INVESTMENT BANKING

Providing Wall Street & Silicon Valley Sophistication to Main Street in Common Sense Ways

20+

YEARS OF EXPERIENCE

120

TRANSACTIONS OF $3B OR MORE

250M

ENTERPRISE VALUE OF MIDDLE-MARKET COMPANIES

250+

CLIENTS SERVED

Teddy Roosevelt, 1903

 

 

Our Mantra:

The Man in the Arena

 

“It is not the critic who counts; nor the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause, who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who never know victory nor defeat.”

- Teddy Roosevelt

 INDUSTRY COVERAGE

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 TOMBSTONES

 

Initial Offer: $38.0M; Closing Price: $74.0M -SCS Frigette, Inc. sale to Black Knight Partners, L.P.

• SCS Frigette, a manufacturer of HVAC systems and related products, retained VP to sell the majority of its holdings. The company was nearing the end of a government contract that comprised 45% of the combined companies’ revenue and 60% of its EBITDA.

• SCS failed to close on a $38M transaction right before VP stepped in. Ten months later, our firm successfully closed a sale with Black Knight Partners, L.P. for $74M.

 

Initial Offer: $7.0M; Closing Price: $14.0M -MAF sale to Wynnchurch Capital Partners, LP

• Mid-America Fittings, Inc. is a manufacturer of specialty pipes, valves and fittings catering to OEMs and distributors across the U.S. When VP was retained to sell the company, it was doing $1.2M in TTM EBITDA and fielding initial offers in the $7M range or approximately 5x TTM EBITDA.

• VP was successful at selling the company to Wynnchurch Capital Partners, LP for over $14M under a structure that allowed the shareholders to continue operating the business.

Initial Offer: $36.0M; Closing Price: $53.0M -Midland Metal Manufacturing sale to Wynnchurch Capital:

• Midland Metal Mfg. was generating $6M in EBITDA and seeing valuations in the 6x TTM EBITDA range when VP was engaged to advise the company in its pursuit of a majority recapitalization.

• VP successfully negotiated with buyers that the valuation multiple should be based off forward EBITDA projections to account for newly identified value streams and the transaction ultimately closed at $53M.

 

Initial offer: $52M; Final Valuation: $100.0M + -E Mortgage Logic 3-stage “Creeping Acquisition” with Aquiline Capital:

• VP negotiated for Aquiline to acquire 40% of the company’s equity-based on an EV of 8x TTM EBITDA and then take down of additional equity in 2 more stages: 35% equity 2 years from close based on an EV of 9x forward EBITDA (banded), and the final 10% equity 18 months from the second close based on an EV of 9.5x forward EBITDA in that year.

• The structure allowed the sellers to retain 20% upside, control of the board for the first 2 years, and realize over $100.0M in 3.5 yrs.

Initial Offer: $12.0M; Closing Price: $33.0M -Imperial Technologies sale to Celerity Partners:

• Imperial Technologies was a data storage device manufacturing company focused on solid-state disc technology and was doing $5M in EBITDA. The company had retained an investment banking firm to sell the business and after one year received zero offers.

• VP took the company to market shortly thereafter with initial bids coming in at $12M. Within 6 months, VP sold 75% of the company to Celerity Partners for $33.3M under a majority recap structure that left the management team in charge of the company.

 

 TESTIMONIALS

  • Raja Segal | Founder | YouGotCash, LLC

    I had spent over two years and all of my financial resources to develop an on-line money transferring company and had yet to launch my business. I was close to abandoning the project when I was introduced to WPCP (now Victory Partners) last year. They immediately recognized the value drivers of my business, the regulatory complexities, and the tremendous market potential overseas. Through their efforts, we have completely revamped the marketing strategy, created a strategic alliance with an industry leader, partnered with a Texas-based commercial bank, and are on our way to success. This would not have been possible if not for the exhaustive efforts of Victory’s team.

  • Bill O'Connor | Managing Partner | SWS O'Connor & Company

    O’Connor & Company Securities is a very niche-focused investment banking firm focused on public finance. Not only do we issue public bonds and other securities, we also maintain a substantial book of business that we actively trade through our broker-dealer. Because we are investment bankers, we thought that we could find a strategic partner ourselves, who would acquire us, recapitalize the firm, and allow us to grow into new markets. After one and one-half years of going the road ourselves, we hired Summit Capital Partners (now Victory Partners). Within 6 months we were well on our way to putting together a merger deal with Southwest Securities in Texas that far exceeded our goals in every category. Quite honestly, given our size and niche focus, I was surprised at the speed at which we had offers from several firms. Our partnership has allowed us to take substantial chips off the table while positioning us to compete against the bulge-bracket firms for state and local government sponsored issuances. The guys at Victory certainly earned their keep!

  • Jean Schwindt | President & CEO | Approved Financial Corp

    AFC hired Victory Partners (formerly Summit Capital Partners) to issue a fairness opinion to our shareholders regarding the acquisition of our company, traded on the bulletin board, by Michigan Fidelity Acceptance Corp. We first got to know the Victory Team when they represented a well-known California-based mortgage banking company in their efforts to acquire a national, publicly-traded savings institution. Although they eventually passed on our company, we were extremely impressed with the level of professionalism, breadth and depth of knowledge, and the speed of execution with which they operated. We interviewed several nationally-recognized investment banking firms and determining that Victory was best suited to issue the opinion to our board and shareholders. The transaction was closed in December 2003 and we have already referred a new client opportunity to them.

  • Russell Callahan | Chairman of the Board | Predicate Logic, Inc

    We were referred to Victory Partners through our bank after an exhaustive search to find an investment banking firm that understood both the financial services and software industries. We hired them to assist us in developing our strategic plan and capital-raising strategy, not only due to their knowledge and expertise in these fields, but more importantly to us, because they understand the entrepreneurial spirit and mindset of middle-market companies so well. We intend on going public in September and have appointed Mr. Lazenby to our board of advisors. We have relied on him and his team at great length to help us navigate the difficult waters we have faced in positioning the company for explosive growth.

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