IG SELLS CONTRACT MANUFACTURER OF CABLE ASSEMBLIES & WIRE HARNESSES
Buyer is a private investor
Coming on the heels of a business sale in the computer software industry, this deal took IG's team through many unexpected twists and turns.
"Buyer activity was extremely high with this company due to it's unique niche in the manufacturing industry," says Tony Roe, Vice President of Business Development for IG. "We fielded 140 inquiries which ultimately resulted in nine Letters of Intent. During the process, the seller spent some time on the fence, and even took the company off of the market at one point. An offer was finally accepted, and then the due diligence process was extremely challenging. Having worked with this deal for at least a year and a half, we are very pleased to finally reach completion."
The private investor has previously owned companies in the cables assembly space and has made this acquisition as a platform from which to expand. It plans to add new products to the company's offering that will help increase sales and marketshare.
The contract manufacturer of cable assemblies and wire harnesses, located in Northern California, provides custom solutions to meet a customer's manufacturing specifications, assisting in product design and development. The Company specializes in small to medium volume work with high standards of quality control. The owner is at retirement age and will exit the business entirely after the transition.
A brief history of the deal
IG presented the owner a Value Estimate and a fair market price was agreed upon. IG embarked upon an aggressive marketing plan, researched strategic buyers and utilized its extensive investor network. Marketing included industry-specific outreach, email campaigns, online advertising and print advertising in the Wall Street Journal.
- 140 potential buyers responded
- 35 buyers qualified by IG
- 9 Letters Of Intent (LOIs) were reviewed by the sellers
- 1 buyer successful in closing
IG oversaw all due diligence and closing processes. The team effort included the IG lead consultant, company president and many back office support personnel, including IG's transaction coordinator.
Throughout the challenging stop-and-go cycle of the deal, IG remained confident in its success and the satisfaction of our client.