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SELECTED EXVERE CASE STUDY
Olson's Food Stores  Client: The third generation of Olson's was engaged in management of this upscale grocery chain located north of Seattle. Their business had expanded rapidly in recent years and had reached the point where additional capital would be required to continue its growth. Several publicly traded firms were actively pursuing Olson's Food Stores when the family retained Exvere to manage the process. Challenge: Obtain optimum market valuation for Olson's when recent earnings had been sacrificed to finance the growth of two retail concepts and a central commissary. It was critical that strict confidentiality be maintained throughout the process to avoid upsetting relationships with employees, customers, and suppliers. Process: Exvere conducted in-depth interviews with four publicly traded food chains to evaluate their interest and potential synergies with Olson's. In addition to deal structure, other factors included compatibility with the corporate culture and ability to compete in the Puget Sound market environment since it was felt that these considerations would ultimately be reflected in their valuation and purchase proposals. Outcome: QFC (NASDAQ: QFC) was selected as the preferred buyer because of similarities in merchandising, locations, store formats, suppliers, and customer demographics. The transaction was structured as an asset sale of all Olson's Food Stores in exchange for QFC common stock while the family retained another retail format and the bakery commissary. |
