One look at the shop and you'd see why Bart and Jerry were skeptical about selling their business, Reliable Steel Fabricators, Inc.  How much could they get for a low-profile steel fabrication business in a broken-down 50 year old building?

The building was worn out, but the business wasn't.  Quite the contrary.  What Alliance Equity saw was a prosperous and efficient operation inside that would have considerable value in the marketplace.

Recognizing Value

Experience told us that most of the media attention and deal action in the Northwest involves fast growing, high-tech companies.  But we also knew that the steel fabrication industry was a highly fragmented one, ripe for consolidation and rapidly moving in that direction.  That's why we had no doubt that, with the company's assets and profitability plus our expertise, we would easily find a savvy buyer in a complimentary or related industry.

So we gave Bart and Jerry our estimate of their company's value in the marketplace.   They were quite satisfied with this figure.  We then prepared and sent them our plan for locating a buyer for their company.

Maintaining Confidentiality

Bart and Jerry responded quickly to our marketing plan, but they had serious concerns about confidentiality.  Now, we always walk a fine line between a thorough search for the best buyer and our client's need for utmost confidentiality.  We know that a business for sale is vulnerable to upset employees, warned competitors and damaged customer confidence.  We understood completely when Bart and Jerry insisted that no one locally could know anything about the potential sale.

Widening the Search

A few days later, we presented a modified marketing plan to Bart and Jerry.  This plan went off the beaten path, focusing exclusively on qualified out-of-state buyers to the exclusion of all local prospects.

In our search, we found a prospective buyer whose strategy called for expansion in the Northwest.  This buyer is an expanding NASDAQ company.  It is building its future by buying many companies in this industry.  This strategy will let them enjoy economies of scale while offering a wider selection of products to their accumulated customer base.

Here's the Best Part

Through our negotiations, the NASDAQ company offered a full 20% more than the fair market value price we had suggested earlier to Bart and Jerry for their company.

Naturally, this offer surprised and pleased the formerly skeptical business owners.   After a 9 month transition at Reliable Steel Fabricators, Bart and Jerry took up new vocations.  These days you can probably find Bart skiing down the slopes of one of our gorgeous Northwest mountains.  Jerry, on the other hand, enjoys his new freedom by scuba diving in warmer and more exotic locations.

- Bart Olsen