Management had been in place for 20 years, however did not own any equity in the Company. The owners were both 72 years old and had not been active in managing the business for 10 years. The owners wanted management to buy the Company but they wanted the best possible price.
Tunstall helped the owners hire a broker who produced a strategic buyer offering $23 million for the Company. Simultaneously, Tunstall assisted existing management in developing a business plan and negotiated several proposals with multiple institutions to match the offer. Management ultimately opted for a $17 million senior debt facility and $6 million of mezzanine debt.
The owners achieved a market price, cash transaction and management retained 85% ownership.