Engagement: Owner Recapitalization
Headquarters: Seattle, WA
Type of Business: Designer and supplier of innovative and creative daily-use house wares products with focus on kitchen and cleaning
Investment Date: November, 2011
Exit Date: December, 2014 (partial)
Chef’n Corporation was a very successful privately held business looking for its next catalyst. The CEO/Owner of the business hired an investment bank to help the Company conduct an owner recapitalization, a transaction whereby business owners are able to take money off the table to reduce personal financial risk but retain management and significant ownership of their companies. This transaction would also give Chef’n the opportunity to find a long-term strategic and financial partner. Chef’n ultimately selected CID Capital for the transaction.
CID helped Chef’n develop a detailed growth strategy, added to the executive team and utilized our financial connections to finance the growth of the business. Chef’n dramatically improved their product development process and demonstrated strong top and bottom line growth throughout our ownership.
CID managed a successful sale process for the Company to a larger consumer products company in December, 2014. All managers retained their positions with increased responsibilities and reinvested in the larger organization for the next stage of growth.
Beyond having the requisite industry experience and financial capability, cultural fit between Chef’n and CID was strong throughout our partnership and was a key to our mutual success.
*Readers should not assume that investments made in the future will be profitable or will equal the performance of the investment discussed in the case study. Upon request, the Firm will provide a list of all investments made by the Firm.
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