The partners of a highly successful, single-market firm wanted to sell the firm as a means of extracting some of the considerable value that had been created. They also wanted to gain the organizational and managerial support that they hoped the buyer would provide. They asked for our help in finding the buyer and in structuring the deal.
We documented a profile of the firm, developed a valuation, and described the various attributes of the “ideal” buyer. Then we started looking. We also posted the opportunity on our website.
About a dozen firms surfaced as potential candidates, all but one through our research and our networking efforts, and not surprisingly (since we have consulted with over 1,800 firms), we already knew all of them as our clients.
Through discussions about the respective firms’ goals, resources, and interest, we whittled the list to three, all of whom we then engaged in discussions and visits with our client. One of the three opted out, and the remaining two presented offers.
In both cases, we positioned ourselves in the center, with the realization that a truly successful merger or acquisition satisfies and energizes both firms. We advocated for a financial deal and terms that would recognize the extraordinary value of this particular firm while also being affordable, in terms of the acquisition’s profit potential, to the buyer.
Both firms were clearly in the running, and we were able to avert what might have become a “bidding war,” which might have enhanced the short-term benefit of our client (the seller), but all agreed that an over-priced deal would sour the relationship – and the success – quickly.
Ultimately, the seller opted for the buyer that it felt would offer the stronger support and synergy. The principals of the selling firm had offered to remain involved for three years, with the option of continuing longer. The buyer required five years. The term hasn’t yet expired, but the level of professional satisfaction and the success of the practice suggest that they will remain beyond five years.
The entire process, from beginning the search effort to consummation of the deal took about 12 months. It might have been a bit shorter, but those whose participation was critical to creating the deal had other ongoing obligations, mostly related to serving their respective clients.
The Coxe Group is not one or two consultants — but a group of 10-plus who together bring more than 300 years of experience in organization management, financial management, marketing, personnel management, and behavioral science. Many of us are registered professionals in the fields we serve. Some of us have carried responsibilities as principals and managers.
Our richness comes from our diversity. And our strength comes from our collaboration. With such a broad base, we can address collectively all the issues surrounding a firm’s goals, plans, structure, people, and finances. When you work with The Coxe Group, you have access to this entire resource.
Today’s increasingly complex organizations need to be skillfully led and managed to endure. We are proud to be in the forefront of those who have responded to these leadership and management needs and advanced the state of the art.