MorrisAnderson Facilitating the Sale of the Business Between Two Partners


Annual Sales


in Debt

Lyons & Sons, Moorestown New Jersey


$3 million Cocoa Warehousing Operation. $9 million debt. The Company is 50% owner of a cocoa melting processor company. Company invested in the expansion of the Melting Business to Provide Cocoa Deodorizing Process. Partner initiated the process to buyout Lyons & Sons in Cocoa Services. MorrisAnderson hired to represent the Company’s interest in the negotiations.

  • Annual revenue was $2.5 million with EBITDA of $0.5 million and current Debt of $9 million to secured lender and $7 million to ownership.
  • New Deodorizing Business was intended to increase sales and profits dramatically to cover debt service.
  • Company was in the process to refinancing when the partner requested the buyout.


  • Negotiations contentious as partners don’t trust each other.
  • Company’s new operations only 3 months old so difficult to project full impact of new business.
  • Heavy Debt Load, made valuation difficult.
  • Partner only willing to negotiate through attorney.


  • Valued the company based on growth of new business.
  • Able to realize Large Profits due to high Gross Margins of new business.
  • Client willing to buy or sell ownership position, while partner only wanted to own. An advantage in the negotiations.
  • Used the rules of the Partner’s Operating Agreement to our advantage in the negotiations, allowing us to always be one step ahead.
  • Increased the original offer of $1.8 million to $5 million.
  • Worked with current lender as deal dragged on for 6 months before finally closing and bank being paid in full.