“Lyons Solutions was straightforward and realistic from the start. Their consulting as part of their Merger & Acquisition service led to our charting a course that we needed to maximize our potential marketability and value. The combination of their pre-marketing consulting, their marketing campaign, and their negotiating with multiple buyers resulted in an excellent Merger and Acquisition transaction for both of us.”
Bob Lamoin, Founder and CEO
CSA Tobin, Inc.
Strong Marketing Campaign Yields High Value Transaction
CSA Tobin is a mid-market IT solutions and IT staffing company serving large national accounts and also companies located Connecticut and Western Massachusetts. The transaction sought was one that could offer substantial cash, the potential for one of the owners to leave in a short period of time following the acquisition and the potential for the other owner to continue to grow the company’s solutions practice. This was a second Merger & Acquisition transaction we had undertaken for the majority owner after having previously been retained Mergers & Acquisitions advisors to sell this company’s predecessor a number of years previous to this engagement. The company was one of the largest privately held IT solutions and IT staffing companies in the local market. However, its business model of offering both consulting and staffing services might not be attractive to many of the buyers in the marketplace. The company had growing profitability but did not have audited financial statements. Structuring a transaction with limited risk and maximum after-tax benefit presented a challenge within the current market environment.
Lyons Solutions, LLC consulted with the owners to position the company for sale and determine the best time to go to market. During that period, a number of changes within the company were taking place to make its profitability attractive to the buyer community. Once the threshold level of profitability was achieved, Lyons Solutions was able to develop a marketing package that capitalized on the positive results from the changes that were implemented. Lyons Solutions Mergers & Acquisitions launched an intensive marketing campaign and presented the company to more than 100 potential buyers. After reviewing a number of proposals, the owners selected an offer that was attractive to each of them.
The owners were able to receive an all-cash offer at full market value for the company and advantageous tax treatment. Following the sale, the owner that wanted to leave was given a short-term employment agreement and the owner that wanted to stay was given an excellent employment package by the acquiring firm.