CFK Finance recently supported the acquisition of MECA RECTIF AUXFIN by a new management team.
The company, which provides dual wheel metal part surface grinding services, is considered to be the only large operator in France in this highly specific business activity. It requires working in partnership with a contractor (the car manufacturer) and a cutting machine operator (the original equipment manufacturer, sub-contractor level 1).
Established in 1970, the company has been headed since 1993 by a majority shareholder Chief Executive Officer (60%) and a minority shareholder Technical Director (40%). The sale of MECA RECTIF AUXFIN is the result of the desire of the executive majority partner to carry out his third company sale. In 2003, the company posted a turnover of 2.7 M Euros. New car manufacturing projects created an increase in activity in the second half of 2004.
Within CFK Finance, the sale transaction in a sell-side assignment was managed by Laurent Adrian, Partner/Director, and Sébastien Clèdes, Business manager and financial analyst.
– THE ACQUISITION PLAN IS AN MBI (MANAGEMENT BUY IN)
An MBI is a company purchase with leverage (acquisition loans) by a management team external to the company. The bank presented by CFK to the buyer managers of MECA RECTIF AUXFIN provided an incentive in the constitution of the pool (pooling of risks for senior bankers).
The sale process (letter of intent, audit and loan agreement subject to conditions precedent) and the conditions of sale of MECA RECTIF AUXFIN (total sale and terms of payment of the price) are conventional.
– FAIR SOLUTIONS
CFK Finance fulfilled the expectations of each of the parties: the sale and a rapid departure for the majority seller and company agent, the possibility of capitalising additional retirement annuities for the minority seller through his technical expertise made available to the company until the end of 2004.
“Acquisitions by 2 natural persons are rather rare,” agree Laurent Adrian and Sébastien Clèdes. The profiles of the buyer managers of MECA RECTIF AUXFIN are nevertheless perfectly complementary. Philippe Chape has a marketing and promotion background whereas Jean-Paul Comin is a technical expert and ENSA-educated Engineer. Both these talented men, former executives of Group subsidiaries, became partners early on in the search for a company through the creation of an MBO holding company. In their view, “in a long and difficult negotiation process, CFK Finance sold us this acquisition by playing its role as intermediary and demonstrating psychology, tenacity and fairness”.