Dental Labs Business Scores $10 Million Premium For a Total Sales Price of $65 Million

Although the dental lab industry was fragmented, investors realized it presented tremendous opportunities for growth. They were waiting for a company that was proven, well managed and profitable. They wanted the leader. With focus on key improvements, five years after retaining us, Micro Dental Laboratory, Inc. was all of that, and more.

Initially, we were hired by Micro Dental for audit and tax services. In getting to know the company, we saw the opportunity to minimize taxes, maximize value, and eliminate issues in the event they decided to sell.   Within the first year we converted the company from a "C" corporation to an "S" corporation. Utilizing advanced valuation techniques, we were able to establish company value at $3 million at the time of conversion which ultimately led to millions of dollars in tax savings.

Over the next five years, we assisted Micro Dental with:

• Building a strong management team
• Developing production innovations and incentive programs that made them the most efficient and quality-oriented business in its industry
• Securing financing to build a state-of-the-art facility.

Because of these and other initiatives, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) went from $2.5 million to $8 million. With the resulting increase in value, Micro Dental shareholders decided it was time to sell.

With our intimate knowledge of the company, we were able to position Micro Dental in a way to attract more than 25 strong, credible offers. Our investment banking experience enabled us to quickly identify the best prospective buyers and manage the negotiations to maximize the value. Since we understood the shareholders' priorities, we instinctively knew which buyers would have the best chemistry with the owners and share a passion for the business and industry.

The due diligence and final negotiation process was completed in only three months. Any longer would have taken the sale deeper into the dot com demise and destroyed the chance of a profitable sale, or any sale at all.

Our long-term relationship, understanding of multiple objectives, and integration of financial, tax, industry and investment banking expertise along with Micro Dental's incredible business allowed the two shareholders to have "Their Vision Realized" with a sales price of $65 million -- $10 million higher than the next offer!