Helping a Second-Gen Family Business Maximize Value and Move On

One of Woodbridge's recent transactions involved a $10.5 million distribution company that had been in business for over 40 years. Originally founded by their mother, the company had successfully transitioned to the second generation. With no third generation involved, the daughter and son who were running the business knew it was time to move on to their next chapter. They also recognized that while they had bootstrapped the business admirably, a new owner with deeper resources could unlock the full potential of what their family had built.

We confidentially marketed the company to both strategic and financial buyers, highlighting its long-standing customer relationships, reliable vendor partnerships, and consistent performance. The market response exceeded expectations — 22 bids in the first round, 17 in the second, and 29 in the final. After 11 management meetings and 5 competitive LOIs, we identified the ideal path forward.

The market response exceeded expectations — 22 bids in the first round, 17 in the second, and 29 in the final.

The winning bidder was an independent sponsor with a portfolio company in a complementary space. While deals with independent sponsors can carry added risk, particularly around financing and certainty to close, this buyer submitted one of the strongest offers and demonstrated a clear strategic vision. We helped navigate the structure and manage risk every step of the way.

Due diligence presented a few surprises. Midway through the process, the company’s general manager pushed for a new employment agreement — an unusual move that required delicate handling, but was ultimately resolved. Insurance also became an issue, with multiple carriers declining coverage due to the company’s industry-specific name, despite its straightforward distribution model. Our team worked through both issues to keep the deal moving forward.

While deals with independent sponsors can carry added risk... this buyer submitted one of the strongest offers and demonstrated a clear strategic vision.

Post-close, the owners retained a 10% equity stake and committed to staying on for 6 to 12 months to support the transition. One of the siblings was referred to a financial advisor during the process and is now actively planning their next chapter. Most importantly, the outcome met their expectations — delivering a strong partner for the business and peace of mind for the road ahead.

If you're like many owners we speak with, you've spent decades building your business and when it’s time to transition, you want more than just a buyer. You want options, leverage, and a partner who understands how much is at stake. At Woodbridge, we specialize in running a competitive process that puts you in control, maximizes value, and finds the right fit — not just the highest offer. Whether you're years away from a sale or already thinking about next steps, there's never been a better time to explore what’s possible. We’re here to help you do it on your terms.

Owing to ample liquidity and a shortage of well-performing companies coming to market, it's a sellers' market for profitable companies in the US & Canada. We sell companies generating $1-15 MM of EBITDA. Book a Confidential Valuation with an M&A expert here.