Owner Goal Clarification and Planning Result in a Transaction that Exceeded Expectations


The Challenge

Ultracast, LLC. is a Connecticut based middle market company known for its ability to quickly turn a client’s engineering design into a prototype and produce low to moderate volume runs of aluminum, magnesium and zinc precision cast components. The company’s size made it a “tweener,” meaning it was too large for the vast majority of investor groups while bordering on being too small for an industry or strategic buyer. The owner had identified three major goals for an eventual sale: the highest possible valuation, a substantial cash payment at closing, and a personal post-closing transition commitment of up to twelve months that provided him the flexibility to take significant time-off. Finding a buyer that would fulfill all the owner’s goals presented a number of challenges. We were retained as the exclusive Merger & Acquisition advisor to help the owner achieve his goals.

The Solution

The owner wanted a Merger & Acquisition advisor who could advise him on what changes the company needed to implement to achieve the owner’s valuation expectations, as well as a working relationship based on mutual respect and candor. Bill Quish started the engagement by understanding the owner’s personal, business and financial goals and made an in-depth assessment of the company’s strengths and weaknesses. Recommendations were made and our client implemented changes to the business that ultimately positioned him to achieve his desired price and deal structure.

The Result

After receiving several offers, the owner enthusiastically accepted Letter of Intent from a private California company that was looking to acquire proven niche manufacturing companies with good growth prospects. Our client received a higher valuation than expected, a significant cash payment at closing, and a promissory note with a strong corporate guarantee. The transaction was completed within four months of the buyer being identified.

Letter of Recommendation

Dear Bill,

At the time I moved from the “thinking about” to the active phase of selling my company, I was completely unversed in what the process would be. You remained in contact with me for the eight months that I was in the deciding phase. During this time, you answered my initial questions and helped with guidance and additional questions I should ask myself before taking the plunge. When I decided to sell, you provided me with a thorough understanding of all that would be involved. You helped me clarify my goals both financial and as to type of buyer, and proceeded to recruit the right kind of prospective purchasers.

In about 6 weeks, we had a half a dozen interested prospects from which we culled three organizations that were philosophically complementary and fiscally qualified to proceed with visits and substantive offers. In less than three months, I had an offer that exceeded my price expectations. The deal was consummated just six months after the start of the process.

Bill, you were instrumental in finding the right buyer, guiding me through the negotiation process and making the transaction smooth and relatively painless. You made sure that all the details were attended to and maintained the highest levels of professionalism and confidentiality throughout the process. I have recommended you to several people who have been thinking about selling their businesses and would highly recommend your services to any prospective seller or purchaser.

Best regards,
Maynard Stowe
CEO and Owner


Saybrook Capital Advisors, LLC

5 Overlook Drive
Old Saybrook, CT 06475