Arranging for buyers to buy-out a supermarket chain
Situation
Started as a one shop mini-market, this company has grown to be a supermarket chain in just less than 7 years. It has 4 branches in different states in Malaysia. All branches occupied several contiguous shop lots fronting busy trunk roads. Due to various reasons, its sales started to decline and its bank loan was about to default. The management decided to sell the company to interested parties.
Actions / Challenges
Leap Forth was appointed to search for interested buyers for the company. However, due to the high selling price of the company, we proposed to sell the branches individually. This will allow existing competitors in the locality to purchase the branches, either to avoid competition or to expand their business there.
The strategy worked well and in less than 3 months, all the branches were sold to different buyers (who are existing players in the locality). The combined amount is higher than the intended selling price of the company.
Results
The shareholders are happy as they managed to maximize their returns. At the same time, they acted timely to sell the branches before it defaulted in its bank loan.
Situation
Started as a one shop mini-market, this company has grown to be a supermarket chain in just less than 7 years. It has 4 branches in different states in Malaysia. All branches occupied several contiguous shop lots fronting busy trunk roads. Due to various reasons, its sales started to decline and its bank loan was about to default. The management decided to sell the company to interested parties.
Actions / Challenges
Leap Forth was appointed to search for interested buyers for the company. However, due to the high selling price of the company, we proposed to sell the branches individually. This will allow existing competitors in the locality to purchase the branches, either to avoid competition or to expand their business there.
The strategy worked well and in less than 3 months, all the branches were sold to different buyers (who are existing players in the locality). The combined amount is higher than the intended selling price of the company.
Results
The shareholders are happy as they managed to maximize their returns. At the same time, they acted timely to sell the branches before it defaulted in its bank loan.
