“We looked at competitors but selected Lyons Solutions because they were quick to respond, and we liked their style (roll-up-the sleeves and down to earth). From our initial meeting through the “close,” Lyons Solutions was nothing but professional. They did not stop until they found and negotiated the right deal.”
Jack Talabisco, Founder
Absolutely Professional and Botal Associates
Aggressive Marketing Doubles Initial Offer
Absolutely Professional and Botal Associates are mid-market information technology and administrative outsourcing companies located in New York City. Its partners had different goals due to their ages: one partner wanted to cash out and exit the company, the other preferred to continue to grow the company. Each had common objectives for key employees. Because the companies were both “C” and “S” corporations, structuring transactions for maximum after-tax benefit presented a number of challenges. After the company had received offers from buyers represented by brokers, the partners sought Merger & Acquisition advice from the company’s attorney. He in turn advised them to consult with and retain Lyons Solutions, LLC.
Lyons Solutions consulted with the owners on a pre-engagement analysis basis. We determined that the current buyers were not a good strategic fit for the company and that the pricing and terms offered by them did not maximize the after-tax benefit or minimize the financial risk to the sellers. Lyons Solutions launched an intensive marketing campaign and presented the companies to more than 200 potential buyers. After reviewing a number of proposals, the owners selected an offer that was 50% above those received prior to engaging Lyons Solutions as their Merger and Acquisition advisor. When a series of external events led to the inability of the buyer to consummate the acquisition, Lyons Solutions re-marketed the company and closed an even better transaction within three months.
The purchase price for the transaction was double that of the offers received prior to Lyons Solutions being retained as Merger and Acquisition advisors to sell the company. By anticipating a number of issues early in the process, Lyons Solutions was able to structure parallel transactions to optimize tax treatment for the sellers. Following the sale, the partner who wanted to remain was given an excellent employment package as well as complete day-to-day operating authority within the company, and the partner who wanted to retire was able to do so.