Case Study

Final Sale Price of Business Doubled Under Quest's Advisement

When the owner of a distributor/service installation company was concerned that the sale price they were currently negotiating with a prospective buyer was too low, they contacted Quest. They needed help to terminate the current purchase agreement and properly prepare their business for sale.

Quest immediately discovered that the business was worth significantly more than the original price of $5M. Quest challenged the valuation and set to work reorganizing the client’s company to achieve its optimum value.

Along with fixing operational inefficiencies, Quest aided the owner in organizing family affairs related to the business and solved tax planning issues that were negatively impacting the sale price.

As a result of hiring Quest, the client received multiple offers and sold the business for $10M, double the price being offered in the original purchase agreement. In addition, Quest’s expertise helped the client save $2M in reduced taxation.

The return on investment for us was more than 10 times what we paid Quest.

THE CHALLENGES

  • Purchase agreement already written
  • Disorganization, family affairs, and tax issues causing low valuation
  • Seller unaware of company’s potential value

THE SOLUTIONS

  • Terminate purchase agreement and challenge existing valuation
  • Reorganize family and business affairs to align with owner goals
  • Pre-plan around taxation issues
  • Properly prepare the business for sale

THE RESULTS

  • Owner sold the business for $10M, double the original asking price
  • Tax burden reduced by $2M
  • Client received ROI more than 10x the price of Quest’s fee