Hanil Widget Works: a forty-year founder hands over
- Sector
- Industrials
- Business
- Precision industrial widgets
- Founder
- Baek Jun-ho, 71 at the 2023 sale
- Fund
- Daebak Equity III, deal three
- Bought
- 2023
- Enterprise value
- US$39.84m, 8.0x adjusted EBITDA of US$4.98m
- Funding at 4.0x debt
- US$19.92m of debt, US$16.25m from Daebak, US$5.97m rolled by Mr. Baek
- Largest customer
- Cheonan Electric, 34% of revenue
- Status
- Current
Baek Jun-ho founded Hanil forty years before the sale and owned all of it. At 71 he needed a successor.
Diligence adjusted EBITDA from US$5.83m reported to US$4.98m, and the price followed. Mr. Baek rolled 20% of his proceeds into the new company, so he keeps a stake in what comes next.
Timeline
- 2023: Daebak Equity III buys Hanil; Mr. Baek rolls 20% of his proceeds.
- First 100 days: Operating Partner Victor Lee works with management on pricing and customer contracts.
- Add-on search: makers of precision parts.
"After forty years I needed a successor. Keeping a share lets me watch Hanil's next chapter."
Illustrative quote from a fictional founder. No one was paid for it. Mr. Baek owns equity in Hanil alongside Daebak, a conflict of interest. Past performance does not predict future results.