Finding a Family Office Buyer that Best Understands a Company's Growth Potential


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Business:

Orange Line Oil Company (“OLO” or the “Company”) is a bulk oil wholesaler and oil distributor serving all of Southern California. OLO offers a wide range of bulk motor lubricants under the Shell and Ford Motorcraft family of brands as well as traditional ancillary automotive products such as cleaners, degreasers, filters and chemicals.


Transaction:

OLO was owned by a private equity group who sought an exit after owning and managing the business for more than six years. FocalPoint aligned OLO with a family office buyer, Osprey Capital.


Challenges:

OLO’s financial performance showed only limited growth through the recession as increased unemployment led to fewer miles driven, thus decreasing the frequency of oil changes. Despite very consistent cash flows, this limited organic growth performance meant a more nuanced auction process was required to generate interest from an otherwise cautious buyer universe. The transaction was further complicated by the existence of a number of major suppliers whose consent would be required to close the transaction.


Solution:

FocalPoint ran a comprehensive marketing process focusing on the stability of financial performance and strong cash flows relative to risk. By expanding the marketing audience to include less traditional family office funds as well as the traditional private equity universe and strategic buyers, FocalPoint managed to secure multiple offers for the business with a wide range of alternatives for the shareholders. Once Osprey was selected as the winning bidder after a competitive auction, FocalPoint led negotiations with both major suppliers, garnering their support of the transaction through a comprehensive presentation of the pro forma capital structure and attractive business plan for OLO post-closing.

Orange Line Oil has been acquired by Osprey Capital

FocalPoint served as exclusive financial advisor to Orange Line Oil

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“The competitive market place created a number of disruptions to the normal flow of our business. However, the FocalPoint team was able to successfully navigate through these changing dynamics and execute the most favorable offer for us.”

Markus Isenrich
Founder, Ferro Management Group