Road to Value BV
Drie Gebroeders 15
2342 CL Oegstgeest
The Netherlands
March 2009 - June 2009

Exit

undisclosed company name

Building materials

Situation

The credit crisis has undermined the financial performance of many companies, especially in the construction related industry. This particular company has its own IP protected production technology, offering durable construction material. Its client base includes architects, construction companies, real estate developers and public authorities. The pressure from financials and dim prospects, due to the credit crisis triggered the investor to look for an exit by means of trade sale.

Task

The majority shareholder engaged Road to Value to initiate a sale of the company. Road to Value structured this in a two-phased approach, assessing overall options for the shareholder and feasibility of a sale before entering into a non-reversible process.

Action

- Analysis of existing business, management team, prospects and key clients
- Development of financial model (operational profit & loss projections, valuation)
- Discussing alternatives to a trade sale process

Result

We concluded that a sale was not a realistic option and that a joint venture with a partner would provide the most potential. The shareholder has decided to postpone a strategic decision. In the meantime the operational performance has improved and the industry outlook has become brighter.