Background
Founded in 1987, Power Plumbing provides plumbing services to residential, commercial and Homeowner’s Association (HOA) customers. The owners were in their early 60’s and were looking to sell their family business and transition into retirement. The owners have four sons who had all gone into different professions and therefore concluded that their best path for an exit on their terms would be to pursue an external sale. The owners engaged Kinected to help find the ideal buyer who would help carry on the legacy of the business.
Goals and Strategy
Kinected prepared the business for sale, working closely with the company’s CPA firm and a corporate M&A attorney whom Kinected introduced. Kinected believed that the optimal buyer would be a larger firm that is currently operating with the plumbing industry and could achieve revenue and cost synergies through an acquisition and therefore crafted a custom marketing strategy that targeted strategic and private equity buyers.
Results
Within a month of going to market, Kinected had secured 26 signed NDAs from buyers. Within two months, the sellers had signed a Letter of Intent from the ideal buyer, a Private Equity firm with a platform plumbing firm seeking add-on acquisitions. The deal was closed in under 6 months from the time Kinected went to market, with the sellers ultimately selling the business at a 20% valuation premium over internal expectations. The sellers were able to seamlessly transition into retirement with the satisfaction of selling their business to a high-integrity buyer who will preserve the Power Plumbing brand and protect the family legacy.
“We never could have expected the fantastic outcome you helped achieve for us. Aside from the financial result (which far exceeded our expectations), you found us an exceptional buyer. Other M&A Advisors we spoke to would have sold us to a local competitor, but your thoughtful approach took the process to the next level by introducing us to top-tier Private Equity firms and Strategic Buyers. We are thrilled with the outcome and couldn’t have done it without you.”
Owner
Ed and Nancy M.
