Industrial Coatings Manufacturer
The Company was seeking to acquire a manufacturer of complementary coatings that allowed for expansion into additional growth markets, however they had no internal capital to fund the purchase.
Tunstall assisted the Company in developing purchase terms and identifying potential synergies and duplicative costs. The Company acquired the manufacturer at five times the price of its historical earnings. However, by identifying synergies in a pro-forma financial summary, Tunstall demonstrated that the combined earnings of the two companies after eliminating duplicate costs was enough to support a senior debt financing of the entire transaction.
By identifying the synergies in its business plan, the Company was able to complete the acquisition with only external, non-dilutive capital.