Utilizing BXO's Proven Process To Maximize Value
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Manufacturing Company Overview:
Manufacturing Company Overview:
The company made kitchen and bathroom fixtures. They had good profit margins but had a few issues that were severely impacting the value of the business. Some of the issues included:
- Labor contract disputes
- Underfunded defined benefit plan
- Aged inventory
- Past environmental incident
- No trademarks on website, social media or in catalogs
Pending Offer Summary:
- Company founded in 1976 by grandfather
- Father and son owned 100% of the company
- Operated out of 60,000 sq. ft. state-of-the-art manufacturing facility
- 2018 Revenue: $18.5 million
- EBITDA: $5.2 million
- LOI Multiple: 7.69x
- LOI Offer: $40 million (Spring 2018)
BXO Process and Return on Investment:
- Timeline: Eleven Months
- 7 Consultants
- Action Plan Budget: $155,000
- Actual Spend: $185,500
- LOI: $71 million Up ($31 million)
- Adjusted Estimated EBITDA: $6 million
- LOI Multiple: 11.8x (Increase 4.11x Turn
