What were the sellers’ motivations in deciding to pursue an exit?
After several years of significant growth, the Sellers were interested in exploring opportunities to find a partner to come alongside a strong Management team to continue the growth trajectory & provide additional opportunities for drivers, employees, and customers.
What challenges were unique to the sellers as they entered the marketplace?
The sellers entered the market after a period of significant organic and inorganic growth for the Company amidst the backdrop of COVID-19 induced cold chain disruption that impacted freight networks, customer needs, driver recruiting, equipment needs, and many other aspects of the operating model for refrigerated trucking & logistics companies. While the Company specific growth is positive & the industry impacts of COVID-19 are a reality of the current operating environment, it is critical to use data & narrative to help the market understand what “steady state” and “future state” look like despite the changes noted in historical financial and operational data.
How did Tenney Group maneuver around the challenges?
Tenney Group spent a significant amount of time with Management in the pre-marketing & active marketing phases working to understand and articulate the financial & operational impact of macro and micro changes to the business to help Buyers understand and value the business.
Key Takeaways for Other Business Owners:
Growth is one of the most attractive storylines when marketing a business. However, it is critical that the market understands the key drivers of the growth story through the lens of data & narrative through a multitude of macro and industry factors. Preparation and collaboration between Sellers, Management, and Advisors are key to ensure the growth story is leveraged to not only attract competitive offers, but withstand confirmatory diligence & get to the closing table.