Case Study: Excel Homes - Management Buy In
Situation
- Bolton/Langley & Associates set a strategy to purchase a middle market company with aspirations of making it a dominate player in its industry.
Objective
- Bolton/Langley had wide-ranging areas of interest and looked to Matrix to help establish specific search criteria. Bolton/Langley engaged Matrix to manage the strategic acquisition process.
Solution
- Matrix began an intensive search, contacting more than 3000 companies. Sixty candidates emerged, and ten were selected for site visits.
- Matrix and Bolton/Langley recognized a modular homes manufacturer, Excel Homes, as the ideal fit. Further Matrix research of trends, risks, and opportunities confirmed there was a high potential for consolidation and rapid long-term growth in Excel’s industry sector.
- Matrix led the negotiations for the purchase of Excel, ultimately closing the acquisition at an extremely low multiple of historic earnings.
- Within 12 months, Matrix completed the first of Excel’s strategic acquisitions, Avis Homes, which added over $20 million in revenue and expanded their product line and capacity.
