Allenbach Industries, Inc., a closely held company headquartered in Carlsbad , California with manufacturing facilities located in San Jose , California and Bloomington , Minnesota , is a software duplication and fulfillment company whose services are used by software publishers.
Omni Multimedia Group, Inc., an American Stock Exchange listed company is headquartered in Millbury , Massachusetts . It offers software publishers complete, turnkey software manufacturing and distribution services, which include CD-ROM mastering and replication, magnetic diskette duplication services, document printing, packaging and fulfillment.
OEM Capital was asked to assist Allenbach Industries, Inc. in finding a purchaser for its business and advise it on techniques that would maximize short-term cash accumulation. The software industry had been undergoing a media transition in the distribution its products from magnetic diskette to CD-ROM and on-line downloads.
Due to declining sales and operating losses, Allenbach Industries, Inc was not able to secure the necessary amount of capital to purchase CD-ROM mastering and replication equipment and reposition its business.
OEM Capital’s presentation of the company’s value to an acquirer and our knowledge of the industry quickly secured a serious acquirer. Because time was of the essence, the transaction was closed quickly.
Our success with Allenbach Industries, Inc. illustrates that, whether a business is healthy, under performing or distressed, superior valuations can be realized for the selling shareholders by a well-executed approach to a sale or divestiture by merger and acquisition professionals who are knowledgeable about the industry and the intentions of its participants.