Source Technologies, Inc. is the market leader in secure MICR (Magnetic Ink Character Recognition) desktop printing and interactive transaction management self-service solutions.
The owners of STI sought to diversify their net worth and find a complementary partner for growth. Brookwood structured and managed a targeted marketing process that resulted in the sale to Liberty Partners and Riverside Partners.
Engagement Process and Outcomes
Demanding Set of Shareholder Goals – The shareholders sought (i) a premium valuation for the business, (ii) a flexible transaction structure that balanced cash at closing vs. incremental consideration in the future, (iii) certainty of execution and (iv) a partner that brought both valuable resources and the availability of growth capital in the future, if needed.
Thorough, Effective Process – After conducting a thorough due diligence process, Brookwood (i) drafted a comprehensive information memorandum and management presentation that clarified the complexities of this niche industry segment and (ii) worked with management to build a robust projection model to denominate the various components of STI’s upside potential. Additionally, Brookwood effectively marketed the opportunity to a list of carefully targeted buyers, which generated significant interest from both financial sponsors and industry players.
Sold to Leading Private Equity Firm – The process generated numerous attractive offers for STI. Liberty Partners and Riverside Partners teamed and prevailed as their offer and approach met or exceeded all of STI’s requirements.