Case Study 1: Sale of a publishing businessOne successful sale handled by bankers from Grandview National involved a company that published trade magazines, and was owned and operated by the founder. After more than a dozen years of operating the business, the owner was anxious to sell the existing business in order to start a new venture. He retained two independent business valuation experts who provided a price range using a variety of valuation techniques. Grandview National's investment bankers applied our value-driver analytics to the business and determined that the original valuators had drastically undervalued the company's brand awareness and related goodwill value. In fact, we believed that the business was worth a minimum of 200% more than the valuators had determined. To achieve the desired premium, we focused on 5 select strategic buyers that could utilize our client's brands and goodwill to leverage their other products and services into our client's unique customer base. We solicited the buyers, attended management meetings, and managed the process so that all of the candidates received the same information within the same time frame.We conducted an open bidding system that resulted in a purchase price equal to 333% of the average price suggested by the business valuators, and a structure that resulted in favorable tax consequences for our client. Moreover, due to our extensive preparation and project management, the transaction closed 23 days after acceptance of the offer.
On to Case Study 2 - The Sale of a Financial Service Company