Chemical Distribution & Environmental Services
Industry
Location
Business Broker
Situation
A family built this business from the ground up, having implemented a successful business strategy based on providing superior customer services to small and mid-sized customers including HVAC companies, plumbers, municipalities and school systems. The business included limited chemical manufacturing while focused on distribution of chemicals for water treatment applications and disposal of hazardous materials and waste. One of the owners focused on sales and customer service while the other handled the books and HR responsibilities.
When the owners decided it was time to sell and look to do something new, their CPA recommended BayState Business Brokers and Principal, Sarah Grossman.
BayState Business Brokers’ Approach
Sarah prepared the valuation of the business and explained the brokerage process to the co-owners. The business was effectively positioned in serving a market niche that larger companies did not focus on, which presented growth opportunities for a prospective buyer. Additionally, its strong sales process, reputation for superior customer service and existing licensing and permitting in multiple states for disposal of hazardous waste made this business attractive to many prospective buyers. A lot of interest was generated including individual buyers, strategic buyers and private equity firms.
Results
A priority for the sellers was selecting a buyer who would be the right cultural fit. As interested parties were evaluated, the buyers selected a small family office comprised of a father and his two adult children as being the right fit. The buyers were highly educated, business savvy, had complementary expertise and skills (e.g., engineering, marketing and sales) and were looking to acquire a business where they would be the owner operators.
Sarah scheduled weekly meetings with the buyers and the sellers with defined topics set and a clear agenda. This weekly focus kept the deal moving smoothly. The buyers were well-prepared with questions and the sellers were able to quickly respond to specific topic areas such as vendor reviews, chemicals and due diligence matters. BayState Business Brokers’ Transaction Coordinator, Eitan Goldan, quarterbacked the data room, facilitating the flow of documentation and capturing notes from the weekly meetings that further enabled an efficient process.
The buyers were excited to work with the owners during a productive and positive transition period as they began to think ahead to their growth strategies. The sellers were thrilled to have two business savvy, highly capable new leaders to take over the reins of a business they had launched; having peace of mind that the business was in good hands, and they could move on to what was next in their journey.
What Our Clients Say
Intelligence, experience, excellent communication skills and a driving force describes Sarah Grossman and her team. Sarah was a pleasure to work with even through various stressful times that can come with selling a business. We are grateful for her hard work, which made this deal happen.
Caryn Katz, Seller
