Aerospace Distributor

Situation

This aerospace wholesaler and distribution business was started back in 2007 and was well positioned for growth. The two primary shareholders sought to retire and were referred to Adam Petricoff to broker the sale by a business valuation professional whom they knew.

Business broker and managing director Adam Petricoff prepared the Confidential Business Review (CBR) to take the distributor to market. With opportunities identified for future growth and a strong customer base of more than 100 active customers, the business was poised for growth and success in a multi-billion industry.

Our Proven Process to Go Effectively from LOI down to Negotiated Agreement

Petricoff actively marketed the distributor to attract both strategic buyers and individuals. Significant early interest resulted in more than 100 non-disclosure agreements (NDAs) signed. Eight letters of intent (LOIs) were submitted with Petricoff carefully and thoroughly analyzing each offer, interviewing each prospective buyer and verifying their qualifications.

With solid prospective buyers identified, Petricoff and his transaction manager, Lauren Stewart, managed each phase of the process to then enable each vetted prospective buyer to submit questions to the sellers. Petricoff & Stewart organized all submitted questions and managed the process of all responses being prepared, finalized, and made available in a secure, virtual ‘Data Room’ for the prospective buyers to review responses and move forward in negotiations. While highly efficient, this step also enabled interested buyers to review responses to other submitted questions, ascertaining the level of interest in this aerospace distributor in Winston-Salem, North Carolina.

At the conclusion of this step in the business brokerage process, several prospective buyers opted out while strong prospective buyers emerged as clear, well-qualified parties to acquire the business. Management meetings were then completed and both primary shareholders and business broker Petricoff agreed to the front runners.

The Result

The buyers were business partners, one leaving a role in Corporate America and the other owning other businesses. Together they were attracted to the opportunity to add the business to their holdings while running and growing the business. They leveraged an SBA loan financed through Huntington Bank as part of the deal structure and agreed to have the minority owner remain in the business along with keeping the employees. The two primary shareholders remain for a short transition period, enabling them to happily shift to retirement.

“Adam and his transaction manager, Lauren, did an outstanding job. They were extremely thorough and professional at every step. They added a tremendous amount of value to our transaction. I would highly recommend Adam to sell your company.”

Tom Ferrell, CEO and Seller