Marshall Distributing

Situation

Marshall Distributing, Inc. (“Marshall” or the “Company”) is a Cass City, MI based distributor of aftermarket parts and accessories for recreational vehicles including motorcycles, snowmobiles all terrain vehicles, utility terrain vehicles and personal watercraft.

The Company is headquartered in Michigan with distribution centers strategically located in Clifton Park, New York and Sparks, Nevada.

Marshall’s financial condition was adversely affected by a combination of poor weather conditions across several selling seasons and a delay in implementing cost reductions due to an old ERP system which was unable to provide timely financial reports to management.

The shareholders determined the optimal course of action was to sell the business to a well-capitalized buyer.

Solution

The Company engaged Amherst Partners (“Amherst”) to lead a process focused on maximizing shareholder value and identifying a buyer with the capital and resources to support the necessary changes and opportunities in the business.

Results

Amherst approached a select group of strategic and financial buyers and received multiple indications of interest at very competitive valuations.

Ultimately, Marshall was sold to Western Power Sports (“WPS”), the leading distributor in this industry. WPS is a catalog-based wholesaler of a wide range of aftermarket parts and accessories, as well as sports apparel, for the powersports market.

The transaction exceeded initial expectations and provided not only complete recovery to the lenders, but also equity return to the shareholders.