This business develops and manufactures a range of, mainly, water-borne coatings used principally in the fmcg packaging industry. It has exceptional product development expertise and has a small portfolio of specialist finish products which, with appropriate investment in marketing, have the potential to be major sellers globally.
in addition to advertising the business, we also made direct approaches to a number of businesses for whom our client felt his business would be a good fit and it was as a result of one of these approaches that we found the eventual buyer.
Because the business was growing fast, we negoatiated a base price for the business based on the financials for the year immediately preceding the sale. The vendors will also benefit from further payments initially based on the gross profit performance of the business and later on sales of the specialist products which the owner is expecting will become major sellers in their own right. As one of the owners is the driver behind the company’s technical expertise we also negotaited the terms on which he will stay on for a period of time. This was a complex deal and it will be interesting to see how the additional payments we negoatiated play out.