AH Bennet Newer

The Situation

A series of storms in 2008 had benefited A.H. Bennett in the short term, but also attracted an influx of out-of-town competitors that were here to stay—just before the ensuing recession and its impact on the housing market depressed demand for roofing products.

With an increasing number of competitors fighting over a shrinking market, the company faced pricing pressures and mounting losses, compromising its future viability. At the same time, the majority owner faced a need to plan for retirement and diversify his personal net worth.

Choosing not to wait for an uncertain market upturn, the family made the painful but practical decision to sell the company.

The Transaction

Teneca offered the opportunity to a select group of larger players within the roofing products industry, the majority of which were direct competitors. Our client’s respected brand, customer relationships and diversified locations proved strong incentives for buyers, and the process we ran yielded attractive offers despite the depressed market.

A.H. Bennett chose the buyer based not solely on the highest offer, but on a combination of price and trust in a buyer respected for fair treatment of employees and smooth integrations of acquired entities.

The Result

We were able to negotiate terms that exceeded the majority owner’s expectations, satisfied his personal financial needs and protected the interests of all stakeholders.

Our competitive process and the strength of our client’s brand helped influence the buyer to offer a premium for the opportunity to add to its growing portfolio of regional operators.