Ascend Helps Defense Supply Manufacturer More Than Triple Company Value
Before Sale; Shareholders Net $20 Million

Two years ago we were brought in to sell a $6 million Defense Supply Manufacturer named Beta Systems LLC. While performing our internal due diligence, we realized the opportunities available for this company to build value.

We advised Beta that if we helped them execute on the following initiatives prior to sale, the value of their company would double or triple within the next few years:

• Procure more long-term government contracts
• Wait for the contracts to come to fruition over the next few years
• Modify its customer mix to include both government and commercial
• Help strengthen management and the internal processes and procedures so due diligence would run smoothly

While we worked with the company on these initiatives, we also implemented an estate plan that transferred ownership shares from the father to the children. We did this while the company was still valued at the relatively low figure of $6 million to provide significant tax advantages for the heirs should the company grow as we envisioned.

Two years later when Beta and Ascend completed its value building initiatives, Ascend found the perfect buyer—a synergistic company owned by a financial equity fund. By working with Beta through the entire process to build value, ensure that they had the proper tax structure and build an intimate relationship with ownership so they trusted us to negotiate in their best interest, Ascend was able to:

• Put together a $20 million deal that was advantageous to both the buyer and the seller
• Minimize Beta's contingent liabilities relating to the sale
• Obtain advanteous tax treatments on certain components of the deal
• Reduce the amount of working capital that transferred to the buyer which in itself saved $800,000.