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M&A TRANSACTIONS
Client objectives become our objectives. Over the years, we have executed highly successful ARM / Specialty Finance M&A mandates, as well as strategic advisory engagements, for a wide variety of clients in just about every situation. We believe the results speak for themselves. Selected M&A transactions are listed below.
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Transaction / Results |
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Type: Acquisition
CBV Collection Services Ltd. is a major servicer and purchaser of charged-off receivables in the Canadian market. The firm is based in Vancouver, British Columbia and maintains offices throughout Canada. As part of its growth strategy, CBV sought to acquire an ARM firm in the United States to serve as its platform for accessing the much larger charge-off volumes that are available in the US. They engaged Greenberg Advisors to advise them in validating, fine-tuning, and executing their strategy, resulting in the acquisition of Primary Financial Services, based in Phoenix, Arizona. Primary, which focuses on the collection of financial and related charge-offs for major credit grantors, is an excellent fit for CBV both culturally and strategically, and is an ideal platform for CBV's entry into the US market.
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Type: Capital Raise
Resurgence Capital is an established purchaser and collector of charged-off credit card receivables that utilizes a state-specific legal collection strategy. The shareholders sought to establish a new lending relationship in order to expand their portfolio purchasing capability and to buy out a former lender. They engaged Greenberg Advisors to lead the process of finding the most suitable financial partner to help accomplish their goals. As a result, Resurgence secured a senior credit facility with Javlin Capital, a group comprised of industry executives who are experienced lenders to the ARM and Debt Purchase sector.
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Type: Acquisition
H.I.G. Capital, through its portfolio company, National Asset Recovery Services (NARS), acquired Integrity Financial Partners in order to bolster its presence in the third-party ARM segment. Integrity, with over 300 employees, services many of the largest blue chip credit grantors in the United States. The acquisition will bring many benefits to the NARS operating platform, including the integration of Integrity’s senior management team and high-end infrastructure, which is comprised of 3 US-based call centers and one call center based in Santiago, Chile. This is the 4th recent investment by H.I.G. and Reprise Management Group into the ARM sector within an 18 month period.
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Type: Acquisition
H.I.G. Capital, through its affiliate, National Asset Recovery Services (NARS), sought to build upon its BPO and first-party outsourcing capabilities by expanding significantly into third-party debt collection. Greenberg Advisors led the buy-side process, which included a targeted search for firms meeting their criteria and due diligence advisory, culminating in this acquisition. Pinnacle Financial Group, a growing mid-sized ARM firm, provides debt collection and related services for clients in many sectors, including healthcare, financial services, education, telecommunications, consumer/retail, and auto loans. The combined companies will employ approximately 3,500 people. This represents the third recent investment by H.I.G., in collaboration with Reprise Management Group, in the ARM sector.
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Type: Sale through Bankruptcy
Universal Fidelity L.P. (UFLP) filed for Chapter 11 bankruptcy in early 2010, requiring that it sell selected assets in order to satisfy obligations due to creditors. Greenberg Advisors was approved in late February by the United States Bankruptcy Court to represent UFLP regarding the sale of its Panamanian ARM/BPO division. Our relationships with investors seeking an opportunity with these characteristics enabled us to contact a narrow group of highly capable parties, and close the transaction quickly -- within 60 days -- while maximizing the value for UFLP. As a result of this transaction, UFLP can focus on expanding its Houston operations, and National Recovery Agency has gained a strategically important near-shore platform to service its clients.
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Type: Acquisition
TRAK is the largest independent firm in the United States providing data analytics and legal inventory management of charged-off consumer receivables. H.I.G. sought to acquire a niche service provider within the ARM industry, and it was TRAK’s management team, scale, unique legal approach, and its use of proprietary analytics that contributed to H.I.G.’s interest. This acquisition marks H.I.G.'s second recent transaction in ARM, and is intended to serve as a platform for complementary acquisitions. Greenberg Advisors initiated the transaction and provided advisory services to H.I.G. throughout.
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Type: Capital Raise / Company Formation / Acquisition
This transaction began with our advising a senior executive, Tim Bauer, regarding his objective to create a substantial ARM firm through acquisition
and organically driven growth. Greenberg Advisors assisted Mr. Bauer in developing and refining his plan, describing it properly to potential funding partners, and securing attractive terms with the funding partner best suited to support Bauer's goals. Having solidified an exclusive funding partnership with H.I.G. Capital in Spring 2009, we further advised both H.I.G. and Bauer in the pursuit of acquisition candidates through a newly created entity, Reprise Management Group. The acquisition of NARS, with over 3,000 employees and operations in the US, Panama, and Jamaica, is the first transaction for Reprise and will serve as its platform to further expand its BPO and 1st Party servicing expertise.
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Sale of Academy Collection Service to Monarch Recovery Management, led
by Academy's senior management team
Deal Summary » |
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Type: Sale / Management Buy-out
Academy is a national provider of contingency debt collection services for major credit card/bank card issuers and debt purchasers. The shareholder sought to divest the company and provide opportunities for his management team post-transaction. |
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Recapitalization of National Capital Management (NCM), which included
the sale of an equity stake, as well as an expanded credit facility with
Siemens First Capital
Deal Summary » |
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Type: Sale / Recapitalization
NCM is a national purchaser and servicer of secured and unsecured bankruptcy-impaired consumer receivables. NCM's shareholders sought to maximize their investment by structuring a transaction with the right strategic partner, and to remain active in the operations. Key elements of the transaction included the sale of equity to an investor group possessing key strategic relationships to help fuel growth, as well as the establishment of a credit facility with Siemens First Capital for portfolio purchases, more than tripling NCM's purchasing capability. Greenberg’s comprehensive buyer/investor relationships led to this new buyer and new capital entering the ARM industry. |
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Sale of Financial Asset Management Systems (FAMS) to American Capital
Strategies, Ltd.
Deal Summary » |
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Type: Sale / Retirement
FAMS is a leading servicer of the federal Department of Education student loan collection contract, and services additional marquee clients in the banking and retail sectors. FAMS' founding shareholders sought to maximize the value of FAMS through a sale of the company. The transaction was consummated after a competitive auction process to maximize value, resulting in an $88 million transaction for the shareholders. |
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Type: Acquisition
Sallie Mae sought to acquire a leading servicer and purchaser of credit card and related receivables. Greenberg co-led the comprehensive buy-side program to identify and acquire the best possible platform to meet Sallie Mae's goals, culminating in the acquisition of a majority stake in Arrow Financial. |
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Sale of Risk Management Alternatives (RMA), and its portfolio of owned paper, to NCO Group
Deal Summary » |
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Type: Sale for Private Equity
RMA was among the top 10 largest ARM firms in the US, serving major credit grantors, primarily in the financial and telecom sectors. Brian Greenberg co-led the engagement for Chicago-based private equity firm, GTCR, to divest RMA, resulting in a sale to NCO Group for $118 million.
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Sale of Bilateral Credit Corp. (BCC) to a Private Investor
Deal Summary » |
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Type: Sale / Retirement
BCC is one of the most established commercial (business-to-business) debt collection agencies in the country. In order to transition to retirement, BCC’s shareholder sought to liquidate his interest while preserving the future of the Company. BCC was acquired by an investor never before known to the debt collection industry. |
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Sale of Great Lakes Bureau, a GE Capital company, and its portfolio of owned paper, to NCO Group
Deal Summary » |
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Type: Corporate Divestiture
Great Lakes was an established national provider of debt collection for financial institutions and municipal governments. GE Capital sought to divest this subsidiary and its pool of owned paper, which totaled $3.3 billion in face value. Brian Greenberg’s involvement resulted in a sale of the company and its portfolio for $33.5 million to NCO Group, as well as the establishment of a multi-year agreement for NCO to provide ongoing services to GE Capital. |
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Sale of the assets of TrueLogic Financial Corp. (TFC) to HOV Services, Ltd.
Deal Summary » |
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Type: Distressed Sale
TFC's shareholders had built a unique analytics and debt collection platform for debt buyers and financial services clients. With a mandate to quickly consummate a transaction, the deal was completed within approximately 2 months from the time of engagement, and sold to a proven strategic buyer. |
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Sale of Midwest Collection Services (MCS) to The Outsource Group
Deal Summary » |
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Type: Negotiated Sale
MCS specializes in providing debt collection services to healthcare providers. The shareholder of MCS had been approached by a buyer and wanted to continue the discussions to determine the feasibility of a transaction. Upon engagement, deal discussions were seamlessly assumed, and terms were further negotiated and agreed upon, resulting in a successful sale to The Outsource Group. |
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Type: Acquisition
West Corp., a publicly-held customer relationship management (CRM) business with a market capitalization of approximately $1 billion, sought to optimize its global call center infrastructure and client relationships through the acquisition of a well-managed ARM firm. Greenberg co-led this effort, resulting in the acquisition of Attention LLC, a fast-growing firm servicing clients in healthcare, auto deficiency, and financial services. |
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Acquisition of First Revenue Assurance (FRA) by Vertex Customer Management
Deal Summary » |
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Type: Acquisition by UK company
Vertex, a subsidiary of United Utilities (a publicly-held utility based in the United Kingdom) and provider of business process outsourcing (BPO) services, sought to establish a presence in the US with the acquisition of an ARM firm. Brian Greenberg co-led the nationwide engagement, which resulted in a structured transaction with FRA, a growing ARM firm servicing clients in the utility and financial services sectors. |
Note: With years of experience in advising ARM clients in M&A and related activities, some of these transactions were completed by the staff of Greenberg Advisors while working at other firms.
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