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