Delta, a specialty staffing organization serving the Midwest pharmaceutical corridor was rapidly expanding
The owners of the firm wanted to take on a partner to pursue their national rollout strategy for their clinical trials consultants and also receive some liquidity either from a strategic partner or an equity sponsor
Challenges
The expanding core growth business was only two years old
Although the company has a stronghold in the Illinois pharmaceutical corridor, its national expansion plan into new territories was less predictable
The more mature IT consulting business specializing in portal applications, was a solid performer, but its growth prospects lagged behind the clinical trials staffing business
Solution
FocalPoint was able to create value throughout the transaction process by
Effectively communicating key value drivers into a compelling offering memorandum
Seeking out a universe of qualified acquirers whose corporate culture most closely matched Delta’s
FocalPoint contacted a selected group of strategic and financial purchasers and managed to secure multiple offers for the business and a wide range of alternatives for the management team, including
Control and minority recapitalizations with private equity groups
100% acquisitions by strategic buyers
Control acquisitions of less than 100% by strategic buyers
Management decided to retain some upside by selling 80% of the company to Vedior NV, a multinational specialty staffing firm that will provide both capital and expertise to propel the company to the next level
FocalPoint’s ability to penetrate the strategic buyers enabled management to choose from a number of attractive alternatives and make the decision that most appropriately suited their risk tolerance while maximizing value
