Driving a $55M+ Value Increase in
a Successful $250M Sale

After a failed sale process due by another firm, the founders of a consumer product manufacturing company re-engaged and selected Palm Tree to lead the side-side M&A process.

Palm Tree deployed its integrated service lines—Finance & Accounting, Transaction Advisory, and Investment Banking—to prepare the business, manage diligence, and run a competitive sell-side process that ultimately achieved a transformational outcome.

Financial Transformation:

• Palm Tree’s finance and accounting teams rebuilt the company’s historical financials from cash-basis to GAAP accrual-based P&L and Balance Sheet.
• Palm Tree’s Transaction Advisory team normalized historical results and created transaction financials through the consolidation of separate entities.

Real-Time Diligence Support:

• Consulting teams worked in tandem to continuously update the Quality of Earnings report, giving buyers up-to-date data and reducing diligence timelines.
• Palm Tree also provided an interim CFO to manage buyer requests and facilitate financial due diligence.

Superior Valuation Outcome:

• Secured a $55M increase (+42.3%) in the closing enterprise value and a $65M increase (+100%) in the value of the remaining stake.
• Negotiated a deal with a publicly held, multinational Korean company to purchase 65% of the business for $120M, with a put option valuing the remaining 35% up to $130M—totaling up to $250M.

Efficient & Competitive Sale Process:

• Launched the marketing process in December 2021 and signed the SPA by April 2022 (4 months).
• Ran a competitive sell-side process, securing multiple bids from strategic and financial buyers.

By engaging Palm Tree’s full suite of services, the founders overcame the challenges of their prior failed process. With one integrated advisor managing the entire lifecycle, Palm Tree delivered a faster timeline, cleaner diligence, and a significantly higher valuation.