Heavy Duty Equipment Fabricator

This company generated an impressive $1.0 million in revenue per employee, enjoyed consistent growth, had strong margins, and cultivated a diversified and sticky customer base. The management systems and processes worked fine for the company’s founder, but were not scalable for a buyer seeking to amplify top-line growth.

To overcome the problem, Sequoia approached a wide market of strategic buyers with the appropriate expertise. Through this process, the owner was able to identify the buyer with the perfect cultural fit that understood the upside potential.

Although the company had a significant amount of excess inventory, Sequoia was able to extract the value with a consignment agreement from the sale, which effectively increased the value of the business by more than 3 turns of EBITDA — golden.