Pre-Transaction Advisory Process
We work with business owners on an advisory basis ahead of a transaction to prepare the business for a sale with a focus on maximizing enterprise value and owner proceeds.
Step 1: Strategic Assessment
Business Valuation & Marketability Analysis
- Prepare business valuation
- Research relevant buyer universe & transactions
- Evaluate business owner goals, timing, & transaction options
Step 2: Pre-Transaction Preparation
Business Improvements
- Identify value drivers & create action plan to build value
- Form board of advisors
- Quarterly advisory meetings to track strategic initiatives
Pre-Transaction Advisory Case Studies
First Pacific Corporation
Overview
First Pacific Corporation is a recognized leader in the dental services industry, providing financial and practice management solutions and enabling clients to focus on providing dental services and growing their practices.
Situation
The shareholders of the company hired Chinook Capital Advisors to provide advisory services and execute a complete sale of the business.
The shareholders were interested in finding the right partner for business growth and expanding sales into key markets, all while retaining the management team.
Results
Chinook assembled an advisory board of trusted professionals, including a corporate M&A attorney and the Company’s CPA firm. The advisory board met quarterly to discuss and implement strategic initiatives in preparation for a future business transaction.
Chinook assembled a targeted list of investors focused on SaaS and healthcare services. Chinook completed anonymous market-sounding calls in preparation for marketing.
Chinook assembled detailed marketing materials highlighting First Pacific Corporation’s opportunities to capture the over 400,000 independent dental practices nationwide.
N. Harris Computer Corporation, a subsidiary of Constellation Software Inc. (TSE: CSU) acquired First Pacific Corporation.
The acquisition has allowed First Pacific Corporation to continue their growth through the development of unique service offerings for independent dentist professionals.
Testimonial
“We were fortunate to find the team at Chinook, who provided the steady hand of experience for a business like ours,” said Steve Rallison, former CEO of First Pacific Corporation.
“Chinook’s business insight and advice to the management team helped position the company as an attractive acquisition. Their knowledge of potential suitors and their strategic approach of introducing our company to investors resulted in a premium valuation for the business and a successful sale.”
Seattle Coffee Gear
Overview
Seattle Coffee Gear is the leading omni-channel retailer offering comprehensive knowledge of all coffee equipment and products to coffee lovers worldwide, providing online shoppers with an authentic experience, vast educational resources, and the best products available.
Situation
The founders of Seattle Coffee Gear hired Chinook Capital Advisors to provide advisory services and execute a sale process.
The goal was to find the right partner who would continue to grow the business and structure a transaction for the management team to participate in the future upside.
Results
Chinook Capital Advisors introduced the founders to a Public CPA firm to complete a Quality of Earnings report, resulting in a higher historical Adjusted EBITDA.
Chinook assembled a targeted list of investors focused on the e-commerce and specialty retail sectors. Chinook completed anonymous market-sounding calls in preparation for marketing.
Chinook assembled detailed marketing materials highlighting Seattle Coffee Gear’s strong market presence in the at-home and commercial coffee space.
Digital Fuel Capital, a Massachusetts-based private equity firm, purchased the company to grow their portfolio of consumer and business e-commerce brands.
Digital Fuel Capital provides in-house strategic and operational resources to their portfolio companies, including marketing and data analytics, to maximize customer lifetime value and accelerate growth.
Testimonial
“The Chinook team put together an incredible presentation outlining the history of the business and our vision of the future for Seattle Coffee Gear and ultimately they found us the perfect investment partner for our next phase of growth.” said Mike Atkinson, CEO of Seattle Coffee Gear.
“Chinook’s team managed the transaction from start to finish. Their detail-orientation and experience made a very complex process run very smoothly. I would recommend Chinook to any business owner looking to sell or recapitalize their business.”
Leading Metal Finishing Services Provider
Overview
Located in the Pacific Northwest, the Company provides superior-quality metal finishing services, including marking, plating, polishing, and powder coating. The Company serves a diverse customer base in the healthcare, automotive, and industrial sectors.
Situation
The shareholders of the company hired Chinook Capital Advisors to provide advisory services and execute a complete sale of the business.
The shareholders were interested in finding the right acquirer to take care of all employees and maintain a leading metal finishing presence in the region.
Results
Chinook assembled an advisory board of trusted professionals, including a corporate M&A attorney and the Company’s CPA firm. The advisory board met quarterly to discuss and implement strategic initiatives in preparation for a future business transaction.
Chinook assembled detailed marketing materials and reached out to a targeted group of investors.
The company was acquired by a leading medical equipment manufacturer (the “Buyer”) with a worldwide customer base.
The acquisition provided the Company the resources to continue supporting customers in the region and strengthen the Buyer’s manufacturing capacity and capabilities.
Testimonial
“The acquisition allows the Company to continue supporting the Buyer’s leadership in the global dental equipment industry” said the Company’s former President.
“We appreciated the continual encouragement and direction Chinook provided us as sellers to realize a transaction.”
Questions most often asked by business owners and their trusted advisors:
How do I know when is the right time to sell my business?
Chinook believes every business owner must ask themselves 3 questions before deciding to sell their business.
- Is the business ready? (or do improvements need to be made?)
- Is the market ready? (or are buyers active, financing available, and valuations strong?)
- Are you ready? (It’s a huge decision – are you personally ready, and will the net proceeds meet your goals?)
How long before a transaction should I begin preparing my business for a sale process?
Depending on your company’s complexity and the goals you would like to achieve through a business sale, Chinook recommends preparing at least 1-5 years before a transaction. This timeframe allows for strategies to reduce taxes, strategic improvements and demonstrating their impact, maximizing business value and ensuring a smooth sale process.
How does Chinook evaluate my level of preparedness for the business sale process?
Assessing preparedness involves analyzing many aspects of the company and industry. Some examples include reviewing the quality of financials, financial performance, owner dependency issues, operational efficiencies, management strength, and market position. Chinook conducts a thorough readiness assessment to identify areas of improvement to maximize value in a sale process.
What does Chinook’s Pre-Transaction Advisory Process cost?
Chinook uses a simple, quarterly advisory fee until the sale process begins.
