Colonnade Advises Streamline Recon on its Sale to SolutionWorks

February 6, 2023 SolutionWorks, a leading provider of automotive reconditioning services, announced the acquisition of Streamline Recon, LLC (“Streamline Recon” or the “Company”), a Texas-based automotive reconditioning company focused on the automotive dealership market. SolutionWorks will be partnering with Streamline’s management team, who will remain with the Company post-close and retain an ownership stake in SolutionWorks. Streamline Recon provides automotive reconditioning services primarily for the franchise dealership market, turning new and used inventory into retail-ready vehicles. Founded in 2000, the Company has been a trusted service provider in the Dallas Metroplex for … [Read more...]

Colonnade advises The Reynolds and Reynolds Company on its acquisition of American Guardian Warranty Services

January 26, 2023 The Reynolds and Reynolds Company announced today the acquisition of American Guardian Warranty Services (AGWS), a premier provider of vehicle service contracts, limited warranties, and other F&I products and services. The acquisition will provide a clear path for dealers looking to streamline selling aftermarket products no matter where the customer is – online, in-store, or a combination of the two. “Consumers are demonstrating that regardless of how they shop, they see growing value in F&I products. But they expect to be educated and they expect accurate pricing,” said Chris Walsh, president of Reynolds. “AGWS has proven to be the leader in aftermarket … [Read more...]

Colonnade Securities Advises OpenRoad Lending on its sale to Clarion Capital Partners

Fort Worth, TX, September 14, 2021— OpenRoad Lending and Clarion Capital Partners announced that Clarion has completed a strategic investment in OpenRoad, the fast-growing direct-to-consumer auto finance company. OpenRoad’s co-founders, Chris Goodman, Jeff Austin, and Joseph Everly, will continue their roles as CEO, CFO, and CTO, respectively. The terms of the transaction were not disclosed. Founded in 2009 by the same executives who pioneered RoadLoans, OpenRoad partners with banks, credit unions and institutional investors to enable consumers to refinance their existing auto loans, lower their interest rates and achieve significant monthly savings. In addition, OpenRoad offers value-add … [Read more...]

Industry Overview – Insurance Premium Finance

Insurance Premium Finance – What is it? The Insurance Premium Finance (“IPF”) industry facilitates the purchase of insurance policies for those who cannot afford to pay lump sum up-front premiums or those who wish to spread the cash flow burden out through the policy term. Premiums can be financed for commercial or consumer insurance policies, but it is more common for commercial. IPF firms help drive growth in the insurance markets and deliver peace of mind for borrowers by providing accessibility to those who may not otherwise have the coverage they need. How Does Insurance Premium Finance Work? IPF lenders provide the funds to the carrier in exchange for security in the … [Read more...]

Jeff Guylay interviewed on the Monitor Daily Podcast

Three Key Questions for Equipment Leasing Firms Considering an M&A TransactionI was honored to appear with Rita Garwood on the Monitor Daily podcast this month. This article is based on that interview, and you can listen to our discussion by clicking the link posted at the bottom of this article.Our discussion focused on how smaller independent equipment finance companies can take successful steps to benefit from today’s highly favorable Mergers & Acquisitions (M&A) market.  As the leader of Colonnade Advisors’ specialty finance practice, I love assisting independent owners who are considering selling all or a portion of their business.  In this interview, I … [Read more...]

Pick Your Partner – The Exclusivity Phase

Exclusivity/documentation is the final phase of the sales process. This phase occurs when a seller goes exclusive with a single buyer. We generally have received several bids and determined the winner of an auction. Both parties sign a letter of intent ("LOI") at this phase, and the seller agrees not to provide information or engage with any other potential buyers. The seller is essentially going off the market, which can be a bit scary because, if the deal does not move forward with the exclusive buyer, we will have to go back to the other bidders. We keep the other bidders warm and engaged in a limited fashion to ensure that we have backups. TASKS COMPLETED DURING THIS PHASE We work … [Read more...]

Valuation: What is your company worth?

Valuation is the process of determining what your company is worth. In the M&A process, it is often performed ahead of going to market. VALUATION METHODOLOGIES There are three primary valuation methodologies: 1) comparable transaction multiples, 2) comparable trading multiples, 3) and discounted cash flow analysis. There are also other types of valuation methods that are not as relevant to middle-market M&A; therefore, this blog will focus on the three main ones. Comparable Transaction Multiples Comparable transaction valuations refer to what the market has offered for companies comparable to the company being evaluated. For example, if a company sold at eight times … [Read more...]

Colonnade advises Peoples Bank on its acquisition of North Star Leasing

March 31, 2021 Peoples Bank acquired the assets of North Star Leasing of Burlington, VT from Copley Equity Partners and management. Founded in 1979, North Star Leasing provides specialized lease solutions for vendors and commercial customers across multiple industries, including automotive, plumbing, healthcare, pet supply and foodservice. North Star Leasing works with more than 10,000 equipment vendors, manufacturers and resellers to help customers finance and access equipment. With a portfolio ranked 119th by Monitor, North Star Leasing has grown its originations 18% annually from 2014 to 2020. North Star Leasing has 42 employees. “We are excited about North Star Leasing … [Read more...]

Value Drivers in Middle Market M&A Transactions

The value of a company is determined by more than just the financial numbers. Two companies in the same industry can have the same EBITDA (Earnings Before Interest Taxes Depreciation and Amortization), but one is worth 8x while the other is worth only 6x. There are numerous factors that drive value, the most common are as follows. Serving a large, addressable market drives value because it offers significant growth potential in terms of growing market share. An addressable market is one that is fragmented, meaning no one company is large enough to move the market in a particular direction. Consolidated markets offer far less avenues of growth as the biggest players often dominate the … [Read more...]

Gina Cocking interviewed on the ConsumerFi Podcast

Gina joined the ConsumerFi Podcast for a discussion on preparing business for sale, touching on subjects like how diversification can be a double-edged sword, the macro effects of the current day trading trend, and how to avoid accidental compliance that can lead to huge headaches down the road.  Listen to the Podcast here. Gina and Joel reference the Middle Market Mergers & Acquisitions Podcast which offers actionable advice and strategies for selling your company and is aimed at owners of Middle Market companies in the financial services and business services sectors. Read the interview transcript: Joel Kennedy: You're listening to the ConsumerFi Podcast … [Read more...]

Rollover Equity: A Second Bite at the Apple

Rollover equity is a form of contingent consideration in which the sellers reinvest a portion of their proceeds into equity and ownership of the new or acquiring company. The main purpose of rollover equity is to align interests.  The primary advantage of rollover equity for the selling party is it gives the owner(s) a second bite at the apple, meaning they get to participate in the equity appreciation of the combined entity. Rollover equity can usually be structured on a tax-deferred basis. From the buyer’s perspective, it ensures management is motivated and incentivized to hit their projections, and it reduces the amount of upfront cash the buyer has to fund to close the deal. In … [Read more...]

Reps & Warranty Insurance

Reps & warranty insurance insures the buyer from a breach of reps & warranties in the purchase agreement.  A purchase agreement's representations can include data security, outstanding taxes, and accounting policies, which insurance would not otherwise cover.  If there’s a breach, the buyer (or seller) would tap the insurance policy instead of an escrow or other mechanism. Without reps & warranty insurance, a portion of the seller's closing proceeds would generally  be held in an escrow to protect against potential breaches.  The escrow is typically 10% of the purchase price and stays in place for 12 to 24 months.  Reps & warranty insurance can … [Read more...]

Colonnade advises CalTex on its sale to Cornell Capital and Spectrum Automotive

NEW YORK, Dec. 16, 2020 /PRNewswire/ -- Spectrum Automotive Holdings Corp. ("Spectrum"), a leading agent, marketer and administrator of finance and insurance ("F&I") products for the U.S. automotive market, today announced the acquisition of CalTex Protective Coatings ("CalTex" or the "Company"), the largest manufacturer and provider of automotive appearance protection products in the U.S. Terms of the transaction were not disclosed. Since its founding in 1983, CalTex has become a leading administrator of automotive F&I products with one of the most extensive distribution networks in the industry, selling through nearly 4,000 franchise dealerships nationwide. A trusted … [Read more...]

Milestone Marketing Solutions was acquired by Spectrum Automotive, a portfolio company of Cornell Capital

October 2020 – Spectrum Automotive, a portfolio company of Cornell Capital, announced the acquisition of Milestone Marketing Solutions, a lead generation (“lead gen”) data analytics company. Milestone improves organizational marketing effectiveness through value-add analytics and consulting. Colonnade Securities LLC acted as exclusive financial advisor to Milestone Marketing Solutions. … [Read more...]

DIY Banking vs. Hiring an Investment Banker

News of a sale of a company can spread like wildfire. Bring in the experts to manage the process, and don’t try this at home. When news first spreads about the sale of a middle market company, it is common for the seller to receive direct inquiries from interested parties. At this point, it can be tempting to ditch the sale formalities and banker fees.  Individuals unfamiliar with investment banking may not see the value of hiring bankers to sell their company. Ultimately, when it comes to finding the broadest universe of buyers, creating a competitive process, and structuring a deal, the benefits of hiring an investment banker outweigh the costs by millions. Striking a great deal … [Read more...]

Potential Doubling of the Capital Gains Tax Rate Drives Strategic Discussions Among Business Owners

Whatever your political affiliation, U.S. business owners are assessing the likelihood, timing, and impact of tax proposals from Vice President Biden and the Democrats if they win the White House and control Congress. This blog post focus on potential changes to investment taxes and, in particular, the possibility of long term capital gains rates doubling to nearly 40% from current levels of 20%. Including the 3.8% net investment tax already in place, capital gains could be taxed at a higher rate than ordinary income in the new administration. PROPOSED CHANGES: Significant changes are expected to corporate tax rates, personal income tax rates, investment taxes, international taxes, IRS … [Read more...]

M&A Due Diligence: Technology Diligence (Part IV of IV)

Even if your company is not a technology company, technology-related aspects are important to investors during the process of capital raising or when getting ready to sell your business. Why are these technology-related aspects important? The elements of technology that support your business on a day-to-day basis can both limit and accelerate your company’s revenue and profits, which drive valuation. When investors and our team at Colonnade Advisors come in for due diligence, we look at all of the aspects of the technology that support your business operations: Hardware, including networking and servers Software, especially understanding what is off-the-shelf vs. home-grown … [Read more...]

Overview of Minority Recapitalization

An attractive transaction option for business owners who want to continue to maintain control of a growing business There are two types of recapitalization options for business owners—majority and minority. This article will focus on minority recapitalization. What is Minority Recapitalization? In a minority recapitalization, the investor provides debt and equity capital in exchange for 20-49% of the company. A transaction is typically structured with preferred equity that guarantees a return for the investor via a liquidation and dividend preference over common equity. The return can be a combination of cash coupon and deferred interest. The principal will be repaid after the senior debt … [Read more...]

Colonnade advises Triumph Bancorp on its sale of Triumph Premium Finance

July 2020 Triumph Bancorp completed its previously announced sale of the operations and assets of Triumph Premium Finance (“TPF”) to Peoples Bank. Based in Kansas City, Missouri, TPF provides premium finance services for customers to purchase property and casualty insurance products through its growing network of independent insurance agency customers nationwide. As of December 31, 2019, TPF had total receivables of approximately $100 million. John Binaggio will continue to manage the insurance premium financing operations for Peoples Bank, now rebranded Peoples Premium Finance. Triumph Bancorp, Triumph Insurance Group, and Peoples Bank maintain an ongoing relationship for premium finance … [Read more...]

Earn Outs in M&A Transactions

Earn outs are a form of contingent consideration often used in deals, particularly middle market transactions. The buyer pays additional consideration if specific performance targets are achieved or events occur. Earn outs are used: to bridge valuation gaps (which widened in the recent sellers’ market), to motivate management in the short to medium term, to hedge risk in high-growth, competitive sectors such as software or tech-driven services, and to align interests in businesses that are reliant on the seller’s management to remain involved to execute on growth plans. How often are earn outs used? Over the past few years, earn outs have been used at varying rates. In 2019, 22% … [Read more...]

Middle-market M&A continues in a downturn

Yes, we are clearly in a recession. 21.4 million jobs have been lost. Consumer spending is down 7.5% as of April 1. $669 billion in PPP and $600 billion in Main Street loans are being extended by the government. What does this mean for middle market M&A? The first weeks of the coronavirus crisis paused deal-making. Financial buyers had to redirect their focus and energy to the health of their portfolio companies at the expense of new deal activity. Strategic buyers were conserving cash and shoring up operations. Deals in progress were re-evaluated, and some were put on hold. But now, like the spring flowers of Mother’s Day, deal activity is beginning to perk-up. Should we look back to … [Read more...]

Gina Cocking interviewed on Build a Better Agency Podcast

Most agency owners hope to sell their agency someday down the road. If that’s you, understanding how agencies are valuated today will help you maximize that opportunity whenever it comes. Even if you aren’t interested in selling, you can and should still be beefing up your agency’s value. Gina Cocking joins us for this episode to provide an investment banker’s perspective on the valuation and sales process. She’ll walk us through the key items investment firms look for in your agency’s valuation and explain the technical numbers-side. She’ll also help us identify ways you can add value in advance.   Listen to the podcast here … [Read more...]

Gina Cocking has been appointed to the Board of Directors for CIB Marine Bancshares, Inc.

BROOKFIELD, Wis., Nov. 19, 2019 (GLOBE NEWSWIRE) -- Bank holding company CIB Marine Bancshares, Inc. (OTCQB: CIBH) announced today that Mses. Gina Cocking and JoAnn Cotter have been appointed to its Board of Directors, effective November 21, 2019. Ms. Cocking is based in the Company’s Chicagoland market and currently serves as Managing Director and Chief Executive Officer of Colonnade Advisors, LLC, an independent investment bank focused on the financial services and business services sectors.  Ms. Cocking will stand for election at the annual meeting of shareholders to be held in 2020. Ms. Cotter is based in the Company’s Wisconsin market and is a retired partner of Wipfli LLP where … [Read more...]

Gina Cocking of Colonnade Advisors named to 2020 Most Influential Women in Mid-Market M&A

Mergers & Acquisitions has named the 2020 Most Influential Women in Mid-Market M&A.  This marks the fifth year we have produced the list. It’s been gratifying to watch the project evolve over the years – and become more influential itself. This year, we received more nominations than ever before. As a result, we expanded the number honored to 42 in 2020, up from 36 in 2019. Some of the names are familiar to our readers and have appeared previously. Pam Hendrickson, the chief operating officer of the Riverside Co., for example, continues to expand her sphere of influence. In addition to playing a pivotal role at a leading private equity firm, Hendrickson … [Read more...]

Colonnade Securities Advises on Smart AutoCare sale to Tiptree

Founder and CEO Peter Masi will continue to run business NEW YORK & RICHARDSON, Texas--(BUSINESS WIRE)--December 17, 2019--Tiptree Inc. (NASDAQ: TIPT) and Peter Masi today announced that Tiptree Insurance has agreed to acquire Smart AutoCare, a rapidly growing vehicle warranty solutions provider led by its founder and CEO, Peter Masi, in an all cash transaction that will also include incentive-based earn outs over time. The transaction is subject to customary closing conditions including regulatory approval and is expected to close early in the first quarter of 2020. Peter Masi will remain CEO of the business. The acquisition is expected to expand Tiptree’s warranty distribution … [Read more...]

Colonnade advises Technology Finance Corp on its sale to Kingsbridge Holdings

LAKE FOREST, Ill. and SCOTTSDALE, Ariz., Oct. 29, 2019 /PRNewswire/ -- Kingsbridge Holdings LLC, ("Kingsbridge") announced today the acquisition of Technology Finance Corporation ("TFC"). Terms were not disclosed. Founded in 2004, TFC is a fast-growing technology leasing company that provides financing for information technology equipment and software to businesses throughout the United States. TFC funds over $125 million of IT infrastructure leasing/finance transactions annually, sourced through a network of vendor relationships, value-added resellers, software partners, and service providers. Through its application-only processing, and … [Read more...]

Colonnade publishes article with The Monitor

INDEPENDENTS: The Innovators of Today & Tomorrow BY CHRISTOPHER GILLOCK The size and market share of independent finance and leasing firms will fluctuate with the economic cycle, but the sector will always play an important role in the industry. Our industry’s $1 trillion size combined with the wide variety of equipment users’ requirements, creates multiple segments and a plethora of opportunities for creative entrepreneurs to disrupt and innovate.   As the financial crisis and recession of 2008-2009 faded and the economic recovery lengthened, commercial banks and other financial institution “rediscovered” the equipment finance and leasing sector. This led to a flurry of M&A … [Read more...]

Dealership M&A Activity Continues to be at Record High

Dealership consolidation has accelerated in 2019. In the first quarter of 2019, 54 dealership transactions were completed, representing a 38.5% increase over the first quarter of 2018. Domestic franchise dealership consolidation continues to increase while non-luxury foreign franchise, such as Hyundai, Kia, Mazda, Nissan and Volkswagen have declined. This heightened activity was primarily driven by private buyers, fueled by private equity, who acquired 95% of the franchises sold during this period. 1 Why does dealership consolidation matter to the auto F&I industry? Recall from Colonnade’s latest whitepaper on the VSC industry, the most significant challenge to administrators and … [Read more...]

Gina Cocking featured in Agent Entrepreneur

Is It Time to Sell Your F&I Agency? M&A is top of mind for many in the industry, as F&I agencies are being acquired at a rapid pace. Over the past three years, at least 10 F&I agencies have been acquired by administrators, insurance agencies, and consolidators. These acquisitions are fueled by an influx of private equity capital and motivated by the need for acquirers to grow and lock in distribution channels. The rapid pace of agency consolidation is not expected to abate for the foreseeable future. The F&I industry is stronger than ever. In 2018, franchise vehicle sales, excluding certified pre-owned, were 29.8 million vehicles, a 14% increase over 2015, and we expect … [Read more...]

Colonnade advises HIMSS Analytics on the sale of its data services business to Definitive Healthcare

FRAMINGHAM, MA – January 16, 2019 – DEFINITIVE HEALTHCARE, the leading provider of data, intelligence, and analytics on the healthcare provider market, announced today that it has acquired the data services business and assets of HIMSS ANALYTICS, which includes the LOGIC, PREDICT, ANALYZE and CUSTOM RESEARCH products. Today’s acquisition builds on the Company’s articulated growth strategy to deliver the most reliable and consistent view of healthcare data and analytics available in the market. “HIMSS Analytics has developed an extraordinarily powerful dataset including technology install data and purchasing contracts among other leading … [Read more...]

Colonnade Advises Chicago Deferred Exchange Company, a portfolio company of Prairie Capital, on its sale to Wintrust

ROSEMONT, Illinois, and CHICAGO, Illinois – December 14th, 2018 -- Wintrust Financial Corporation (Wintrust) (Nasdaq: WTFC) announced today the acquisition of Elektra Holding Company, LLC (Elektra), the parent company of Chicago Deferred Exchange Company, LLC (CDEC).   CDEC is a premier provider of Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.  Under IRC Section 1031, a taxpayer may defer the gain on the sale of certain investment property if the taxpayer utilizes the services of a Qualified Intermediary. CDEC has successfully facilitated … [Read more...]

Colonnade Advises the Management of National Partners on its Sale to WebBank

National Partners PFco, a Premium Finance Company, to be Acquired by WebBank  Alignment to allow expansion of services to independent insurance agents and their clients DENVER, Colorado, and SALT LAKE CITY, Utah —December 4th, 2018— MLF Financial Group and WebBank announced they have entered into a definitive agreement whereby National Partners, a national premium finance company and subsidiary of MLF Financial Group, will be acquired by WebBank. The transaction is expected to close in early 2019, subject to regulatory approval. National Partners was founded in 2016 by a highly experienced and successful management team. It remains focused on providing commercial premium finance … [Read more...]

Colonnade Advises Protect My Car on its Acquisition by Crestview Partners

NEW YORK and CLEARWATER, Fla., Sept. 6, 2018 /PRNewswire/ -- Protect My Car ("PMC" or the "Company") today announced that funds managed by Crestview Partners ("Crestview"), together with members of PMC's management team, have completed the acquisition of the Company from a private investor group. Financial terms of the transaction were not disclosed. Craig Rubino, who founded PMC in 2007 and has been CEO since, will continue to lead PMC as CEO and serve as a member of the Company's Board of Directors. Headquartered in Clearwater, FL, PMC is one of the nation's leading providers of extended warranty products for vehicles, including vehicle service … [Read more...]

Colonnade Advises Stonemark on its Sale to H.W. Kaufman Group

April 2018 FARMINGTON HILLS, MI; FRISCO, TX - H.W. Kaufman Group Inc. is acquiring Frisco-based premium financing company Stonemark Inc. Terms of the deal were not disclosed. Farmington Hills, Michigan-based Kaufman will merge its Royal Premium subsidiary with Stonemark to form a new organization under the Stonemark brand, according to a company statement. Kaufman owns several excess and surplus lines-related firms, including Burns & Wilcox. “Stonemark’s leadership in premium financing – with more than $125 million in annual loan volume in 2017 – combined with Royal Premium, will create an even more powerful and dynamic firm to serve retail insurance brokers and agents across … [Read more...]

Colonnade Advises APC Integrated Services Group on its Partnership with Southfield Capital Partners

February 2018 GREENWICH, CT; CHESTERFIELD, MO - Southfield Capital announced an investment in APC Integrated Services Group (“APC” or the “Company”), the pioneer in consumer marketing of vehicle service contracts (“VSCs”) on behalf of automotive dealers, manufacturers and other partner channels. APC’s talented senior management team including Kyle McEvoy, Ken Murer, David Diem and Todd Johansen will be continuing in their current roles. Founded in 2000 by Ken Murer, a 22 year veteran and pioneer of the VSC after-sale market industry, APC is headquartered in Chesterfield, MO. The Company creates revenue generating programs using advanced database marketing to sell automotive VSCs and … [Read more...]

Colonnade Advises North Star Leasing on its Sale to Copley Equity Partners

BOSTON, MA; BURLINGTON, VT – Copley Equity Partners, a private investment firm based in Boston, today announced that it has completed a majority investment in North Star Leasing, a provider of equipment financing solutions for businesses in a variety of industries. Mr. Daniel Feeney, North Star Leasing’s CEO and President, will continue to lead the Company. Financial terms of the transaction were not disclosed. Founded in 1979 and headquartered in Burlington, VT, North Star Leasing provides specialized lease solutions for customers across numerous industries including Automotive, Healthcare, Pet-Supply, and Restaurant. North Star works with thousands of equipment vendors, manufacturers, and … [Read more...]

Colonnade Advises SunTrust on the Sale of Premium Assignment Corp (PAC) to IPFS Corporation

ATLANTA, Dec. 4, 2017 /PRNewswire/ -- SunTrust Banks, Inc. (NYSE: STI) today announced it has finalized the sale of the company's commercial lines insurance premium finance subsidiary, Premium Assignment Corporation (PAC), to IPFS Corporation. The sale was initially announced in September. "We congratulate IPFS on the purchase of PAC, and wish our departing teammates well in their work with IPFS. This sale allows SunTrust to continue to focus on our core Wholesale banking businesses, while generating value for our shareholders," said Hugh S. (Beau) Cummins, III, Wholesale Segment executive at SunTrust. Based in Tallahassee, Florida, PAC has $1.3 … [Read more...]

Colonnade Advises Mepco Finance on its Sale to Seabury Asset Management

May, 2017 Independent Bank Corporation (Nasdaq: IBCP) completed the sale of its payment plan processing business, Mepco Finance Corporation, to Seabury Asset Management LLC (“Seabury”). Pursuant to the terms of the agreement announced in December 2016, the divestiture included the sale of the payment plan processing business, payment plan receivables, and certain other assets to Seabury, which also assumed certain liabilities of Mepco. Colonnade Securities served as exclusive financial advisor to Mepco Finance Corporation and Independent Bank Corporation on this transaction. … [Read more...]

Colonnade Advises US Premium Finance on its Joint Venture with Ameris Bancorp

MOULTRIE, Ga., Dec. 19, 2016 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") announced that its wholly owned banking subsidiary, Ameris Bank, has entered into a joint venture with US Premium Finance ("USPF") under which Ameris Bank will be the exclusive provider of credit on USPF's nationwide platform. USPF, the nation's sixth largest provider of credit on property and casualty premiums, currently has approximately 1,000 insurance agency customers in 50 states and approximately $400 million in outstanding loans originated and serviced. Commenting on the opportunity with USPF, Edwin W. Hortman, Jr., the Company's President and Chief Executive Officer, said, "We are … [Read more...]

Colonnade Advises Automotive Development Group, a Leading F&I Agency, on its Sale to APCO Holdings, LLC

February 2016 APCO Holdings, LLC (APCO), a leading marketer and administrator of aftermarket benefits sold by franchised and independent auto dealers throughout the U.S., today announced that it has acquired 100% of Automotive Development Group, LLC (ADG) from The Zabel Companies, LLC (Zabel). Following the transaction, ADG's senior management will remain shareholders and the company will continue to be operated as a separate business operation with the current management team remaining in place. Colonnade Securities served as the exclusive financial advisor to ADG and Zabel on this transaction. "ADG has been an intricate and an important part of APCO and our EasyCare brand's success since … [Read more...]

Colonnade advises Town and Country on its acquisition of Premier Bank of Jacksonville

October 2015 Town and Country Financial Corporation ("TCFC") (OTC Pink:TWCF), the holding company for Town and Country Bank, has announced the acquisition of West Plains Investors, Inc., the holding company for Premier Bank of Jacksonville ("Premier"). The transaction has been unanimously approved by both companies’ boards of directors, and completion is subject to customary closing conditions, regulatory approval, and approval by WPI shareholders. Under the terms of the agreement, the $515 million-asset TCFC will pay all cash for the acquisition. Other terms were not disclosed. The transaction is expected to close in the first quarter of 2016. Colonnade Securities acted as financial … [Read more...]

Colonnade Advisors advises Southfield Capital on its acquisition with management of Vanguard Dealer Services, a vehicle service contract administrator.

August 2015 Southfield Capital, a leading lower middle market private equity firm, has partnered with management, led by CEO Jim Polley, along with Ed Reitz and Mike Seergy, to invest in Vanguard Dealer Services (“Vanguard”). Vanguard is a premier agent and administrator of finance and insurance (“F&I”) products and services to franchised automobile dealers nationwide. Vanguard’s senior management will continue in their current operating roles and will maintain a shareholding in the company. Additional terms of the transaction were not disclosed. Headquartered in Fairfield, NJ, Vanguard offers a full suite of proprietary and third party auto extended warranty (vehicle service … [Read more...]

Colonnade advises Endurance, a leading vehicle service contract company, on its sale to TRP Capital Partners

June 2015 Endurance Dealer Services, LLC and Endurance Warranty Services, LLC (together "Endurance"), a leading direct-to-consumer marketer, administrator and payment plan provider for vehicle service contracts (VSCs), announced its sale to affiliates of TRP Capital Partners. Under the terms of the sale, TRP Capital Partners will take a controlling interest in Endurance, with the recapitalized company expected to pursue opportunities for continued growth. Paul Chernawsky and Jordan Batt, Endurance's executive leadership and founders, will retain a significant ownership stake in the company and will continue to operate the business going forward. Colonnade Securities served as the … [Read more...]

Colonnade advises AFS/IBEX on its announced sale to MetaBank

October 2014 Meta Financial Group, Inc. (NASDAQ: CASH) and its bank subsidiary, MetaBank, have signed an agreement with AFS/IBEX Financial Services, Inc. (“AFS”) to acquire substantially all of AFS’ loan portfolio and related assets and hire its team. The proposed purchase, which is subject to customary conditions, has been approved by the boards of directors of each company and is expected to close by the end of the calendar year. AFS provides short-term, collateralized financing to facilitate the purchase of insurance for commercial property, casualty and liability risk. Founded in 1986, AFS/IBEX is one of the top ten insurance premium finance companies in the U.S., originating loans … [Read more...]

Colonnade advises Omnisure on its sale to Fortress

October 2014 Omnisure Group, LLC, a leading provider of payment plans for retail vehicle service contracts (VSCs), announced its sale to affiliates of Fortress Investment Group LLC (NYSE:FIG). Under terms of the sale, Fortress will take a controlling interest in Omnisure, previously held by Lincoln Park Capital, LLC, a Chicago based institutional investor, and affiliates, with the recapitalized company expected to pursue opportunities for growth and business expansion. Ed and Paul Walder, Omnisure’s founding executives, will retain a significant ownership stake in the company and will continue to operate the business going forward. Colonnade Securities LLC advised Omnisure Group on this … [Read more...]

Colonnade advises Harbert Management on the sale of PACCO to AFS Acceptance

August 2013 AFS Acceptance has acquired the assets of Preferred Automobile Credit Co. (“PACCO”), a specialty finance company that acquires and services auto finance contracts primarily in the below-prime credit tier, from Harbert Private Equity Fund II, Northstar Mezzanine Partners IV and management.  Terms of the transaction were not disclosed. Colonnade Securities served as the exclusive financial advisor to Harbert, Northstar and management of PACCO on this transaction. About AFS Acceptance AFS Acceptance of Plantation, FL, is a full-service auto finance company that has served the subprime customer financing needs of franchise and independent car dealers since 1996. … [Read more...]

Colonnade advises Harbert Management on its sale of Preferred Warranties to KAR Auction Services Inc.

June 2013 KAR Auction Services Inc. (NYSE:KAR), has acquired Preferred Warranties, Inc. (“Preferred Warranties”), a vehicle service contract company, from Harbert Private Equity Fund II, LLC, Northstar Mezzanine Partners IV L.P. and management.  Terms of the transaction were not disclosed. Preferred Warranties markets vehicle service contracts through independent dealers of used vehicles in 2,200 locations in fifteen Mid-Atlantic, Midwestern and Southern states. KAR believes the acquisition of PWI will strengthen its offering to independent dealers, and that Preferred Warranties’ products will be enhanced as a result of being backed by KAR’s financial strength and … [Read more...]

Colonnade advises Thrivent on the conversion of its thrift to a credit union

December 2012 Thrivent Financial for Lutherans, a faith-based, not-for-profit membership organization with nearly 2.5 million members and more than $75 billion in assets under management, chartered a member-owned, member-governed federal credit union that accepted the transfer of all deposits and virtually all other assets and liabilities of Thrivent Financial Bank on December 1, 2012. Thrivent Financial Credit Union has approximately $500 million in assets, making it one of the largest faith-based credit unions in the United States. Thrivent Federal Credit Union is owned by its credit union members, not by Thrivent Financial for Lutherans.Anyone within the credit union’s “field of … [Read more...]

Colonnade Securities advises TD Bank, N.A. on the sale of TD Insurance, Inc. to USI Insurance Services

August 2012 USI Insurance Services ("USI") has entered into a share purchase agreement to acquire TD Insurance, Inc. ("TDI Inc."), a wholly-owned US subsidiary of TD Bank, N.A. TDI Inc. is one of the largest bank-owned insurance agencies and brokerage firms in the US offering a wide range of insurance and employee benefits products and services. This acquisition is expected to contribute $58.2 million in revenues to USI on an annual basis. The acquisition is expected to close by the end of September 2012 subject to, among other customary conditions, expiration or termination of the waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as … [Read more...]

Colonnade advises D.E. Shaw & Co. and investors on the sale of PayLink Payment Plans, LLC to an investment group led by Oxford Financial Group

January 2012  Oxford Financial Group, Ltd., announced that PayLink Mayfair, Inc. has completed the acquisition of PayLink Payment Plans, LLC ("PayLink"). PayLink Mayfair, Inc., a strategic investment entity created by Oxford on behalf of a private investor group and the management of PayLink, is a continuation of Oxford’s Mayfair Management Buyout strategy of investing directly in privately held companies with exceptional management teams. Headquartered in Chicago, PayLink is a specialty finance company with a demonstrated leadership position as a provider of short-term, collateralized receivables and payment processing to facilitate the purchase of Vehicle Service Contracts ("VSC"), … [Read more...]

Colonnade advises Clairvest on its investment in Linen King

October 2011 Clairvest Group Inc. (TSX:CVG) and its affiliates (“Clairvest”), a Toronto-based private equity management firm, have made a growth equity investment in Linen King LLC, an Oklahoma-based textile rental services company that provides commercial laundry services to the healthcare and hospitality industries. “Our team has followed the textile rental industry for a number of years. We are excited by the opportunity to partner with a strong and ambitious management team led by the founders of the Company who will continue to own a meaningful percent of the company. Linen King has an outstanding reputation for reliability and customer service and we look forward to working with … [Read more...]

Colonnade advises Koontz-Wagner on the sale of its subsidiary South Bend Controls to Curtiss-Wright Corporation

In October 2011, Koontz-Wagner sold its subsidiary, South Bend Controls, to Curtiss-Wright Corporation (NYSE:CW). South Bend Controls is a leading designer and manufacturer of highly engineered flow control components for mission-critical applications in the aerospace, space, medical and industrial markets. Koontz-Wagner is a portfolio company of High Street Capital and Aldine Capital Partners. Curtiss-Wright is a diversified global provider of highly engineered products and services in the areas of motion control, flow control, and metal treatment. Terms of the transaction were not disclosed. Colonnade Securities LLC advised Koontz-Wagner and South Bend Controls on the transaction. … [Read more...]

Colonnade advises First Niagara on its sale of Premium Payment Plan to Flatiron Capital, a division of Wells Fargo

  In June 2010, First Niagara Financial Group (Nasdaq: FNFG) agreed to divest its insurance premium finance business, Premium Payment Plan (“PPP”), through an exclusive referral and revenue sharing arrangement with Flatiron Capital, a division of Wells Fargo Bank, N.A. Terms of the transaction were not disclosed. Flatiron Capital is one of the largest premium finance companies in the United States. Colonnade Securities LLC advised First Niagara and PPP on the transaction. … [Read more...]

Colonnade advises First Bank on its sale of Universal Premium Acceptance Corporation to Premium Financing Specialists

In December 2009, First Bank of Clayton, Missouri completed the sale of its insurance premium finance subsidiary, Universal Premium Acceptance Corporation (“UPAC”), to Premium Financing Specialists, Inc. (“PFS”) of Kansas City, Missouri. Terms of the transaction were not disclosed. Founded in 1954, UPAC is one of the ten largest insurance premium finance companies in the United States. PFS is the largest independent premium finance provider in the nation. Colonnade Securities LLC served as exclusive financial advisor to First Bank and UPAC. … [Read more...]

Colonnade advises Webster Financial on its sale of Budget Installment Corporation to Texas Capital Bancshares, Inc.

In November 2009, Webster Financial Corporation (NYSE: WBS) of Waterbury, Connecticut completed the sale of its insurance premium finance subsidiary, Budget Installment Corporation, to Texas Capital Bancshares, Inc. (NASDAQ: TCBI) of Dallas, Texas. Terms of the transaction were not disclosed. Texas Capital Bancshares owns BankDirect Capital Finance, a leading insurance premium finance company in the U.S. Colonnade Securities LLC served as exclusive financial advisor to Webster Financial and Budget on the transaction. … [Read more...]

Colonnade Advises Aon on its Sale of Cananwill’s European Businesses to Macquarie Group

In July 2009, Aon Corporation (NYSE: AOC) of Chicago, Illinois completed the sale of the British and Irish businesses of its insurance premium finance subsidiary Cananwill, Inc. to Macquarie Group (ASX: MQG) of Sydney, Australia. Terms of the transaction were not disclosed. Colonnade Securities LLC served as exclusive financial advisor to Aon Corporation and Cananwill on the transaction. Macquarie Group is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie operates in more than 70 office locations in 26 countries and employs approximately 12,700 people. More information about the company is available … [Read more...]

Colonnade Advises Aon on its Sale of Cananwill’s Canadian Business to Macquarie Group

In July 2009, Aon Corporation (NYSE: AOC) of Chicago, Illinois completed the sale of the Canadian business of its insurance premium finance subsidiary Cananwill, Inc. to Macquarie Group (ASX: MQG) of Sydney, Australia. Terms of the transaction were not disclosed. Colonnade Securities LLC served as exclusive financial advisor to Aon Corporation and Cananwill on the transaction. Macquarie Group is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie operates in more than 70 office locations in 26 countries and employs approximately 12,700 people. More information about the company is available at www.macquarie.com. … [Read more...]

Colonnade Advises Aon on its Sale of Cananwill–Australia to Allianz Group

In July 2009, Aon Corporation (NYSE: AOC) of Chicago, Illinois completed the sale of the Australian business of its insurance premium finance subsidiary Cananwill, Inc. to Allianz Group (ETR: ALV) of Munich, Germany. Terms of the transaction were not disclosed. Allianz owns Hunter Premium Funding Ltd., which is a leading premium finance company in Australia. Colonnade Securities LLC served as exclusive financial advisor to Aon Corporation and Cananwill on the transaction. The Allianz Group is one of the leading integrated financial services providers worldwide. With nearly 155,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 … [Read more...]

Colonnade advises Aon on its sale of Cananwill (US) to BB&T

January 2009 PITTSBURGH, PRNewswire-FirstCall/ -- AFCO Credit Corporation today said it plans to buy the domestic operations and assets of the premium finance business of Cananwill from Aon Corporation. Glenview, Ill.-based Cananwill provides insurance premium financing for commercial property and casualty policies. It was founded in 1937. AFCO is the primary insurance premium finance subsidiary of Branch Banking and Trust Company, the principal subsidiary of Winston-Salem, N.C.-based BB&T Corporation. Pending regulatory approval, the AFCO purchase is expected to be completed by the end of the first quarter. Terms were not disclosed. BB&T is the second largest provider of … [Read more...]

Colonnade advises The Hanover Insurance Group on its sale of AMGRO to Premium Financing Specialists

In June 2008, The Hanover Insurance Group, Inc. (NYSE:THG) of Worcester, Massachusetts sold its insurance premium finance subsidiary AMGRO, Inc. to Premium Financing Specialists, Inc. (PFS) of Kansas City, Missouri. Terms of the transaction were not disclosed. PFS is the second largest insurance premium finance company in the United States. AMGRO is the tenth largest premium finance company. Colonnade Securities LLC served as exclusive financial advisor to The Hanover Insurance Group and AMGRO on the transaction. … [Read more...]

Colonnade advises Toronto-Dominion on its sale of Flatiron to Wells Fargo

May 2008 SAN FRANCISCO, PRNewswire-FirstCall/ -- Wells Fargo & Company (NYSE: WFC) and Flatiron Credit Company announced that Wells Fargo Bank, N.A. has acquired the business of Flatiron and its operating subsidiaries. Flatiron was a subsidiary of TD Banknorth, N.A. and is one of the nation’s largest insurance premium finance companies. Terms of the transaction were not disclosed. Colonnade Securities LLC advised Flatiron and Toronto-Dominion (TSX, NYSE: TD). Founded in 1995 by its two principals, Robert Pinkerton and Bruce Lundy, Flatiron Credit Company, including its operating subsidiary Flatiron Capital Corp., is the seventh largest premium finance company in the United … [Read more...]

Colonnade Advises Sumitomo Corp. of America on its Sale of Broadway Premium Funding Corp. to Wintrust Financial

November 2007 LAKE FOREST, Ill., Nov. 1 /PRNewswire-FirstCall/ -- Wintrust Financial Corporation (“Wintrust”) (Nasdaq: WTFC) today announced the completion of its previously announced acquisition of 100% of the ownership interest of Broadway Premium Funding Corporation (“Broadway”) from Sumitomo Corporation of America. Since 1999, Broadway has been providing financing for commercial property and casualty insurance premiums, mainly through insurance agents and brokers in the northeastern portion of the United States and California. “This transaction is a great opportunity for both companies,” stated Edward J. Wehmer, President and CEO of Wintrust. “The transaction will help fulfill … [Read more...]

Colonnade Advises Gamber-Johnson on its Sale to Leggett & Platt

March 2007 Leggett & Platt Commercial Vehicle Products Group Acquires Gamber-Johnson CARTHAGE, MO - 03/06/07- Leggett & Platt (NYSE: LEG) has acquired Gamber-Johnson, LLC, a leading assembler of rugged docking stations and vehicle mounts. Gamber-Johnson will further diversify Leggett’s commercial vehicle products business. Colonnade Advisors LLC, a Chicago-based investment bank, served as exclusive financial advisor to Gamber-Johnson in the transaction. “We are delighted with this acquisition. We believe that Gamber-Johnson offers profitable, near and long-term growth prospects and is consistent with our strategy of growth through diversification within complementary markets,” … [Read more...]

Colonnade Advises GMAC on Sale of EFD to Prudential

February 2007 GMAC Commercial Finance Sells Equipment Finance Portfolio to Prudential Capital Group GMAC Commercial Finance LLC (GMAC CF), a wholly-owned subsidiary of GMAC Financial Services, announced today that it completed the cash sale of $607 million of its equipment finance portfolio to Prudential Capital Group, an investment business of Prudential Financial, Inc., (NYSE: PRU). Colonnade Advisors LLC of Chicago, IL served as exclusive financial advisor to GMAC CF in the transaction. GMAC CF determined after a strategic review in the second half of 2006 to focus on its core businesses. The sale of the equipment finance portfolio is a result of that strategic plan. GMAC CF remains … [Read more...]

Colonnade Advises PFS on its Completed Acquisition of Mepco’s Premium Finance Business from Independent Bank Corporation

January 2007 Independent Bank Corporation (Nasdaq: IBCP), a Michigan-based bank holding company (“IBC” or the “Company”), reported that its subsidiary, Mepco Insurance Premium Financing, Inc. (“Mepco”), has closed the transaction to sell substantially all of its assets related to the insurance premium finance business to Premium Financing Specialists, Inc. (“PFS”). Mepco will continue to own and operate its warranty payment plan business. Colonnade Advisors LLC initiated this transaction and served as exclusive advisor to PFS. Under the terms of an amended definitive agreement, Mepco and its wholly-owned subsidiary, Mepco Acceptance Corp. (“MAC”), sold approximately $180 million of … [Read more...]

Colonnade Advises Dent-A-Med on its Sale to Harbert Private Equity Fund and Cambridge Place Investment Management

December 2006 Affiliates of Harbert Management Corporation and funds managed by Cambridge Place Investment Management LLP have acquired a majority equity interest in Dent-A-Med, Inc. Dent-A-Med, based in Springdale AR, offers private label credit card financing for consumer purchases of health care services and home health care products. Colonnade Advisors LLC represented Dent-A-Med in this transaction. Terms were not disclosed. Harbert Management Corporation is an investment management firm serving foundations and endowments, funds of funds, pension funds, financial institutions, insurance companies, family offices and high net worth individuals across multiple asset classes, including … [Read more...]

Colonnade advises the Management team of Residential Credit Solutions on the Launch of a New Mortgage Investment and Servicing Company

In December 2006, Residential Credit Solutions LLC, a newly formed residential mortgage investment and servicing company, received $125_million of private equity commitments from a group of investor led by Equifin Capital Partners of New York. Equifin and a management team led by mortgage industry executive Dennis Stowe formed Residential Credit Solutions LLC. Dennis Stowe, CEO of Residential Credit Solutions LLC, was formerly President and Chief Operating Officer of Saxon Capital Inc. Colonnade Advisors LLC served as exclusive financial advisor to the management team of Residential Credit Solutions. … [Read more...]

Colonnade Advises Capitol Payment Plan on its Sale to Premium Financing Specialists

November 2006 Premium Financing Specialists, Inc. (“PFS”) has completed its acquisition of assets from Capitol Payment Plan, Inc. (“Capitol”). Capitol is an insurance premium finance company headquartered in Albany, NY that extends short-term, collateralized financing to facilitate the purchase of insurance for personal and commercial property, casualty and liability risk. Capitol is a leader in financing non-standard automobile insurance policies in New York State through the state’s assigned risk plan. www.cappay.com Headquartered in Kansas City, MO, PFS has operated in the premium finance industry for 30 years and is the fourth largest company in the industry with $1 billion of … [Read more...]

Colonnade Advises UPAC on its Sale to First Banks

May 2006 First Banks, Inc. (“First Banks”) has completed the acquisition of Universal Premium Acceptance Corporation and its affiliates (“UPAC”). UPAC is an insurance premium finance company headquartered in Lenexa, KS, specializing in providing short-term collateralized financing to facilitate the purchase of insurance for commercial property, casualty and liability risk. UPAC is one of the top ten insurance premium finance companies in the United States. UPAC was founded in 1954 and operates in 49 states. At December 31, 2005, UPAC had assets of $146 million and stockholders’ equity of $17.3 million. www.upac.com At March 31, 2006, First Banks reported consolidated assets of $9.4 … [Read more...]

Colonnade advises Westburg Media Capital on its sale to Wells Fargo Foothill

In August 2004, Wells Fargo Foothill, a division of Wells Fargo & Company (NYSE: WFC), acquired the loan portfolio of Westburg Media Capital of Spokane, Washington. As part of the transaction, Wells Fargo hired most of Westburg’s employees. Terms of transaction were not disclosed. Westburg is a finance company that lends to media and publishing companies. Wells Fargo Foothill is a leading provider of senior secured financing from $10 million to $1 billion and more to companies in a wide range of industries. Colonnade Advisors LLC served as exclusive financial advisor to Westburg. … [Read more...]

Colonnade advises Hubbard One on its sale to The Thomson Corporation

In July 2004, FindLaw, a business unit of The Thomson Corporation (NYSE:TOC; TSX:TOC), completed the acquisition of Hubbard One LLC. Hubbard One is a leading provider of online marketing applications and services to large law firms. FindLaw is a leading provider of online legal information for the legal community, businesses and individuals. Terms of the transaction were not disclosed. The combination of Hubbard One and FindLaw creates the legal industry’s broadest, most comprehensive and first fully integrated suite of integrated business and marketing applications for law firms. Colonnade Advisors LLC served as financial advisor to Hubbard One. … [Read more...]

Colonnade advises Mepco Insurance Premium Finance on its sale to Independent Bank Corporation

In April 2003, Independent Bank Corporation (NASDAQ:IBCP), acquired Mepco Insurance Premium Financing, Inc. (“Mepco”) of Chicago, Illinois. Mepco’s senior management team will continue to lead and operate the business after the closing of the transaction. Mepco is a 40-year-old company that specializes in financing insurance premiums and automobile warranty contracts. At December 31, 2002 Mepco had total assets of approximately $96 million and total finance receivables of approximately $89 million. Independent Bank is a bank holding company that operates 97 offices in Michigan. Colonnade Advisors LLC served as exclusive financial advisor to Mepco. … [Read more...]

Colonnade advises Engineering Animation on its sale to Unigraphics Solutions

In October 2001, Unigraphics Solutions (NYSE:UGS) acquired Engineering Animation (NASDAQ:EAII) for $13.75 a share cash. The total purchase price is $205 million. The acquisition price is a 24.3% premium to EAI’s last closing price and a 33.3% premium to its average closing price for the past six months. The acquisition is valued at 2.7x trailing 12 month revenues. EAI is a leader in Internet-enabled visual process management, collaboration, analysis and communications solutions for extended manufacturing enterprises. Unigraphics Solutions is a leading provider of collaborative product development software and services. Colonnade Advisors and Goldman Sachs served as financial advisor to … [Read more...]