Temperatsure Case Study

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As soon as the Ascent team began the acquisition process, I knew we were in good hands. Dan and his team guided us through the entire process from start to finish — from building the pitch deck to arranging meetings, to acting as a point person between us and potential buyers. They were a true partner to our business.
— C.P. Smith, CEO and Founder, Temperatsure

Challenge

Prior to signing on with Ascent CFO Solutions, Temperatsure — a privately-held leading manufacturer of gel packs and cold chain logistics solutions for the pharmaceutical and food industries — had undergone tremendous growth. Yet despite impressive numbers and a strong product offering, including “Nordic Ice” gel packs (the ice packs you’ve likely seen in your weekly Blue Apron delivery box), founder and CEO, C.P. Smith, didn’t feel the company was prepared for the rigors of an acquisition.

After asking his network for referrals for part-time CFO’s, C.P. decided to enlist Dan DeGolier and Ascent CFO Solutions to prepare the company for additional growth or potentially an acquisition.

Before working with Ascent CFO Solutions, we had been approached by several interested buyers, but at the time, our financial reporting lacked sophistication. We were getting by on part-accrual, part-cash basis financial statements and we didn’t have a reliable way to forecast our growth. Not to mention, we only had one full-time accounting employee, who was getting overwhelmed. We needed a CFO to help us take our business to the next level.
— C.P. Smith, CEO and Founder, Temperatsure

Process

The first step for the Ascent CFO Solutions engagement team, made up of Dan DeGolier, Jolene Dreith, and Shauna Schmitz, was to get acquainted with Temperatsure’s business by analyzing the firm’s financials and researching the product offerings and market.  

Next, they recalculated and restated standard inventory costs, transitioned the company to full accrual basis, and created an analysis of the CapEx requirements necessary to increase capacity for growth. Then, they built an integrated financial model forecast and began researching comparable valuation multiples. Once they had completed this research and gotten the finance house in order, they prepared a concise yet powerful pitch deck to present to potential buyers.

Ascent CFO Solutions worked with Temperatsure to identify and connect with numerous potential buyers. After negotiating with multiple parties, the company elected to move forward with Endeavour Capital and then the real work began.

Dan and his team at Ascent CFO Solutions led the efforts from the seller’s side for our acquisition of Temperatsure. They were very professional during the negotiations as we ultimately reached agreeable terms. Dan’s team worked extremely hard to complete due diligence on schedule- I would recommend Ascent highly.
— Mark Dorman, Managing Director, Endeavour Capital

After introducing Temperatsure to a reputable law firm to represent them in the sale, Dan coordinated efforts between all parties including the QofE (Quality of Earnings) team, the buyers and their counsel and accountants. Next came a rigorous due diligence process across all aspects of the company, with the transaction closing on April 7, 2016. 

 

Outcome

“Ascent CFO Solutions was instrumental in helping us achieve our goal of selling the company with an outcome that rewarded us for our years of hard work,” said C.P.

Post close, the entire Temperatsure leadership remained intact and C.P. Smith remains CEO. As a way of continuing their partnership, Temperatsure and Endeavour Capital invited Dan DeGolier to join the board of directors after a full-time permanent CFO was identified and brought onboard.

Read more about Temperatsure’s acquisition by Endeavour Capital.


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