Delivering a Roadmap for Success

Client: Relocation Services
Situation: Maximize valuation of company for impending sale
Outcome:
TGG improved company’s financial performance and presentation leading to 10x adjusted EBITDA sale

CHALLENGE

Ownership wanted to sell the company, but poor financial performance and non-standard financial reporting hampered that goal. TGG engaged their management team and advised of the need to appropriately position the company to better reflect its profitability to attract prospective buyers. TGG needed to provide guidance both on improving operations and presenting and structuring the sale for maximum valuation.

“TGG was instrumental in helping us achieve our personal and business goals. They performed as a valued partner through the entire process of selling our business and guided us during conversations and negotiations. They demonstrated a deep understanding of our industry and ensured a successful sale.”

TGG’S SOLUTION

TGG assessed the company’s financial position and worked with management to retool and improve the overall financial presentation of the company.

Expertise
TGG used its deep market knowledge and transaction experience to create standardized financial reports that accurately presented the company’s financial performance. TGG was able to identify and clearly present key industry metrics that were most likely to drive the overall valuation.

Service
TGG managed the preparation and delivery of 100% accurate and timely monthly financial statements to company management and potential acquirers. Having one set of monthly financial reports with financial statements, key metrics and business commentary allowed management to focus on improving business operations while TGG managed the sell-side due diligence process. TGG’s executive team also utilized their collective experience to provide strategic guidance during the negotiations with prospective buyers.

Results
As a result, the company executed a successful sale to a strategic buyer for 10x adjusted EBITDA, double the industry standard and 33 to 50 percent more than what they would have realized without the work of TGG. Further, the company was able to maintain the agreed upon price without compromise as a direct result of TGG’s work.

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