Client Background & Objective
MB Shop Design is a producer of creative shop fitting concepts for stores in Sweden and Northern Europe. The company has expanded rapidly since its foundation as a metal manufacturing company in 1997. Located in Hillerstorp, a small town in Southern Sweden, the company grew its customer base, acquired complementary businesses and built new production facilities over the years. In 2015, MB Shop Design had a turnover of around $18 million and was one of the most profitable players in the shop fitting industry in Sweden. The owners of MB Shop Design were interested in finding a buyer that could prolong and enhance the company's growth trajectory. MB Shop Design's owners were looking for a buyer that would not only guarantee long-term business success but also value their company appropriately and be a good strategic fit. Given that two of the owners live in Hillerstorp and wanted to continue to be involved in the business, it was crucial to find a buyer that was a good fit at a personal level.
IMAP Advantage & Approach
Well-known and a highly regarded advisor in Sweden, IMAP was a natural partner for MB Shop Design. IMAP's proven track record in the region, both in number of deals and positive references inspired confidence. In addition, IMAP displayed knowledge of the business landscape, presented a supporting network of international experts, and demonstrated the ability to act fast.
Jörgen Larsson and Bengt Jönsson, Partners at IMAP in Sweden, led the search and negotiation process for MB Shop Design. IMAP identified both Private Equity groups as well as companies within the industry as potential buyers. An initial contact was established with ITAB Shop Concept, Europe's leading supplier of all-inclusive shop fitting concepts. The strategic fit between the companies was evaluated during a pre-process meeting. IMAP's experience in completing transactions within this industry and geographic region was crucial for determining the viability of the deal and negotiating a sale to ITAB Shop Concept, based in Jönköping, Sweden. With IMAP's guidance, MB Shop Design selected ITAB Shop Concept as the most suitable buyer.
Although the ultimate buyer was domestic, several IMAP member firms from throughout Europe including Germany, Switzerland, Czech Republic, France and Spain submitted proposals of potential buyers in their countries. IMAP partner firms also shared insights and industry expertise, which were leveraged during the negotiation process and helped achieve the best deal possible.
Outcome & Impact
IMAP succeeded in finding a compatible buyer that could guarantee MB Shop Design's continued business success. With this completed transaction, MB Shop Design can offer existing customers a broader product portfolio and reach new customers through ITAB Shop Concept's distribution channels. Moreover, IMAP negotiated a deal that exceeded the seller's expectations and completed the whole process promptly in four months.
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