Looking forward to retirement, the owner of a grocery distribution company was ready to put his business on the market. There was just one major drawback – while the company had been successful for years, it had only four clients, one of which contributed 85% of the business’ annual revenue.
But the team at Impact saw the company’s substantial upside – and made sure potential buyers did, too.
Impact analyzed the business’ operations and found a company with a strong culture that ran seamlessly with nominal overhead. The owner’s small team of employees managed all the day-to-day work, and with minimal inventory stored on-site and little working capital needed, the business turned a sizeable annual profit.
Seeing the company’s untapped potential, the team at Impact went to work finding a strategic buyer who could understand this well-managed business had room to grow. They found the right fit in an operator with previous industry experience, which reassured the company’s top customer that the business would remain in capable hands. Nonetheless, to ensure that the deal was on solid ground, Impact helped to structure the transaction so the buyer was protected in case the company’s main revenue source didn’t transition to the new ownership.
In just two short months, the deal was complete – and more than a decade later, the new owner has not only grown the business by more than 30% but has also purchased all the associated commercial real estate and turned daily operations over to his daughter and team of loyal employees.