KGI negotiates $3 million Price Reduction for Acquisition
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KGI negotiates
$3 million
Price Reduction for Acquisition |
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A bio-tech company agreed to purchase a financially over-levered, nationwide company for $25 million. The Client had many compelling reasons to make this acquisition.
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Problems:
After a signed Letter of Intent and completion of most of the due diligence, Management recognized that the purchase price was too high. However, Management was concerned that if they attempted to renegotiate the deal by themselves, it might blow-up. They did not have an investment banker.
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Solutions:
KGI was retained to recommend strategies and tactics to renegotiate the purchase price. KGI met with the Client's lawyers and Management to assess the situation. KGI's analysis, documented in a summary report distributed to the Seller, clearly demonstrated compelling reasons for a purchase price reduction. Accordingly, KGI partnered with Management to successfully renegotiate the purchase price with the Seller.
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Result:
Within 3 weeks, the Client achieved a purchase price reduction of $3 Million. Management declared "Mission Accomplished. We are happy customers of KGI!"
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For more information contact:
Steve Green, Co-Founder & President:
sgreen@kginc.com |
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FOR MORE INFORMATION ON KGI |
Whether a Company is struggling financially or on the cusp of breakthrough growth, KGI can help. Our seasoned experts work alongside management to solve complex cash flow issues, operational challenges and other business crises. If liquidity or sale is needed, KGI provides a powerful combination of services and expertise to achieve outcomes that cannot be duplicated by other standalone consulting firms.