Divestiture from multi-national Corporation
Transaction Background: In an effort to streamline its United States-based operations, one of the largest trading companies in Asia sought to divest a non-core business it had long for many decades. The client's initial to sell the business without an advisor were not successful. The US operations of the client retained Plaisance Advisors to assist in completing a transaction. One of the client's goals was to ensure that the employees were treated fairly and that its reputation not be damaged.
Action Steps: Plaisance Advisors recommended and implemented a marketing of the Company that focused on strategic acquirers who had a reputation for quickly completing transactions. Plaisance solicited and received multiple offers for the business from strategic acquirers and invited a sub-set of the companies that made offers to visit the Company for a management presentation hosted by Plaisance. Subsequent to the presentations, the client and Plaisance Advisors' met with the leading bidder on numerous occasions to refine their offer and ensure a smooth transition to the new owner.
Result: A strategic acquirer with operations in a similar line of business was selected by the client to conduct due diligence on the business and have discussions with the the businesses contract manufacturing partner.
The businesses contract manufacturer pressed for a new manufacturing agreement and threatened to scuttle the transaction. Along with the client, Plaisance devised a strategy to neutralize the contract manufacturer's negotiating position. This enabled the acquirer to complete the transaction and continue to provide products to customers.
The transaction was completed on terms that the client was very pleased with. The client has subsequently retained Plaisance Advisors on two additional transactions.