Client had identified target and asked AE Capital to help negotiate transaction. Target was in a consolidating industry and had been approached by several other buyers with deep pockets. Client’s consensus building environment made it difficult to react as quickly as competing bidders.


AE Capital Value Added

After meeting with Target, AE Capital realized that the key shareholder (CEO) was motivated by more than sale price.

As Client’s advocate, AE Capital was able to reassure the CEO that our Client would i) be a better caretaker of the Company and supporter of management than other bidders, ii) close on a timely basis and iii) pay a fair price.

Target accepted Client’s preemptive bid.

To assist Client in consensus building, AE Capital provided substantially more supporting documentation than is common in a domestic transaction.

AE Capital structured transaction in a manner that won support of management/shareholders.

Purchase price was approximately half the consideration being paid for similar companies at that time.