Finish Line, Inc. is a Georgia-based manufacturer of joint treatment products to the drywall industry. The Company is a lower middle-market provider servicing drywall contractors throughout the Southeastern United States. The owner was approached by a large, multi-national corporation that made an unsolicited offer to buy the company. The owner subsequently engaged AE to value the stock and assess the offer. Following our analysis, we determined the offer was below market value and advised the Company accordingly.
The Company subsequently engaged AE to assist them in negotiating with the proposed buyer. AE worked with the Company to develop a comprehensive business plan, operating budget and multi-year financial projections for presentation to the buyer. With a single interested buyer, Applied Economics had minimal negotiating leverage. However, following extensive and detailed valuation discussions, we were able to increase the offering price for the Company by over 50% from the initial offer. In less than 6 months, we were able to close the transaction successfully with no earn-outs and no contingencies.