Perhaps it was sheer luck that Joy Barnes was listed as president of Barnes Machine, Inc.  Retirement had been in the back of her mind for some time when she received our call about selling the business.   "Bob," she said to her husband, "I think we ought to talk to these people."

Bob was not as serious about retiring as Joy was.  He had built the business from scratch since founding the company in 1978.  The company had risen from an entrepreneurial adventure to become a premier supplier to nearby Boeing.   Business was booming.

The Outlook

Although not entirely ready to retire, Bob could see that technology was rapidly changing his industry.  In addition, Boeing was demanding ever more sophisticated capabilities.  He'd soon need millions of dollars in new machinery with advanced technology to remain competitive.  And while his entire nest-egg was tied up in Barnes Machine, his Harley Davidson motorcycle gathered dust in the garage.

That's why Bob had listened to the offer of a business group who had recently shown a keen interest in buying his business.  But dealing with them took him out of his element and was distracting him from running his company.

Enter Alliance Equity

Now, we at Alliance Equity had already worked on a business sale in the same industry so we were already up to speed on the cross-currents affecting companies like Bob's.  We saw in Barnes Machine, Inc. a profitable company that might be a good fit for other airplane parts supply companies.  In fact, from our work in the industry, we already knew of several prospective buyers waiting in the wings.

Test the Waters

We suggested to Bob that making a public "business for sale" announcement was not the best approach.  Instead, we would bring three qualified buyers to Barnes Machine.  This way Bob could compare the value these buyers saw in the company to the proposal he had received independently.

The buyers we brought to Bob saw Barnes Machine in the same light we did - as a premium, profitable business with a solid reputation and excellent prospects.  It was clear from the outset that we would see heated competition for the company, even among these few buyers.

Negotiate the Deal

Since we at Alliance Equtiy have the experience, expertise and financial acumen needed in the business sale process, the prospective buyers felt comfortable and confident dealing with us.  After only a few weeks of negotiation, we sealed an all-cash deal that was considerably better that Bob's original offer.

Both Bob and Joy were happy with the sale - Joy especially, since part of the deal was a new silver BMW for her.  Bob has the option to work for three more years, but that Harley Davidson may prove to have a stronger appeal for him long before those 36 months have elapsed!

"Selling our company was the right thing to do, both for us
and the company.  And Alliance Equity was
the right company to handle the sale for us.  We knew how
to run the company and produce quality parts.  They knew
how to find buyers and structure a deal that gave us
what we wanted while positioning the company
to expand in many new ways."

- Bob Barnes