The “Right” Next Owner
October 05, 2020DownloadsDownload Case Study
FTI Capital Advisors, LLC (member FINRA/SIPC) shows how a customized approach and thoughtfulness about the right buyer can be critical factors in closing an M&A deal in a challenging market environment.
The Situation: An Iconic Company Facing Transition
Ford Models, Inc. (the “Company” or “Ford”) is a premier brand name in the elite fashion modeling industry, having grown organically over its 75-year history since its founding in the living room of Eileen and Jerry Ford. The Fords began modestly in 1946, building their modeling client list slowly and methodically, allowing teenage models who originated far from New York City to stay in their home. In the ensuing years, Ford attracted a diverse and prestigious roster of models and celebrities. The Company continued to grow with the support of several outside institutional investors.
Reaching the end of its investment time horizon in late 2019, Ford Models’ lead investor was looking to pursue a strategic transaction that would monetize its holdings while enhancing the Company’s capital structure and setting it on a path toward its next level of growth with a new owner. The Company engaged FTI Capital Advisors (“FTICA”) to advise on the transaction, just before the COVID crisis led to widespread economic shutdowns.
The deal team quickly assessed that this was not going to be an easy process, as the slowdown of M&A activity and a crunch in capital markets were causing unprecedented complications. Skillful execution and a seasoned deal team would be paramount to delivering a successful deal for this exceptional Company.