Luxury Door and Window Designer's Full Acquisition

Overview

In this case study, we explore the successful full acquisition of a luxury door and window design company in the Mobile Bay area. The seller, looking to retire, found an entrepreneurial buyer transitioning from a corporate career. This deal, completed in just eight months, underscores the importance of thorough due diligence preparation and clear process documentation in facilitating a smooth transition.

Key Deal Metrics

• Advised the: Seller
• Type of Deal: Full Acquisition
• Timeline: 8 months
• Earnings Multiple: 3.5x

Objectives & Reasons for the Deal

Seller’s Objective

The seller, seeking to retire, aimed to transition their business to a new owner capable of maintaining its high standards and reputation.

Buyer’s Objective

The buyer, leaving the corporate world, wanted to step into entrepreneurship with a strong, established company in the home finishings industry.

What Went Right

Preparedness for Due Diligence

An aggressive effort to prepare for due diligence positioned us well when the right buyer emerged. Documenting processes and verifying financials clarified key aspects of the deal, ensuring a smooth transition.

Clear Documentation

The seller's independent handling of daily operations and accounting necessitated careful documentation. By manually verifying and recasting financials, we brought clarity to these critical components, enhancing transparency and trust.

Areas for Improvement

Prolonged Closing Process

The closing process took slightly longer than expected, but the absence of major issues ensured this delay was manageable.

About the Business

The company is a designer and distributor of custom doors and windows in the Mobile Bay area. It primarily serves homeowners completing luxury, new-construction homes, but also caters to general contractors and builders.

Deal Partner Highlight

This deal stood out for its minimal third-party involvement, as the buyer brought their own financing. This direct approach facilitated a smooth and efficient process, emphasizing the benefits of having a prepared buyer.

Conclusion

This acquisition illustrates the power of thorough preparation and clear documentation in business transitions. Our brokerage’s proactive approach ensured a successful deal, aligning the needs of a retiring seller and a new entrepreneur. Our dedication to clarity, integrity, and efficiency enables us to support diverse client goals across various industries.