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MCA led the complex sale of steel manufacturing company with annual revenue of $30MM.

By January 22, 2024January 24th, 2024Insights

MCA Financial Group recently led the complex sale of a family-owned steel manufacturing company. The company was headquartered in the southwest and had two manufacturing facilities: one in the southwest and one in the southeast.

The company’s ownership was distributed equally among family members, though only one minority shareholder worked in the business. The majority shareholders sought MCA’s assistance in selling the business, and, per a preexisting family understanding, the shareholder operating the company was obligated to sell the business upon reaching a specific age. Refusing to sell, he offered to buy it from the majority shareholders for far below fair market value (FMV).

MCA conducted a comprehensive evaluation of the company and the industry, developing a customized valuation model. They assembled a list of potential buyers and crafted the necessary documents to guide the sale process. Offers from potential buyers established the business’s fair market value (FMV). However, negotiations became intricate due to challenging family dynamics: the minority shareholder opposed the sale, and legal disputes arose over ownership of company intellectual property and voting rights.

MCA adeptly maintained a balanced and neutral position, considering the interests of all shareholders, supporting the company’s principals and professionals, and effectively managing communication among multiple parties. Amid contentious family dynamics and the extended duration of the engagement, MCA successfully facilitated the sale of the business to the minority shareholder, significantly surpassing the initial offer.

This engagement is a testament to MCA Financial Group’s expertise in addressing intricate business challenges, particularly in M&A and shareholder disputes, while unwaveringly prioritizing successful outcomes.