Shoreline Partners represents companies in sale, acquisition and financing transactions, as well as advising companies on how to build value. Our engagements include:
The sale of a majority or minority ownership interest of a privately held company can be designed to meet a variety of objectives:
Create liquidity for the owners to facilitate their eventual exit from the business.
Allow the owners to take money off the table and still retain a significant ownership interest going forward.
Facilitate the buyout of a partner or minority shareholders.
Fund one or more acquisitions to enhance the company's future value.
Recapitalize the balance sheet to create a stronger company for the future and provide new working capital to finance growth plans.
Our sale process is designed to produce:
Multiple, competing offers from a targeted list of prospective buyers including both strategic companies and private equity groups.
The best, market-driven offer for our client: the optimal combination of value and other terms.
Coordinated due diligence by the buyer with no surprises or changes to the deal structure or terms.
A confidential transaction closing that produces a win-win for both our client and the buyer.
Majority Control of Cali Bamboo, LLC, Sold to High Road Capital Partners, a New York-based Private Equity Group
San Diego-based Cali Bamboo is
the leading designer, manufacturer
(outsourced) and seller of high
quality, bamboo flooring in the U.S.
The Company’s strategy is to
generate consumer interest
through their website
(www.calibamboo.com) and then
use a personal, consultative
approach to create a sale. The
Company’s products can also be
found in most Lowe’s stores
throughout the U.S. The Company’s
two founders had an objective to monetize their investment after 10 years of operations. Shoreline Partners was engaged to sell a majority ownership interest to a private equity group that would both create liquidity for the owners and fund future growth initiatives. After marketing to private equity groups
whose investment criteria and experience were strategically aligned with Cali Bamboo, offers were received from eight groups. After two rounds of negotiations and extensive due diligence by the ultimate buyer, the sale of a majority interest was closed at a value nearly double the initial offers. The Company’s founders secured their families’ financial future and retained a significant ownership interest that provides them a “second bite of the apple” opportunity.
Acquiring one or more other businesses can represent an efficient way for companies to accomplish varied objectives including:
Adding products and product categories.
Gaining access to new market channels.
Expanding locations and geography.
Enhancing capacity and manufacturing resources.
Accessing new vendor relationships.
Acquiring new technology and systems.
Obtaining new human resources including management.
Identifying acquisition targets, contacting them, obtaining information and assessing their value is a time intensive process that requires both interpersonal skills and business acumen. Business owners often underestimate the time and effort required to pursue an acquisition strategy. Shoreline’s professionals are experienced in helping our clients assess a target’s –
Financial statements, results and projections.
Economic opportunity under our client’s ownership.
Strategic alignment with our client’s business.
We assist our client in developing an offer, often in the form of a Letter of Intent, which we present to the target. We negotiate the offer, assist our client and their legal and other advisors through due diligence and document preparation, and creatively solve problems as they arise, to successfully close the transaction. And, if needed, we can assist our clients in obtain financing, debt or equity, to fund an acquisition growth strategy.
WD-40 Company Acquired Global Household Brands and Heartland Corporation
WD- 40 Company’s products –
WD-40, Lava soap and 3-In-One
Oil – enjoyed a significant presence
in the hardware, automotive and
industrial channels, but were
underrepresented in the grocery
channel. In addition, as Garry Ridge,
WD-40 Company’s CEO, described
it, his objective was to transform
the Company from a “brand
fortress” to a “fortress of brands.”
Because of our M & A experience
and reputation, Shoreline Partners
was engaged to pursue acquisitions of brands and products that would help meet both of these objectives. The first acquisition, of Global House Brands (New Jersey), added 2000 Flushes™ toilet bowl cleaners, X-14™ mildew and stain removers, and Carpet Fresh™ rug deodorizers to the WD-40 portfolio of well-recognized household products. The second acquisition, of Heartland Corporation (Kansas), added Spot Shot™ carpet cleaners, cementing a strong presence in grocery with over $100 million of annual sales from the two
acquisitions. Along the way, Shoreline analyzed the opportunities for Ridge and his Board of Directors, negotiated both transactions and creatively turned a challenge in the GHB transaction (disposing of GHB’s Memphis manufacturing facility) into a long-term value opportunity by proposing and negotiating a joint venture with one of WD-40 Company’s outsourced manufacturing partners. Following the successful acquisitions, we also refinanced WD-40 Company’s corporate debt, negotiating a long-term, fixed rate loan from the Prudential Capital Group.
There can be a variety of reasons why companies need new financing – debt or equity or both:
Growth initiatives including plant expansion, equipment purchases, sales and marketing plans, etc.
Expansion to new locations or markets.
Investment in new personnel.
Working capital needed to fund increases in accounts receivable and/or inventory.
Replacement of existing bank debt.
Shoreline approaches financing engagements similarly to sale engagements – we identify prospective lending sources, including commercial banks, non-traditional lenders and private equity groups whose lending criteria align with our clients’ objectives. We create a competitive market to negotiate and obtain the best financing solutions to meet our clients’ needs.
CHMB Raised Two Tranches of Capital to Fund Acquisitions from Main Street Capital Corp
CHMB, Inc., is a leading provider
of revenue cycle management
software, technology and consulting
to the healthcare industry. To
broaden its presence outside its
primary market of San Diego
County, the Company completed
four acquisitions, expanding its
footprint and market area
nationwide. To fund its acquisition
strategy, theCompany engaged
Shoreline Partners to obtain new
financing. Shoreline marketed the
opportunity to multiple funding sources and successfully raised two tranches of debt and equity from Main Street Capital Corp (Houston) and its affiliated SBIC.
Value Building Services
We are uniquely positioned to view business value from a market based perspective and can help business owners identify internal and external strategies to maximize the future value of their companies. Our value assessment and prescription helps maximize value by:
Identifying key business components and competencies that can be leveraged to increase value.
Identifying factors that may ultimately detract from value in a sale process.
Preparing a "to do" list of items currently impeding value that can be improved or minimized to increase value.
Enhancing a company's profile as an attractive target for buyers and investors.
Developing a written prescription with identified objectives to maximize value.