Douglas Group has closed in excess of 130 transactions in its 28 years. More than 90% of our transactions involve seller representation. We also do buy-side work, or negotiation of licensing or other specialty agreements, but our focus is clearly and consistently for the seller. We take pride in finding the ideal buyer for your business. Learn more about our past performance below.
General Contractor – Memphis, Tennessee
We worked for a general contractor in Memphis, Tennessee who wanted to sell, but found the often very minimalist offers in the construction industries exhausting, and inadequate. As we worked with our seller client, we went far outside of the classical “construction/contractor” buyer markets, and instead found tremendous buyers NOT in construction at all, but who desperately desired contact with the company’s outstanding customers. In the end we sold that company for in excess of 2 times gross sales!
Consumer Product Manufacturer – Philadelphia, Pennsylvania
We were approached by an owner of a truly outstanding, fast growth company, which was below our normal minimum of $10 million in sales, but which really had tremendous profitability, and excellent promise for the future. Most buyers wanted to pay based on history only, and wouldn’t recognize the outstanding year in process, and the extreme promise of several very major new customers to boost sales to come. After much investigation and exhaustive search work, we found a handful of buyers who acknowledged and competed for the great promise of this company. We sold the company for $32 million, all cash.
Systems Integrator – Louisville, Kentucky
The owner was referred to Douglas, and at our initial meeting he told us that he had an offer in hand from a large international buyer, for $10 million. That price was modest, at about a 4x multiple of current pretax earnings. Earnings were growing rapidly and the company had firm contracts for significant growth to come. We said we thought we could do much better, if the owner would let us create competition. We sold the company about 4 months later for $25 million in cash, plus an “earn-out” bonus potential of another $15 million. The owner subsequently received every dime of the maximum earn-out.
Unemployment Compensation Firm – St. Louis, Missouri
We worked with the finest unemployment compensation firm in the nation, who provided services to half of the Fortune 500. Profits were not impressive, at only about 5% of sales, but the customers were golden. We sold that company for an astounding price in excess of 50 times historical EBITDA. (When competition is right, there is no limit to potential!) The company was ESOP-owned, and that was probably the happiest group of employees in the country on that closing day.
Plastic Manufacturer – Kansas City, Missouri
We were hired by a plastics manufacturer of sporting goods equipment, which had at one time been up to $35 million in sales, and had performed wonderfully. After the death of the CEO, the company struggled, and when they came to us were at around $15 million in sales, with significant losses from operations. We made the case to buyers that the company still had substantial liquidation value, and that with stronger management and sales efforts, recovery could be strong. Due to the turn-around condition, the sales process was arduous, and we talked to almost 600 potential buyers. We ended with over 20 offers, and with two above $10 million. We sold the company for $13 million, all cash.