Defending Value in Bio-Pharma Engineering
A succession exit for a premier engineering firm serving the high-growth GLP-1 pharmaceutical sector. Value defended through a mid-diligence black swan and a difficult internal partnership.
- Sector
- Bio-Pharma Manufacturing & Engineering Services
- Transaction
- Strategic Bolt-On & Succession Exit
- Closed
- November 2024
- Headline Result
- 9.0× EBITDA defended
Engineering a specialized succession.
The owner-operator of a premier engineering firm specializing in bio-pharma manufacturing facilities sought a path to retirement. While the company was uniquely positioned within the high-growth GLP-1 pharmaceutical production sector, the path to an exit was complicated by a challenging internal partnership.
The seller required an advisor who could professionally navigate sensitive partner dynamics while articulating the firm’s complex technical value to a broad buyer pool.
Beyond the surface.
Financial Reconstruction
The firm operated on cash-basis accounting with an atypical compensation structure. To make the business “transactable” for a sophisticated buyer, we recommended ancillary accounting support to validate the true financial position.
A Mid-Diligence “Black Swan”
At the 11th hour, a key offer was temporarily withdrawn. Despite the volatility and the loss of a major customer, we re-leveraged the firm’s niche bio-pharma expertise to defend a premium valuation.
Internal Friction
We acted as a “shield” between the buyer and an uncooperative, absentee stakeholder, keeping the transaction professional and on schedule despite significant internal antagonism.
Competitive tension & technical advocacy.
Broad market reach paired with high-touch advocacy to protect the seller’s legacy and valuation.
Broad-Auction Execution
We researched and targeted approximately 150 potential buyers, from PE-backed platforms to national strategics, resulting in 8 IOIs and 2 aggressive finalists.
Technical Value Positioning
A deep dive into the platform calibrated its exact fit within the pharmaceutical marketplace. By framing the firm as a mission-critical link in the GLP-1 supply chain, we sustained high demand for the asset.
Hands-On Coaching
We kept the seller in the “driver’s seat” throughout, with constant coaching on the nuances of the sale so the owner could run the business without interruption.
A full exit. Value protected under pressure.
The firm closed with a privately-held, employee-owned national strategic, providing a seamless cultural transition for its employees.
What I ultimately loved about Madfarm was not just the value provided, but how instinctively it was done. I always felt in the ‘driver’s seat’ without tying up my time, allowing me to run my business without interruption. Madfarm remains a shining example of what good business practice is all about — honesty and integrity every step of the way.
The hard part isn’t the spreadsheet. It’s everything around it.
Talk to the principal who would run your process.