Portland, Oregon (PRWEB) May 02, 2014
ACT Capital Advisors represented the business owner in the sale of the specialty truck accessories firm to a local investor. The local investors formed a new entity established for the acquisition of the assets of the company. Names have been redacted for the privacy of the company and local investors.
The previous owners of the truck accessories firm built a turnkey business that continued to run successfully despite the passive role the owners took in the day-to-day operations of the business. While the owners remained in the passive role, the business operations increased dramatically from 2012 through 2013, which resulted in more then doubling the free cash flow of the company. This made the business appear much more lucrative to the various investors exploring the acquisition opportunity.
The local investors that acquired the company were previously owners of a different business in the industry. Some years before the acquisition on April, 1 2014 the owners were extremely successful at building a profitable business that was later sold to another company in the industry.
As part of the sell their previous business, the local investors signed a non-compete agreement that restricted them from getting back into the industry for a number of years. About one year before these investors made their acquisition of the truck accessories firm the non-compete agreement expired allowing them to get back into the industry. Rather than building a business from the ground up, they decided it would be much easier to acquire a company that already has the infrastructure in place in addition to the repeat customers and renowned reputation in the industry.
The truck accessories firm had an extremely strategic location for its line of business. As the company services semi trucks by providing after market chrome parts, it is imperative that the business is easily accessible to truckers getting on and off the interstate. The business location was just that. Located a few hundred yards from the on and off ramps it sits right next to a Flying J gas station and rest stop, which makes the location even more strategic in the eyes of the investors. Because the real estate was so imperative to the success of the company, the local investors concluded that it needed to be acquired along with the assets of the company.
ACT Capital Advisors was extremely successful in assisting the owner in selling the business for a value much higher then what might otherwise have been attained. As the third party to the transaction, ACT assisted in removing emotions and helping the owners negotiated a deal that maximized the overall value while
maintaining the relationships with the buyers. ACT Capital Advisors appreciated the opportunity to represent the sellers of the company and is happy it was able to help them reach their retirement goals.
About the Truck Accessories Firm: The business that was sold has been established for nearly 40 years. It was ran and operated by 8 employees that handled all of the daily operations. This allowed the owner to take a passive role in management while simultaneously making the business much more attractive to potential acquisition partners. As the owner was preparing for retirement he wanted to see the success of his business continue beyond his own efforts. This is when he turned to his merger and acquisition advisors for help.
About ACT Capital Advisors: ACT Capital Advisors, LLC is a leading merger and acquisition advisor for middle market companies in the Pacific Northwest. ACT assists business owners with exit planning and partners with wealth managers to ensure the value of the business meets the owner’s needs for retirement. This allows business owners to rest assured the companies they have built will both continue in the capable hands of the acquisition partner as well as sell for a price that will allow them to enjoy the retirement they envisioned. For more information on ACT Capital Advisors contact Troy Jenkins at tjenkins(at)actcapitaladvisors(dot)com or visit the company’s website at http://www.actcapitaladvisors.com.