Degage Corp, a clean room product distributor based in Terrell, Texas, has been acquired by a private investor operating through a newly formed company, Degage Ventures. IAG M&A Advisors represented the seller, with Shane Hammond leading the engagement and the client services team supporting throughout.
The final price came in 25% above the appraised valuation. Getting there took three years, a rebuild of the company’s financial records, and a return to market after the process stopped entirely.
Deal highlights
- Closed 25% above valuation. A fresh appraisal and a competitive auction process produced a result well beyond the initial number.
- Marketed without financial statements — at first. When IAG began work in February 2023, the business had no accounting system and no formal records. The offering was built on gross margin analysis, estimated expenses, and tax returns.
- The process stopped, then restarted. An accepted letter of intent collapsed in July 2024. The business returned to market in late November 2025 with proper books and a revised offering memorandum.
- Prior interest converted. Buyers from the first round were re-contacted for the second, and an auction model produced the winning bid.
- The buyer became a source. The acquirer subsequently referred another seller to IAG, now under representation.
About Degage Corp
Degage Corp distributes clean room products from a home-office operation in East Texas. The company runs lean — two staff members — with low overhead and healthy gross margins, serving customers who depend on controlled-environment supplies.
How the process worked
Missing financials slow a deal but don’t stop one. Degage had no accounting system when the engagement began. Because the expense base was small and simple, the business could be presented credibly on gross margin with estimated costs, supported by tax returns. Buyers understood the situation. It still cost time: the first round ran five to six months while multiple offers were negotiated against incomplete data.
Then the process ended. Shortly after a letter of intent was accepted and due diligence began, the founder passed away. The transaction ended with him. His son Eric, who had worked in the business throughout, inherited a company he had not planned to run and was in no position to sell.
The advisor’s job changed. For more than a year there was no deal to work on. IAG helped Eric find his footing instead — recommending a local accounting firm and supporting the implementation of QuickBooks, which gave him working control of orders and receivables for the first time. The relationship continued with no transaction in sight.
Preparation done under pressure became the asset. By October 2025, Eric was ready to revisit a sale. This time the business had real books. IAG commissioned a new valuation, rewrote the confidential information memorandum, and returned to market in late November — going back first to the buyers who had already shown interest. Competitive bidding did the rest.
Why this outcome matters to sellers
- Clean financial records are the single highest-return preparation a small business can make. Degage sold both ways; the difference in process friction was substantial.
- Buyer interest is durable. Prospects from an abandoned process are often the fastest path back to market later.
- Succession planning is not a formality. A business with one decision-maker and no documented transition plan is exposed in ways that only become visible at the worst moment.
- A valuation is a starting point. Competitive process is what moves a price above it.
Looking ahead
Degage Corp continues under Degage Ventures, with an owner who pursued the business through two separate market cycles to acquire it.
Congratulations to Shane Hammond and the client services team, and to Eric, who took over a company under the hardest possible circumstances and sold it on his own terms.
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