CASE HISTORIES

An Acquisition Assignment

Mercury Pharmaceutical Corporation* is a manufacturer of patented devices used in the production of pharmaceuticals, cosmetics and other high-value chemical substances. They needed some assistance with their strategy of 'growth by acquisition' - specifically, the company wanted to round out its product line with other types of precision devices.

A dedicated team from O'Conor, Wright Wyman, Inc. (OCWW) began employing our proven six step process to buyer services by spending the necessary time to understand the firm's strategic plan and develop close working relationships with their key management. The result of this effort was a detailed list of acquisition criteria that dovetailed with the goals of their strategic initiative.

Using this criteria and OCWW's extensive computer database, our researchers were able to develop a list of companies that appeared to be a match. A comprehensive listing, which contained over six hundred companies (including companies Mercury believed would be desirable acquisition targets and complementary to their product lines), was presented to Mercury management for final approval.

Following Mercury's approval, the OCWW team contacted the Presidents of all six hundred prospects by mail and telephone. Approximately one hundred companies responded; and of these, twenty-five were deemed qualified and referred to the client. The information presented on each prospect was extensive, containing significant financial and operating information, as well as market background information.

Mercury management met with ten of the referrals, with OCWW associates participating in every meeting to assist with the negotiations. Written offers were made to three companies in the form of Term Sheets. OCWW helped to craft the Letters of Intent and put Mercury in touch with the banking sources that were required to complete the transaction.

The working relationship between O'Conor, Wright Wyman, Inc. and Mercury led to significant growth, doubling their revenues with one just acquisition. The project was considered a great success by Mercury's CEO.

*Name Disguised

A Sale Assignment

The Johnsonia Boot Company* was one of the best known and oldest boot brands in the United States. They offered a complete line of leisure footwear, specializing in a hand-sewn driving boots as well as a high-fashion line of ladies boots.

The founding family had sold the company several decades ago and the new owners had developed significant brand recognition through recent marketing efforts, which had made their products of ever-increasing and year round appeal.

With manufacturing outsourced to Malaysia, the new owners had returned the company to profitability. Their goal now was to sell the product lines and selected assets of the business. They turned to O'Conor, Wright, Wyman, Inc. (OCWW) to help them find a buyer for this venerable old New England manufacturer.

OCWW began employing its proven eight step process to seller services, by inititating extensive meetings with the company's management and a thorough review of their financial statements and company operations for the past several years, resulting in the development of a detailed summary valuation of the business.

The OCWW team also set about creating a list of prospective buyers. One associate attended the annual Boot and Shoe Convention in Las Vegas. Another culled the SIC listings of companies in Johnsonia's industry (obtained from OCWW's extensive business library). These sources were combined with a list of potential companies, who had contacted Johnsonia directly with an interest in acquiring their product lines, to create a database of over five hundred potential targets.

In addition, the OCWW team prepared a Blind Description of Johnsonia (a confidential agreement to be signed by interested acquirers), and a Confidential Selling Document (a listing of information about Johnsonia that a buyer would need to determine its level of interest). These documents, along with OCWW's summary valuation of the business, and the database of prospective buyers were presented to Johnsonia and received their final approval.

The OCWW team contacted the Presidents of every company on the list by mail and telephone. Nineteen companies responded. After approval from the client and execution of a Confidentiality Agreement, each received a copy of the Confidential Selling Document. Four companies indicated an interest in meeting with Johnsonia management preparatory to making offers.

Two companies submitted Letters of Intent; and following serious negotiations, one was accepted by the client. OCWW was there throughout the process, attending every meeting and assisting with the negotiations, helping to draft and execute a Purchase and Sales Agreement.

The client was extremely satisfied with the transaction and continues to serve as an O'Conor, Wright Wyman, Inc. reference.

*Name Disguised.