The Situation
Sale of a Telecommunications
Company
The majority owner
of a telecommunications services company wanted to retire and cash out
his ownership in his company. The owner was uncertain of value and did
not have any buyers. Minority owners had different goals and were a
significant obstacle to the sale.
The Alpha Omega Solution
Alpha Omega helped
the majority owner negotiate and finance the buy out of minority owners.
We began by valuing the company to determine the selling price, reviewing
possible exit strategies, identifying qualified strategic and financial
buyers, preparing a detailed offering memorandum, contacting prospective
buyers on a confidential basis, obtaining letters of intent to purchase
the company, and assisting in closing the deal. We minimized the impact
of the transaction on the company and the management team.
The Results
The client was able
to cash out minority investors ahead of the primary sale, which facilitated
the ultimate transaction. The majority shareholder then cashed out
at a value that was significantly higher than originally expected.
The profits from just the acquisition and then sale of the minority
stock were sufficient to pay the Alpha Omega fees nine times over.
Disclaimer
All project history examples are guaranteed factual. In some cases, names of companies are excluded at the request of the client or can only be disclosed after execution of a non-disclosure agreement acceptable to the client.
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