and other private fleets with Thomas school buses, truck equipment, truck accessories, trailer parts and accessories, emergency lighting and other gear since 1941.
The owners were approached with an unsolicited offer and CWC was engaged to negotiate the original offer and find backup offers. After negotiating with one of the strategic backup offers, one owner quickly transitioned out of the business and retired, while the second owner was able to retire after a slightly longer transition period.