Waste Control Systems
When Buyer A cuts the price on you, it’s always good to have a “Plan B”: The real buyer turned out to be the understudy in this case
Orca Capital advised the sale of Corvallis, OR Waste Control Systems to Allied Waste, of Phoenix, AZ. Waste Control Systems provided non-hazardous solid waste collection, transfer, recycling, and disposal services for commercial, industrial, municipal, and residential customers in the region.
All set, then changes at the eleventh hour
All client cases are highly confidential, but with numerous shareholders, this one was very sensitive. Orca’s code name for Waste Control Systems was “White Gloves”.
Orca prepared a rigorously researched Memorandum which articulated the company’s strong position and bright future. After carefully targeting potential buyers with the strategic fit, means, and motivation to do the deal, Orca created an auction, and the intended buyer was selected. After due diligence, all was set for close - and then the buyer had a financing glitch. “We have to lower the price by $27 million, as we can’t get all our financing”, they said.
The deal is done by the runner up
Orca placed a call immediately to Buyer B from the auction, Allied Waste. They were ready and able to pay the full price.
Orca informed Buyer A that they had to perform on the agreed terms, or they were out. They bowed out, and Allied Waste eagerly stepped into their shoes.
The deal closed for the price and terms originally envisioned.