Business Acquisition Assistance – Construction Industry Subcontractor

  • Client’s Objectives: Evaluate the rewards, risks, and potential net cash flows of a seven-year buyout acquisition opportunity
  • Project: Analyzed background/financial information, prepared a cash flow projection model for debt repayment and the seven-year buyout, and provided advice on the pros and cons of the acquisition
  • Result:
    • Concluded the owner’s initial price/seven-year buyout proposal did not result in a feasible acquisition or appear to cash flow
    • Initiated additional discussions between the parties on modifications that may help make the purchase more mutually attractive
  • Value: Client quote – “It’s unfortunate, but a well thought through no is significantly better than an uninformed yes.”