Having another buyer lined up can move a deal to close expeditiously.
Orca Capital advised the sale of Veris Industries, Tualatin, OR to Square D, US subsidiary of Schneider Electric SE, of France. Veris, founded in 1992, manufactures environmental sensors and energy management solutions. At the time of its acquisition, the 85 employee company enjoyed sales growth of 40% in the emerging building technology market.
The right window
President Kent Holce deliberated about timing of his company’s sale. Orca advised him that it is a good window for value when strong company performance and an active buyer market line up. For Veris, the time was right.
Virtue of multiple potential acquirers
Orca carefully identified a worldwide list of qualified buyers. Orca made the case for the Veris strategic story with an Information Memorandum and a PowerPoint show. From the short list, Veris chose French Square D. Square D submitted a Letter of Intent; upon signature, the exclusionary period for due diligence period commenced.
Orca kept the interest of the alternative buyers alive.
When the buyer started dragging out the due diligence process, Orca had to remind them that, if they didn’t complete it in short order, we were going to sell the company to one of the backup buyers.
Due diligence was wrapped up expeditiously.
The terms and pricing of the Veris deal were commensurate with its attractive market opportunity. Kent Holce was positioned and ready to take advantage of the markets. In the end, having backup buyers helped push the deal to a successful close.