Client Type: 
Second-generation owner of a Midwest-based manufacturer and distributor serving schools, municipalities, and rec centers nationwide.

Seller’s Priorities: 

• Retain key employee (General Manager) with a secure long-term employment agreement 

• Preserve company legacy — the business was started by the seller’s father over 60 years ago 

• Transition out of daily operations while staying involved in a meaningful, strategic consulting role 

• Sell the real estate on a timeline that wouldn’t delay the business closing 

Challenges: 

• Outdated digital infrastructure with no e-commerce capability 

• Declining revenues due to public-sector budget cuts and procurement delays 

• Tariff hikes on imported goods announced mid-transaction, impacting margins and planning 

• Customer concentration risk, with one over 40% of revenue tied into a single client. 

• SBA policy changes introduced new constraints and uncertainty during due diligence 

• Seller burnout, fatigue, and a desire for a fast, clean exit 

Our Approach

We launched a targeted, confidential campaign that attracted over 140 inquiries, but we didn’t stop there. Through a rigorous buyer pre-qualification process, including multiple rounds of interviews, we narrowed down interest to a handful of highly aligned buyers — prioritizing relevant experience, financing readiness, and cultural fit. 

Ultimately, we selected a buyer with a strong operational background and a clear plan to modernize the company’s sales channels through e-commerce and product expansion. 

Despite macroeconomic disruptions and performance volatility, we structured the deal to: 

• Avoid the drawn-out SBA process — this was closed as a cash deal 

• Build in seller financing with tiered revenue-based forgiveness to address downside risk 

• Include a 10-year consulting agreement with aligned expectations and accountability 

• Secure a 5-year employment agreement for the GM to ensure operational continuity 

• Structure a lease with purchase option on the real estate, enabling the business sale to proceed immediately while preserving flexibility for both parties 

The Result: 

Despite tariff volatility, shifting SBA guidelines, and declining year-over-year sales, we closed this as a non-SBA cash transaction, preserving our client’s mental and emotional bandwidth. The seller retained a meaningful advisory role, the key employee was secured, and the business was placed in the hands of a motivated buyer with fresh energy and a clear growth plan.  

Key Takeaway: 

In complex deals, fit matters more than volume. By curating the buyer pool, navigating shifting economic conditions, and crafting a flexible structure, we delivered a win-win outcome that honored the seller’s legacy while empowering the next generation of ownership. 

Thinking about selling your business or have a client who is? Let’s talk!
Let’s talk.
www.inixbiz.com | tpopov@inixbiz.com | (248) 727-2789