Transaction advisory case study

Overview

The Company was a premium provider of high-quality construction aggregates in Florida. With an operating history of 15 years, the Company was a well known and reliable provider of crushed limestone producing approximately 2 million tons per annum. The shareholders, seeking to focus on other business interests, sought to exit at the highest possible value. Accordingly, the Company engaged Inlet Capital Group to facilitate a sale.

Engagement Approach

We initially engaged as strategic advisor, helping the Company identify and implement several key initiatives that would increase value, including the acceleration of a lengthy permitting process for a new operation. With those efforts underway, we reached out to a small group of carefully selected buyers and managed a comprehensive sale process that initially resulted in multiple offers 15% above the target valuation range.

Prior to completing that process, the Company’s accelerated permitting efforts bore fruit, and the Company secured the approval to develop its new mine. Recognizing the potential value in this new facility, we recommended that the shareholders suspend the sale process until the new operation was online.

Results

The Company adopted the recommendations and temporarily halted the sale process pending the launch of its new operation. Inlet Capital Group remained in contact with key buyers throughout the suspension and subsequently managed a highly accelerated sale process for the enhanced Company. The sale ultimately closed at a value 30-40% greater than the prior offers.

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