EVG Inc.

EVG, Inc., a closely held company based on Long Island, New York, is a specialty distributor of electronic and audio components for the communications and radio and television industries. Its two shareholder founders had, a few years earlier, repurchased the business from a NYSE listed company when EVG no longer met the parent’s strategic interests and they now wished to retire.

Russell Industries, Inc., a closely held company based on Long Island, New York, is a distributor of electronic components that are sold to a similar group of customers.

OEM Capital was engaged to assist EVG, Inc. in finding a buyer for the company. In order to realize maximum value for  the  selling  shareholders,  we structured the transaction in a way that gave the buyer the benefits of added sales volume without the obligation of costs that might arise from a facility shutdown. We also carefully restricted sensitive information on our client’s customers and invoicing details so as not to jeopardize EVG’s business should the transaction fail to materialize.

OEM Capital’s success with EVG illustrates that, whether a business is healthy 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.