Very High Client Expectations
– Given cyclicality and key man risks, the client’s expectations for significant liquidity and favorable deal structure, especially control, were extremely high.
Mandate Constantly Changing
– Shifting directives from the client with several changes to primary objectives
Confidentiality
– Given the high profile of the client, the strictest level of confidentiality was required
Busted Auction
– The most attractive initial bidder selected by the client to go to final documentation made drastic changes to terms one week before signing
Highly Customized Process
– Highest standards used to pre-screen bidders
− Rigorous auction procedures tailored to the parties involved
Intense Level of Engagement
– PGP partners were highly involved in all phases of the project with extraordinarily close dialogue with CFO to assist him in managing his “client”
Access to Unconventional Sources of Capital
– PGP tapped into the client’s network of billionaire contacts
Creativity
– After the initial winning bidder re-traded on its offer, PGP was able to regroup and recreate a competitive process
The Results
PGP negotiated a minority investment of $145 million by New York Private Bank & Trust (Milstein Family)
High Valuation – Valuation achieved was 2x EBITDA above highest bonus trigger in engagement letter – FAR EXCEEDED EXPECTATIONS
Unique Deal Structure – Convertible debt structure of 5x trailing EBITDA with single-digit coupon and limited covenants – EXTRAORDINARILY FAVORABLE TAX STRUCTURE TO CLIENT
Client Testimonial
“We hired Stewart Kim and his team to assist us in finding a partner that could help continue growing our businesses well beyond my lifetime. Throughout the many months of hard work, we were delighted with the way in which PGP managed the transaction, as well as the final results that they helped produce.
I feel that PGP, in addition to their professionalism, experience, and integrity, brought remarkable objectivity in their advice to me, my family, and our management team. We had unique objectives and very high standards across the board. They understood that and created a highly customized process for us that also respected our strong desire for confidentiality. Given the tremendous amount of work that was required, it would have been easy for PGP to recommend shortcuts that would have benefited their firm, but to their credit, they consistently recommended what they believed was in our best interest. The end result was that we found a like-minded partner who committed to long-term capital and brought the experience that we were seeking to help build our brands and branded businesses. Throughout this demanding process, PGP bore the brunt of criticism from all bidders, acting as our buffer and delivering the tough messages when they needed to be delivered. They did a terrific job all around.”
Chairman of Nicklaus Companies, LLC
M&A Advisory
PGP acted as exclusive financial advisor to Golden Bear International, Inc. in its strategic relationship with New York Private Bank & Trust to form Nicklaus Companies, LLC
