What were the sellers’ motivations in deciding to pursue an exit?
Ultimately, the seller sold a division of the business in order to free up time and capital to expand another division of the company that was being retained.
What challenges were unique to the sellers as they entered the marketplace?
Whenever a piece or division of the overall business is being stripped out and sold, there can be unique challenges in producing effective and accurate financials versus when the books are fully consolidated in an all-out sale.
How did Tenney Group maneuver around the challenges?
Thankfully, the company had maintained high-quality financial reports and was able to produce reports/financials by division. If this were not the case, there would have been inherent challenges in quantifying the full value of the division being extrapolated.
Key Takeaways for Other Business Owners:
It’s not a far-fetched idea that private fleets could become a more active player in the for-hire acquisition market. Having the opportunity to secure complementary talent, networks and proprietary processes is something that is very attractive to many, especially if the financial deal points align for both sides.