Benchmark International is pleased to announce the transaction between Regatta Real Estate Management Inc (“Regatta”) and Fyve, LLC (“Fyve”).

Founded in 1994, Regatta is a Florida-based business headquartered in Miami. The company is a full-service real estate property management provider specializing in association management, investment property management, and condo conversions. Throughout its operating history, the company has remained focused on the small business, customer service-oriented approach.

Fyve is a nationwide, full-service real estate management solutions company that is redefining the experience for owners, residents, and tenants. Prior to the acquisition, Fyve had 11 locations across six states. With this acquisition, they will be able to reach into the Miami market and expand their Florida operations.

Senior Deal Associate Nick Woodyard at Benchmark International added, “It is always great seeing two companies come together where both parties can substantially benefit. It was a pleasure working with Tim and the Fyve team throughout the transaction. On behalf of Benchmark International, we wish both parties continued success.”

On April 30th, 2021, Benchmark International facilitated the sale of CPR Plus, LLC (serving the Greater St. Louis area) to Allied 100, LLC of Madison, WI.

The seller, CPR Plus, provides life-saving skills training to more than 100,000 individuals for close to 30 years in the St. Louis area. Their comprehensive and convenient CPR training courses are accredited by the American Heart Association and administered by friendly instructors with extensive experience.

The Covid pandemic has placed us squarely in unprecedented times. We know this is not exactly news at this point. However, counter to the tenor of most pieces you've probably read on the topic during the past 12 months, this one aims to shine some light on one industry that has thrived: The US healthcare market, more specifically, healthcare M&A. Healthcare M&A has generally been a big winner in 2020 and into 2021 and it's happening at both ends of the market.

As anyone who has ever done it before will tell you, buying a company is a process. It can take anywhere from a few months to a couple of years to complete. To reduce uncertainties and understand the business as much as possible, buyers must conduct thorough due diligence and ask the right questions. Finances, potential synergy, liabilities, customer relationships, and key employees are just a few areas that the buyer should consider.

Here are five essential questions buyers should ask during management meetings when acquiring a company.

1. Why is now the best time for you to sell your business?

Benchmark International was named Corporate Finance Experts of the Year (USA) by Acquisition International’s ACQ Awards.

Benchmark International’s CEO, Gregory P. Jackson, was named International Gamechanger of the Year by the Gamechangers™ 2021 Global Awards.

The program is the oldest and largest of its kind in the corporate marketplace. Over the last 20 years, Gamechangers and ACQ5 have firmly established themselves as an industry standard. The awards recognize the firms and individuals that have had the greatest impact on the industry during the previous calendar year. They celebrate achievement, innovation, and brilliance in their annual program, taking the ultimate step in the search for the most outstanding organizations and professionals across the globe, and the best in achievement, ability, and performance. Online surveys are conducted of the publication’s more than 246,000 readers to make the selection of the final award winners.

In the words of the Gamechangers program, “a gamechanger changes the way that something is done, thought of or made; they transform the accepted rules, processes, strategies, and management of business functions. They shift behavior, shape culture, and make clever happen.”

Upon hearing the news of receiving the award, Mr. Jackson said, “This is a very special honor for me because it reinforces Benchmark International’s status as an industry leader on a global stage. Our team deserves to share in this recognition because of the true dedication they pour into every deal that we make happen.”

The nominations made by their voters are studied in order to recognize that all of those nominated are leaders in their fields, and some exceptional performances deserve recognition.

In the GAMECHANGERS (ACQ5) 2021 GLOBAL AWARDS, Gregory P. Jackson, CEO of Benchmark International, has been named CEO of The Year in the area of Corporate Finance.

The ACQ is a leading corporate news publication serving the sector since 2003, with a global audience of more than 261,000 subscribers. The GAMECHANGERS (ACQ5) GLOBAL AWARDS celebrate achievement, innovation, and brilliance, recognizing the world's most outstanding organizations and professionals.

In the GAMECHANGERS (ACQ5) 2021 GLOBAL AWARDS, Benchmark International has been named the International Mid-Market Corporate Finance Advisory of The Year.

The ACQ is a leading corporate news publication serving the sector since 2003, with a global audience of more than 261,000 subscribers. The GAMECHANGERS (ACQ5) GLOBAL AWARDS celebrate achievement, innovation and brilliance, recognizing the most outstanding organizations and professionals in the world. 

The acquisition process can understandably be a very daunting task for sellers, let alone an uncomfortable experience that pulls back the curtains on their business and its most intimate information. Many sellers realize this is not their area of expertise and will make the informed decision to contract with a sell-side M&A advisory firm before officially entering the marketplace. The M&A advisory represents the seller, but can function as your ally as a buyer if you let them because they have incentive to get a deal done. Although M&A advisors can guide a seller through the sales process and educate them on market norms, they’re not capable of self-fabricating the comfort level between buyer and seller. Over time, a seller’s relationship with a potential buyer will prove to be most advantageous in getting to the finish line of a transaction, as there will be numerous items both sides will have to work through together. Unfortunately, agreements can fall apart due to a lack of mutual comfort between the buyer and seller, and this is typically a result of a combination of multiple factors set in motion long before official due diligence even began. The following are steps you should consider when working side by side with a seller during the transaction life cycle.

Benchmark International is pleased to announce the acquisition of Dublin-based Smith & Kennedy Architects by RSK Group.

Smith & Kennedy Architects is an award-winning architectural practice specialising in contemporary design for national and international clients. The company was established in 1999 by Joe Kennedy, following his acquisition of a pre-existing firm, E.N. Smith & Partners, which enjoyed a long history in Dublin, having been established in the early 1960s with a specialisation in church and education projects. Following the change in ownership, Joe Kennedy began diversifying the firm’s practice, offering services in the design of offices, schools, houses and hotels.

Following the acquisition, Mr Kennedy will continue to lead the business as it joins RSK's European division under the direction of Nigel Board.

RSK is an integrated environmental, engineering and technical services business, operating in over 35 countries, with more than 6,000 employees and a proforma annual turnover in excess of £500m. It is currently actively investing in Europe, the Middle East, Africa and Asia Pacific, and has an active client base of over 8,000 organisations spread across these regions.

The acquisition of Smith & Kennedy Architects represents one of four acquisitions this financial year by RSK as it continues its vigorous buy-and-build strategy, and the third acquisition conducted via Benchmark International over the past two years, which included the acquisition of the group of Pellings companies and Ecologia Environmental Solutions.

It’s no surprise that the COVID-19 pandemic slowed M&A deal activity overall in 2020. According to data from PitchBook, more than 2,000 transactions closed for a value of $336.8 billion in Q2 of last year. That represents a 41 percent decline in the number of deals from Q1. Yet, deals did pick up in the second half of the year, which is likely to continue, as businesses are poised for improved economic conditions that leave COVID-19 in the rearview mirror.

Benchmark International is pleased to announce that Runcorn-based print industry firm, North West Roller Services (NWRS), has undergone an MBO.

Established in 1990, NWRS manufactures and distributes a range of consumable products for the flexographic, gravure and lamination industries. The company is the UK’s only manufacturer of fibreglass sleeves, which are marketed under the registered brand name ‘Easysleeve’, and exported to India, China, Italy and the USA.

The transaction was funded by a £1.5m equity investment from MSIF's AFM-managed Merseyside Loan and Equity Fund, alongside a debt package from ThinCats.

The new management team, led by sales manager Barry Dodgson, now have plans to "significantly increase" revenue levels and are targeting export markets as well as new product offerings.

The transaction followed the retirement of the previous shareholders and will see non-executive director Nick Owen join the board alongside Mr Dodgson.

Commenting on working with Benchmark International, Ian Antrobus, former managing director of NWRS, said:

“Although we had previously dealt with another broker for a period of three years without any success we were recommended to engage with Benchmark.

After entertaining many interested purchasers James Robinson secured an interested party and led us by the hand to finalise a successful sale on 06 April 2021.

May we thank James and all colleagues for their assistance in maximising the full potential of our business sale after thirty-one years in business.”

Benchmark International is pleased to announce the transaction between ASAP Group (“ASAP”) and Terratest Group (“Terratest”).

Founded in 2006, ASAP is a leading foundation company specializing in a broad variety of shoring and foundation support methods, with a unique patented Sheetpiler™ technology that makes ASAP one of the premier shoring companies in Florida.

As a business owner, maybe you haven’t given much thought to selling your company. Or maybe you’ve bounced the idea around but not too seriously. It’s pretty common for business owners to think, “I have years before I plan on selling my business. Why would I worry about that now?” Well, here’s the thing. Life is unpredictable. Just look at how prepared the world was for the COVID-19 pandemic. We think it’s safe to say that no business owner was prepared for that.

But being prepared for the unexpected isn’t the only reason that it is important to have your business in “sale ready” shape at all times, even if you’re not ready to sell. If the company is not in ready condition, it could cost you financially. And it goes beyond that. Always operating your company as if you are ready to sell accomplishes several very beneficial objectives. It ensures that you are operating at peak performance with a focus on profitability at all times, and it helps you avoid being too late to the game to make the necessary changes to be ready to sell. A person’s priorities in life can change quickly or even gradually over a span of years, and you might not have the time to correct any issues that would impact the valuation of your company and, ultimately, its sale price. It’s important to remember that properly preparing a company to go to market can take years. When push comes to shove, if you end up in a situation where you need to sell, not being ready can be a costly mistake.   

Benchmark International is pleased to announce the acquisition of Coventry-based PBX Hosting by TelcoSwitch, a provider of hosted voice, unified communications and compliance solutions, in a £4.5m deal.

Founded in 2007, PBX Hosting delivers hosted UCaaS solutions to offices and contact centre environments through its base of channel partners. The company will continue to trade independently post-acquisition given its strong regional brand presence, but its capabilities will be enhanced due to an increased headcount from within the TelcoSwitch Group across sales, account management, support, DevOps and marketing.

PBX Hosting’s channel partners will also benefit from access to the growing UCaaS product portfolio of the wider TelcoSwitch Group. Moreover, the acquisition further boosts the technical proficiency of TelcoSwitch due to PBX Hosting’s management team and staff remaining in place, and provides TelcoSwitch with a regional office in the heart of the UK.

The acquisition is TelcoSwitch’s second of 2021, following the OneVoice deal announced in January.

NOVA Engineering, Inc. is a State of California Disabled Veteran Business Enterprise (DVBE), a State of California Small Business Enterprise (SBE), a City of San Diego Small Local Business Enterprise (SLBE), and a Service-Disabled Veteran-Owned Small Business (SDVOSB). NOVA Engineering offers the experience of a unique team that brings the enthusiasm and energy of a seasoned firm, tempered by the high level of skill and professional relationships that can only be built through long-term experience. NOVA Engineering provides professional consulting services, including planning, civil engineering, surveying, and stormwater services for San Diego County in California.

NOVA’s team brings extensive experience in providing property, construction, and topographic engineering and surveying services to the San Diego market. They provide responsive, professional service, which has earned them the privilege of working with many clients time and time again.

The high net worth individual that acquired the firm is the principal engineer of two Southern California based consulting firms offering civil engineering, surveying, and planning services. The acquisition of NOVA Engineering allows the acquirer to consolidate the practices to offer a more comprehensive suite of services to the greater San Diego Metropolitan Area.

In reference to the transaction, Danny Barnett, President of NOVA Engineering, explained his experience with Benchmark International, “Benchmark International was a huge help in brokering the sale of our company. From the front end marketing to the back end deal closing, the deal team was constantly in communication about new buyer interest and providing suggestions based on their breadth of deal experience. Most importantly, they were reachable. Every phone call and email we sent was always answered in the same day.”

Sam Stallings, Associate at Benchmark International, stated, “Our client continued to stress the importance of the acquirer’s cultural fit with NOVA Engineering as it was a top priority for our client to be confident that the firm would be left in good hands. Like many business owners within the lower-middle market, NOVA Engineering wanted to ensure that the clients, company, and employees would continue to work with a firm that shares the same vision and values as NOVA Engineering. Our talented deal team quickly sought out a buyer motivated by the client’s footprint and reputation in Southern California. The team’s achievement in identifying a strong cultural fit and seeking an above average multiple for our client is the culmination of tireless teamwork and relentless pursuit of preeminence in the marketplace. We are excited for both parties and wish them the best of luck with their future endeavors.”

The value of a company extends beyond the amount of revenue it generates. As a business owner, you should be monitoring the value of your company at all times, but it is especially important if you are considering exiting or retiring within the next several years, or even up to a decade from now.

Company valuations are based on far more factors than just financial statements and multiples. The process involves the forecasting of the future of the business based on several key value drivers. Sometimes these can be sector-specific, but there are many core drivers that apply to any type of business, as outlined below.

People like to sound smart on the golf course. It’s one way to distract others from your golf game. Since finance and investing are popular subjects of discourse out on the links, there is always opportunity for high-minded musings on business topics. One evergreen theme revolves around the “M&A cycle.” More specifically: “Where are we in the “M&A cycle?” Is it heading up or down? Is the “M&A cycle” about to end?”

The first question above is an important one, which we will address. The second two—both very common—do not seem to grasp the nature of a “cycle,” or even what a circle looks like. In any case, what precisely makes the topic so endlessly fascinating and useful for the golf course is its totally subjective and nearly nonsensical nature as a framing concept for making buy/sell decisions. If our financial reality were truly an endless loop with defined and unchanging points to exploit around that loop, the cadence of our lives as entrepreneurs, investors, and advisors would certainly look a lot different. We would simply place our bets at certain points at the beginning of each year, later picking them up at different equally obvious points. What a world that would be!

The bad news is that there is no such reliable cycle to lean against. But there is good news for business owners considering an exit or seeking financial partnership:

1. There are always opportunities in any market to maximize deal value.
2. Companies and sectors can benefit from opportunities during any market conditions.
3. The time is, therefore, never simply “right” or “wrong” to bring your company to market.

Let’s look at some of the most common platitudes around the “M&A cycle.”

Platitude #1: An Economic Downturn Will Drive Deal Volumes Down

This might be true on a net basis at the most macro level, but if you’re a business owner or manager contemplating a partnership or exit, that macro perspective is borderline meaningless to you. First, let’s counter this argument with another handy platitude: “There’s always a bull market somewhere.” The key to playing any macro market—whether it is up or down—is to understand where the fast streams lie within that context. No individual business trades as a proxy to the entire market, and during any downturn; for example, there are bullish sectors that offer sellers opportunities to engage buyers at a potential premium.

On its face, while declining deal volumes sound like a negative reality, such circumstances often provide successful companies with higher market visibility as buyers seek a retreat to value in less speculative times. While bull markets have a way of covering all manner of sins from a buy-side valuation perspective (allowing for more risky bets on less fundamentally sound companies), less go-go markets tend to favor higher degrees of prudence. This allows great companies to get second looks and can drive valuation rewards to sell-side companies positioned for consistency, growth, and opportunity capture.

Platitude #2: My Company Won’t Get the Attention It Deserves in a Hot Market

This is basically an opposite concern of that articulated above. The worry here is that when markets are really moving and M&A is up, competition among sellers will drown out great companies, as buyers seek to capture the upside of higher-beta bets. An important thought regarding this opinion: think through who your buyers really are—and how they buy. While it is empirically showable that macro risk-taking increases during a bull market, once again, no single business really operates as a proxy to macro trends, and few discrete buyers are a caricature of the aggregate. There are, for example, numerous family offices and value-oriented funds looking to pick up high-quality small- and medium-sized businesses in all market conditions. These are buyers whose default position is “no” regardless of what others are doing, but who will come to the table ready to transact for real value—no matter what the rest of M&A land is doing during any given period.

Platitude #3: I Need to Wait for the Next Economic Cycle to Bring My Company to Market

This is perhaps the most perplexing assertion that we hear, and it always requires a bit more teasing out. In its purest form, this notion tends to be a distillation of the previous two platitudes—namely, that the time is currently not right to sell (because the market is too hot or too cold) but the time will be right to sell later (because the market will be hotter or colder then). Stepping back, it’s instructive to reflect on what buyers are really seeking in the middle market. Hint: it’s not speculative upside. Rather, middle-market buyers are seeking opportunities to capture value created by successful entrepreneurs who have built great companies with lasting power (and, yes, upside to boot). These qualities are not cycle-dependent, so neither should be your decision to come to market.

A Better Way to Play

Trying to game the notional “M&A cycle” is not a constructive approach to taking your company to market. In all macro market environments, there are excellent opportunities for both buyers and sellers. Maximizing deal value starts with building a thriving, solid company. A thoughtful approach to your exit or partnership is far more critical than theoretical market gyrations to producing a successful outcome.

The business acquisition process consists of various stages. Taking the broadest view, the process leading up to the close of a transaction typically entails an initial assessment stage, and a more formalized due diligence period during which the buyer often performs a quality of earnings and legal due diligence exercise.

Many business acquirers have enough commercial and financial insight to enable them to evaluate whether they wish to acquire a business during the initial assessment stage and at what price. Prior to transitioning to the more formalized due diligence phase, the parties in an M&A transaction typically agree on a Letter of Intent (LOI). Although it is important to get the LOI right because it essentially lays the foundation on which the transaction should proceed, first-time business buyers are often unnecessarily intimidated by the task of formulating the LOI. Buyers can be generally confident they are taking the right approach to the LOI if they take care to understand the key purpose of the LOI and bear in mind a few simple commercial tips. In fact, when done right, properly crafting an appropriate LOI can help a buyer set themselves apart as a capable buyer, particularly when the seller is receiving multiple offers or there is a formal competitive bid process.

First, it is important to understand the key purpose of the LOI and to realize its scope and limitations. At a high level, the purpose of the LOI is to establish the key commercial terms of the business sale agreement between the parties, and to provide the framework on which the transaction can proceed according to the parties’ agreement. Also, the LOI will serve as the cornerstone document for the lawyers to draft the definitive transaction documents. A helpful LOI will not only specify the commercial agreement between the parties (for example, setting out the purchase price and the types of consideration if there is structure in the deal), but also provide a roadmap for key milestones or conditions to be completed by the parties in order to reach a successful close. The LOI needs to have enough detail to provide an appropriate framework, but it will typically not capture every single transaction detail. Naturally, there is a delicate balance between having enough information to provide a framework on which the deal can proceed, and not being too over detailed so as to prematurely freeze the deal discussions. An ideal LOI should contain enough information to reflect the parties’ agreed commercial terms and also provide a roadmap for the steps to be completed for the transaction to take place.

First-time buyers conducting online research are also often confused by different terminology concerning preliminary acquisition documentation. While there can be certain differences between LOIs, Indications of Interests, Heads of Terms, and Term Sheets (to name a few forms of initial acquisition agreements) depending on the jurisdiction, purpose of the agreement, or stage of a formalized M&A process, these types of documents share a lot of common principles and sometimes serve the same function. In the lower middle-market M&A space in the U.S., the majority of initial acquisition documents are formulated as an LOI.

Letters of Intent can be as short as a single page, or as long as several pages. The length of the LOI, as well as the types of provisions and level of detail in each section, depends on the deal specifics and preference of the parties. At a minimum, most LOIs contain:

• Information about the specifics of the type of proposed transaction (for example, whether the prospective transaction will take the form of a stock or asset deal)
• The purchase price
• Types of consideration if the transaction involves structure
• Conditions to close
• Other commercial or legal provisions the particular parties may wish to specify

Although LOIs are generally commercially viewed as non-binding in nature, buyers and sellers should take care to specify whether any particular provisions of the LOI should remain binding even if the prospective transaction fails to materialize. For example, although a buyer may wish to specify that it is not required to transact a close in the event a condition precedent is not completed, the seller may wish to specify that the buyer will be bound to keep sensitive information learned about the seller’s business confidential even if the transaction is not completed. Specifying which provisions, if any, shall remain binding on the parties can help avoid unnecessary confusion.

While the LOI may be non-binding in nature, this feature should not encourage the buyer (or the seller) to punt difficult or contentious items to a later stage in the transaction if they can be agreed at the LOI stage. Typically, parties best serve transactions when the difficult issues are resolved between them as early as possible. Commercial experience has shown that the parties that try to approach the LOI as if it were “fully binding” and address the difficult or controversial issues upfront are more likely to have a smooth transaction because the tough deal points are sorted earlier in the process. In addition, if it turns out there will be a sticking point between the buyer and seller, it is typically in both parties’ favor to have that issue addressed as soon as possible. If in dealing with the difficult issues an insurmountable deal sticking point is revealed, the buyer will not waste unnecessary time and resources on an unrealistic transaction. This will enable the buyer to more swiftly move on to other potential opportunities potentially enabling them to realize an alternative transaction sooner. Likewise, the seller also benefits from this approach because the sooner a deal stopper is identified, the more time and resources the seller saves compared to wastefully engaging with a buyer who will not acquire the company. Of course, not every deal point can be agreed in final detail at the LOI stage, but as general rule of thumb, addressing the heavy issues as early as possible can help lighten the work later in the transaction process.

Buyers can help themselves avoid an unnecessary deal breakup by understanding the seller’s mindset. In fact, buyers who proactively address points important for the seller in the LOI can build up goodwill towards the seller and help themselves standout as a capable buyer. For example, sellers are typically hesitant to agree on an exclusivity provision in the LOI which prevents the seller from engaging in discussions with other prospective buyers while the signing buyer engages in due diligence. A buyer which, from the outset, proposes an ambitious but realistic due diligence period with a limited exclusivity provision demonstrates an appreciation for the seller’s concerns and exhibits drive to peruse a swift transaction.

Also, savvy sellers understand the LOI will not capture all the details. As a result, sellers are likely to engage in discussions with the buyer about the reasoning and thinking behind the buyer’s provisions in the LOI. Buyers should be familiar enough with their proposed terms to be confident to have a meaningful commercial discussion with the seller. For example, if a buyer offers an exceptionally aggressive price based on limited information about the selling company, the buyer should be prepared to provide details on how they value the company. Otherwise, the seller will be forced to ponder whether the deal is too good to be true and may become unnecessarily overly skeptical. While not every detail needs to be spelled out in the LOI, the buyer’s proposed deal terms need to make sense. For example, if a proposed transaction will involve an earnout component subject to conditions, buyers could better position their offer by providing information on the earnout parameters, including information on how the earnout payment can be achieved.

Bearing these key points in mind should help buyers be less apprehensive about the LOI process. Indeed, the LOI is also often subject to various rounds of markups, so the buyer should be prepared for counter-comments but shouldn’t be shy about starting the negotiating process in writing. It is helpful to put the ideas on paper to allow the parties to focus on the key deal specifics. Putting forth a proper LOI in the first draft will show that you are a professional buyer and will ultimately help set the stage for facilitating a smooth transaction process.

Benchmark International is pleased to announce the sale of Warwickshire-based 81G to cyber services provider, Babble.

81G provides fully managed IT support and services to SMEs. The company manages IT infrastructure for companies with no internal IT department, or those looking to complement their internal IT department.

Founded in 2001, Babble is a technology partner that deploys cloud solutions. In 2020 the company was valued at £90 million after rapidly growing annual revenue to £30m. Babble is backed by private equity partner, Graphite Capital, and the purchase of 81G is Babble's third deal in three months and the seventh since the start of 2020.

Matt Parker, Chief Executive of Babble, said: "The talented team at 81G Blue shares our ambition to enhance customers’ agility, efficiency and profitability and we’ve no doubt they’ll add significant value as we continue to strengthen our cyber business unit.

"Our buy and build strategy has continued at pace in 2021. We have more acquisitions in the pipeline, as we seek high quality, innovative businesses that have the potential for further growth."

Speaking on working with Benchmark International, Samantha Gibbs, Managing Director of 81G, said: "Every step of the way the Benchmark team comprising of the bright, positive and proactive Erica Skittrall, alongside her colleagues Andrew Roberts and Jonathon Parkinson, who are both consummate professionals and expert advisors, were by my side making sure that the negotiation was completed in the most fair and equitable way for my business to go on its next journey. Following a short, sharp but intensive due diligence process, the business sale was completed. If I had ever doubted using a broker, I am a convert, and if you are wavering to use a broker reach out to Benchmark first. I can't recommend them highly enough.”

Working capital, also referred to as net working capital, is the measure of a company's liquidity, operational efficiency, and short-term financial status. It is the difference between a business’s current assets, its inventory of materials and goods, and its existing liabilities. Net operating working capital is the difference between current assets and non-interest-bearing current liabilities. Typically, they are both calculated similarly, by deducting current liabilities from the current assets. So, essentially, if a business’s current assets total $500,000 and its current liabilities are $100,000, then its working capital is $400,000. But there are a few variations on the calculation formula based on what a financial analyst wants to include or exclude:

Trufora, brings a new standard to dermatology by providing the market with skincare products that contain ingredients proven to be effective, safe, and non-irritating, and used at levels proven to achieve a visible, clinical benefit. The company provides products that allow every woman to feel confident, inspired, and beautiful in their skin. The products are made to simplify a women’s route and life with fewer steps but more results. Their consumer skincare line is free from more than 1,300 known toxins.

Trufora’s skincare line has been a featured product for HSN, Birchbox, and Ipsy to name a few. The company has also launched a membership model allowing customers to have access to their favorite Trufora products at a discounted price.

A critical element of completing this transaction was identifying and marketing to a variety of potential acquirer classes on behalf of Trufora. We were pleased to see that three very different strategies each produced at least one eager acquirer to submit an LOI to acquire Trufora. One of the buyers had a marketing background heavily tied to Amazon, one of the platforms Trufora utilizes for its products. Another buyer was from China and looking to acquire a US brand to help increase their Asian beauty empire. The third buyer, Genesis Group, was an interesting fit given, its founder, Artem Mariychin’s background in the consumer predictive analytics space. Trufora believed that the partnership with the Genesis Group was the best fit for the future of the company and is positioned to grow the company to the next level. This supports the notion that the obvious buyer or the usual suspects are often not the best prospects.

The Genesis Group was founded by Artem Mariychin with the goal to invest in opportunities that could benefit from his experience. Artem is the co-founder and CEO of Zodiac. Nike acquired Zodiac, a predictive analytics company, in 2018. While CEO of Zodiac, Artem built a company that provided retailers with a tool to predict the long-term value of each customer instantly and accurately, also known as the customer’s zCLV or Zodiac’s Customer Lifetime Value. Marketers use the zCLV to discover who their future highest value customers will be so that they can retain those valuable customers long-terms and acquire similar customers.

Prior to Zodiac, Artem worked at Goldman Sachs, Highbridge Capital, 3G Capital, and Perry Creek Capital.

Benchmark International’s UK offices have experienced a sharp increase in the number of deals completed since the beginning of 2021, notably completing 8 deals within 8 days.

Maybe you’re not sure if you are ready to sell your business, but you’re curious about what you could learn if you put it on the market. You can always put your company on the market at any time, but you should understand the right way to do it, and everything that you need to consider.

What Does It Take to Complete 52 Transactions in 52 Weeks?
2020 brought us all a huge amount of uncertainty. From an unexpected global pandemic to an election year, business owners tooling with the idea of a transaction were skeptical of success and market interest. With immense challenges presenting themselves, Benchmark International US offices took the year by the horns and hit another record year of completed transactions.

Following their 2019 accomplishment of 40 successful deals, Benchmark International’s US  transaction teams saw the opportunity to take it one step further, completing 52 domestic deals. This is a 33% growth rate in the midst of one of the most trying economic environments to date.

The question here is: What does it take to complete an average of one deal per week, every week, in the midst of a global pandemic?

Keep the Consistency

The five US transaction teams showed consistency when working with our clients, no matter the deal size or time on market. Being industry agnostic allowed Benchmark International to bring a wide range of companies to market in 2020; from quick deals to major transactions, the team displayed prodigious work ethic to find the perfect fit for their clients.

COVID-19 tested global corporate environments, but Benchmark International adapted to the temporary work from home changes with ease. Distractions while working from home could have easily altered the company's success, but with virtual communication and determination to find the best for our clients, the team proved resilient. Benchmark International’s 2019 modernization of its tech systems, from top to bottom, paid off handsomely.  A new CRM, the move to cloud-based storage, and widespread adoption of Microsoft Teams for inter-office communications all occurred in the first months of 2020, just in time to a two-month work from home period, a minor annoyance as opposed to a hinderance.

Show Resilience

Both buyers and sellers saw a shift in focus when COVID-19 hit challenging the way M&A firms traditionally go about business. It took tedious due diligence amongst the five transaction teams to ensure the value of the companies represented was preserved.

2020 financial concerns are guaranteed to be on business owners' minds when moving into conversations regarding a full/partial sale in 2021. There is not yet a "market standard" on COVID-19 "add backs." However, owing to the breadth of its transaction experience both domestically and globally over the last year, Benchmark International is helping to shape that emerging standard, pushing for fairness to sellers wherever possible and reminding buyers that their true interest lies in determining how the business will perform under normal circumstances..

Stick True to the Foundation of Benchmark International

Benchmark International was formed on the ideology that every business is a family business. The dedication demonstrated by everyone at the firm (from analysts to directors to executive leadership) is what stands this team apart from their competitors. Sticking to the robust business model originally set forth by the founders, Benchmark International was ready and able to handle challenges that were unrecognizable prior to the year 2020.

As Benchmark International continues to set records statewide, the notable accomplishments extend beyond that; for SIX years in a row, the company as a whole completed 100+ transactions per year. This shows that geographical location, although important, doesn't outweigh work ethic, consistency, and resilience amongst a team like Benchmark International.

Benchmark International is pleased to announce the transaction between Liverpool-based, The Bookyard, and London-based Restore.

Established in 2006, The Bookyard is a specialist recycler and supplier of service parts, tools and accessories for Apple computers and devices.

Restore is an AIM-listed document management, shredding and computer recycling company, providing its services to offices and workplaces in both the private and public sectors.

Representing another milestone in Restore's strategy for growth via organic expansion, strategic acquisition and margin improvement, the transaction is designed to further strengthen Restore's capability in the growing recycling market for Apple goods.

One of the more complex components of an M&A transaction is a seller’s net working capital, hereinafter referred to as working capital. Working capital is a financial term used as a measurement of a business’s ability to meet its financial obligations over the coming business cycle (typically 12 months). The consideration of working capital is typically performed during the due diligence period. The calculation of working capital requires the assessment of two areas: current assets and current liabilities.

• Current assets are the assets of the business that the owner(s) anticipate using for normal operations within the next business cycle. The most significant components of current assets are typically cash, accounts receivable, and inventory.
• Current liabilities are the obligations of the business that the owner(s) anticipate satisfying within the next business cycle. The most significant components of current liabilities are typically accounts payable, accrued expenses, and the current portion of the business’s debt.

The logic of corporate finance works on the premise that current assets are used to pay off current liabilities. While working capital is not defined under the Generally Accepted Accounting Principles (GAAP), it is commonly calculated using this formula:

Working Capital = Current Assets – Current Liabilities

Why does working capital matter?

As previously mentioned, working capital is used as a measurement of a business’s ability to meet its financial obligations over the coming business cycle. Another way to consider working capital is that it is a measure of a business’s liquidity. A liquid business should not have problems meeting its short-term financial obligations if all things remain constant. It is unlikely that the owners of a liquid business will be required to invest additional capital or seek outside financing (e.g., debt) to satisfy the needs of the business in the subsequent 12 months.

How much working capital is the right amount?

If a buyer and seller agreed that $2,000,000 is an acceptable working capital level, and a seller delivers lower working capital to the buyer, then often there is a mechanism in the purchase agreement to lower the purchase price of the business. The reduction would generally be dollar-for-dollar (i.e., each dollar required to get the working capital to an acceptable level will likely lead to a dollar reduction in the amount to be paid to the seller). Conversely, if the working capital is higher than what is agreed on as the acceptable level to provide at closing, then there often would be a dollar-for-dollar increase to the purchase price to the seller.

The letter of intent typically clarifies the buyer’s expectation with regard to the required level of working capital to be left in the business, or the proposed methodology in determining working capital. Often, though, working capital is a point of negotiation up until finalization of the purchase agreement. There are a variety of options for setting the agreed upon working capital, but these are the two most common methods:

• The buyer will want some number of “months” as a cushion. If the business’s total expenses for the year are $1,200,000 and the business will be expected to spend $100,000 per month, then a buyer wanting “three months of cushion” for this business would thus require working capital to be at least $300,000 at closing.
• The buyer will want the working capital to be equal to “historical levels.” Historical levels can be calculated by averaging the working capital on each of the previous 12 months’ balance sheets.

Both methodologies provide a guideline in arriving at an acceptable level as part of negotiation between the buyer and seller. No two businesses or deals are alike, but a company’s working capital—just like the various line items from which it is drawn—are assets of the business and, as such, represent part of what is to be sold.

What can the seller do about working capital?

In the event the seller has his/her mindset on what to exclude when the sale occurs, the seller should work with its professional advisors to determine whether the specific items that could be removed from the proposed working capital terms and how that will impact the deal structure. In doing so, the seller must keep in mind that the specific item may be considered by the buyer as necessary to keep the business generating revenue—and if so, he/she might view the retention by the seller as something having a major impact on valuation. If, on the other hand, the asset is not deemed as useful to provide a reasonable buffer for “months of working capital” or a similar metric, or to be used for a specific business function, and its absence will therefore not impact operations nor require the buyer to invest additional capital into the business, the asset can typically be removed with little effect on valuation.

When addressing working capital, it’s important for the seller to always consider the total cost of the deal to the buyer and the buyer’s perception of the risk associated with the business. This is key area of negotiation, and understanding the different methods to determine working capital and what is important for both the seller and buyer is a critical element to reaching a successful close.

The COVID-19 pandemic has impacted businesses of all sizes, affecting the value of many of those businesses. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was created by the U.S. government to get businesses through the pandemic, and includes the Paycheck Protection Program (PPP), which is designed to give private businesses access to cash so that they can continue to pay employees and cover other expenses, such as health insurance, rent/mortgages, and utilities, over a 24-week period. The loans contain provisions for forgiveness as long as the company meets certain requirements and certifications. The PPP loan and its associated forgiveness have impacted how company valuations should be determined for the recipients.

For company valuation purposes, there needs to be an understanding of the reasons that the business got the PPP loan. The loan could indicate that the company has been under duress. Because of this, past financial statements may not accurately represent the future of the business.

Benchmark International is pleased to announce the transaction between Basildon-based Kbiosystems and Porvair, the specialist filtration, laboratory and environmental technologies group.

Kbiosystems specialises in the design and manufacture of laboratory instruments, with particular expertise in automated microplate handling systems. With in-house design, manufacturing and assembly facilities, and a team of long-standing specialists, the company services an international client base, supported by a substantial network of global partnerships with distributors. In the year ended 31^st March 2020, Kbiosystems reported revenues of GBP3.8 million.

Porvair is a group of specialist filtration, separation and environmental technologies businesses. Its products are used in a range of niche filtration and separation markets, and are derived from its expertise in the design and manufacture of filtration and separation systems. It is organised into three divisions: Aerospace & Industrial; Laboratory; and Metal Melt Quality. The group has operations in the UK, US, Germany, the Netherlands, and China.

Following the transaction, Kbiosystems will continue to operate from its existing premises and will be integrated into the group's Laboratory division.

Commenting on the acquisition, Ben Stocks, Chief Executive of Porvair, said: “We are delighted that Kbiosystems has joined the group. We have known the business for many years and there is a good fit between our laboratory consumables business and Kbiosystems' instrument automation expertise. Together the businesses have a compelling offering for laboratories seeking to automate their sample testing processes."

Benchmark International is pleased to announce the transaction between Stoke-on-Trent based Hymor Timber (Hymor) and National Timber Group (NTG).

Established in 1990, Hymor is an independent timber merchant supplying ethically sourced hardwood and softwood to a range of trade and commercial customers, including joiners and manufacturers.

Hymor employs 28 people and in 2020 achieved revenues of £4.5m. Hymor’s acquisition was initiated by the owners’ succession planning.

National Timber Group is the largest independent added-value timber distribution and processing group in the UK, serving a diverse customer base including joiners, housebuilders, and contractors. Created through the acquisitions of market-leading brands Thornbridge, North Yorkshire Timber, Rembrand and Arnold Laver, the group now has a combined turnover of over £250 million, over 1,300 employees, and 64 processing and distribution sites.

National Timber Group is a portfolio company of Cairngorm Capital Partners, a specialist private investment firm providing equity capital and management expertise to leading UK companies. It invests in strongly performing, private mid-market growth companies in manufacturing, distribution and services industries.

A highly complementary and strategically beneficial transaction, it enables National Timber Group to expand into the Midlands and North West. Hymor’s product offering also complements those at NTG’s specialist hardwood depot in Hull that serves Yorkshire and the Humber.

Benchmark International is pleased to announce the transaction between OpenSource International LTD, OpenSource Intelligent Solutions (Pty) Ltd (OpenSource) and Workforce Holdings Ltd.

OpenSource is a South African and Mauritius-based business that was established in 1993. The company places skilled SAP resources on both a contract and permanent basis as clients utilize SAP’s Enterprise Resource Planning system. The company also provides SAP training and other services, including SAP site maintenance and payroll outsourcing. OpenSource is an accredited SAP partner and resources consultants across all SAP modules and complementary technologies for companies internationally.

Managing Director Michelle Viret has over 35 years of IT experience and specialises in marketing and sales, focusing on resourcing and training. Delighted with the outcome, she commented on the transaction, saying, “Again, thank you for introducing OpenSource to the right company upfront. You heard our brief, and from the first meeting, the long-term choice we made is right for us. Our business fits hand in glove with the Workforce philosophies, operation, and culture – it is certainly a ‘can do’ attitude, and it is refreshing to have input from leaders that have years of business knowledge and savvy, specifically someone like Mr. Ronny Katz.”

Workforce Holdings and its Group of companies provide employment, training, healthcare, wellness, financial services, and lifestyle benefits to individuals and their employers. Established in 1972, Workforce Holdings is listed on the JSE Altx exchange, employing over 1,340 permanent staff and paying approximately 34,000 assignees.

The Group’s business model reflects its diversification and is structured into five operating segments: staffing and recruitment, training and consulting, employee health management, financial and lifestyle products, and process outsourcing. This structure facilitates integration and diversification of services, including expansion into adjacent services and new markets.

Detailing their motives for the acquisition, Workforce stated that this transaction allowed it to further expand its human capital services offering. “This is consistent with Workforce’s previously stated growth and diversification strategy. The acquisition introduces a profitable and specialised business with a broad footprint and a driven, entrepreneurial management team into the Workforce group,” it said.

Ronny Katz, chief executive officer of Workforce, said, “The OpenSource Group offers services as an accredited SAP partner, allowing Workforce to offer leading solutions in a new and diverse market. Also, this complementary offering provides both Workforce and the OpenSource Group with exciting cross-selling opportunities within their respective customer bases.” He added: “Dealing and engaging with Benchmark was a positive experience. The professionalism and pragmatism of their deal team assisted us as buyers in expediting, and ultimately finalize, the transaction.”

Tiaan Smit, representing Benchmark International’s South African office, added, “For the Benchmark International team, understanding Michelle and the unique strengths of the OpenSource business that she has built up over the last 28 years was key to finding the right acquirer. We believe that Workforce is the perfect match, and by leveraging Workforce’s established backing and support, Michelle’s drive, energy, and strategic foresight will take the businesses to even greater heights. We’ll be following their progress closely and look forward to their mutual success.”

Benchmark International is pleased to announce the sale of Ripley-based specialist maintenance company, Restek, to an Employee Ownership Trust, joining the growing number of employee-owned businesses across the UK, as it announced its 14 permanent team members would be taking a stake in the business.

Founded in 2013, Restek provides a range of services including concrete structural repairs, composite strengthening, ground remediation and geotechnical solutions through the use of innovative materials, specialist products and techniques.

With an increase in revenue of more than 500 per cent in the past five years, the business has quickly grown to be a market leader in ground engineering, having worked with numerous local authorities and blue-chip companies including Network Rail, Barclays and Highways England.

Commenting on the transaction, Mr Knight said: “Since incorporating the business, I always had the intention of stepping away, and following consultation with Benchmark and Napthens, I decided that employee ownership was the best fit. Growing revenue every single year, Restek has now been involved with a catalogue of exciting, high-profile schemes, quickly cementing ourselves as a leaders in our field.

Benchmark International is pleased to announce the transaction between ParcelNinja (Pty) Ltd and Imperial Holdings Ltd.

ParcelNinja (Pty) Ltd was founded in 2013 by Justin Drennan, Ryan Drennan, and Terence Murphy, launching its first commercial services in October 2014. It offers South African online shops an affordable outsourcing solution for all their fulfillment needs.

Delighted with the transaction, Justin Drennan added: "I was genuinely amazed at the pace and energy injected into this process by the team at Benchmark. Being prepared to engage directly with Imperial and having the advice I needed to get the deal done correctly certainly boosted my confidence at the negotiation table. Imperial is an outstanding company, and we are exceptionally pleased to have found a home with them."

Imperial is an African-focused provider of integrated market access and logistics solutions, focusing on five key industries - healthcare, consumer, automotive, chemicals, and industrial and commodities. Ranked among the top 30 global logistics providers and listed on the JSE, Imperial actively seeks out and leverages new technology to deliver innovative, end-to-end solutions to improve their customer's lives with access to quality products and services.

"Enabled with leading software, processes, and people capabilities in South Africa, ParcelNinja provides fulfillment in both B2C and B2B channels including the informal market, supported by the management and optimization of courier parcel deliveries," said Mohammed Akoojee, Imperial Group Chief Executive Officer. "This acquisition supports Imperial's strategic ambitions to accelerate our digital capabilities and expand our logistics and market access services into last-mile distribution, e-commerce fulfillment, footprint and scale in Africa while ensuring local relevance for our clients and principals."

Commenting on the transaction, Dustin Graham added, "It is certainly encouraging for Benchmark to conclude a transaction that provides distinct advantages to both buyer and seller by each leveraging off the other's strengths and existing capability. We look forward to seeing ParcelNinja grow in concert with Imperial and deliver outstanding service to a vast new basket of customers throughout South Africa."  

Taking your business to market is a very challenging yet rewarding process. Receiving feedback from potential buyers enables you to learn both what specifically attracts buyers to your company and what your business is generally worth. Throughout the process, a valuable lesson learned will be the importance of weighing all potential offers, rather than strictly accepting the highest offer.

Consider the likelihood that the buyer can finance the proposed offer

Having multiple Letters of Intent (LOIs) to compare against each other is a great problem for a seller to have. Each offer is unique and presents different solutions to finance the proposed transaction. However, an LOI is not binding and simply moves you into an exclusive relationship with a buyer for a set period (typically 60-90 days). Deciding to enter an exclusive relationship with this one buyer can affect your perceived value with other serious buyers, should you have to reopen dialogue if the agreed upon LOI does not ultimately close the deal.

A major component in valuing an LOI is the legitimacy of the offer. One buyer may come in and submit an offer that is a percentage higher than that of other buyers. If you agree, spend time working with the buyer, and ultimately learn that the buyer does not have the funds necessary to pay the intended price, you have lost valuable time on market and there is no guarantee the landscape will be the same upon return to market. For example, other buyers that extended an LOI may have moved on, eliminating them as a potential buyer for your company. Effectively, each seller must determine the authenticity of an offer in respect to the time it will need, the resources that must be committed, and the effect it will have on relationships with other buyers.

Deal structures can be valued in many ways

A second characteristic to consider is the structure of the deal. Four broad levers that buyers have in structuring an offer are cash, equity, debt and earnouts. The percentage makeup of each component is a huge aspect of the offer. For example, a seller who values cash upfront may value a $10 million all-cash offer more than a $12 million offer that is split between 50% cash and 50% earnouts based off estimated financial performance post transaction. An earnout structure would be less appealing to that seller due to the uncertainty of achieving the targeted earnout performance and/or the potential for litigation in the period between transaction-close and the earnout’s expiration.

Compatibility with your potential partner

Unless you fully exit your company and receive a full-cash offer, another topic to consider is determining how well the buyer aligns with you and your company. While not always the case, some buyers may state that proposed deals are contingent upon the owner remaining on full time after the sale because they value the owner’s role for a successful transition of ownership. For any deal in which this is the case, you would also need to reflect on whether you are willing to transition from being the manager to being managed.

A buyer’s compatibility with your company also matters when your payout is contingent upon earnouts or a retained equity position. As mentioned in the previous section, funding for the sale can include earnouts. An earnout is a post-closing purchase price payment that is contingent upon the acquired company meeting negotiated performance goals post closing. If your company’s performance post acquisition does not pan out as expected, the earnout expectations may not be met and you would not receive the compensation which was expected at the close of the deal.

Alternatively, if the seller retains an equity position in the company post sale, then there may be a benefit to accepting an offer from a buyer that is not the highest bidder: if that buyer brings a strategic relationship that grows the value of the retained equity position. Oftentimes this strategic relationship manifests itself in operating synergies allowing for expense reductions, new revenue growth opportunities, or additional management expertise.

Financing strength, deal structure, and compatibility are three of many attributes in addition to the final price that must be considered when selling your company. Ultimately, in a process that is so complex and intense, choosing which offer to accept is not quite as simple as accepting the highest offer.

Strategic partnerships can be game-changers for SaaS (Software as a Service) companies. Sales revenue is clearly of vital importance, but it takes more than just those numbers to make things happen on a larger scale. Relationships are the bedrock of business. If you are looking to drive growth, a strategic partnership can be a very powerful tool to help your company increase its audience, build upon the brand, and tap into new markets. All of this, in turn, can prop up your sales team and boost your overall growth.

PitchBook has released their 2020 Annual Global League Tables, and Benchmark International is ranked the #1 Sell-Side Exclusive, Privately-Owned, M&A Advisors in the world. PitchBook is a leading financial data provider covering M&A, private equity, and venture capital deal activity.

“We are delighted to be recognized by PitchBook as one of the most active firms in the world,” said Greg Jackson, CEO of Benchmark International. “We remain grateful to our clients for their continued confidence in us and proud of our team’s unwavering dedication and success.”

Executive Chairman, Steven Keane added “This important news solidifies Benchmark International’s standing in the world as a true market leader in the mergers and acquisitions community. It is also a “benchmark” for our company, which was founded in 2008 and remains in private ownership, knowing that our talented team can only continue to make strides from here and carry out our mission to accomplish great things for our clients. We add this recognition to our long and growing list of accomplishments.”

PitchBook’s Global League Tables are a comprehensive report on private equity and venture capital activity worldwide for the year. They are compiled using the count of completed deals for the specified deal type, region, and other criteria. The listing only includes publicly disclosed transactions and/or those confirmed by PitchBook’s primary research team.

Benchmark International is pleased to announce the sale of Gateshead-based Theme Bins to private investor, Patrick Connolly.

Established in 1991, Theme Bins designs, manufactures and supplies benches, litter and recycling bins, storage lockers, and other indoor and outdoor furniture. The company operates from a bespoke manufacturing facility, acting as a supplier and moulding subcontractor, catering to a range of customers across sectors including the commercial, leisure and educational markets.

Patrick Connolly is a private investor engaged in plastics and, along with the acquisition of Theme Bins, recently invested in two other businesses that specialise in different processes within the plastics industry.

Commenting on the acquisitions, Patrick said: “I want people to phone us if they want things made in plastic because, between the three firms, I’m sure we’ll find a way.

“For example, parts for Theme Bins we can make at our other sites. That helps open up our development opportunities and the speed with which we can respond.”

Following the acquisition, Theme Bins has been renamed Plastic Furniture Co to reflect its vastly expanded product range after diversifying into street and education furniture, including seats, lockers, and bins for PPE equipment. It will also be launching a new website and increasing its focus on ecommerce.

Benchmark International is pleased to announce the sale of Cheshire-based Survey Systems to Suffolk-based Survey Solutions.

Survey Systems was formed in 1983 and is a geomatic surveying firm producing accurate 2D and 3D digital plans and models for both public and private clients operating in the construction and engineering sectors. Along with sister company Locate Surveys, the company has grown to become one of the largest independent surveying companies in the north west, employing approximately 40 people.

Established for over 20 years, Survey Solutions is the UK’s largest engineering surveyor with a wide geographical reach and a comprehensive range of surveying services. The company provides to sectors ranging from residential new build to retail, energy to education and transport to healthcare.

As a result of the acquisition, Survey Solutions has broadened its geographical presence, giving the company an unrivalled presence throughout the UK and enabling local teams to respond quickly to project enquiries. Along with acquisition of Kempston Surveys, Survey Solutions’ national reach has now grown to nine offices and the team has grown to around 160 employees.

Benchmark International facilitated the transaction between Delta Outsource Group, Inc and Australian-based InDebted enabling their access into the American market.

The seller, Delta Outsource Group, Inc, has been providing professional and compliant receivables solutions in the U.S. since 2009. The owners of Delta set out to create a collections agency where performance, respect, and communication would put them ahead of the industry’s curve. After accomplishing this, Delta became a viable target.

“While the process was longer than we thought, Benchmark did a good job of advising us of our options and guiding us through the sale process,” said Michael Lages, President & CFO.

The buyer, InDebted, is an Australian-based digital, data-driven collection agency. They have built a collections platform that seeks to empower the financial fitness of their customers.

John Watson, incoming CEO of Delta commented regarding the deal, “After facilitating the introduction of Delta and InDebted and outlining the desired transaction structure, Benchmark did a good job of allowing the principles to work directly with each other to maximize the efficiency of the process.”

Regarding the deal completion, Transaction Director Matthew Kekelis at Benchmark International commented, “The Delta team stuck through a multiple offer situation with many ups and downs along the way. Ultimately, it was a terrific result with both buyer and seller very pleased with the outcome.”

Benchmark International successfully facilitated the transaction between Solution Matrix, Inc. of Rocky Mount, VA and EXI Investment Partners, Broadview Group Holdings, LLC, management and other co-investors. The seller, Solution Matrix, Inc., is an orthopedic manufacturing business that provides high-quality cold-therapy gel packs and compression bandage wraps to over 340 hospitals nationwide. The company manufactures all its products in-house.

Keith Marshall, co-owner of Solution Matrix with his wife, Linda, mentioned regarding the transaction, “We are so excited to entrust the future of Solution Matrix to its next partner. With their leadership, there is no upward limit to where they can take the business. The spirit of partnership abounded during the transaction process and they will be an ideal caretaker of the Solution Matrix brand and legacy.”

Marshall went on to say, “I’d like to thank Benchmark International for their absolute professionalism throughout the entire process. I thought it would be challenging to sell a business with a special designation like mine, a veteran-owned business. I had the impression the pool of available and interested buyers would be small but Benchmark’s resources proved me wrong in that regard. I could not recommend their services more.”

Regarding the deal completion, Managing Partner Dara Shareef at Benchmark International commented, “Having the opportunity to work with a veteran-owned business is always particularly meaningful. Keith and Linda have built Solution Matrix around a mission to provide truly unique products that address critical healthcare needs. Their sense of service to team, partners, and customers comes naturally from a background of service to country and has been a difference-maker in building a great company and an unequalled suite of medical devices. Benchmark International is proud to be a key part of finding Solution Matrix a great partner for their next phase of growth.”