A change in ownership can be, and often is, an emotional and difficult process. Our acquisition philosophy reduces, and in some cases eliminates, many of the negative attributes of an ownership change.
Management Remains in Place
Management remains in place after an acquisition. Additionally, the acquired company's name and identity normally do not change. Thus, your suppliers, employees, and customers see little, if any, change. Simply put, the proud traditions of the business continue without interruption after an ownership change.
Culture is Preserved
After the acquisition, Otter Tail Corporation strives to preserve the unique culture of the acquired firm. This is done, in part, by decentralizing management decisions. Otter Tail Corporation expects decisions to be made at the lowest practical level where managers are better equipped to make flexible, adaptive, and responsive choices. In an Otter Tail Corporation operating company, management has both the responsibility and authority to determine and pursue the goals and opportunities of the business.
Limited Disruption
Any acquisition can be time-consuming, but Otter Tail Corporation tries to minimize the disruption to ongoing operations. We establish early in the process the amount of due diligence required, along with timelines, so you are well aware of the time commitments for your organization. After the initial letter of intent to purchase, we work quickly to ensure an efficient execution of the transaction, typically within ninety days.
Long-Term Ownership
Otter Tail Corporation is committed to growing shareholder value as a long-term owner of our companies. Although many other buyers are motivated by the prospect for a gain from a short-term investment, Otter Tail Corporation desires steady, predictable, and consistent growth in earnings rather than one-time gains from a sale. Otter Tail Corporation is in it for the long term.
Consideration That Fits the Seller's Needs
Otter Tail Corporation is flexible and can tailor the consideration to fit the seller's needs. This can involve one or a combination of the following options:
Cash Transactions
Otter Tail Corporation will purchase stock or assets for cash as the structure best fits the transaction needs. In our transactions, Otter Tail Corporation has always had the resources to complete the deals without the uncertainty of whether financing can be obtained.
Stock Transactions
Otter Tail Corporation will exchange Otter Tail stock (Nasdaq: OTTR), for the stock of the acquired company. Properly structured, a stock transaction can defer the tax consequences for the owner, while at the same time provide enhanced liquidity and diversification of the owner's investments. Otter Tail Corporation's stock continues to have solid market and dividend performance, making the stock for stock option very advantageous for the seller.