Mr. Brown and his management team began their search for a financial partner with several key requirements. It was important to the management group that they maintain operational control of the Company, regardless of whether or not they retained a majority ownership interest. Also, given that the acquisition target had poor existing financial reporting systems and had not hired an intermediary to assist with the sale process, it was important that they find a partner that was willing to spend the required time and effort complete the comprehensive due diligence process alongside the management team. Finally, Mr. Brown and team were looking for a partner that could bring more to the table than just financing.

Throughout the ten months after signing the letter of intent and selecting Merit as a partner, the transaction process took many unexpected twists and turns. The due diligence effort proved to be a very burdensome task given a lack of available information as well as the acquisition target’s disperse international locations. In addition, the purchase agreement was negotiated and renegotiated numerous times as the sellers repeatedly changed their position. The Merit team worked very closely with management throughout the entire process adding value not simply in the due diligence and purchase agreement negotiations, but also by taking the lead in arranging and structuring the senior debt financing.