Zero EBITDA = 70% Cash (M&A)
A 30-year old West Coast consulting firm with a prestige client list, ranging from blue-chip corporations to universities and government agencies, was seeking a buyer as an exit strategy for the firm’s founder, and to provide greater professional career and financial opportunities for its people. While the firm had a great reputation, revenues were flat over the past several years, and EBITDA was close to zero.
The TobinLeff Solution
Given the firm’s strong reputation, impressive client list and specialized niche, we saw a great deal of upside business potential for the right buyer. We identified prospects, packaged the firm’s story in a fact-based prospectus, identified and vetted target firms—and secured a deal worth 80% of the firm’s top line that got the client 70% of the deal value in cash at closing with a one-year earn out.