The Inside Story
The company had exceptional attributes — a strong growth profile, an experienced management team, excellent systems centred on relevant key performance indicators, a diversified customer base, sector leadership, and above-industry margins.
Sequoia’s “effective auction” process attracted seven bona fide letters of intent to purchase the company. The range of offers was wide, as the highest bid was more than twice as much as the lowest. This wide selection of purchasers afforded the seller the luxury to choose the buyer with the best fit to acquire, manage, and grow the company. In the end, the successful buyer was not the highest bidder, but the one best positioned to carry on the owner’s legacy.
Although the party with the best cultural fit typically pays the most, the highest bidder doesn’t always win.
Founded:
1985
Employees:
29
Affiliation:
Non-union
Revenue (CAD):
$14.5 million
EBITDA (CAD):
$2.1 million
Key Strategic Highlights
Exceptional Reputation
The company was a premier Canadian pump and process equipment systems provider with an exceptional industry reputation.
Scalability
Characterized by a strong team ethic, fully deployed ERP system, widely diversified product line and customer base, and strong financial metrics, the company was a platform for a buyer to take the company to the next level.
Multiple Locations
The company operated from multiple locations across Canada.