Albert Goodman, a member of The Corporate Finance Network based in South West England with six offices, has advised the owners of a loss-making Medical Devices business on its company sale during the COVID pandemic.
The Albert Goodman team, led by Director of Corporate Finance, Neil Hutchings was approached by his client before the pandemic when they decided to consider options for selling their business. Having never had an experience during such a situation, the owner sought advice from Albert Goodman regarding the process of selling a business including identifying buyers and negotiating price.
Neil and the Albert Goodman Corporate Finance team assisted the client, first by creating a list of potential buyers. Once buyers were identified, negotiations began with interested parties. Prior to the pandemic, Neil negotiated offers above the valuation expectations of his client and managed to get one party to increase their offer by 20%.
Whilst COVID-19 events ultimately resulted in a reduced sales price, Albert Goodman were able to revive the deal and complete in a very short timeframe which, if not met, would have resulted in the failure of the business as sales had fallen by 90%, with no return to previous levels expected for some time.
In addition, Albert Goodman managed to negotiate that the vendors would benefit from any successful post-sale Covid-19 insurance claim on the part of the company.
The outcome was a successful sale in excess of price expectations within a challenging environment.
