Transactions & M&A Industrial

Preparing a family business for its first buyer.

The second-generation owners of an Asian precision-parts manufacturer wanted to sell, but their books had never faced outside scrutiny. Vendor diligence made the numbers hold up through four bids and signing.

Client: Family-owned manufacturer, Asia · name withheld Duration: 19 weeks Year: 2023
The challenge

Good numbers, never tested.

The company makes precision components for automotive and electronics customers from three plants. It had been profitable for decades, but its accounts were prepared for tax, not for buyers, and spread across three legal entities with different year-ends.

  • 38years of family ownership
  • 3entities with separate books
  • 0prior external diligence

The founder’s children wanted a clean exit and a buyer who would keep the plants and the workforce. Their bankers warned that without independent numbers, bidders would discount for every unknown and chip the price at confirmatory diligence.

The owners also wanted the process kept confidential from staff and customers until a buyer was chosen.

Our solution

Answer the buyer's questions before they ask.

A small sell-side team worked with the family, its bankers and the company's finance director, with weekly calls across three time zones.

  1. 01

    Normalise the earnings

    We combined the three entities onto one year-end and built an EBITDA bridge that explained every adjustment.

  2. 02

    Build a clean data room

    We organised 1,900 documents, wrote the vendor diligence report and answered 640 buyer questions within two business days.

  3. 03

    Hold the price

    We prepared management for each buyer session and closed the issues most likely to be used to chip the price.

The results

At signing, nineteen weeks in.

Deal terms as signed, compared with the indicative bids received at the first round.

11,2 × EBITDA exit multiple

Above the sector median for comparable deals.

4 Binding bids

Three strategic buyers and one financial sponsor.

19 wk To signing

From the first data-room opening.

$0 Price chip

At confirmatory diligence.

“Our father built this company without ever showing the books to an outsider. Corwell made them ready for the toughest buyers in the market, and nobody found a reason to lower the price. The plants and the people stayed together.”
Kenneth Lau Managing Director, Family-owned manufacturer