Our client was a prominent structural steel and welding shop operating throughout the Ottawa region. The Company engaged Welch Capital Partners to support succession planning efforts as the Owners neared retirement.
Despite receiving a number of offers over the years for their Company, including from their neighbour who sought an opportunity for horizontal integration, our client was not able to successful in consummating a deal. This was in part due to the fact that there was never any perceived pressure from either side to get a deal done. Our client had the strategic foresight to develop a strong internal management team which allowed for greater transferability of value, however, at the same time was faced with increasing pressure to unionize its workforce. Along with preparing a sale strategy and performing an extensive buyer search, Welch Capital Partners’ involvement in the sale of the Company signaled to the neighbour that they were serious about selling.
The WCP Advantage
Oftentimes, the very act of hiring an advisor is a signal to target buyers that a Company is serious about getting a deal done. The highlights of this deal were two-fold: we were able to raise pricing expectations based on conversations and offers received from target buyers and we were ultimately able to sell to the neighbor, who was the best fit.