Pairing out medical service from manufacturer
Overview
Exodus Business Solutions (EBS) acted as a sell-side advisor to a medical device service company in Southern California.
The scope of Engagement included valuing and preparing the business for sale, finding the buyer, negotiating terms, and perfecting the transaction.
The Seller, a successful entrepreneur in the medical device space, was seeking a divestment of his shares and responsibilities as CEO so that he could focus efforts on a new product line.
The Seller was the primary shareholder in several medical device manufacturing and service companies around the nation. One of his manufacturing operations was operating in the same building as the service company being represented in this transaction.
After a few months, a final buyer for the company was selected and due diligence began. It was at this point, EBS discovered that financials for the two companies had been comingled for years and there was massive ambiguity related to the true EBITDA of the Seller’s business for sale.
EBS stepped in at this point with a team of 3 financial analysts and partnership to act as interim CFO’s for the company to prove the true earning power of the business.
They worked on and off location with the Seller’s bookkeeper and CPA to account for years of comingled expenses and income. This process took well over 300 hours.
Within 45 days, EBS was able to prove the financials to the Buyer and the deal went into closing for well over seven figures.
This transaction was completed by employing highly sophisticated financial expertise along with a team mentality.