Deal Origination and Co-Investment
Designed a highly-customized direct investment deal origination platform for a Dallas-based Family seeking to acquire an operating asset to own and operate directly. The Family had spent a year and over $500K trying to consummate an acquisition without success. Within 45 days, we began generating deal flow in excess of 60 transactions per month fitting highly-specific criteria and we are now partnered with the Family to acquire a manufacturer generating $50M in revenue, finance the acquisition, develop an overall strategic plan, and create governance, capital plans and organizational development protocols.
Turnaround and Subsequent Exit
Acquired, turned around, and recapitalized a nationally-recognizable retailer of women’s lingerie based in Los Angeles with a San Diego-based Family office. Managed the turnaround through a pre-acquisition Chapter 11 strategy and the recruitment of a new CEO. The Company went from generating EBITDA losses of $9M to positive EBITDA of $5M in 18 months, based on the closing of 30% of the mall-based stores, the development of a revolutionary new product, the launching of the company’s on-line store, the relaunching of the company’s catalog business, and an impactful shift in the company’s product mix. The Family was able to exit the business in less than 4 years at a 10X return on invested capital.
Business Exit and Re-entry
Sold the primary operating business, a manufacturer of mobile HVAC systems, owned by a DFW-based Family (which happens to be the largest landowner in Tarrant County) for 3X the Family’s expected enterprise value, only to reacquire the business three years later from the company’s lenders after exhaustive negotiations in an out-of-court restructuring. The business was purchased for less than 10% of the original sales price and today is a market leader in the space.
Investment and Turnaround of Minority Position
Represented a high profile Midland-based Family in restructuring three “country club” investments offered and controlled by a Family “friend” who took advantage of his relationship. The investments, totaling more than $10M, were made in 3 start-up companies in 3 different industries the friend had no prior experience in. The funds were invested in small, minority positions with no control provisions or liquidation preferences, based on highly-inflated valuations. We pursued the “friend” legally, seized control of all three companies, unwound one investment, restructured the remaining investments and the entities they were made in, established new governance procedures, and sourced new operating partners for the businesses
Complex Negotiations As Board Proxy
Represented a Dallas-based Family, known for investing in nano-technology, in leading complex negotiations with three different shareholder groups, two different lenders, and the Texas Emerging Technology Fund with the objective to either save or liquidate three failed investments. We represented the patriarch’s interests on two boards of directors, resulting in bringing legal action against a New Jersey-based hedge fund for fraud and breach of duty on one investment and structuring a DIP-like financing facility in another instance to stave-off the ETF and the bank from foreclosing on the Company. The Family was ultimately able to monetize one investment at par and restructure the other two in more favorable positions.
Turnaround, Growth Capital Infusion & Pending Exit
Turned-around, invested in and have grown the market-leading designer manufacturer, and retailer of mobile charging stations in the U.S. After shifting the company’s strategy and overhauling its business model, we have worked tirelessly with management to grow the company 3X in revenue and 4X in profitability, focusing on developing a value-added reseller channel, investing in R&D, developing additional products, and partnering with leading AVIT and office solutions companies to capture the highest market share in the education and healthcare verticals. The company is currently in negotiations to be acquired by a Fortune 1000 manufacturer.