CMF Associates, a provider of transaction and transition-focused financial, operational and human capital solutions, was successfully sold to professional services firm CBIZ, Inc. The US-based firm services private equity firms and their portfolio companies across North America.
Equiteq were initially called upon to determine CMF’s market attractiveness and then hired as the exclusive sell-side advisor for the transaction process.
The client’s situation
Having served over 135 private equity funds across more than 500 portfolio companies, CMF was widely recognized as a trusted advisor to private equity clients. CMF’s shareholders, seeing evidence of consolidation in their space, wanted to capitalize on the growing private equity market as part of a larger organization.
They sought a partner who shared their growth-oriented vision of scaling the company’s position as a premium service provider to private equity firms. The CMF shareholders were dedicated to partnering with an organization that would offer the services and resources to drive portfolio value creation on a national scale. This understanding of what makes an ideal buyer is an important element to a sale, a topic we’ve previously explored.
We started off by carrying out a comprehensive strategic review to determine the potential enterprise value and level of market demand for CMF.
We then ran a structured process designed to target the ideal buyer groups and create positive competitive tension. Through this broad competitive process, we were able to solicit strong final bids with value and terms that got the deal done.
How Equiteq delivered value to CMF
- Equiteq leveraged its market insight and buyer coverage model to identify the ideal partner that would guarantee strong valuation and growth potential.
- The team prepared marketing materials that would strategically position CMF in an attractive manner to the wider buyer universe.
- As a result, there was significant competitive tension and we were able to solicit final proposals from multiple interested parties. These bidders included private equity-backed strategic acquirers and the publicly traded professionals services firm, CBIZ.
- We offered CMF recommendations throughout the sensitive negotiation stages of the process. This ultimately led to a successful sale with favorable terms that exceeded initial client expectations.
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