• Client: Bond Distributing Company
• Location: Baltimore, MD
• Industry: Business Services
• Buyer/Investor: Origlio Beverage in partnership with “HOBO” (the Honickman, Origlio, and Bergson families)
• Close Date: January 2023

• Client: ICAT Logistics, Inc.
• Location: Elkridge, MD
• Industry: Business Services
• Buyer/Investor: KCM Capital Partners LLC, Lightspring Capital Partners, and Midwest Mezzanine Funds
• Close Date: December 2021

Situation
ICAT Logistics, Inc. (“ICAT”), founded in 1993 and headquartered in Elkridge, MD, operates as an agency-based freight forwarder specializing in creative, custom transportation solutions to meet its customers’ needs both locally and across the globe.

Objective
Owner Richard “Rick” Campbell engaged Matrix to serve as the Company’s financial advisor after an unsuccessful one-off dialogue with a potential investor.

Mr. Campbell required that Matrix seek a financial partner that could provide him with a liquidity event, a medium-term transition path, and growth capital for the business.

Impediments
As a result of the COVID-19 pandemic, ICAT’s largest end-market, tradeshows, experienced substantial business disruptions and had a meaningful impact to the business’s performance.

Outside of the tradeshow market, COVID-driven global supply chain constraints created an optimal pricing environment for ICAT’s services. The sustainability of the improved performance in the business was questioned by numerous financial buyers.

ICAT’s largest and most tenured agency partner was responsible for a large portion of the Company’s revenues, which gave certain investors hesitation.

Solution
Matrix launched a broad process to roughly 700 potential suitors and closed the transaction at premium valuation above client expectations in less than five months.

Matrix presented normalized financial performance using a data-driven COVID adjusted EBITDA to help provide buyers with context behind the additional growth that could be acquired.

In addition to purchase price, Matrix was able to yield additional consideration for Mr. Campbell through an advantageous working capital target, tax structuring considerations, and compensation related to his go-forward employment and ownership of ICAT-leased real estate.

• Client: ASAP Expediting & Logistics, LLC
• Location: Columbia, SC
• Industry: Business Services
• Buyer/Investor: Trump Card Holdings, LLC, a subsidiary of Magnate Worldwide, LLC and a portfolio company of CIVC Partners, L.P.
• Close Date: February 2021

Situation
ASAP Expediting & Logistics, LLC (“ASAP”) is an asset-light, third-party logistics business that specializes in expedited freight solutions for customers requiring reliable, time-critical shipping services in the United States and internationally.

ASAP was founded in 2008 in Columbia, SC by Garland Hobgood, who was the sole operator at the time. The Company has since grown into a widely respected family business that serves thousands of customers across the aerospace, industrial, automotive, food and beverage markets.

Driven by its impressive market reputation, customer service focus, and enviable 40%+ profit margins, the Company received inbound interest from several eager transportation and logistics acquirers that ultimately led to the owners seeking a dedicated transaction advisor.

Objective
In an effort to propel ASAP through the next phase of growth, Matrix was retained to conduct a broad sale process and identify the ideal acquirer, with a particular interest in partnership and the ability to maintain active operating roles to help the business realize its full potential.

Solution
Matrix launched a broad process to roughly 700 potential suitors and closed the transaction at premium valuation above client expectations in five months.

Multiple reputable finalist acquirers conducted complete financial diligence pre-exclusivity, which eliminated potential purchase price adjustments and allowed for an expedited closing three weeks from signing a letter of intent.

Matrix coordinated the creative transfer of business data to a broad buyer universe in order to preserve confidentiality and ASAP’s competitive advantage in a highly fragmented market.

• Client: Tri-State Utilities Company
• Location: Chesapeake, VA
• Industry: Industrial Products
• Buyer/Investor: Hoffman Southwest Corp./ORIX Capital Partners
• Close Date: February 2019

Situation
Tri-State Utilities Company (“Tri-State”) is a leading, award-winning, regional provider of trenchless repair, rehabilitation, inspection, and other maintenance services to the municipal utility market. Tri-State maintains long-term sewer and stormwater contracts with an enviable list of blue-chip customers making it a market leader in the Mid-Atlantic and Southeast.

Objective
Matrix was retained by Tri-State to pursue a sale of the business with the goal of achieving a liquidity event and to provide wealth diversification for the Company’s shareholders.

Solution
Matrix articulated Tri-State’s investment thesis to a broad universe of strategic and financial buyers that possessed an understanding of the industry and the growth opportunities that exist within the Company’s geography.

Received significant initial interest and numerous final bids for the Company from a broad suite of financial and private equity supported strategic buyers.

Matrix negotiated with Hoffman Southwest/ORIX Capital Partners and closed a transaction that achieved terms, conditions and valuation that aligned with the seller’s objectives.

• Client: Quality Assurance Services, Inc.
• Location: Virginia Beach, VA & Grand Rapids, MI
• Industry: Business Services
• Buyer/Investor: n/a
• Close Date: October 2017

Situation
Quality Assurance Services, Inc. (“QAS”) is a leading provider of quality assurance and outsourced solutions, including sorting and inspection services, to manufacturers of parts and components in the automotive industry.

Objective
Matrix was engaged by the owners of QAS to transition ownership and management of its business to an independent third party, while also providing partial liquidity for the current owners of the business via a capital raise.

Solution
Matrix prepared extensive offering materials, including a dynamic operating model, and approached a broad audience of relevant capital providers.

Despite the complicated nature of the transaction structure, Matrix was able to market the positive attributes of the overall business and soon-to-be CEO and received interest from a number of reputable, funded junior capital providers.

Completed a management and ownership transition under largely the same structure outlined in the original proposal.

• Client: Budget Signs, LLC
• Location: Roanoke, VA
• Industry: Business Services
• Buyer/Investor: A franchisee of FASTSIGNS and a portfolio company of Levine Leichtman Capital Partners
• Close Date: September 2016

Situation
Budget Signs, LLC, headquartered in Roanoke, VA, was founded in 1999 and has grown into a leading regional full-service sign and crane company that fabricates, installs and services signs in western Virginia, southern West Virginia and northern North Carolina.

Objective
Matrix was retained by Budget Signs to pursue a 100% sale of the business to a strategic buyer with the goal of achieving a liquidity event and retirement for the Company’s shareholders.

Solution
Matrix marketed the business and clearly communicated transaction objectives to a broad universe of strategic buyers.

After bids were received and management meetings were held, the winning buyer emerged based on their willingness to pay an attractive valuation for the business, purchase the related-party real estate, and only require a 3-month transition period from selling shareholders.

• Client: BLR
• Location: Brentwood, TN
• Industry: Business Services
• Buyer/Investor: Management and Tenth Street Capital & Northcreek Mezzanine
• Close Date: March 2016

Situation
Fortis Business Media, LLC (d/b/a BLR), headquartered in Brentwood, TN, is a leading provider of compliance and training solutions in the B2B arena.

Objective
Matrix was retained by BLR to pursue a recapitalization of the business, with the objective of selling a majority of the founder’s ownership interest and finding a financial partner to support the growth trajectory of the business.

Solution
Matrix marketed the business to a broad universe of generalist private equity buyers and limited number of private equity buyers with relevant assets/portfolio companies.

Received multiple initial indications of interest and several letters of intent, providing the Company’s Board of Directors and management team the opportunity to select from a menu of diverse options/structures.

Completed a recapitalization with the Company’s existing mezzanine lenders that included the redemption of a significant portion of the ownership interest of its founder and largest shareholder.

• Client: Advantor Systems Corporation
• Location: Orlando, FL
• Industry: Business Services
• Buyer/Investor: McCarthy Capital
• Close Date: August 2010

Situation
Advantor is a leading global designer, manufacturer and integrator of physical security systems with extensive experience securing high profile government, Department of Defense and commercial organizations. Their primary business provides security solutions to identify and manage threats to critical infrastructures. Advantor has over 1,000 systems deployed worldwide.

Objective
Matrix was retained on an exclusive basis to assist Advantor in identifying a strong financial partner to provide a minority investment to support the retirement of existing subordinated debt, a dividend to the existing shareholders and to provide growth capital for the Company.

Solution
Matrix conducted a targeted sale process with a select group of private equity funds that could expeditiously consummate a recapitalization transaction at maximum value.

Ultimately, a transaction was structured with McCarthy Capital, a $500 million private equity fund based in Omaha, NE with offices in Denver and Boston. This provided a flexible capital structure to support continued growth.

• Client: Affiliated Mortgage Protection
• Location: Clark, NJ
• Industry: Business Services
• Buyer/Investor: Wachovia
• Close Date: July 2007

• Client: Aces Limited
• Location: Scituate, MA
• Industry: Business Services
• Buyer/Investor: Kuehne + Nagel
• Close Date: December 2005

Situation
Northeast Consolidators, Inc. and Aces, Ltd., based in Scituate, MA is a leading provider of freight-forwarding and logistics services to forest products companies across the country.

Objective
Ownership sought to provide liquidity event for shareholders, identify a strategic partner that would deliver technology and additional resources to its customer base, and negotiate a career for CEO Cindra Zambo who wanted to continue building the company.

Solution
Matrix contacted several strategic buyers and received numerous bids.

The sellers chose Kuehne + Nagel due to their geographic reach, technological depth, and the rapport they achieved with the buyer’s CEO.

• Client: Flowers Sent Today
• Location: Haymarket, VA
• Industry: Business Services
• Buyer/Investor: Woodside Funding Partners and Mercantile-Safe Deposit & Trust Co.
• Close Date: November 2005

Situation
Flowers Sent Today is one of the country’s largest providers of flowers and floral arrangements to consumers nationwide. The Company is the largest advertiser of floral services in the Yellow Pages Directories in the U.S. and is also a significant order gatherer through internet advertising.

Objective
Management wanted to receive a partial liquidity event for certain shareholders, reallocate equity among remaining shareholders, upgrade its lender and identify an outside investor that would provide growth capital for new initiatives and acquisitions.

Solution
Matrix contacted private equity, mezzanine and senior debt providers in an attempt to outline the best capital selection for the Company without providing personal guarantees and without diluting ownership too severely.

Multiple management presentations were conducted. Ultimately, mezzanine and senior debt finalists were selected.

Matrix finalized the transaction and secured dividend rights for the owners despite lender concerns over increasing leverage.

• Client: ProMark Utility Locators
• Location: Chatham, VA
• Industry: Business Services
• Buyer/Investor: Consolidated Utility Services, Inc.
• Close Date: November 2004

Situation
ProMark Utility Locators, Inc., and North American Locating, Inc., both headquartered in Chatham, Virginia, are outsourced providers of underground utility line locating and marking services for telephone, power, gas, cable and sewer utilities along with subsurface utility engineering services, respectively.

Objective
The founder and CEO sought to monetize his investment and to retire from his day-to-day operating role.

Solution
Matrix conducted a broad auction process focused on the financial buyer community due to seller’s desire to keep the business intact for the existing employees.

To solve the management transition, Matrix introduced the finalists in the auction process to a new prospective executive management team that was seeking to consolidate the industry.

Approximately 60 days after the closing of the ProMark transaction, the buyer closed on a second acquisition of another locating company, not represented by an investment bank, that had almost identical revenues and EBITDA. The ProMark valuation was 45% higher than the second transaction.

• Client: Proxicom/Dimension Data
• Location: Reston, VA
• Industry: Business Services
• Buyer/Investor: Gores Technology Group, LLC
• Close Date: May 2004

Situation
Dimension Data Plc (LSE: DDT.L), is a South Africa based provider of network infrastructure solutions with $2.1 billion in sales.

Proxicom, founded by Raul Fernandez in 1991, is a leading Web development and IT services firm headquartered in Reston, Virginia. Dimension Data acquired Proxicom in 2001 for $448 million.

Proxicom was burdened with expensive excess lease obligations that resulted from the Company’s significant growth during the late 1990s to early 2001 and the subsequent decline in the IT services market.

Objective
Dimension Data made the decision that Proxicom was no longer a fit with Dimension Data and that it would no longer fund the Company’s losses resulting from its excess lease obligations.

Solution
Matrix Capital was engaged by Dimension Data and Proxicom to market the Company to both strategic and financial buyers in a very compressed timeframe.

Through a disciplined yet aggressive auction process, Matrix contacted multiple prospective buyers within a month of being engaged.

Proxicom was ultimately sold to Gores Technology Group just four months after Matrix was engaged at a premium valuation over all other offers received.