Kinsella Group helps clients achieve business and financial success through four key service areas.
A fraternal organization with over 1 million members wanted to diversify its investment portfolio through acquisition of a company that could strengthen its significant fund raising and member communication activities. Kinsella Group was engaged to assist in executing this new strategy.
Kinsella guided the client through the strategic process and executed a search for direct marketing/direct mail/printing companies. Within 90 days of engagement, initial discussions were underway with four prospects. A $50 million company which closely met the strategic criteria was selected as the “best fit”. Kinsella Group represented the client in the sales process including enterprise valuation, negotiation, and due diligence which ultimately led to a successful transaction. Total time from initial engagement to transaction close was under eight months. Immediately following the transaction close, the client asked Kinsella Group to re-enter into discussions with another of the interested prospects and invited Robert Kinsella to join the Board of Directors of the acquired company. |
When a Midwestern private equity firm updated its growth strategy to include the planned increase, in scale and reach, of an existing platform company, it turned to Kinsella Group to help it generate non-auction deal flow through an Acquisition Search assignment.
Beginning in early 2006, Kinsella Group quickly sourced a target group of 50 potential sellers, which was subsequently narrowed down to six “best-fit” prospects. Kinsella Group has participated in active negotiations with all six prospects, and provided input into the valuation and structuring of the initial, successful transaction, which closed recently. Three to four more acquisitions are expected in the near future, ultimately enabling the private equity group and the sellers to achieve their planned objectives and demonstrating the value of aggressive, professional investment banking services. |
When a leading, 100-year old manufacturer and supplier of food- and non-food-related packaging solutions wanted to increase its presence and strengthen its management team in the thermoformed packaging space, it discovered that its internal efforts were not yielding the opportunities it desired. Recognizing Kinsella Group’s long history of acquisition-search success, highly developed search methodology, and firsthand experience in the packaging history, the company engaged Kinsella Group to source and identify potential sellers.
Kinsella Group quickly targeted two well-known, profitable thermoformers of stock and custom plastic packaging, and helped the client negotiate and close successful acquisitions with both prospects over the past year. The client has increased its regional presence to include facilities in Florida, Illinois, Kentucky, Michigan and New York, and has developed a competitive management team that will guide it well into the future. |
| A $65 million manufacturer of food preparation and packaging products wanted to redeploy its assets from durable food preparation products to disposable packaging products to take advantage of recent market trends and increase growth. Kinsella Group was engaged to help execute this new strategy through an acquisition. Kinsella Group identified 97 acquisition suspects which were further narrowed down to 39 active prospects. None of these companies were for sale prior to Kinsella Group’s contact. Within six months the client had entered into discussions with three of these prospects and ultimately acquired a profitable $18 million competitor. Total time from initial engagement to transaction close was nine months. The client subsequently re-engaged Kinsella Group to sell another of its food preparation product divisions with the intention that those proceeds will be used to acquire another packaging company. Kinsella Group is in active negotiation for sale of that division. |
| A $65-million division of a $300-million privately held company had a specific goal: To identify and acquire companies whose customer bases and fields of expertise could work synergistically with the existing division to increase revenues by $25 million within two years. Kinsella Group quickly identified 87 acquisition suspects, nearly half of which developed into viable prospects with an interest in discussing a potential sale. Although none of these 42 companies had expressed an interest in a sale prior to Kinsella Group’s contact, the client closed three acquisition transactions, one stock purchase and two asset purchases within the next 18 months. During that period, the division grew to $125 million and was subsequently sold for $142 million in cash. |
| On behalf of a $240-million NYSE-traded company, Kinsella Group developed and implemented an acquisition-search program to significantly grow the client’s revenue base within a two-year timeframe. Within nine months, Kinsella Group had identified 270 acquisition suspects, which were further narrowed-down to 23 viable prospects. None of these firms, representing $945 million in annual sales, were for sale prior to Kinsella Group’s contact; however, the client was able to acquire two of the companies, with total annual sales in excess of $163 million. The client subsequently increased its revenue base by 68% and doubled its stock price. |
| When a $150-million NYSE-traded company initiated a two-fold acquisition-search program, it turned to Kinsella Group for assistance. The company had two goals: To expand an existing franchise through the acquisition of a west-coast competitor, and to pursue a potential major contributor to future growth. Within six months, Kinsella Group had narrowed its list of 286 acquisition suspects to 29 viable prospects — none of which were for sale prior to Kinsella Group’s contact. The client ultimately acquired two of these companies, fulfilling both of their program goals. |
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| A Kinsella Group principal served as Managing General Partner for 20 private-investment partnerships, successfully raising aggregate capital in excess of $200 million. Funded exclusively with equity provided by high-net worth individuals, private families and private equity funds, ranging from $2 million to $35 million per partnership, investments have been made in entertainment, real estate and energy businesses. |
| A real estate partnership owned a large industrial property financed by an industrial revenue bond. The property's sole tenant was experiencing serious financial problems that put it at risk of defaulting on its lease, threatening the partnership's ability to retain ownership of the property. To provide additional capital for the partnership, Kinsella Group sourced, structured and negotiated the sale of an interest in the partnership and renegotiated the tenant’s lease terms and space utilization to reduce the risk of default on the lease. The infusion of nearly $4 million in aggregate new capital and the restructured lease improved prospective returns to the original real estate partners while providing adequate prospective financial returns to the new partner/investor. |
| On behalf of a privately owned, venture-backed marketing research services company — serving retailing, advertising and financial-services clients — a Kinsella Group principal raised nearly $7 million in new equity capital. |
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After taking over the operations of the family business — a retail store selling nurses’ uniforms — the second generation owners successfully transitioned the business into a $55 million direct marketer of medical apparel. The Company became a nationally recognized leading cataloger with a superb reputation for customer service.
However, the shift to Internet marketing proved to be a larger challenge than the owners originally envisioned, and as a result, the owners decided an acquisition by a strategic buyer was required to take the Company to the next level. Kinsella Group was hired to find the right buyer and structure the sale.
Kinsella Group prepared a Confidential Offering Memorandum, identified over 150 prospective strategic and financial buyers and aggressively negotiated a successful transaction. In addition to providing personal liquidity and employment contracts for the Owners, the transaction ensured the Company’s legacy would continue to grow, while allowing the Buyer to bolster its business. |
The founder (and sole owner) of a $25 million experiential marketing company approached Kinsella Group with two goals in mind: Generate personal liquidity and increase expansion opportunities for his company. After 15 years of growth, the company was a recognized industry leader but was increasingly competing against large, international, agency networks. In order to continue to grow, the founder realized he needed to partner with a large, well capitalized company seeking to add world class creative abilities.
After meeting with private equity firms and strategic buyers, Kinsella Group ultimately structured a sale transaction with a multi-billion dollar industry player. The industry player provided the capitalization muscle that the founder’s company lacked, and the founder’s company provided the leading-edge creative spark that the industry player lacked. The transaction included a substantial upfront payment with an extremely lucrative earn-out period, a structure that clearly aligned the goals of both buyer and seller. |
Kinsella Group’s long history of bringing value to middle-market transaction and its operational experience in the packaging industry were key elements in the recent, successful sale of a large, Midwest-based electronic media-packaging distributor. Offering one of the broadest ranges of media-packaging products in the country — including DVDs, CDs, videocassettes, and legacy 8-Track and reel-to-reel formats — the company was also in possession of an excellent customer data base, a highly experienced call center and a unique niche product line.
Kinsella Group advised the client that a targeted approach to the pursuit of potential buyers would offer distinct advantages over a broad-based auction approach that might not meet specific financial objectives. Other risks with the auction method included the potential loss of both customers and key employees. Kinsella Group also recommended targeting buyers — in particular, foreign buyers seeking a foothold in the U.S. market — with the potential to leverage the company’s diverse customer base by cross-selling complementary products and who could rationalize the continued use of its existing physical assets. |
When the parent company of a struggling manufacturing division wanted to sell the business, it turned to Kinsella Group for assistance. The division, a long-established manufacturer of metal-formed products for the food-processing industry, lacked audited financial statements, had an uneven earnings history, and used outdated machinery and equipment in its manufacturing processes. Further, the owned industrial real estate was located in a weak market.
Kinsella Group conducted a rapid, accurate analysis of the situation and the company, quickly identifying a strategy for selling the division at the highest possible value for the client. Using its knowledge of potential threats from Asia to the industry’s profit base, Kinsella Group identified buyers most likely to gain from capturing a competitor’s sales revenue, prepared a compelling sales document, and conducted relentless negotiations that ultimately resulted in an extraordinarily favorable outcome. Based on their satisfaction with Kinsella Group’s services and the sales price obtained, the client subsequently retained Kinsella Group for an acquisition initiative that resulted in multiple successful transactions. |
| When a manufacturer of plastic molded products received an offer to sell, it engaged Kinsella Group to provide advice on the transaction. Kinsella Group’s analysis demonstrated that the offer was substantially below the company’s true value, and recommended the client turn down the offer. Kinsella Group subsequently developed and executed a plan to enhance the value of the business and prepared documentation to support an expanded sales effort. A new buyer was identified, and the sale closed for six times the original offer. |
| When a client approached Kinsella Group about the potential sale of its printing, retail furniture and office supply operations, a thorough analysis of the situation enabled the identification and execution of a solution that would maximize the seller’s benefit. The client’s operations were segmented and sold in two transactions that, separately, yielded the seller substantially more than the whole had been estimated to bring in a single sale. |
| When a business-to-business wholesaler engaged Kinsella Group to sell off its catalog division, Kinsella Group identified a buyer, prepared the supporting documentation, and aggressively negotiated a successful transaction. The intangible assets and customer lists were sold for 1.5 times annual sales, representing a substantial premium over market. |
| A long-established manufacturer of laminations for the wire and cable, aerospace and flexible-packaging industries was facing apparently insurmountable hurdles: Revenues had declined from $45 million to $22 million, losses were mounting, senior debt covenants had been violated, subordinated debt was in default and payments to unsecured creditors were substantially past due. Furthermore, on the day that Kinsella Group was engaged by the company, the senior lender had announced that it would not enter into what would have been its eighth forbearance agreement and would begin liquidation proceedings in 60 days. Kinsella Group was able to quickly direct the closing of one of the client’s two plants and split operations to create two separate sale identities, one for each plant. After preparing offering documents and identifying over 70 prospective strategic buyers, Kinsella Group closed the sale of the operating plant for amounts sufficient to discharge the senior lender debt and all personal guarantees of the owners. The deal also enabled seven-figure payments to the owners, and gave Kinsella Group time to pursue ongoing negotiations for the sale of the remaining plant which was subsequently sold to the same buyer. |
| A large Midwestern mechanical contractor with three separate operating divisions was pressured by its lender to sell its one unprofitable division. The division had lost money for three full years and was generating losses going into the fourth year. After learning that the general manager of the division had made an offer to buy the business at a fire-sale price, Kinsella Group persuaded the owner to allow it to market the business through a disciplined effort that focused on key competitors for whom the division’s customers and unique personnel capabilities would have particular value. The effort resulted in a sale of the division at a price 3.5 times that offered by its general manager, with 75% of the purchase price paid at closing and the remaining 25% paid over 12 months under a note secured by the assets of the strong corporate acquirer. |
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| A $30-million mechanical contracting firm engaged Kinsella Group to help it determine a strategy to remain solvent and continue operating. With locations in three states, the business had $3.7 million in prior-year losses, no net worth, $340,000 in unpaid withholding taxes and its bank loan had also been called. Kinsella Group directed the closing of two locations, negotiated continued lending under an LOC with the secured lender, reduced term debt through asset liquidations, negotiated with lenders for long-term payouts and debt forgiveness as an alternative to bankruptcy, and negotiated with bonding companies. As a result of Kinsella Group's efforts, the client returned to profitability, refinanced its debt, paying out the former lender and the IRS in full, and remains in business today. |
| A New York-area specialty printer, with operations in the vicinity of the World Trade Center, suffered a loss of 30% of its annual revenue in the 12 months following the terrorist attacks of 9/11. Mounting losses and substantial debt, some of which was the result of well-intentioned post-9/11 lending programs, further crippled the company and nearly ended its existence altogether. Kinsella Group stabilized operations and conducted a focused sale of the business operations, which resulted in proceeds equal to 70% of annual revenues despite accumulated losses of millions of dollars. This successful sale was the result of a well-documented offering memorandum, fully supported sales projections, and targeting of “best fit” competitors for acquisition of the product line, rather than the company itself. Further, the senior lender’s obligations were discharged in full and the sellers have been successfully and profitably employed by the new owner under long-term employment contracts. |
| As a result of significant financial losses and its default on a number of loan covenants, a $15-million designer and fabricator of specialty equipment, grain silos and dust-collection equipment for the grain-handling industry had been transferred to the workout section of its bank. Given the company’s inadequate financial controls and partially implemented MRP software, which was masking significant inventory and production problems, the bank was pressing for liquidation. The company turned to Kinsella Group for assistance. After restaffing the controllership function, completing the implementation of the MRP software, and renegotiating the loan agreement with the bank, the client was returned to profitability. However, given continuing difficulties in the industries served by the client, Kinsella Group recommended that the client sell the business. Kinsella Group prepared an offering memorandum, identified strategic prospects and conducted a series of meetings with strategic buyers. Based on these efforts, and the company’s strengthened financial position, the client was able to sell assets of the business to satisfy bank debt and generate financial returns to the equity holder. |
| Faced with prior-year losses, twice the real estate required to operate its business, and declining sales threatening its ability to service its debt, a $15-million steel tube and wire fabricator turned to Kinsella Group for assistance. Kinsella Group developed and implemented a plan to liquidate some of the excess real estate assets, refocus the company’s business activity on its highest margin products, and negotiated with the bank for sufficient time to conduct the real estate sales and reduce its debt while continuing to fund ongoing operations. As a result of these successful efforts, the company refinanced its bank debt, returned to profitability and remains in business today. |
| Following the technology downturn of 2001, a New Jersey-based IT consulting and services firm found that its earlier successes were unsustainable as the market for its services changed dramatically. During the late 1990s and 2000 top line sales growth fueled accrual-based profits, however with an operational rather than financial focus, receivables ballooned and cash became tight. With the technology downturn of 2001, the cash situation quickly became dire. As contracts were cancelled and customer debt went into default, the already cash-strapped company faced a 75% decline in sales and more than $2 million in uncollectible receivables. By the fall of 2002, under pressure from its lender, the company had filed for Chapter 11 reorganization. Kinsella Group helped management identify and address the flaws in the company’s business model, find opportunities to generate cash and stabilize operations through balance sheet management, and reassured senior lenders that the company was moving toward improved profitability and sustainable growth. In the summer of 2004, the client emerged from Chapter 11 as a profitable company with a new, more vigorous business model reflective of today's realities. |
| For a period of nine months, the entrepreneurial leader of a Florida-based regional commercial electrical contractor was inactive in the business, while recovering from injuries sustained in a vehicle accident. During this time, interim management failed to operate the business effectively, entering into major, unprofitable contracts outside of the company’s core competencies and exercising poor financial controls. By the time the head of the company had recovered, the business was in distress and the senior lender was pushing for liquidation. Kinsella Group helped management develop and execute a plan to bring ongoing unprofitable projects to break-even status while reestablishing financial controls, including replacing the controller and intense balance sheet management. Intelligent timing of payments to vendors with payments from customers improved cash flow which, coupled with operational improvements, convinced the lender to provide additional funding. The company, refocused on its core competencies, returned to growth and profitability. |
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