Case Study: OHARCO + Lutz M&A

BACKGROUND

Our client, Omaha Hardwood Lumber Company, dba OHARCO, was interested in selling their wholesale distribution business. They wanted to ensure they received a fair purchase price for the company, so they looked to Lutz M&A to get a better understanding of the sale process.

Cheryl Rau, Treasurer at OHARCO, already had familiarity with Lutz, working with us for over 30 years on their business’s accounting needs. Her Lutz Accounting representative referred her to Bill Kenedy, Lutz Consulting & M&A Shareholder, to get assistance with the sale. Bill met with Cheryl to get an understanding of the business and provided a strategic transaction plan that would solve her needs.

LUTZ DIFFERENTIATORS

• Over 20 years of combined experience providing successful transaction outcomes.
• Unique market-driven, competitive process.
• Strong, certified internal team.
• Sole focus on merger and acquisition work.
• Multiple services lines, tapping into a breadth of specialized skills and knowledge.

OUTCOME

Our Lutz M&A team assisted Cheryl through the entire sale process. From initial negotiation to signing the letter of intent (LOI) and completion of the transaction, Lutz M&A served as a trusted advisor providing valuable advice and recommendations. In the end, our team was able to help Cheryl successfully sell her business.

WORDS FROM THE CLIENT

DID WORKING WITH LUTZ M&A PROVIDE VALUE/PROVE HELPFUL?

“Early on in our search process, a longtime business mentor with corporate acquisition experience stressed how he has seen too many business owners attempt to negotiate by themselves all the details of the sale of their own enterprise. He emphasized how personal emotions will cloud the negotiations and urged us to utilize an independent party in order to formalize a sound plan for the sale of our company to the right party. We found that in Bill Kenedy.” – Bill Sauter, OHARCO

HOW DID LUTZ M&A MEET OR EXCEED YOUR EXPECTATIONS?  

“As an accountant and business owner with 20+ years of experience, I questioned the need for outside assistance in selling the business. I quickly learned that M&A is its own world, and having the outside (independent) direction, advice, and support of Bill Kenedy was necessary. It was extremely valuable to have someone I trusted to guide us through the process and decisions. He provided the necessary background and outside information that we did not have. Trying to do this without his support would have been a mistake. Since we can only sell the business once, we needed to get it right the first time, and Bill was key in helping us do that.” – Cheryl Rau, OHARCO

DO YOU HAVE ANY RECOMMENDATIONS FOR SOMEONE WHO IS CONSIDERING PARTNERING WITH LUTZ M&A?

“Obviously, call Lutz. The earlier, the better. Lutz can be a strategic partner as you prepare your business for sale… 3-5 years or 5-10 years before you plan to sell. Get your house in order. Then when the time to negotiate nears, they can help plan a strategy & support you throughout the process.” – Cheryl Rau, OHARCO

DO YOU HAVE ANY ADDITIONAL COMMENTS?

“Deyna was right, as usual. She said to call Bill, and I did. So glad I did. What I said in my thank you note holds true as well. I thought you were nuts in December when you said that you never know what the future will hold and the deal is not done until cash changes hands. Three months later, Covid shut down the economy, and every day, I am relieved that I listened to you and agreed to close the sale in early February. I would not have wanted this hanging over our heads longer or getting stopped & having to start all over again. One simple decision affected so many things.” – Cheryl Rau, OHARCO