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At the age of 60, Marvin Billow invested virtually all of his net worth
in a leveraged buyout of his employer, Harris-Thomas Drop Forge. For five years, Mr.
Billow worked to pay down the debt and increase the company's profitability. Then
he retained Centering Corporation to help him prepare the business for sale. Centering worked with Mr. Billow and his management team for about 18
months. Then we prepared the offering materials and started the sale process.
Competition
The single most important factor in selling a business is competition.
When competition occurs, selling prices are always higher.
The Harris-Thomas management team felt certain that the buyer would be
one of three companies in their industry. Instead of limiting the sale project to
these three firms, Centering contacted over 100 other prospects. These prospects
included both domestic companies and foreign firms. Some were strategic buyers and
some were financial buyers.
Creating this level of competition really paid off for Marvin Billow.
He received seven offers, and sold for a price that was substantially higher than
any of the three companies in his industry were willing to pay.
COST-EFFECTIVE SUPPORT
Unlike most intermediaries, Centering does not charge a commission when
a business is sold. We charge an hourly consulting fee, plus a fixed fee payable at
closing. On the sale of Harris-Thomas Drop Forge, our total consulting fees were
less than one third of the commission that would have been charged by a typical
intermediary.
Check Us Out
Now that his business is sold, Marvin
Billow divides his time between his homes in New Hampshire, Ohio, and
Arizona. To find out more about how Centering managed the sale of
Harris-Thomas, contact Marv at Mbillow@earthlink.net.
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