Overview
To find a financial partner to inject capital into the business so the co-founder could take some chips off the table, continue to increase VUTEk’s market share worldwide, and maximize the company’s upside potential.
Bigelow Assignment
To find a financial partner to inject capital into the business so the co-founder could take some chips off the table, continue to increase VUTEk’s market share worldwide, and maximize the company’s upside potential.
Challenges
To attain the highest possible value for the owner in without burdening the company with unreasonable amounts of debt. Gain access intelligent capital that would enable the owners to continue to pursue leading edge technology while giving them access to superior managers while protecting the jobs and positive work environment for VUTEk’s employees.
“I wanted to take some equity from the Company, but I didn’t want to be the only owner, the only one running the Company. I’m an engineer and I hated being president. Bigelow understood what we wanted, and found us buyers that were a good fit for both the Company’s culture and the owners’ objectives.” Arthur L.Cleary, Co-Founder and Chief Technology Officer Vutek, Inc.
Outcome
After discussions with some of the best potential strategic buyers worldwide, Bigelow identified a source of intelligent capital for VUTEk: Metapoint Partners, a private investment firm whose investors include some of the most successful executives of America’s Fortune 100 companies. Metapoint helped VUTEk by bringing in a new CEO and CFO, structuring bank lines of credit, and providing a win-win, growth- oriented environment.
Bigelow represented VUTEk’s owners through all phases of the sale. Metapoint achieved majority control and VUTEk’s shareholders achieved liquidity and continued future upside.
Bigelow was able to provide multiple exit strategies for the existing owners where one shareholder sold 100% of his interests and retired and the second, younger shareholder received partial liquidity and was able to maintain a significant equity stake while simultaneously changing his role to Chief Technology Officer.