Introducing the Exit Ready Roundup: Insights For Transaction Curious Owners
2016 was a year of growth and success, both on and off the Axial network. As a company, we secured a $14M round of equity financing led by Edison Partners and welcomed four key new members to our leadership team.
As a network, growth was steady. More than 3,000 new members joined Axial, of which 25.6% are intermediaries, 11.7% are investors, 3.4% are lenders, and 59.4% are private companies.
2016 marked a record 650+ closed deals on Axial, surpassing $2B in deal volume. We also saw some of our highest levels of member engagement last year. In total, more than 8,000 new deals were brought to market on Axial. Members also made over 21,000 deal-related connections on the network over the course of the year.
Here are our picks for the Top Closed Deals on Axial in 2016:
1. WayPoint Capital Partners + DME Express – Healthcare, Growth Equity, December.
DME Express, a Southeast-based leading provider of durable medical equipment rental and services to the hospice industry, secured an undisclosed amount of growth equity financing from WayPoint Capital Partners, the direct investment affiliate of a single family office with several billion dollars in assets under management. Gar Wood Securities served as the exclusive financial advisor to DME Express on the transaction. Gar Wood Securities has been an Axial member since May 2016. [Read: WayPoint Capital Partners Provides Growth Financing to DME Express]
2. Valero Capital Partners + Beacon Equity Advisors – Manufacturing, Acquisition, June.
Valero Capital Partners acquired Vacuum Instrument Corporation, a leading provider of tracer gas and air leak detection products, systems, and service. Beacon Equity Advisors, an investment bank that specializes in advising business owners seeking to grow or divest, served as VIC’s advisor throughout this transaction. Valero Capital Partners received the deal teaser on the Axial network from fellow Axial member Beacon Equity Advisors in March 2016. [Read: Valero Capital Partners acquired Vacuum Instrument Corporation, advised by Beacon Equity Advisors]
3. Monroe Capital + AMC – Business Services, $27.5 million Financing, January.
Monroe Capital, recipient of the 2015 Lower Mid-Market Lender of the Year Award and a leading provider of senior and junior debt and equity co-investments, acted as sole lead arranger and administrative agent on a senior credit facility to American Mortgage Consultants to support the acquisition of JCIII & Associates. The combined firm, based in New York, NY, will operate as AMC, now the largest transactional due diligence firm in the residential mortgage space. The connection between Monroe Capital and AMC was a result of each firm’s Axial membership. Monroe Capital found and connected with AMC about the deal and executed an NDA using the tools on the platform. [Read: Monroe Capital Provides Financing to American Mortgage Consultants]
4. Gibraltar Business Capital + CPXi – Business Services, $6 million Financing, November.
Media tech company CPXi, headquartered in New York with offices globally, required some creative financing after pursuing the sale of one of its operating divisions. CPXi secured a $6 million ABL line from Gibraltar Business Capital, which allowed the digital solutions company to leverage existing assets while effectively competing in a demand-heavy marketplace. Headquartered in Chicago, Gibraltar Business Capital is a privately held middle-market lender providing small- to medium-sized business owners fresh and accessible capital alternatives to a commercial bank loan. Progress Partners represented CPXi in this transaction. Progress Partners and Gibraltar Business Capital have been Axial members since December 2011 and January 2016, respectively. [Read: CPXi Secures ABL Financing From Gibraltar Business Capital]
5. Sterling Commercial Credit + Local Marketing Solutions Group – Media & Advertising, Acquisition Financing, September.
Local Marketing Solutions Group acquired KMA One and secured financing for the deal from Sterling Commercial Credit. Auctus Group, a Chicago-based investment banking firm, acted as exclusive advisor to Local Marketing Solutions Group, Inc. (LMSG). This deal was sent directly from LMSG to Sterling Commercial Credit, member since January 2015, using Axial. [Read: Local Marketing Solutions Group Secures Acquisition Financing from Sterling Commercial Credit]
6. Young America Capital + HercuTech Inc. – Manufacturing, $5 Million Growth Capital, November.
Young America Capital helped secure $5 million in growth financing for HercuTech Inc, manufacturer of HercuWall, a proprietary panelized exterior wall system for single and multi-family homes and light commercial and industrial buildings. The financing was provided by WindSail Capital Group. Young America Capital and WindSail Capital Group met on Axial and connected about this deal using the tools on the platform. [Read: Young America Capital Secures Financing for HercuTech Inc.]
7. Tower Arch Capital + SPI + Palmares – IT Consulting Services, Add-On Acquisition, June.
Software Paradigms International (SPI), a global IT services and solutions provider for retailers, made an addition to its mobility capabilities through a merger with Softvision Consulting in June. The deal, which was sponsored by Tower Arch Capital, enabled SPI to accelerate its growth and immediately grab additional market share in the high-growth global retail eCommerce and mCommerce software development sphere. Tower Arch Capital sourced this deal through Palmares Advisors after a connection made on Axial — Palmares identified Tower Arch on their buyer list and confidentially connected. [Read: Tower Arch Capital acquired SoftVision as an add-on for SPI, sourced through Palmares Advisor]
8. Moorgate Partners + ITC Service Group – HR & Employment Services, Acquisition, May.
Moorgate Capital Partners acquired substantially all of the assets of ITC Service Group from its founding shareholders. ITC is a leading provider of planning, design, installation, and maintenance services to the telecommunications and IT industries. Most recently, the company was focused on designing, installing, maintaining, and providing operational management services for fiber–to-the-home networks. Debt financing for the transaction was provided by Credit Suisse Park View BDC, Inc., QS Capital Strategies L.P. (Quilvest), and California Bank & Trust. Moorgate, a member of Axial since 2015, closed this deal in their very first year of membership. [Read: Moorgate Partners Acquires ITC Service Group]
9. Evolution Capital Partners + Monolith Software – Software & Technology, Equity Investment, April.
Evolution Capital Partners made the first investment from its third fund, Evolution Investments III, in Monolith Software, a Frisco, Texas-based software solutions company focused on assurance and management tools. The investment by Evolution helped to further scale the company by expanding products, sales and marketing and spurring additional investments in the company’s global channel partners. The two firms met through Axial, grew their relationship and eventually closed this deal. [Read: Evolution Capital Partners provided capital to Monolith Software]
10. LNC Partners + OutSolve– HR & Employment Services, Equity Investment, November.
LNC Partners invested in OutSolve, LLC, a leading provider of affirmative action planning and compliance services for federal contractors. LNC partnered in this transaction with Five Points Capital and Alliance Partners LLC provided senior debt financing. BlackRose Advisors served as financial advisor and intermediary in the transaction. BlackRose Advisors reached out to LNC Partners privately using the Axial network to start a conversation, introduce the opportunity, and get an NDA in place. [Read: LNC Partners Invests in OutSolve]
11. AirT + Contrail Aviation Support – Software & Technology, Acquisition, July.
Air T, Inc. (NASDAQ Capital Market: AIRT), a diversified holding company, acquired Contrail Aviation Support, Inc., a growing worldwide supplier of surplus and aftermarket commercial jet engine components based in Verona, WI. Cornerstone Business Services acted as advisor to Contrail Aviation Support in this transaction. Cornerstone Business Services found AirT through Axial. [Read: AirT Acquired Contrail Aviation Support, Inc.]
12. White Wolf Capital LLC Recapitalized NSC Technologies – HR & Employment Services, Recapitalization, November.
NSC Technologies was recapitalized by White Wolf Capital, LLC. Boxwood Partners acted as the exclusive financial advisor to NSC. NSC Technologies specializes in staffing and workforce management solutions for a wide range of industries including marine, defense, energy and industrial markets. Boxwood Partners and White Wolf Capital have been Axial members since May 2013 and April 2012, respectively. [Read: White Wolf Capital LLC Recapitalized NSC Technologies
13. Azalea Capital + Jones Natural Chews – Consumer Goods, Equity Investment, May.
Corporate Finance Associates served as the exclusive advisor to Jones Natural Chews (JNC) in its investment by Azalea Capital. Illinois-based JNC has a 166-year family history of meat manufacturing expertise and is a manufacturer of premium, all-natural dog treats and chews. Having experienced remarkable growth as of late, the Jones brand was seeking a like-minded partner with experience in the sector and the Azalea team proved to be the perfect partners to help take the company to the next level. Both Corporate Finance Associates and Azalea Capital are Axial members, since January 2009 and June 2010, respectively, who connected over the platform to make this deal. [Read: Azalea Capital Invests In Jones Natural Chews, advised by Corporate Finance Associates]
14. Hall Capital + 4Knines – Consumer Goods, Acquisition, May.
Hall Capital Partners, a family office specializing in investing, operating, and growing private companies, acquired 4Knines. 4Knines markets a full line of fabric-based protective liners and seat covers for various motor vehicle types. Although the company is relatively new, it is a leader in this popular and growing segment of the auto accessories market. Zero Limits Ventures served as the advisor for this transaction. Hall Capital Partners and Zero Limits Ventures connected over this deal in November 2015 on Axial. Both firms have been Axial members since 2014. [Read: Hall Capital Partners Acquired 4Knines, advised by Zero Limits Ventures]