This client is a specialty manufacturer that provides very high end precision metal parts for the dental, medical, aerospace, and industrial markets.

Engagement
Sell Side Investment Banking

Case Study
The company had been approached for purchase by a knowledgeable strategic buyer.  They offered to purchase as an "Asset" sale, which, because of the structure of the company as a C Corporation would be extremely tax inefficient and would have severely reduced the after-tax return to the owners.

The primary reason provided by the potential buyer for purchase as an asset sale was a lack of trust that the accounting systems and processes accurately reflected the reality of the company's financial position.

TGG Capital supported an effort to review every journal entry in the company's QuickBooks database for the previous fiscal year - verifying and adjusting as needed to ensure that it was accurate and credible.  This data was then married to credible financial forecasts based upon machine utilization, floor space, and capacity constraints to provide grounded revenue and profit models that would appeal to financial and strategic buyers.

TGG Capital took the company to market to generate an auction process that would maximize the purchase price, and due to credible financials, result in a higher after-tax return for the client.