Lighting and Supply Product Distributor in Illinois
Industry
Location
Itasca, Illinois
Business Broker
Situation
This business, founded in 1979, was operated by two business partners who bought the business in 1999, growing and diversifying into multiple revenue streams. The primary business is supplying commercial lighting products and supplies, including design and installation services, to the trade show and live event industry. Two of the owners worked full time in the business and, after running the business for 25 years, decided it was time to sell the business units as a whole.
Molly Hanson of BayState Business Brokers took over brokering the sale of the business in early 2024.
BayState Business Brokers’ Approach
Business Broker Molly Hanson developed a new Confidential Business Review (CBR) to take the business to market, including updated financials and simplifying the story of a business with multiple revenue streams. She cast a wide net in seeking to attract the right buyer, including marketing to both individuals, strategic and financial buyers. Timing of brokering this business was more favorable as commercial trade shows and conferences had started a comeback post the pandemic.
Results
The buyer who emerged as the best fit for the business was a financial buyer, focused on the cash flow of the business. Molly Hanson oversaw all aspects of coordinating negotiations and due diligence, worked with the buyside through financing hiccups and finally to closing…virtually! The buyside was based up and down the East Coast while the majority selling shareholders were dispersed with one at the business in Illinois and the other owner in Massachusetts.
While the business operated on leased property, the buyer negotiated with the property owner to purchase the property in addition to acquiring this distribution business. The due diligence process was highly efficient as the two sellers, one an attorney and the other a CPA, were well-prepared and well-versed in the details of their business with clean and clear financials for the buyer and team to review.
The buyer’s team included an identified ‘operator’ who would oversee the management of the business and who co-signed the SBA loan to finance the deal. It was agreed that the current Chief Operating Officer would be promoted to President and would report to the mostly-absentee operator.
Upon closing and after an agreed transition period, the sellers achieved their goal of moving on to defining what was next in their careers with new ownership in place.
What Our Clients Say
Seller
