The Situation With Selling the Business
When the founder of a 30-year-old West Coast consulting firm sought an exit strategy, the stakes were high. The firm boasted an impressive client roster that spanned blue-chip corporations, universities, and government agencies, as well as a stellar reputation within its niche. However, financial hurdles had complicated their M&A journey — the company's revenues had plateaued, and their EBITDA hovered near zero.
This scenario called for a tailored M&A solution that would not only maximize the founder’s financial return but also ensure long-term benefit for the team, such as professional career and financial opportunities. Our team was retained for our proven M&A advisory expertise. Recognizing the firm's potential despite its financial struggles, we crafted a comprehensive strategy that would attract the right buyer.
How TobinLeff Crafted a Winning Exit Strategy for a Leading Consulting Firm
The TobinLeff team began by analyzing the firm’s strengths. Given its specialized niche and strong market reputation, qw identified significant upside business potential for the right buyer. Our next step was developing a compelling, data-driven prospectus that highlighted the firm's value beyond financial metrics, emphasizing its intellectual capital, client relationships, and growth opportunities.
We leveraged our extensive buyer network to identify and vet potential buyers, focusing on those with the best strategic alignment and the resources to invest in the firm’s growth. We walked with the seller through a rigorous selection process and helped them secured a deal worth 80% of the firm’s top-line revenue. The structure ensured 70% of the deal value was paid in cash at closing, with the remaining tied to a one-year earn-out, providing security for the founder and a smooth transition for the team.
Ready to explore what an exit strategy could look like for your business? Get in contact with the TobinLeff team today to unlock the full potential of your business transition.
