TestOil

TestOil is a Northeast Ohio based industrial testing solutions provider, focusing on oil analysis, turbine oil analysis, filter debris analysis, material identification analysis, and lubricant compatibility analysis for heavy machinery. TestOil works with customers across several industries, including energy, manufacturing, construction, chemical and consumer products.

Carleton McKenna was engaged as sell-side advisor after the owner held months ofdiscussions with a strategic buyer. The owner had been able to increase the offered valuation by 20%. We were informed of the higher negotiated value target, and directed to minimize any transaction activity that could disrupt the business. The owner was satisfied with the valuation and principally wanted assistance documenting the offer and running due diligence. We conducted a rapid, multi-party competitive process (without any management disruption) to create competitive tension and establish discipline within the timeline and LOI expectations. CM&Co was able to drive the buyer to a further increase of 19% beyond the pre-negotiated higher price watermark. The additional value created through targeted negotiation in tandem with conducting a disciplined, competitive process was 10x greater than the success fee earned on the transaction.