Alabama based IT VAR

An Alabama based IT VAR (Value Added Services) company approached Matt regarding a sale for the owner. Initially, the sale process was approached as a “normal” process while Matt identified and approached multiple potential buyers. Through this process it became apparent that a large competitor was interested in purchasing the company but that, at the same time, this competitor had been approached by a larger company for a partial acquisition. This ultimately led to a three-way merger of three companies with separate valuations and differing owner needs and desires. This also required three separate legal teams and different groups of advisors working to close a transaction that met the needs of their clients. At the end of the day, Matt’s client merged his business into a new venture that had revenues of $250 million dollars and offices in six states. The seller was able to accomplish the two most important goals which were to: 1) Retire with the expected funds after closing and 2) Retain a small percentage of the new company to be able to “stay involved” without any real day to day responsibilities and have an investment in this new company to watch grow as the new partners succeeded!