Reputable Construction Services Company
Industry
Location
Business Broker
Situation
Broker Brian Labonte was approached by the owners of a construction services company who were looking to sell their company with a quicker-than-normal close. Initially, the sellers were speaking with other business brokers, but BayState Business Brokers came highly referred and they decided to move forward with Brian.
The three owners had differing goals for the sale of the company; two looking to retire, whereas the third wanted to remain working at the company. The day-to-day responsibilities had one owner maintaining oversight of the company, a second owner running the office and the third owner overseeing the jobs, including quotes and management of the crews.
The company maintains an impeccable reputation for its high-quality work. They service Boston-area colleges, universities, museums, daycares and municipalities. Their crews are longstanding and highly experienced employees, making them dependable and nimble across differing job sites. Their vendors and clients alike highly recommend them.
BayState Business Brokers’ Approach
Labonte developed the Confidential Business Review (CBR) to bring the company to market, confident that its reputation, client list and long-standing crews would make this business highly desirable. Within 72 hours Labonte received over 100 nondisclosure agreements (NDAs) and 12 offers. With so much interest, Labonte thought it best to put a deadline in place for letters of intent (LOIs). Labonte and the company owners were able to narrow down the offers to seven and, after a round of meetings, the list further narrowed to three. Labonte reviewed the final three and recommended the one closest to the asking price and with the most qualified buyer, but also the one who understood the importance of the third owner remaining employed at the company due to his client relationships, legacy and pedigree.
Results
The sellers agreed with Labonte’s recommendation, noting the buyer’s likeability and organizational skills and the sale moved forward. The buyer recognized the company’s reliable reputation and had been looking to purchase a construction-related company for two years, after helping at his brother’s own construction-related business. The buyer also had the liquidity to outright buy the company, thus making securing financing unnecessary.
The sellers will remain committed for varying amounts of transition time. The owner responsible for operations will remain for six months to finalize the transition, while the second owner will remain onboard for a month and retire. The third owner will continue to work at the company maintaining client relationships that continue to add to the legacy of the firm — its true worth.
The sellers’ goals were reached and after two years of searching, the buyer achieved his goal, too. Both parties are happy and, as Labonte says, “A deal is only a good deal if it works for both parties.”
What Our Clients Say
Brian and his team at BayState Business Brokers were professional, focused and provided us with a wealth of knowledge. We were guided through the entire selling process from our first meeting to a successful closing all in a period of seven months. High marks and highly recommended!
Seller
