|
 |
SELECTED EXVERE CASE STUDY
S. Madill  Client: The owners of S. Madill had built a substantial world market share manufacturing and distributing terminal equipment for the forest products industry. Madill enjoyed a reputation for quality and durability where those attributes served to establish long-term customer loyalty. Customers included the largest public and privately owned lumber producers and processors in the world. Madill operated from manufacturing plants located in British Columbia and the state of Washington. Challenge: Due to confidentiality and related concerns, Madill declined to seek strategic buyers for their business. The fact that the company was unionized was an obstacle for certain potential investors and, as always, the cyclical forest product business had a depressing effect on valuations. Cross-border taxation issues required close coordination with tax advisors on both sides to maximize post-transaction proceeds for our clients. Process: Exvere was retained early in the process to perform a market assessment and establish a preliminary valuation. We quickly identified several private equity funds with an interest in heavy capital equipment manufacturing. Outcome: Key Equity Capital was chosen to recapitalize the company under terms including cash, long-term leases on the facilities, and a continued equity interest in the business. Exvere assisted in negotiating the entire transaction including management agreements for the selling principals. |
