Quickly Finding the Right Buyer in a Difficult Market

April 12th, 2010

Relationships Get Results

Speed and confidentiality are critical in every company sale, but it is especially vital for a collection agency in distress or in need of an infusion of capital. Time is not on their side, and the owner(s) need to react quickly or may be forced to make unattractive decisions.

Challenge
The shareholders of a collection agency determined they needed to sell.  But two of the shareholders wanted to maintain an equity stake in the business, keep management in place and benefit from the long-term growth of the company.

Because the company was in need of capital, the situation required identifying financially qualified buyers or investors who would be interested in the business – and quickly.  The need was compounded by the shortage of capital in the market.  In short, they needed to find a needle in a haystack.

Solution
Kaulkin Ginsberg was engaged to assist the shareholders in the sale of the agency.  After meeting with the shareholders and management, we gained an understanding of the situation and quickly developed a profile of the ideal buyer for the business.

We have long-term, solid relationships with most of the ARM industry’s senior decision makers that go back almost 20 years.  We stay informed about their interests and capabilities and we are able to leverage this when we call on behalf of our clients.  In this case, our industry reach enabled us to address our client’s challenge with the speed and precision required to achieve the best possible outcome.

In fact, during the initial meeting as the picture took shape, we knew exactly who would be interested in acquiring the agency.  Shortly after the meeting, we made a single phone call and described the opportunity anonymously to one buyer who had no financing contingencies.  The buyer was immediately interested and 24 hours later we executed a confidentiality agreement and had an introductory call. The rest was history – the transaction closed and both parties were satisfied with the outcome.

What can we do for you?

Contact Mike Ginsberg,  at 240-499-3800 or by email to discuss your interests services in confidence.

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