Knowing the structure of a transaction you are involved in is key to optimizing the composition of a deal. If you enter a proposed transaction thinking you understand the offer, you may be blindsided by various structures that may affect your net cash position. A critical aspect of a transaction is understanding the structure and what it means for you as a buyer or seller. Clients often believe that they agree to accept a stock transaction only to find out that the transaction will include an election that may affect their tax bill. A 338(H)(10) election is one of the more popular tax elections, but there are others.READ MORE >>
Benchmark International is pleased to announce the transaction between Exeter-based school stationery supplier, Flipfile, and Wick-based stationery supplier, BDS Office.READ MORE >>
Benchmark International has facilitated the sale of Lovett & Tharpe, Inc. to LTI International, LLC.
Lovett & Tharpe has been in business for more than 85 years, serving the needs of over 500 farm equipment dealers in the Southeast. Lovett & Tharpe distributes the product lines of more than 30 different manufacturers worldwide. Lovett & Tharpe operates from a 72,000 square foot warehouse in Dublin, GA.
Eddie Herrin, President of Lovett & Tharpe, stated, “The Benchmark International team facilitated the sale of my business from the earliest stages of marketing through the final agreement and completion of the deal. They acted in a courteous and professional manner and provided the insights and assistance I needed as a first-time seller. I would highly recommend Benchmark International to anyone considering the sale of their business!”
LTI companies offer procurement and distribution of specialized agricultural, industrial, hotel, construction and truck equipment, and spare parts. With over three decades of experience in procurement services and a team of seasoned industry veterans, LTI is a premier supplier to the US, Caribbean, and Latin-American marketplaces. LTI is a Georgia limited liability company with operations in Orlando, FL.
Benchmark International Director Leo Vanderschuur stated, “It was a pleasure to represent Eddie and Lovett & Tharpe in this transaction. Throughout the process, Eddie was exceptionally responsive, diligent, and professional. This acquisition represents a tremendous opportunity for both businesses and their teams to strategically accelerate the rate of profitable growth. On behalf of the numerous Benchmark International personnel that worked on this opportunity, we congratulate both teams on reaching this goal.”
Benchmark International is pleased to announce the transaction between bespoke rubber products engineer, Elastomer Engineering, and Lancashire-based manufacturer of niche rubber products for engineering and industrial applications, Dexine Leyland Rubber Technology (DLRT).
Family-owned business Elastomer Engineering has extensive expertise in polymer science and manufacturing technology, including a range of proprietary products sold into the oil & gas and defence sectors.
DLRT is a leading manufacturer of elastomeric products and components for industrial and engineering uses. The company specialises in the design and manufacture of complex products and offers a range of rubber compounds with properties such as oil and fire resistance and vibration damping.
Working in the same sectors as Elastomer Engineering, the acquisition allows for the two companies to sell an extensive product range into these sectors.
The acquisition also provides DLRT the opportunity to acquire a portfolio of significant intellectual property, along with a wide range of specialist equipment designed for high value precision moulding. With DLRT’s assets, this constitutes greatly enhanced product development and manufacturing capabilities for both businesses.READ MORE >>
Benchmark International is pleased to announce the transaction between London-based furniture and kitchen studio, Forza Projects, and private equity firm, Lenhart Partners.
Forza Projects, operating from a prestigious showroom in London W1 and a warehouse and distribution centre in London W3, resells high-end kitchens and furniture to commercial, office and residential clients.
Lenhart Partners acquires small to mid-sized companies with good profitability in a niche growth market.
Benchmark International would like to thank all parties involved and we wish them all the very best of luck for the future.
Benchmark International has successfully facilitated the transaction of In-O-Vate Technologies Inc. ("InOvate") to Continental Materials Corporation ("CMC").
InOvate, based in Jupiter, Florida, is a leading manufacturer of premium, metal dryer venting accessories used in residential home construction. Founded by Rick Harpenau in 1996, and led by tenured employees James Ortiz and Cliff Budnick, InOvate has grown consistently through supplying quality engineered, superior products along with delivering excellent customer service.
In response to the transaction, CEO Cliff Budnick stated, "Benchmark helped create a strong first impression for InOvate when introduced to CMC. The InOvate team is excited to continue its growth as part of the CMC portfolio. Equally, we appreciate the ability to maintain our family-oriented culture while ensuring stability for our staff, customers, and vendors alike. "
Founded in 1954, Continental Materials Corporation is a public holding company with subsidiaries in heating and cooling manufacturing, building products, commercial door distribution, and manufacturing and aggregates mining and processing. Headquartered in Chicago, IL, CMC employs approximately 450 employees across the US.
Senior Deal Associate, Sunny Yang Garten, added, "It was a pleasure to represent InOvate in this transaction. Throughout the process, Rick and his team were exceptionally responsive, diligent, and professional. This acquisition represents a tremendous opportunity for both businesses and their teams to strategically accelerate the rate of profitable growth. On behalf of the numerous Benchmark International personnel that worked on this opportunity, we congratulate both teams on reaching this goal."READ MORE >>
Since the early 70’s, Nashville has been considered a hub when it comes to the health care industry. Nashville has developed and changed the landscape of the industry in the past 50 years. The development of the community began with Hospital Corporation of America (HCA). Largely through hundreds of mergers, acquisitions and well as new companies, we’ve seen industry trends set in Nashville, as well as startups and spinoffs bringing different sectors of the industry to Nashville.
Before the Hospital Corporation of America, most hospitals were non-profit or affiliated to a religion. In 1969, one year after inception, HCA became a publicly traded company. This changed the landscape of the industry for good. Through an abundance of M&A transactions, HCA now owns and operates more than 170 hospitals in 20 states across the country. In 1995, the Nashville Health Care Council was established, understanding the Nashville health care industry was responsible for $3.7bn in revenue at the time, while providing 53,000 jobs. Today, the council reports $92bn in annual revenue generated, all while providing more than 570,000 people employed around the globe by healthcare companies based in Nashville. There are over 900 companies that directly provide health care services, or are in some way involved in the industry. These numbers are massive, and spurred a ripple effect around the country causing more private equity spending to focus into the industry. This effect has led to eighteen publicly traded healthcare companies calling Nashville their home, while enticing more than $1bn in venture capital investments over the past decade. The leaps and bounds made during the past 50 years are obvious, as the entire landscape of the industry has complete changed. During 2006, Bain Capital, Kohlberg Kravis Roberts & Co. and Merrill Lynch completed a $33bn leveraged buy-out of HCA. This was the largest leveraged buy-out to date and spurred an unprecedented amount of investment in the industry. In 2011, HCA returned to the public market in the largest US private equity-backed IPO to date ($3.79bn raised). HCA’s chain system business model was emulated by hundreds of not-for-profit hospitals throughout the country, and they are considered to be the trailblazer of the industry.
The M&A landscape continues to change the healthcare industry to this day. Through the first half of 2018, the healthcare sector saw deal value increase to $315bn, up from $154bn in the same period the previous year. The healthcare sector ranks third in terms of total deal value. From a valuation perspective, healthcare M&A transactions were at an all time high in 2017. A large driver within the space was within the senior housing and care marketplace. The number of announced transactions is on pace to set a new record, but the dollar amount of these deals will not exceed the record. While this shows the hyperactive nature of the marketplace, these deals are occurring as smaller transactions rather than the mega-deals we’ve seen in the past. This is a very attractive marketplace for sellers all things considered. Private equity groups accounted for a large uptick in spending during Q4 of 2018. Financial buyers are notably optimistic about the healthcare market, with 120 total deals announced in the final quarter of 2018. This bodes well for 2019 with 2018 in the rearview, healthcare continues to expand due to high valuations, a very large number of transactions, and an increasingly attractive marketplace.
For the third year in a row, the number of small business transactions reached record numbers, as reported by BizBuySell. Financial performances of the small businesses are increased year over year, as well. 49% of sellers said their businesses performed better in 2018 compared to 2017, and another 36% had similar figures comparably. With financial performance increasing, the value of the transactions inevitably grew. The medium asking price for small businesses in the US grew 10% from 2017, a clear indication that buyers are willing to pay more for businesses with a proven financial track record and promising futures.
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July 26th @ 10am EST
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Many sellers think they have reached the finish line once the buyer has been selected or perhaps when the letter of intent is executed. Even those who know they haven’t reached that line often believe all key elements of the transaction have been ironed out and all that remains is the “technical” part. To better understand many of the material issues that remain open after the letter of intent is executed, this webinar will walk participants through a wide array of those
Following on last year’s impressive 26 closings, Benchmark International’s US offices represented sellers on 14 transactions in the first six months of 2017. This was due in no small part to a 30-day span in which Benchmark International closed ten deals globally, with six of those being for US-based sellers.READ MORE >>