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Client:
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Source Technologies, Inc. (“STI”), the market leader in secure MICR (Magnetic Ink Character Recognition) desktop printing and interactive transaction management self-service solutions
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www.sourcetech.com
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Transaction Summary:
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The owners of STI sought to diversify their net worth and find a complementary partner for growth. Brookwood structured and managed a targeted marketing process that resulted in the sale to Liberty Partners, a New York based private equity firm with $1.8 billion under management. Riverside Partners, a Boston based middle market private equity firm, also invested in STI along with Liberty Partners.
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"Brookwood's team of professionals delivered a deal that exceeded all of our expectations. Liberty Partners provided a flexible capital structure, access to numerous non-financial resources to help Source Technologies grow and the optimal blend of cash at closing and the potential for additional upside consideration.“
- Miles Busby, President & CEO
Source Technologies, Inc.
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Transaction Highlights:
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The Challenge – The shareholders sought: (i) a premium valuation for the business; (ii) a flexible transaction structure that balanced cash at closing vs. incremental consideration in the future; (iii) certainty of execution; and (iv) a partner that brought both valuable resources and the availability of growth capital in the future, if needed.
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The Solution – After conducting a thorough due diligence process, Brookwood (i) drafted a comprehensive information memorandum and management presentation that clarified the complexities of this niche industry segment and (ii) worked with management to build a robust projection model to denominate the various components of STI’s upside potential. Additionally, Brookwood effectively marketed the opportunity to a list of carefully targeted buyers, which generated significant interest from both financial sponsors and industry players.
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The Result – The process generated numerous attractive offers for STI. Liberty Partners prevailed as their offer and approach met or exceeded all of STI’s requirements.
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