Case Study: Ann Arbor Machine Co. - Exclusive Sale
Situation
- Ann Arbor Machine Company, a leading designer and manufacturer of customer made machine tools, with annual revenues of $66mm, had been successfully owned and operated as a privately-held business for over thirty years.
- The founder, CEO and principal shareholder, Bob Betzig, after a fifty year career in the industry, was looking to retire.
- Ann Arbor Machine was well positioned and out performing its industry, which was in the midst of a protracted downturn.
Objective
- The Board sought a full liquidity event for all shareholders (in excess of 200) in a transaction that would position the company for continued growth.
Solution
- Matrix identified and contacted over 75 strategic buyers and over 150 financial buyers in a process that included both domestic and international acquirers. Confidential memoranda were distributed to interested parties and several indications of interest were received.
- After completing management presentations, the Board of Directors selected the Borman Family to complete the sale of the business.
