Marion Van Keken-Rietkerk, CBI
Senior M&A Advisor
It's a Done Deal!
When I first met Raimo Vare, the owner of a wall and ceiling contracting business in Burnaby and had the opportunity to appraise his business, it was clear that he had a successful model. After 30 years of growing his business he enjoyed the fruits of his labour.
Stable and predictable cash-flow, reliable financial information, customer diversity and a well performing management team were a few of the value drivers of his business. There was some work to be done in terms of structuring the business to maximize benefits from a sale.
Over the next 2 years Raimo dealt with real estate holdings and other aspects of succession planning. In 2015 we went to market. I reassessed the company, created a Profile Summary and Confidential Information Memorandum and reached out to potential buyers through a variety of channels. I highlighted several competitive advantages including the company's systems and procedures, goodwill and well trained labour force. Strong construction forecasts also ensured the company stayed on target with projections.
During the next 5 months I went through the qualification process with a number of potential buyers. In January 2016 I received an inquiry that proved to have just the right level of experience, financial capability and motivation.
A Letter of Intent was put forth and accepted and we entered into Due Diligence. After working out details of the transaction, such as financing, level of working capital, employee contracts, training and transition detail, the Definitive Agreement was signed and the transaction completed.
Marion of NAI Commercial with Raimo Vare of Raicor Contracting Ltd.
"It was a challenging task, but with Marion's and Alf's professional guidance we did it, so in the end it was all worthwhile!" - Raimo Vare
Note: Construction businesses can have high levels of working capital due to receivables taking a long time to collect. Contact me to find out how to handle such transactions.