Company Overview
The Company was an ESOP precision machine shop based in Wisconsin and served industries in which quality is critical such as medical device, aerospace, defense, and energy. Manufacturing process included engineering design, manufacturing, and CMM-based inspection, delivering high-precision components for applications that demand absolute reliability.
The Company experienced multiple years of operating losses and frequent turnover in CEO and Sales positions.
Engagement Overview
The Company’s Board of Directors engaged Fort Dearborn Partners to perform a strategic options analysis. Viable alternatives included orderly liquidation, continue existing turnaround effort, and sale of the business.
Despite progress from the turnaround effort, the Board of Directors decided selling the business was in the best interest of shareholders.
FDP was selected as the investment bank to lead the sale of the business.
FDP ran a robust marketing process, preparing the confidential information memorandum, and contacting approximately 200 strategic and financial buyers.
The process yielded substantial buyer interest, enabling management and the Board of Directors to select from a group of strategic fit buyers.
Results
FDP held several on-site management presentations, supported the Company through due diligence, and led the negotiation of the asset purchase agreement.
The process yielded substantial buyer interest, enabling management and the Board of Directors to select from a group of strategic fit buyers.
Fort Dearborn Partners closely coordinated with the Board of Directors, ESOP Trustee, and legal counsel to navigate the complexities of the ESOP asset sale, and execute a timely closing.
The Company was ultimately sold to a Strategic buyer, owned by a private equity firm, saving 60 jobs.