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Medin Corporation’s Sale to Seven Point Equity Partners

Transaction Details

Client: Veracity Medical Solutions is a Collierville, Tennessee-based contract manufacturer specializing in complex surgical instrumentation and implants
Ownership: MB Venture Partners
Buyer: Heron Capital is an Indianapolis, Indiana-based private investment firm focused on the long term growth of its partner companies, organically and through acquisition
Transaction: Heron Capital acquired 100% of the assets of Veracity Medical Solutions
Consideration: Cash plus earn-out
Valuation: Undisclosed

Situation Review

  • KGI was engaged by MB Venture Partners, a control investor in the Company, with the agreement of a major shareholder to conduct a sale process
  • Investors wished to exit the Company
  • A major shareholder, serving as General Manager, wished to continue with the business post-transaction

Transaction Process

  • KGI prepared a marketing document and presented the business selectively to strategic industry buyers
  • KGI arranged buyer meetings with the Company and assisted in negotiating terms of a sale agreement
  • Selected buyer conducted due diligence and closed the transaction under the terms negotiate
  • Buyer looked to co-marketing opportunities between acquired company and an existing portfolio company

Outcome

  • The major shareholder remains active in the business
  • Cross-selling anticipated between acquired company and the existing portfolio company has been successful
  • Co-marketing at industry trade shows has reduced overall marketing expense and helped expand exposure for both Companies
  • Both continue in business, separately domiciled as they were at the time of acquisition