Case Studies

Family Business

The Business: Privately held winery with eight owners - all family members. 

The Challenge: 8 multi-generational owners where no one had majority control. 

The Goal: Transfer out of the 40% owner share. Establish a Board of Directors that reports to the owners. 

End Result:  Assisted in the new implementation of an ERP system specific to the industry. Worked with all owners to establish clear roles and responsibilities. Formed a Board of Directors reporting to the owners.  Empowered the key managers to make the decisions. Built and implemented departmental budgets.

Where They Are Today: The company enjoys increased gross revenue of 20% year over year, decreased overhead expenses and a 45% improved EBITA . 


Partnership Transitions 

The Business:  Privately held auto repair shop with two partners of 20 years. 

The Challenge:   This partnership separation was even more difficult as the success of the business was tied to both of each others gifts. One was operationally focused while the other was sales and customer relationship based. 

The Goal: One of the business partners was no longer interested in working together and wanted to get out. 

End Result: Negotiated with owners, spouses and strategic advisors for a fair/equitable separation for both the business and property. Helped secure financing and kept a very difficult situation away from the courts. 

Where They Are Today: The business is thriving under the remaining owner.


Growth & Scaling

The Business: Privately held gluten free manufacturing and national sales company with a sole owner.

The Challenge: Annual sales growth from $5M to $13M in two years quickly outgrew owner's abilities. 

The Goal: Build systems that allowed the sole owner to manage, operate and grow the company within their given skill set.

End Result: Put in new ERP and CRM system. Built new organizational chart with job descriptions and definable roles with responsibilities. Consolidated one of the manufacturing companies into the parent and closed the other company. 

Where They Are Today: Grew the company from $13M to $21M and double the EBITA in two years.


Establishing Long Term Plan to Sell  

The Business: Privately held service and repair shop - sole owner. 

The Challenge: Owner who was 65 and wanted a plan for retirement. 

The Goal: Create a plan that would grow the value of the business while creating sustainability and provide for a smooth transition.

End Result: Work over a 5 year period on designing an exit plan which included buying another business to strengthen management staff, sell off the land under the business for a better capital gains tax deduction, implemented accounting standards so an SBA loan would be approved and cleaned up the site all before listing the business. Confirmed with his advisors that his retirement goal could be obtained with a set sales price and sold his business. 


Negotiation

The Business:  Privately held brewery. ECG was brought in by the attorney representing the Seller.

The Challenge:  Seller had a LOI (letter of intent) from a larger competitor for $2.5M.  The transaction was already at the verbal agreement level, but the attorney felt the Seller was not offered a fair price. Shopping the offer was not an option.

The Goal:  Increase offer without blowing up the deal as the Seller wanted to sell to this specific buyer and close in 60 days. 

End Result:  Negotiated a sale price of $3m with $500,000 more cash up front. Saved the seller $300,000 in taxes by selling stock in the C corporation and structured the note as an installment sale to save $75,000 in Year One. Closed in 60 days.



3rd Party Sale

The Business: Franchise retail shop - one owner. 

The Challenge: Owner, who was out of the country for most of the transaction, wanted out in 45 days. 

The Result: Completed business analysis, created listing, solicited and qualified buyers, negotiated terms, worked with the franchisor through escrow, closed escrow in 30 days, and then assisted seller to complete after sale matters to close down his business license, prepare for tax implications and cash out.


Inside Sale

The Business: Large construction company.

The Challenge:  Managing a large team of advisors necessary to discern the best pathway and successfully complete the complex transaction. 

The Goal: The owners wanted to sell the business to a key employee and needed clear steps.

End Result: Evaluated liquidation, inside sale and outside sale against the owner’s goals & objectives. Designed an ESOP with Strategic Advisor support and helped implement the transitional steps required.

Where They Are Today: Business is now owned by the employees, is profitable and continues to grow.