Case Study
Veracity Medical Solutions Sale to Heron Capital
| 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 |
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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
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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
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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