Storytelling to Hold a Sale Price

How do you tell a growth story when your company isn’t growing?  When the standard valuation for companies in your industry is 5-7x EBITDA, what do you say to a bidder to make them hold their 8-figure bid on the high end of that range, even as your year-to-year sales slide further during each month of negotiations?

CHGR worked in close consultation with our client’s CEO/President and CFO, crafting a forward-looking narrative that detailed not just how the client intended to weather its current economic storm, but also how it intended to reposition itself to take advantage of the downturn and, within a short time, rise back up to take market share from its competitors.  Far from giving the impression of being engaged in a fire sale, we instead portrayed ourselves as a crouching tiger soon to attack, leaner and hungrier than ever.  The numbers never lie – but instead of explaining them away, we built a story that turned them to our advantage.

The story sold.  CHGR took the lead in face-to-face negotiations with three international bidders, and led our team to Europe for the final round of talks with the client’s chosen bidder.  We returned home with a structured offer carrying a final valuation on the high end of our EBITDA range.