Benchmark International has Successfully Represented a Specialty Marketing Firm

Benchmark International represented a specialty marketing firm that closed in October 2015. Benchmark International began their relationship with the seller about two years prior to the sale.

Based on the feedback received from the market, there were several challenges that the partners had to overcome to be comfortable with the deal. The first challenge was the owners’ vital role in the company, serving as both the sales and design teams. The owners played the role of the sales team and design team. While they had great staff support, it became clear quickly that they were driving the growth of the company. In addition, the company’s sales were cyclical and concentrated in a few customers each season. The business relies heavily on customer relationships, most of which were established by the owners, who hoped to sell and exit.

After receiving the market feedback, the sellers became open to staying with the company long-term. Once conversations began to evolve with various partners, the sellers saw that if they aligned themselves with the right partner and continued to grow the team, then their company could triple in value.

After many months of seeking the right partner, one was uncovered - a financial firm with capital ready to deploy. The financial firm was backed by high-network individuals with internationally known names and Institutions. They had deep relationships within the sector and had a team of experienced personnel they could add to the team immediately upon closing. They also shared in the seller’s vision of diversifying the company’s revenue stream, developing new relationship managers, and cutting down on the cyclical of
the business.

The deal had a Transaction Value of $73.25M with a cash payment of $43M at closing. Our sellers rolled over $30.25M worth of equity with hopes that the second exit is much larger than the first.

Kendall Stafford, Managing Partner at Benchmark International added, “While it was a long sales process for our client, it was well worth the wait for the right partner. Our sellers were very patient in allowing the market to uncover the perfect partner. Given the relationships and talents that both parties possess, I anticipate the company will continue to be successful for years to come.”

Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com

Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com

Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com

ABOUT BENCHMARK INTERNATIONAL

Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $8.25B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 14 offices across the world, have assisted thousands of owners with achieving their personal objectives and ensuring the continued growth of their businesses.

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