How We Delivered 107 Bids for One Business

One of the recent deals Woodbridge – A Mariner Company closed was with a manufacturer and distributor that had been in business for 27 years. The owner started the business out of his garage with a handful of products, and in a short time, it took off! Over the last five years, he began to pull back and needed to decide what to do next—either transition the business to his children or sell it to a third party. He hired a family business consultant and worked with her for several years before deciding that selling was the right decision.

After preparing all the materials and sending them out confidentially to strategic and financial buyers, we obtained 107 bids for the business—you read that right, 107! We typically average around 20 bids, which is still a strong marketing outcome. Our closing team vetted all of these buyers, focusing on their strategic fit, access to funds, valuation, and other key factors. There were 35 top-tier buyers, but our team and our client decided it made sense to engage with the top six while keeping the rest warm.

'There were 35 top-tier buyers, but our team... decided it made sense to engage with the top six while keeping the rest warm.'

Earlier in the preparation phase, we offered our client a one-day workshop to help prepare them for management meetings. We know how buyers are going to approach these meetings and what they’re looking to hear, so this time really helps our clients make the most of those interactions. Of the six groups we met, we received five letters of intent and were able to negotiate aggressively on our client’s behalf. We ultimately signed an exclusivity agreement with a $150 billion private equity group. Over a 20-year period, this firm completed 250 deals, and our client’s company was positioned as a platform acquisition into a new sector they were interested in entering.

There's due diligence, and then there’s over-diligence. We knew from the start that we were dealing with a very sophisticated buyer, which would lead to a demanding process. The Woodbridge closing team helped our client navigate and understand what was reasonable vs unreasonable. During the quality of earnings review, we did encounter an unfavorable result, but we were able to negotiate a fair outcome. Some clients might have walked away, but the buyer was exactly what our client was looking for, and the value he received far surpassed his expectations.

'We ultimately signed an exclusivity agreement with a $150 billion private equity group'

Lastly, while timing was of the essence in this transaction, in retrospect, there were some estate planning matters that could have been avoided if addressed sooner. Although these didn’t create a substantial impact, it’s important to engage with us and a wealth advisor early in the process to ensure all aspects are covered.

The sell-side market is so strong right now that about 50% of our clients are already talking to buyers before signing up—and in this case, it was no different. The owner had been in discussions with a private equity group that, like many others, loves to secure proprietary deals directly from sellers. Originally, the owner would have been happy with a $50 million deal, but because of the market we created, we were able to secure a $70 million deal. From start to finish, this entire process took just over seven months. This result underscores the power of a competitive process and how Woodbridge leaves no doubt in maximizing value for our clients.