Warner Tech-care Products

Unsolicited offer prompts founder to explore strategic alternatives.

Warner Tech-care Products has been acquired by Pathfinder Companies

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Founded in 1984 and based in Roseville, Minnesota, Warner Tech-care Products is an industry leading value-added distributor of hearing related products and accessories, serving hearing aid professionals and manufacturers in 28 countries. The Company’s product breadth exceeds the industry standard with over 6,500 products ranging from clinical to manufacturing supplies.

Situation Overview

After spending most of her professional career with the Company, owner and CEO Teresa Nelson was looking for the right partner to facilitate her retirement while maintaining Warner Tech-care Products as an independent, Minnesota-based company. The Company had received an unsolicited offer prior to engaging Vermillion Capital.

I couldn’t be happier with the outcome you helped us achieve. Thank you for your hard work and dedication. – Teresa Nelson, Owner, Warner Tech-care Products

M&A Transaction Process

Vermillion worked closely with Warner Tech-care Products for several months to prepare the Company for sale before going to market. Vermillion advised Warner Tech-care Products on several strategic initiatives, including:

  • Advised Warner Tech-care Products to engage an accounting firm to complete a sell-side Quality of Earnings report.
  • Worked closely with Warner Tech-care Products to develop a comprehensive growth plan focused on leveraging technology to significantly expand sales and reduce operating costs.
  • Advised the Company’s management team on highly critical meetings with buyers and ensured they were prepared for all areas that buyers would be focused on.
  • Orchestrated and executed the sale process on a strict timeline that spanned only 30 days from signed Letter of Intent to close.

Result

Through a targeted marketing process, Vermillion spoke with 45 prospective buyers and secured 13 first round bids. Warner Tech-care Products was sold to Pathfinder Companies for 32% more than the unsolicited offer it received prior to engaging Vermillion and at a 16% premium to the next highest bidder.

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