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SELECTED EXVERE CASE STUDY
Cascade Hardwood  Client: The owners of Nicholson Industries made the decision to diversify their business in order to become less dependent on the cyclical forest products business. Their first decision involved selling a profitable hardwoods lumber mill located in southwest Washington that had been a core holding for many years. Cascade had built a reputation for its high-quality, furniture-grade products with both domestic and international customers. Challenge: A strategic buyer had approached Nicholson and offered attractive terms for acquisition of the mill. Exvere was then retained to improve the transaction elements, coordinate due diligence, and increase the certainty of a successful closing. One major consideration was a complex financing package presented by the buyers which required careful analysis prior to acceptance. Process: Exvere prepared a due diligence package and managed confidential interviews between the parties and their advisors. Restated earnings and asset values were established as a basis for restructuring the final terms of agreement. Exvere arranged independent appraisal of the offered real estate located several states distant and worked closely with tax experts on both sides to ensure the best after-tax results. Outcome: Cascade Hardwood was sold at an attractive multiple in return for cash and real property. This structure served the original intent of diversification by providing financing for new acquisitions as well as an attractive addition to their real estate portfolio. |
