DATE: August 31, 2002
Who is Our Client?
- CHI Overhead Doors, based in Arthur, IL, is a garage door manufacturing company. At time of sale, CHI was the sixth largest garage door manufacturer in the United States.
- CHI had reinvested all earnings to fuel a tremendous nine year growth trend from $1.7 million to $100 million.
Why did CHI Overhead Doors Hire Nolan?
- CHI initially entertained investment banking proposals from firms on Wall Street, but ultimately selected Nolan due to its Midwestern roots and values.
- The owners engaged Nolan with the goal of turning the company value into cash.
- The owners desired to not to have Nolan approach any established players in the garage door manufacturing space in order to preserve their “magic” from their competitors.
What Value Did Nolan Deliver?
- A tightly controlled process was run involving around 20 carefully selected potential buyers.
- Nolan marketed CHI’s tremendous growth trend and distinct capabilities to attract several carefully selected buyers.
- Nolan narrowed the buyer list and made closely focused visits to the final four potential buyers in order to ensure the perfect fit for CHI.
- Included in the list of potential buyers was Long Point Capital, a private equity group based in Detroit, MI and New York, NY who also was the leading investor in Masco Corporation (NYSE:MAS), a multi-billion dollar building products conglomerate.
- Former ownership and CHI management invested in minority positions alongside Long Point.