We helped successfully sell a majority stake in LIKOV - and in a very short time at that

The second generation of owners of the family business LIKOV decided that selling the company is the best solution for the future of LIKOV as well as the owners' families. The transaction was completed only 6 months after the day the owners chose CYRRUS as their consultant. Learn more about how we handled the sale.

LIKOV is a leading Czech manufacturer and supplier of structural profiles and accessories for insulating buildings and plasterboard structures. In 2022, the company's sales reached CZK 1.5 billion, with EBIDTA exceeding CZK 260 million.

With an estimated share of 55-60%, LIKOV is a leading supplier on the Czech and Slovak markets, and a major exporter to another 250 customers in 39 countries around the world. The company has a modern production base in Kuřim and employs 150 people.

Transferring the family business to the third generation wasn't the best solution

Before the sale, LIKOV was owned by four co-owners, Radek Toman, Daniel Toman, Pavel Burant and Petr Burant, each with a 25% stake.

These owners were the second generation of the family that founded LIKOV. Jiří Burant and Miroslav Toman founded the company in 1994 and handed it over to their children in 2007. Because the transfer of LIKOV to the third generation was clearly not the best solution for the owner's families and the company, they decided to sell the company to a new investor. In June 2023, they started looking for a partner to help them find a suitable investor with regard to the further development of the company, to arrange the transaction, to manage the risks of the whole process and to help them achieve the most favourable sale conditions.

One of their conditions was a quick transaction

In addition to favourable sale conditions, the sellers had three main requirements:

• Speed:their condition was that the transaction be closed in 2023, i.e. within 6 months.
• Senior consultants: they requested that senior consultants with extensive experience in financial markets be in charge of the transaction.
• Discretion

The sellers chose us on the basis of these priorities. Two of our senior consultants, Marek Hatlapatka and Petr Ullmann, were in charge of the sale on our behalf.

We managed to arrange the sale in a very short time in line with the sellers' requirements:

• from the signing of the advisor agreement (June 2023),
• to the signing (November 2023)
• and closing of the transaction (mid-December 2023).

"Every sale requires an understanding of the seller's goals and the collection and analysis of information to understand the company's business model, its position on the market and potential for further development," says consultant Petr Ullmann. We use the acquired data to create a valuation model and an indication of the amount for which the company should be sold. "But let's not forget that the conditions of the sale, and especially the purchase price, are ultimately decided by supply and demand, so the sales process also includes the selection of a suitable circle of potential investors - a so-called long-list." In cooperation with the marketing department, we also prepare information materials - a teaser and information memorandum – a presentation of the company for investors.

“After assessing the interest of investors and the first indicative offers, we direct the next steps at maximising the sales goals and selecting the most suitable investor. While we manage and execute the sales process, our client is constantly in control of every important step throughout the process," adds Petr.

A successful finale for all parties

Many transactions on the market, even smaller ones, take much longer to close than LIKOV, and they are not always given the full attention of experienced negotiators. Two senior consultants were fully committed to the transaction at CCS, and the support and facilities of CYRRUS Group allowed them to maximise the sellers' objectives within an ambitious timeframe.

How did one of the sellers sum up the transaction? "Thank you so much for your WONDERFUL work. It was quite a ride, but it was worth it for the very successful conclusion." We couldn't have said it better ourselves.