JDI MOLD AND TOOL, LLC was acquired by JDI PLASTICS, INC.
JDI PLASTICS, INC.
JDI MOLD AND TOOL, LLC
JDI Mold and Tool, LLC was acquired by JDI Plastics, Inc.
The company was very successful and highly profitable, but it had two issues that affected its value and saleability. The first issue was that one customer accounted for over 30% of the company’s revenues. The second issue was that the owner/president handled all of the management functions in the business and did not have a successor or heir apparent in the company.
We identified a strategic buyer that owned several related companies. Their size and experience in the industry allowed them to see the value of the large customer and the potential there was to continue to grow that relationship. The buyer also has a junior executive who was had been rising the career ladder with the company and was now ready to take on P&L and operating responsibility for a division, so he was able to take over immediately for the departing seller.
Pricing the company to take into account the customer concentration and owner dependency issues and finding a strategic buyer were the keys to this successful transaction.