The client was the shareholder of a successful medium-sized natural cosmetics company with highly innovative products. Due to above-average sales and earnings growth, the shareholder had decided to place the company in other hands for the next stage of scaling and internationalization. This was intended to open up new operational capacities and financial resources for the enormous (international) growth as well as for sales, marketing and the expansion of production capacities. The owner was looking for an interim manager for the sales process, who would also act as an M&A advisor to structure and responsibly implement the entire process.
M&A advice in all phases of the sale
The interim manager supported the sale in all phases of the project. He drew up the sales documents, identified suitable buyers and approached them. Furthermore, the interim manager coordinated the sales process with all parties involved, i.e. the seller, the prospective buyers and their advisors (lawyers, company value experts, tax consultants, etc.).
Due diligence and parallel bidding process
In addition, he was in charge of the purchase price structuring and negotiations and organized a due diligence process. The aim of the project was to find suitable prospective buyers, achieve optimal sales proceeds (including by obtaining bids in parallel) and create transaction security. The interim manager supported various prospective buyers in a parallel bidding process.
Company sold 16 percent above valuation
The company was sold within just five months. The price exceeded the company's valuation by 16 percent. Due to the good "fit" with the selected buyer, the seller decided to retain a ten percent stake. In this way, the shareholder benefits from future profits, increases in value and a possible later exit. Both the seller and the buyer were highly satisfied with the well-organized, technically sound and professional support provided by the interim manager and the success achieved.
The buyer's challenge now is to meet the enormous demand from key accounts and end customers and to quickly set up a new, integrated production line for this purpose. At the same time, marketing and sales will need to be expanded in order to increase brand awareness both nationally and internationally and to fully exploit the sales potential.
