Transaction Overview

• Passive owners of an international surge protection company approached The Lenox Group seeking liquidity options.
• Advised seller on appropriate valuation and transaction structure.
• Ran effective process to identify and select a private equity firm to meet valuation expectations while providing a strong incentive plan to existing management.
• Helped senior management team secure and structure an equity incentive plan tied to performance and created an opportunity for management to invest alongside the new ownership group.

Transaction Process

• The Lenox Group prepared a Confidential Information Memorandum describing the investment opportunity.  The memorandum highlighted the key investment considerations and the Company's history, product lines, operations, sales force, marketing initiatives, industry dynamics and management team backgrounds.
• Developed a presentation to use during investor meetings with management and included additional details regarding the company's growth initiatives and projected revenue and costs associated with these opportunities.
• Lenox Group bankers contacted over 20 potential private equity investment groups, sent the information memorandum and held follow-up management conference calls with ten interested parties.
• This auction process yielded five competitive term sheets.  Meetings were held with four groups and a leading private equity firm was ultimately selected to partner with management.

Transaction Benefits

• Senior management team encouraged to invest in the transaction and was granted participation in an equity incentive option pool.
• Company ready to move into new international markets and develop new product lines with ample capital available.
• Closed the transaction in compressed timeframe as determined by seller.