CASE STUDY
Buying a shipyard
After knocking on the seller’s door for almost two years with no answer, Westport Marine Holdings reached out for assistance. The target, an 88-acre shipyard on the border of Texas and Louisiana, was a shuttered subsidiary of a $300MM revenue parent. Further complicating the deal were multiple layers of ownership, both active and passive. Navigating the ownership structure and identifying the party experiencing the most significant pain led to a successful corporate carve out.
Establishing our client’s credibility within the industry and financial ability to execute the transaction were paramount in gaining traction with the sellers. From presenting bios demonstrating 50 years of combined industry experience to assisting with projections and securing financing, we were able to convince the seller to engage in substantive discussions.
Highlights from the transaction include:
- Negotiated purchase price significantly below the fair market value of the assets.
- Signed purchase agreement prior to closing to establish negotiating leverage.
- Pursued seller and bank financing simultaneously.
- Secured seller financing – preventing equity dilution.
- Negotiated relaxed financial covenants and debt service to allow for a successful startup period.