Client
Environmental and engineering consulting firm, $8M revenue at assessment, $13M at transaction
Problem
Business valued at $3M to $4M against owner expectation of $7M to $9M, with after-tax proceeds at current value insufficient to fund retirement without drawing on capital
Services
Wefinx led a multi-year value creation program from initial assessment through to transaction close, addressing EBITDA improvement, customer concentration, owner dependency, and management depth, coordinating legal counsel, tax planning, financial planning, and M&A advisory at each stage
Results
- Transaction closed at approximately $15M, reflecting 32 months of documented value creation before going to market
- Revenue grew from $8M to $13M during the engagement through structured BD and new client development
- EBITDA margin improved from 8% to 15%, with each point of margin improvement worth approximately $910K at transaction
- Customer concentration reduced from 40% to under 25%, removing the primary multiple suppressor identified at assessment
- Owner dependency eliminated before the transaction; firm operating independently for over a year before any buyer saw it
- LCGE applied in full, with retirement funded from investment returns without drawing on capital
- Wealth Gap closed before the transaction; the shortfall identified at assessment was resolved through the value creation work, not negotiated at closing
