Background

Management of the trading division of a public company was moving to buy the division and spin it off as an independent entity.

 Key Issues

• The management team faced difficult negotiations with the public company for purchase of the division.
• Required financing for the transaction had to be put into place.
• Timing was critical to prevent erosion of the division’s existing business and customer base.

Actions

• RSI performed analyses and prepared projections to enable the management team to obtain financing, and assisted in negotiating the borrowing terms with the lender.
• On behalf of the management team, RSI conducted negotiations with the public company for a sale and purchase agreement, and guided the management team in its decisions as to the purchase price and all other significant terms and conditions.
• RSI worked closely with all parties involved to review the relevant legal documentation, fulfill conditions to closing and conclude the transaction.

Outcome

• The management team successfully purchased the division on terms very favorable to them.