Industry: Industrial Gases
Overview
A leading regional supplier of packaged gases sought to divest its business operations to focus on core strategic interests. The company aimed to find a buyer that could integrate the business seamlessly and capitalize on the market position the company had established. Our advisory team was engaged to facilitate this strategic divestiture.
Challenge
The client faced multiple challenges in preparing for the transaction with a world leader in the industrial gases sector. Firstly, there was a need to prepare the business for scrutiny by a globally recognized entity, which involved extensive preparation to ensure all operational, financial, and legal aspects were aligned with international standards. This preparation was crucial to attract and secure interest from a high-caliber buyer.
Secondly, ensuring that appropriate data were shared and that communication lines between the parties were established and maintained was vital. The process required careful management of information flow to protect sensitive data while providing enough detail to support due diligence.
Finally, the negotiation process needed expert handling to bridge cultural and operational differences between the local company and the global industry leader. Our team was instrumental in facilitating these negotiations, ensuring that both parties reached a mutually beneficial agreement while maintaining a focus on strategic and operational goals.
Solution
Our Transaction Advisory team provided comprehensive support throughout the sale process:
Pre-sale Preparation
Conducted a thorough assessment of the business to understand its value drivers and potential risks, preparing it for a robust due diligence process.
Market Analysis and Buyer Identification
Analyzed potential buyers in the industry, targeting entities that would see strategic value in the acquisition.
Negotiation Support
Assisted in structuring the deal to align with the client’s financial and operational goals, ensuring optimal terms and conditions.
Due Diligence Facilitation
Coordinated the due diligence process, ensuring transparency and speed to maintain transaction momentum.
Closing and Post-sale Transition
Provided strategic guidance to ensure a smooth transition, focusing on employee retention and customer service continuity.
Outcome
The divestiture was successfully completed, with the client selling the packaged gases business at a valuation that reflected its market potential and operational worth. The transaction not only allowed our client to focus on its core business areas but also ensured that the acquired business could thrive under new ownership, benefiting from increased scale and operational synergies.
Impact
The sale demonstrated our ability to manage complex transaction processes effectively, ensuring client satisfaction through meticulous planning and execution. It also underscored our expertise in handling strategic divestitures that require a deep understanding of the industry and tailored advisory services.
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For more information on how Kreston OPR Advisors LLP can help transform your business, visit www.krestonopr.com or contact us at [email protected]