Westar Capital wished to sell the final portfolio
company in a closed out fund
Cinetech is a leader in film preservation and restoration
Challenges
Consummating a transaction was challenging due to
a “shop worn” perception in the market as
a result of an aborted sale to a strategic buyer the
previous year
Other hurdles to consummating a transaction included:
Evolving technology (i.e. from film to digital
media)
Low growth prospects in the core business
The departure of Cinetech’s CFO midway
through process
Solution
FocalPoint addressed the “shop worn” perception
by running a broad and proactive process
Prospective buyers realized that a deal was
going to close this time around and, therefore,
were willing to invest time in pursing the transaction
FocalPoint addressed the low growth in the core
business by building financial projections (supported
by pipeline reports) for the new Digital Asset Management
division
FocalPoint approached both strategic and financial
buyers
Strategic buyers were approached in a collaborative
manner, addressing key risks and highlighting
specific synergies available to them by acquiring
Cinetech
Financial buyers were solicited to sponsor a
“management buyout” that had been structured
in advance by FocalPoint and supported by Cinetech’s
management team and Westar
FocalPoint identified an interim CFO less then one
week after the departing CFO resigned
The transaction was ultimately completed with a
strategic buyer at an attractive multiple that reflected
a growing company
