“I believe your advice to us, your patience in awaiting the superior deal we finally achieved, and your communication with the buyer made a significant difference in the outcome, which resulted in a great operational and cultural fit for the company. I am delighted also that the purchase price was 25% higher than the amount we had expected.”
Janet Patrick, President
Medical Personnel Services, Inc.
The Courage to Say ‘No’
Medical Personnel Services, Inc. is a mid-market, multi-location specialty staffing company. Its’ owner wanted to retire and also wanted an exit strategy for cashing out with minimal risk. Other considerations were maintaining the corporate identity and continuity of employment for staff. The company was in a niche not highly valued in the marketplace at that time. Although the owner had received several direct approaches from potential buyers, they failed to yield satisfactory offers. The owner contacted Lyons Solutions Mergers & Acquisitions for Merger and Acquisition transaction advice and retained us as the company Merger & Acquisition advisor.
Lyons Solutions identified a number of potential buyers and its extensive marketing effort produced three offers. One of the three offers was very attractive. However, because other larger acquisitions became a priority for the buyer, the final letter of intent was never executed. The other two offers were at unacceptable valuation levels. Lyons Solutions continued to negotiate with these buyers to improve their offers and market the company to other potential buyers.
Our client was understandably nervous. A good offer had fallen through. Although we had been successful in convincing another buyer to significantly improve their offer, we were not comfortable recommending that the owner accept it. The buyer threatened to withdraw its offer if it was not accepted immediately. The owner considered accepting this offer, but we advised waiting until a better offer was found. We politely declined the offer but still maintained a positive relationship with the buyer.
Our continuing marketing effort uncovered a strong strategic buyer who closed the transaction with a far superior, all-cash offer with virtually no risk to the seller. The cultural fit was perfect. Corporate identity and all employees were retained. By providing the assurances needed to say no, the owner was able to hold out for the right deal.