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Capital Strategies Group

A Window of Opportunity

Case Study:*

Type of business: Window and door manufacturer

Ownership: Two partners

Reason for sale: Retirement by one owner

Revenues: $40 million

Sale price: $30 million

Challenges

In a period of company turnaround and expansion, the older partner was ready to retire while the younger partner wanted to continue the business and was opposed to the sale.

Capital Strategies Group Resources

The owners retained the Capital Strategies Group to value the company and search for a suitable potential buyer. Once found, a dedicated Capital Strategies Group dealmaker walked the partners through the negotiations with the acquiring company, and played an instrumental role in helping the owners structure the final deal.

Transaction Result

A European company saw the window and door manufacturer as a strategic fit with its own business, and agreed to a two-step deal that met the terms and personal goals established by both partners.

The partners agreed to sell an interest in the existing business to a new company, jointly owned by the European buyer and them. The older partner was able to exit immediately, while the younger partner spent the earnout period building revenues and increasing the final sale value of the business.

*Please note, this case study is for illustration purposes only.

Neither Morgan Stanley Smith Barney LLC, Capital Strategies Group nor any other person accepts liability whatsoever for any loss (howsoever arising and whether direct or consequential) from any use of the information contained herein or otherwise arising in connection herewith. Morgan Stanley Smith Banrey LLC, its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Capital Strategies Group is a business of Morgan Stanley Smith Barney LLC.

For more information, please contact your Financial Advisor.

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