Stafford Financial Consulting Group sells to AssuredPartners Inc.

Client need

Established in 1982, Stafford Financial Consulting Group (Stafford) is an all-in-one employee benefit, human resources and fringe benefit services firm.  Stafford is one of the largest multidisciplinary, fee-based insurance and investment advisory groups in Wisconsin. The company provides businesses with independent, objective and confidential strategic planning and benefit advisory services.

Stafford’s President/CEO/Owner received an unsolicited offer from AssuredPartners Inc., a GTCR LLC portfolio company. The sale enables the President/CEO/Owner to sell his business while continuing to work, and ensures that his employees will stay with the business. A Baker Tilly US, LLP tax client, Stafford reached out to Baker Tilly Capital, LLC (Baker Tilly Capital) for assistance in developing an adjusted historical and projected EBITDA analysis, along with supporting commentary that enabled the seller to receive an improved purchase offer. The company also sought advisory services related to transaction documents and negotiations with the buyer.

Baker Tilly Capital solution

Baker Tilly Capital worked closely with the Stafford team to adjust historical EBITDA for one-time expenses as well as expenses that would not go forward under new ownership. We also collaborated with Stafford to calculate a projected EBITDA reflecting business operations under a new owner.

Results

Baker Tilly Capital was able to show that the adjusted EBITDA used to calculate a purchase price should be higher, resulting in a substantial increase in purchase price and cash at closing for Stafford.