Case Studies

Sale of Family-Owned Software Company to the U.S. Division of European Strategic Buyer

Situation Overview:

InvoTech Systems, a successful and growing family-owned software company servicing the hospitality industry globally, decided to sell the business.

Our Client:

  • Founded 30 years ago, InvoTech Systems is a uniform, linen and laundry inventory control systems serving hotel, casino and resort markets as well as sports arenas, convention centers, cruise lines and theme parks.
  • The founder’s son, who had been running the business tragically passed away a few years before the sale.  Father came back in and together with his daughter, they kept the business operational.
  • Covid was nearly detrimental to the Company but InvoTech persevered and ultimately bounced back quickly with stronger-than-ever financial performance.
  • InvoTech had been receiving unsolicited offers from multiple strategic buyers on a regular basis with multiple informal offers on the table.

The Goal:

  • Maximize the value for the shareholders while ensuring the future success of the Company by selling it to a strong future owner.
  • Conduct a formal sale process soliciting interest from multiple strategic and financial buyers simultaneously.

 The Outcome:

  • InvoTech was ultimately sold successfully to HID Global, an Austin, Texas based manufacturer of secure identity products. HID Global is an independent brand of Assa Abloy, a Swedish door and access control conglomerate. 
  • HID Global had been a vendor of RFID tags to InvoTech so there was an existing relationship.
  • The Company was sold at a price that was 75% higher than the offers the Company had received before running a formal sale process with Calabasas Capital.
  • Harvey Welles, Founder & Chairman of Invotech, said, “We are incredibly pleased to have completed this transaction with a world class organization such as HID Global… We also very much appreciate and value the guidance provided by our investment banking firm, Calabasas Capital, in completing this transaction. David Bonrouhi and Andrew Williamson did an excellent job helping us evaluate strategic alternatives, procuring proposals from a wide variety of interested parties and through a structured and well-designed process got us a fantastic result.”

Disclaimer

The information contained herein is believed to be reliable, but is not guaranteed as to its accuracy or completeness. This website is provided solely for your information and convenience. This material does not constitute an offer to sell or a solicitation of an offer to buy any security.

An offer can only be made by a prospectus that contains more complete information on risks, management fees and other expenses. In order to fully understand all of the implications and risks of investing, investors should carefully read a prospectus before investing.

Investment Products and Services Are Offered Through Fallbrook Capital Securities Corp. (Member FINRA and SIPC). You may contact Fallbrook Capital Securities Corp. by calling (818) 657-6130 or going to www.fallbrookcapital.com