What were the seller’s motivations in deciding to pursue an exit?
The seller was looking to secure financial security and engage a strong operating partner, who could assist in taking the company to the next level.
What challenges were unique to the seller as they entered the marketplace?
The automotive industry can be very volatile. The year of 2020 was more volatile than most. This affected the ability of many strong buyer candidates to give our client’s company serious consideration. Beyond that, with the COVID situation presenting new challenges such as PPP loans, there were certain obstacles to maneuver.
How did Tenney Group maneuver around the challenges?
Most importantly, we tapped into our industry relationships — in other words, finding the best accountants, insurance producers, etc. to assist the client’s unique needs. Another way we managed the challenges was through the deal structure. Our client’s company was a great complement to the buyer’s strategy and the deal structure that resulted was one that provided an appropriate amount of shared risks.
Key Takeaways for Other Business Owners:
Without a doubt, selling a business is a team sport. We introduced our client to industry specialized legal and accounting resources to navigate many complex issues on the way to the closing table. Together, we were able to help our client process information effectively so that he could trust his own decisions.