Contact - Genki Capital Dallas

469.804.9201

The completed transactions shown below consist of deals where current Genki principals acted as the deal source, sell-side advisor or buy-side advisor.

                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



                    



CASE STUDY: SELL SIDE ENGAGEMENT
The client was a small Louisiana company manufacturing specialized valves for petrochemical plants, primarily for customers in the Gulf Coast region of the US. The owner, a naturally-talented entrepreneur, had developed a series of valves designed as flow controls for use in demanding applications. This niche is focused on hazardous materials, such as the corrosive and dangerous family of chlor-alkalies, a mission-critical field that offers good margins for superior performance.

The owner understood that he had created a unique set of solutions with world-wide applications, but he recognized that without a substantial capital base, a strong management team and a global sales force, his products would not achieve their full market potential.

The search process resulted in communications with over 300 potential buyers in several countries, and after further discussion 22 bidders were invited to submit indicative offers. The final round attracted eight participants, including two European companies. The client was able to choose the ultimate buyer from a range of options that included different blends of terms, pricing and strategic opportunities.

A very focused due diligence process was completed in 7 weeks, with the final legal documentation and closing concluded 2 weeks later. Several challenging issues that emerged during the process were resolved amicably, and the entire process from engagement to closing was completed in 7 months.

The new owner is a large conglomerate with several subsidiaries in parallel fields, including a German-based subsidiary focused on the same niche. The acquisition provided the new owner with several valuable assets: an industry-leading product line, a talented design and development team, and access to the US petrochemical market for the product line from Germany. In addition, it is able to maximize the revenue potential of its new product line through its international sales channels.

The entrepreneur has achieved his goals - a cash deal at a good price to realize the value of his asset and to solidify his family estate, while at the same time securing a stable long term future for his company and his staff. In addition he is able to continue with his passion for new product development and enjoy a career as a valued member of the management team in a large global enterprise.


CASE STUDY: SELL SIDE ENGAGEMENT
This client, providing sales training programs for media companies worldwide, was owned by a group of retired investors. The decision to sell the company arose when the CEO, a trusted friend and equity shareholder, died unexpectedly following a minor medical procedure. The remaining partners had neither the will nor the time to manage the business on a daily basis.

The project was extremely complex and challenging – a business with multiple separate subsidiaries in different international jurisdictions, using different accounting systems to track multiple currencies in different tax & legal environments, without an established leader. The client was advised that it should take time to stabilize its leadership and to introduce an interactive, integrated ERP/Financial system to replace its various accounting systems, but it chose to proceed with an immediate sale.

After a detailed examination of the various potential buyers worldwide, a sponsor-backed management buyout offer was accepted. Unfortunately the process floundered when the management team’s capital base was revealed to be inadequate. Ultimately, and a new source of equity was introduced, leading to prolonged negotiations with new parties and a second round of due diligence.

Although the extended process with multiple parties was extremely complicated, a resolution was negotiated and the transaction closed to the satisfaction of all parties.

2500 Dallas Parkway, Suite 530
Plano, Texas 75093
Phone: 469.804.9201
Fax : 469.804.9201
E-mail : info@genkicapital.com