Architectural Signing Associates, Inc.

Location: St. Louis, Missouri

Industry: Manufacturing & Consulting- Architectural Signage & Way-Finding Systems

DVS Role: Sell-Side Advisory to Business Owner

 

The Buyer: ASI Signage Innovations (http://asisignage.com/) In business for over 50 years, ASI has developed digital signage solutions designed to enhance the human interface experience offering dynamic, timely and relevant wayfinding information in a highly visible and personal manner. This ongoing innovation has maintained ASI’s leadership position within the market place.

 

The Seller: Architectural Signing Associates was owned by Mr. Michael Gessel and Mrs. Janice Gessel. ASA is a long standing and respected provider of comprehensive interior, exterior and digital architectural signage solutions. Since inception, ASA has serviced healthcare, education, corporate, hospitality, retail and other markets.

The Close: The DVS Group was retained to run a process to sell the company. The process included outreach to both strategic and financial buyers for consideration. DVS identified several potential strategic buyers in the six contiguous states that surrounded Kansas and Missouri where ASA had operations. In a relatively short period of time, multiple interested buyers of both types were found. DVS managed conversations with the various different buyers and helped the Gessels to navigate the competing proposals. In the end, the process led to the best buyer: ASI Signage Innovations. The long standing relationship between the seller and buyer allowed the seller to remain involved in the company and be rewarded for producing future growth.

Monroe Physical Therapy & Sports Medicine

Location: Southern IL / St. Louis Metro East

Industry: Physical Therapy & Sports Medicine Clinics

DVS Role: Sell-Side Advisory to the Company

 

The Buyer: ATI Physical Therapy (www.atipt.com) has over 300 physical therapy clinics in ten states. ATI provides patient care based on its founding principle of aggressive rehabilitation through strength training and conditioning. This has led to their development of several new and superior treatment protocols and techniques.

 

The Seller: Monroe Physical Therapy (www.asapt.org) has six locations throughout the Southern Illinois / St. Louis Metro East area. Each facility blends physical therapy, fitness, and wellness into a single location by offering a range of physical therapy, athletic training, and fitness services. The staff of Monroe Physical Therapy places complete fitness at the core of treating injuries, accidents, and illnesses.

The Close: DVS was retained by the owner of Monroe Physical Therapy to run a process for the sale of his clinics. The market for multi-clinic physical therapy businesses was undergoing consolidation, and the seller wanted to take advantage of the opportunity to join a like-minded strategic partner. After interviews and negotiations between 2 other private-equity-owned clinics and 1 hospital system, management decided that ATI’s offer represented the best opportunity for success. DVS assisted with all negotiations, including a late structural change to the deal that resulted in a significant tax benefit, future employment terms for the seller, and keeping the transaction on a feasible timeline.

Strategicar

Location: Overland Park, KS

Industry: Computer Software & Services for HME Providers

DVS Role: Sell-Side Advisory to Business

 

The Buyer: Brightree LLC is the largest provider of cloud-based software for the post-acute care industry, serving 2,700 companies in the HME/DME, HME pharmacy, home infusion, home health, hospice, orthotics and prosthetics, and rehab home care segments.

 

The Seller: Strategic AR (www.strategicar.com) is a provider of patient billing and collection services for the home medical equipment industry. In both 2012 and 2013 Inc. magazine ranked Strategic AR as one of the nation’s fastest growing private companies.

The Close: Brightree approached Strategic AR about a transaction in summer 2013. brightree had been pursuing a number of transactions to enhance their offerings, and management informed the owner of Strategic AR that his company was their first choice to enhance their patient billing suite.
Strategic AR’s customer based contained a majority of clients that were using the brightree platform, and that number was growing over time in a continuous trend. If brightree were to acquire another patient billing resource, they would likely attempt to redirect all business to that provider. The owner of Strategic AR was concerned that if the deal were not to come together for some reason, a failed outcome could endanger the survival of his company.
The DVS Group was brought in to assist with the negotiations of price and terms for the transaction. DVS also recommended a local law firm that had both M&A and intellectual property experience to help with the documentation of the transaction. All parties worked together to obtain adequate cash at closing, participation in future performance that provided risk controls for both buyer and seller, and attractive employment terms for the seller during a transition period.

Bill’s Floor Machine Service

Location: Kansas City, MO

Industry: Floor Cleaning Equipment, Supplies and Services

DVS Role: Sell-Side Advisory to Business Owner

 

The Buyer: John & Kara Ryel

 

The Seller: Bill’s Floor Machine Service has been selling new and used floor cleaning machines, cleaning supplies and equipment services to the Kansas City area for over 30 years.

 

The Close: David and Marsha Phillips needed assistance selling their company to David’s daughter and son-in-law, Kara and John Ryel, who had been working in the business for over 5 years. As with most family transitions, the younger generation did not have the cash resources to purchase the business in a conventional structure. The Ryels were about to partner with an investor in a transaction where they would retain 50% of the equity and the investor would get the other 50%. Seeing this, the family’s financial advisor introduced the family to DVS in the hopes of preserving more equity for the buyers. DVS assisted the family in locating a bank that would finance the transaction without requiring investor capital, and worked diligently with all sides (including the bank) to structure and efficiently close the deal to everyone’s benefit. Despite major changes in tax code and bank requirements during the course of the deal, DVS successfully completed this generational business transfer with minimal financial adjustments for either buyer or seller. The Ryels retained 100% of the business equity, resulting in significant financial benefit and operational simplicity going forward.

Thalia House

Location: Fairway, Kansas

Industry: Health Care- Supportive Living Facility

DVS Role: Sell-Side Advisory to Business Owners
The Buyer: Mr. Todd Childers and Scott Madsen
The Seller: Thalia House is a residential treatment facility for women dealing with eating disorders. The company was founded by Ms. Brooke Wesley, LSCSW. and Ms. Amy Sullivan, MC,RD,LD. Thalia House was established to fill a void that the founders felt existed in the local treatment community.
The Close: The founders of Thalia House approached DVS about a sale with concerns that their other professional commitments were not allowing them to devote their full attention to the business as it grew rapidly. The DVS Group found buyers with strong business acumen and health care backgrounds that also had the resources to take the business to its next level of development. DVS structured the deal so that the sellers were able to continue with the business in the therapy and consulting roles they enjoyed. DVS negotiated the deal, sourced the financing and closed the transaction within four months of their engagement with the sellers.

CS: Carey Inc.

Location: Kansas City, MO

Industry: Construction- Land Clearing

DVS Role: Sell-Side Advisory to Company

 

The Buyer: Haakon Capital is a private equity group located in the Kansas City metro area. The fund invested in multiple industries.

 

The Seller: CS Carey performs large scale operations of land clearing and grinding, tree debris removal, right of way and utility line clearing, and sales of wholesale mulch.

 

The Close: The founder of CS Carey had grown the business into a highly integrated company but wished to restructure and refinance his company with the objective of limiting personal exposure and allowing him to focus on operations. DVS helped the seller recognize his personal preference of working with a newly established family fund over other traditional players in the private equity marketplace. DVS closed the transaction with great client satisfaction.

A.R.M.

Location: Kansas City, Missouri

Industry: Information Services-Pharmaceutical Industry

DVS Role: Sell-Side Advisory to Business Owner

 

The Buyer: PRO PHARMA GROUP is a consulting firm that specializes in Pharmacy Benefits and Organizational Strategy for Health Care Systems.

 

The Seller: Advanced Response Management (ARM) (www.askarm.com) provides Medical Information, Adverse Event, Product Complaint and related services to the pharmaceutical and biotechnology industry. The mission of ARM is to advance the concept of medical knowledge exchange by pioneering innovative tools and solutions.

 

The Close: ARM was a niche business with two founders that felt that they had grown their business beyond their comfort level. The founders wished to stay on for the long term but desired a sale in order to secure their retirement. DVS worked with the sellers for three years to time the sale perfectly and to help them identify the partner best suited to their needs. DVS presented the sellers with multiple buyers and assisted them in choosing the partner that offered them the most ideal timeline, purchase price, deal structure and capital gains solution. DVS also assisted the buyer in securing the financing for the transaction.