Townsgate creates, manages and executes exit strategies
focusing on achieving industry-leading valuations and ensuring confidentiality for sellers of companies with revenue up to
$10 million
.

Specializing in Asset Sale Transactions for most industries,
including distribution, manufacturing, financial and more.

Real Estate Management Industry

Distressed Business

We have a particularly strong track-record achieving industry-leading results for Community Association and Property Management companies.
  

Maximizing economic outcomes for SBA PLP and GP Lenders, and their clients.

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(323) 951-1600

Published Books
and Articles


A Business Intermediary's Perspective,
a chapter from How to Value Your Business and Increase Its Potential, published by McGraw-Hill
  
Ten Ways to Increase Your Company's Market Value
CEO Insights/CAI

  
Your Association's Management Firm Was Sold...Don't Panic
CondoManagement Magazine


 

Banking Division:  Exit Strategies for Distressed Businesses
 

Representing sellers of businesses with troubled loans, we maximize the economic outcome for banks and their clients.  Implementing operational improvements and strategically selling businesses to achieve the highest possible valuations, we help preserve loan principal, reduce loan losses and prevent loans from being charged off.  In connection with SBA 7(a) loans, our successes may preserve or enhance SBA performance ratios for PLP and GP lenders.
  

Highlights of a Past Transaction

Representing the seller, we prepared the Information Memorandum and strategically marketed the business to strategic and financial buyers.

Secured multiple offers and ultimately sold the business to a financial buyer, resulting in a 13% higher price compared to the second highest offer from a strategic buyer. Plus, down payment and financing secured by real estate covered the full purchase price compared to 78% down payment, and 22% seller financing that was subject to performance post-acquisition.

Marketed the firm confidentially, inspired confidence among buyers and set it up for a successful acquisition. Since the acquisition in 2007, the buyer significantly increased revenue and earnings.


Expertise to setup transactions for successful outcomes…
  • prepare fair market valuations.
  • identify financial and operational improvements to optimize earnings and boost valuations.
  • assess customer contracts in connection with their impact on valuation, marketing and business transfers.
  • research and identify local, regional and national strategic buyers.
  • prepare Information Memorandums including adjusted Income statements.
  • launch highly effective transparent sales process designed to show stockholders and lenders that appropriate due-diligence was done to achieve the maximum valuation.
  • maintain confidentially.
Leadership abilities to execute and achieve outstanding results…
  • complete asset sale transactions within a narrow time-frame.
  • timely procure financial and strategic buyers.
  • orchestrate marketing to increase the chances of generating multiple offers.
  • persuade buyers and inspire confidence in clients’ businesses.
  • utilize appropriate negotiation techniques to maximize price and terms.
  • effectively educate and lead CEOs, buyers, and their CPAs and legal council through the transaction and closing process.
  • establish rigorous closing schedule to complete transactions in a timely fashion.
Operational skills to optimize revenue and earnings…
  • optimize staffing requirements in connection with its impact on earnings.
  • develop effective and economical marketing and sales campaigns.
  • train management and the sales force to use Salesforce.com to manage and improve sales productivity and results.
 

  (323) 951-1600

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