- The client was a middle-market Managed Services Provider of outsourced IT, integration, and network management services.
- The four shareholders intended to gain liquidity through a majority recapitalization.
- The company’s shareholders looked for a complete sale of the company, with one critical shareholder planning to continue with the company post-transaction. This would allow for continued success and expertise under a new owner, while this shareholder guided operations.
- The challenge the JD Merit team faced was to quickly pivot the transaction approach to successfully execute the liquidity event while internal issues severely impacted the ability to retain outside buyer commitment.
- Additionally, the company held high customer concentration, increasing perceived risk and drastically lowering the company’s valuation.
- Throughout the sales process, the JDM team had to also contend with a lack of cooperation and cohesion between shareholders, requiring increased focus and tenacity as an advisor. The situation heightened the need for intensity, insight and creativity by the JDM team, shifting the transaction strategy to a management-buyout.
- The deal team extracted value from the company by helping the continuing shareholder pivot the business, creating a long-term solution to recover from the roadblocks that arose from the misalignment of original shareholders.
- In the end, the continuing shareholder successfully transformed operations and transitioned the business into a more manageable and profitable model.
- With this new management structure, the main shareholder was able to make decisions that progressed the company and pursue new mandates that proved to be sustainable for the company.
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What our clients are saying
Meet Our Clients
"The team at JD Merit works hard and puts in a lot of time and energy. And because of that, they're talking to people with a lot more sincerity than just putting out a deck. They went deeper and not only understood our strategy, but they understood how to pitch the right strategy to the folks on the other end of the transaction. They explained our business so a potential suitor understood how it could be integrated into their business.
JD Merit thought of a more strategic transaction and they built a better story. It's what's created more offers and what made the offers higher."
"JD Merit not only did everything they promised, they provided significant strategic guidance required to help us navigate the path of getting this transaction across the finish line. Their patience, tenacity, and professionalism when things got tough was the difference in completing this transaction for us."
“I greatly appreciated JD Merit’s expertise and guidance throughout this process and appreciated, even more, their attention to the intangible things that were important to me and my company beyond just getting a deal done.”
“I enjoyed working with JD Merit—they made an enormous contribution in such a complex but successful transaction. I would be happy for the chance to give a reference in the future for what a great job they did!”
"I wanted to work with an Investment Banking firm that was going to be able to understand our business, get to know me and my team, and then not only help us secure the investor, but help us find the right investor because they understood what we really needed. We got that and more with JD Merit. Their strategic guidance, patience, and diligence were critical in getting this transaction finished, and was the difference maker in this process.”
"We are thrilled with the outcome JD Merit delivered for our family through the sale of the business. With their guidance, we were able to unlock significant shareholder liquidity while positioning the employees of the company for continued success within a growing platform.”
"We hired JD Merit over other investment bankers because of the responsiveness to our questions, aggressive approach to winning, persistence in following-up, and the many creative ideas the team presented. JD Merit added significant value beyond just running a process."
"Unlike many investment banks I've worked with during my career, JD Merit was attentive at all stages of our transaction, which really made a difference in achieving a great outcome."
“Through the broad auction, JD Merit got us another 75% above the offers that originally came in. We still have a piece of the company and I’m still able to run it. I feel good that our key employees are going to be secure in the future. It’s a win-win for everybody.”
"The team at JD Merit have provided invaluable assistance in stabilizing and growing my company. They’ve helped with both short-term challenges and long-term planning. Their experience running multiple businesses like mine and vast network of contacts have brought value to my company and to me personally. If you want help taking your business to the next level, I highly recommend JD Merit."
"As a business/transactional attorney, I have had the opportunity to work with many investment bankers in the M&A arena. The JD Merit team is, without question, the best in the local middle-market space. They make clients feel comfortable by both listening to and provide thoughtful advice for legal counsel. Most importantly, they are able to negotiate a great deal.
Quite refreshingly, JD Merit puts the needs of the client above closing a deal – something very rare in the M&A world. I give my highest possible recommendation to the JD Merit team."
"The JD Merit team has provided my company with professionalism and valuable counsel on multiple transactions. They listened to our needs, and as business operators themselves, they understood the opportunities open to us and the challenges we faced to grow. They fought hard for us at every stage. We would absolutely look to them for our future investment banking needs."
“The JD Merit team has extensive M&A and capital-raising experience in the middle market, both as investment bankers and entrepreneurs. They are great to have on an engagement team and are committed to helping clients succeed, whether buying or selling a business or sourcing capital to scale a growing business.”
"The JD Merit team was invaluable in several transactions involving a niche consumer products company where I served as CEO. The JD Merit team is talented, well-disciplined, and rolls up their sleeves to work alongside management to get the work done. With their controlled approach, management can continue to focus on the business for the benefit of all involved. I certainly would recommend JD Merit & Company and will choose to work with them again.”