Successful Non-Collaborative M&A Deals
These are two examples of successful, non-collaborative M&A deals. This approach is feasible and best suited when dealing with smaller transactions. We limit our active files to maintain the high touch that our clients expect. Clients feel at ease knowing their life’s work is in the hands of a select few who are as deeply invested in clear communication channels as they are the deal closing.
SUPREME WINDOWS (CALGARY) INC.
We have had clients reach out to us years in advance of planning to sell their business. We provide feedback on trends, market updates on M&A activity, and opportunities to create value in the business. Relationships are important.
With Supreme Windows (Calgary) Inc., we enjoyed a relationship going back 15 years. The final selling price for the business and related real estate assets exceeded board expectations. Terms were satisfactory with shareholders all exiting the business within 90 days from close.
During our process we developed and distributed marketing materials sent only to targeted buyers across North America who were pre-approved by our client. Upon execution of Non-Disclosure Agreements by the management team, we prepared them for meetings with potential investors where they demonstrated that shareholders were not critical to the ongoing success of the business. This minimized transition risk.
Time from formal engagement to close with the buyer, Centra Construction Group Ltd. based in Langley, BC., was eight and a half months.
“Kurt’s business valuation, excellent marketing, and negotiating skills ultimately resulted in the sale of the business at market value and on schedule.” —Gerard Huber, Supreme Windows (Calgary) Inc.
PETRO TECH HEATERS INC. (CURRENTLY PETRO-TECH HEAT TECHNOLOGY INC.)
We have had clients introduced to us in a hurry to sell. This client requested we enhance the business (“Turn a Chevrolet into a Cadillac”) and be ready to go to market in four months’ time.
We collaborated with Gumshoe Branding to meet the client’s request. This included
- Defining & documenting the brand and corporate culture of the firm
- Redesigning and optimizating their website
- Identifying corporate value enhancements
Four months later, with CIM ready, we were ready to take the business to market. During this time, the bulk of the client’s projects that were planned to be completed in the future were cancelled. Marketing of the company was delayed for three months until an acceptable level of firm contracts could be obtained.
The final selling price for the business and related real-estate assets—all cash and on preferable terms—exceeded the client’s expectations. The shareholders exited the business within four months from close.
During our process we developed and distributed unique marketing materials to targeted buyers who were pre-approved by our client. The time from formal engagement to close with the buyer—Canerector Inc., based in North York, ON—was 10 months (in spite of the three-month delay).
“Kurt Schurer gets things done.
On initial assessment, he pointed out that our website design made a poor impression and was ineffective in generating traffic. He had the people to fix the problems.
Companies with one owner don’t need monthly financials, but prospective purchasers sure do. Kurt got our accounting folks to change gears dramatically to prepare for the sale.
We had a detailed review of 50 potential purchasers, including a local division of Warren Buffett’s Berkshire Hathaway.
While we had serious discussions with four potential purchasers, Kurt kept the conversations away from our people and largely from me.
Our deal was clean, with no loose ends, retrospective changes, or regrets. Kurt enhanced the value and salability of the company and got the deal done.”
—Bill Twasiuk — Former owner, Petro-Tech Heaters