Overview of Project
The majority stockholder who had owned this small technology company for 15 years desired to exit the business and hired Manchester Companies to find a buyer. The challenge of the transaction was that the company had recently suffered dramatic operating losses and therefore had negative equity. However, Manchester found an ideal buyer who paid the owner approximately ten times EBITDA for the company.

The Challenge
This transaction was unique because the company has suffered significant operating losses for several years and therefore had negative equity. Although the owner desired to exit his business, it was very difficult for him to find an interested buyer.

The Engagement
Manchester Companies was engaged to sell the company for the owner, despite its disappointing financial performance.

The Solution
Our professionals initiated contacts with numerous private investors who we knew were seeking to buy small-market companies. Our professionals found the ideal candidate, an energetic entrepreneur with experience in the technology industry. Our professionals negotiated and closed the transaction to both the buyer’s and seller’s satisfaction.

The Impact
The buyer acquired the business for an enterprise value of approximately ten times EBITDA, which relieved the majority owner of all his debt obligations.