ABC was a fast-growing testing company owned by three shareholders and run by one of the co-founders, Mr. Liang. Mr. Liang, at 52 years old, was well-known in the industry, and a very successful entrepreneur with strong leadership.
The shareholders were hesitant to sell as the company had more potential to grow and they thought that they needed to wait another 5-7 years to maximize their return
RSP had long discussions with the shareholders to understand the needs of each one and ultimately structured a deal to sell a majority share with a call/put option after 3 years. This deal was successful for all parties as the business's revenue grew 2.5 times in 3 years using the buyer's financial muscle and global brand, EBITDA was doubled, and the sellers received more than their target price at the time of sale. The deal allowed the shareholders to benefit from the buyer's financial and global resources, while still retaining the potential to sell their remaining shares in the future.
The case study illustrates how RSP structured a win-win deal for ABC by understanding the shareholders' needs and finding a solution that met their objectives. RSP's expertise in deal structuring and negotiation helped to ensure that all parties were satisfied with the outcome and the company was able to continue its growth trajectory under new ownership.