For Executives & Entrepreneurs: Selling a Division

An Understanding of Your Goals. Pine Creek works closely with companies who are divesting operations that are not core to current plans for the parent corporation. Our team is experienced in completing such transactions and understands the need to ensure that the divested assets are not acquired by a competitor; the transaction is confidential; and occurs with minimal disruption to the business, its parent, management team and employees. In fact, one of our team members wrote a book on this very topic. BUYOUT (Amacom, 2001) provides a complete analysis of the process of managing divisional spin-offs and examples of how Pine Creek has executed this type of transaction. A review of its contents will fully demonstrate the depth of our capabilities in accomplishing the goals of everyone at the table.

Manager Relations. Pine Creek prefers to back the existing managers of a division in fulfilling a dream of owning the company they operate. However, from the selling parent company perspective, this approach is not always feasible due to employee relations issues and other dynamics. To provide leadership in those situations, the head of our Advisory Board is a powerful asset. Dan Gillis, former CEO of a successful, $150 M revenue, NYSE-listed company that he bought in a divisional spin-off, is committed to the Pine Creek divisional spin-off program. He will coordinate the management components of situations where Pine Creek directly purchases a division in a transaction that is not manager led.

Speed. In our past divisional spin-off transactions, we have learned that one of the primary reasons that a corporate seller introduces an opportunity to a private equity firm such as Pine Creek is speed of execution. As many sellers have discovered, a quick closing is not often available through an auction process. Pine Creek is a small firm structured for efficiency. The founders of Pine Creek are the decision makers and there are no external committees required for investment approval.

Confidentiality. We have participated for many years in a business where absolute discretion and implicit confidentially are essential and can provide total comfort on this matter. Also, we can help the seller and management carefully navigate any conflicts inherent in the sales process.

Maintaining an Equity Stake. We welcome transactions where Pine Creek purchases a majority or minority interest in a company at a level where the divesting parent retains an equity stake in the ongoing business.

To find out more about Pine Creek and whether we are the right partner for you, please see About Us.