CLIENT:
Yandy.com (“Yandy” or the “Company”) headquartered in Phoenix, AZ is a leading eCommerce retail company specializing in women’s specialty intimates apparel. The Company was founded in 2007 and has grown to become one of the leading suppliers of everyday intimates, lingerie, swimwear, costumes, and accessories.
SITUATION:
On February 24, 2020 Yandy.com (“Yandy”), a Phoenix-based, online specialty apparel retailer was acquired by Playboy Enterprises, Inc. Playboy Enterprises recently announced a corporate repositioning to establish its parent company as PEI Holdings (“PEI”). “We’re excited to partner with the talented Yandy team to continue delivering value to their dedicated consumers and to accelerate the growth of all our businesses with new shared capabilities,” said Ben Kohn, CEO of PEI.
ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) served as the exclusive sell-side advisor to Yandy.com, leading a highly strategic and robust sales process, which ultimately resulted in identifying PEI as the ideal partner for the business to accelerate its next phase of growth. “This exciting partnership provides Yandy with an opportunity to leverage Playboy’s global brand to accelerate our growth strategy and extent our reach in the ecommerce market,” said Aras Koktas and Jeff Watton, Co-CEOs of Yandy. “We thank G2 Capital Advisors for guiding us through this process and helping us find a great partner in PEI”.
OUTCOME:
The acquisition of Yandy will significantly expand PEI’s direct digital audience reach, its eCommerce capabilities and back-end technical and operational infrastructure. Yandy has a strong, established, profitable business and an experienced team that is responsible for fulfilling more than 50,000 monthly orders of intimates, sleepwear and accessories to a primarily female, US-based audience. “We are honored and privileged to have represented Yandy in the successful outcome of this transaction”, said Matt Konkle, Head of Industry Teams for G2. “We believe the partnership between PEI and Yandy will prove highly strategic and we wish both organizations much future success.”
About G2 Capital Advisors (www.g2cap.com)
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.
About Yandy.com (www.yandy.com)
Yandy is a leading online retailer of sexy women’s specialty apparel. Millions of women around the world wear Yandy everyday intimates, lingerie, swimwear and costumes. Our passion for design, fit and fashion drives our company’s “own your sexy.” mantra in everything we do, from product innovation and merchandising to our mission to help every woman discover or rediscover her own brand of sexy.
About Playboy Enterprises
Playboy, the cornerstone of PEI Holdings, today reaches a wide global audience through a diverse portfolio of consumer products, content, gaming and hospitality offerings. With 97% unaided global brand recognition and nearly 50 million social media fans worldwide, Playboy remains one of the most iconic brands in history. Under its mission of Pleasure for All, the 66-year-old Playboy brand drives more than $3 billion in annual sales at retail across 180 countries.
CONTACTS ON THIS DEAL:
Matt Konkle, Sr. Managing Director, Head of Industry Teams: T: 317.371.6608 E: [email protected]
Jarl Berntzen, Managing Director, Technology & Business Services Practice Leader: T: 415.825.5866 E: [email protected]
Bisma Ahmed, Senior Associate: T: 617.918.7928 E: [email protected]
We are pleased to share the latest G2 Technology & Business Services market update. In this piece we present an introductory overview of the vertical SaaS market, an area of strong focus for G2. The vertical SaaS market is often seen to bridge traditional legacy industries with technology, driving a strong force of digitization and utilization of data in driving improved efficiencies across entire industries. This is very core to the G2 industry focuses and we plan to follow up in future quarters with other topical newsletters addressing specific relevant topics associated with this fast growing market.
In addition, we provide a general market update along with a review of financing and M&A trends in the Technology & Business Services sector.
CLIENT
Founded in 2011, Danforth Advisors, LLC (“Danforth” or the “Company”) offers an integrated and scalable “one-stop shop” solution for all operations from controller through CFO performing activities ranging from accounting and operational finance services, to capital raising, financial planning and analysis, M&A, and IPOs. The Company has served as a strategic thought partner to over 300 clients across all stages of a company’s life cycle, from inception to exit. Danforth employs a deep team of consultants who are experienced finance and accounting professionals, including CFOs, Big 4 public accounting alumni, corporate controllers, start-up accountants and subject matter experts such as financial planning & analysis specialists.
The Company is headquartered in Somerville, MA with additional offices in New York, Pennsylvania, Colorado, and Texas.
SITUATION
Danforth had created the leading provider of specialty consulting solutions to the life sciences industries in the Northeast and had an opportunity to expand its breadth of services and increase its geographic presence nationally. Danforth’s principals, Daniel Geffken, Gregg Beloff, and Stephen Dipalma, wanted to diversify their risk and were seeking the right partner who could support the next phase of growth of the Company’s leading consulting platform.
ENGAGEMENT
G2 served as the exclusive financial advisor to Danforth, responsible for running an efficient and strategic recapitalization transaction process.
OUTCOME
The transaction was successfully executed through an investment from Stone-Goff Partners (“Stone-Goff”), a private equity investment firm that invests in lower middle market founder-owned businesses and corporate carve-outs in the business services and consumer sectors.
“G2 brought invaluable industry experience that played an integral part in telling the Danforth story. They guided us through the complex transaction process and cultivated the right set of potential partners for us to consider. In Stone-Goff, we found a partner that shared the same passion and vision for the future of Danforth,” said Stephen Dipalma, Managing Director of Danforth.
The investment will support the Company’s growth initiatives of expanding service offerings, building out the consultant team, geographic expansion into new life sciences clusters, and opportunistic acquisitions of complementary outsourced service providers in the life sciences industry.
“We are pleased to be a part of such a successful outcome for the Danforth team. Dan, Gregg, and Steve have built a leading company in a highly fragmented, growing market,” said G2 Senior Managing Director, Matt Konkle. “It was important to the principals to achieve an outcome that was the right strategic and cultural fit for their people. In Stone-Goff, they have found a great partner that understands their business and will help them accelerate their strategic vision for Danforth moving forward.”
“The Danforth team has built a market leader providing strategic services to life sciences companies,” said Laurens Goff, co-founder of Stone-Goff Partners. “We are excited to partner with Dan, Gregg, Steve, and the entire Danforth organization as they enter the next phase of growth.”
CLIENT
Founded in 1997, Lois L. Lindauer Searches (“Lindauer” or the “Company”) is a leading national executive search firm serving the nonprofit sector. Lindauer specializes in recruiting nonprofit leaders and their teams for premier institutions in education, healthcare, the arts and sciences, and mission-driven advocacy organizations. The Company places more advancement and development professionals than any other search firm. Lindauer is headquartered in Boston, MA and serves clients around the world.
SITUATION
With a strong management team in place, including the appointment of Deb Taft as CEO in 2017, the client sought a transaction to transition ownership to the management team and attract an experienced, well-regarded investment partner to support the CEO and management team as they execute on the Company’s growth strategy.
ENGAGEMENT
G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to Lindauer, responsible for running a high touch search for an investment partner for management.
OUTCOME
The transaction was successfully executed through a management led buyout supported by Gemini Investors (“Gemini”), a private investment firm that invests in smaller middle market businesses. Gemini will support the Company’s growth initiatives of further expanding the search team and pursuing acquisitions of complementary businesses.
“We saw a great opportunity to support a strong management team and expand upon the Company’s leadership position,” said Jimmy Rich, Managing Director at Gemini Investors. “We focus on partnering with proven management teams to support their ambitious growth plans. We are excited to work with Deb Taft and her team to build on the great legacy established by the Company’s founder.”
“When we began this process, we were focused on finding a buyer that would preserve the Company’s legacy and support employees who have been critical to the Company’s success. G2 spent time understanding our goals and, with their support, we were able to transition ownership to the current management team, and identify the ideal investment partner to support their growth plans,” said Lois Lindauer, the former owner of Lindauer.
“Our team is excited to partner with Gemini as we continue to build upon our leadership position in nonprofit executive search,” said Deb Taft, CEO of Lindauer. “We look forward to continuing to serve our clients in this sector as we help them build and develop world-class teams.”
“We are very pleased with the result for our client and the entire Lindauer team,” said Pat Reinhardt, Managing Director at G2. “Working with founder-owned businesses that have such an important role within their respective industries is extremely rewarding and we look forward to following the Company’s continued success.”
CLIENT
Bridgepoint Consulting is a leading management consulting firm that helps companies throughout their business lifecycle. Offering a broad range of finance, technology and risk/compliance services, Bridgepoint supports clients from the startup phase all the way to IPO readiness and beyond. Since 1999, Bridgepoint has been helping executives and management teams reduce their business and operational risks, bridge resource gaps and improve overall performance.
SITUATION
Bridgepoint had achieved an impressive period of sustained growth and profitability leveraging investments in infrastructure made over the last several years as well as expansion into new service offerings. The principles of the firm were interested in securing a potential liquidity event and were specifically seeking a partner for their next stage of growth.
ENGAGEMENT
G2 served as the exclusive advisor to Bridgepoint Consulting, responsible for running a targeted, hands-on sale process, which ultimately resulted in a sale to Addison Group.
“This exciting partnership provides Bridgepoint the incredible opportunity to leverage Addison’s national presence to accelerate our growth strategy and extend our services,” said Bob Smith, Co-Founder and Principal of Bridgepoint Consulting. “We look forward to working with the Addison team to build new synergies while enhancing our ability to deliver high-value services for our clients. This also provides many career opportunities for our team that will allow them to continue growing professionally.”
OUTCOME
The transaction was successfully executed through a sale to Addison Group, a portfolio company of Odyssey Investment Partners.
“We saw a clear opportunity to leverage Addison Group’s high-caliber team, proven performance, and industry-leading growth with a well-established firm offering a full suite of management consulting services and similar growth strategy,” said Thomas Moran, CEO of Addison Group.
“The alignment between our two firms, both operationally as well as culturally, provides a unique platform for exceptional delivery. Our combined services, consisting of high level management consulting as well as a broad variety of human capital services, gives customers access to a wider range of service options to help achieve business goals.”
Addison Group is a leading provider of professional staffing and permanent placement services for Information Technology, Finance & Accounting, Executive Search, Healthcare, HR & Administrative, and Engineering. Addison’s strengths are its strong management and executive teams, a relationship?focused selling strategy, a history with clients of delivering the right candidate at the right time, and a loyal candidate base. With 22 offices in cities across the United States, Addison Group offers a national reach with a localized touch.
“The partnership between Bridgepoint and Addison Group is strategically compelling for both organizations. We feel privileged to play a role in the successful outcome of this transaction for all parties and are excited for the Bridgepoint team as they embark upon the next stage of building their growth story”, said G2 Managing Director, Matt Konkle.
Addison Group, a leading professional services firm, announced today the acquisition of Bridgepoint Consulting, a Texas-based management consulting firm that delivers a broad range of financial operations, risk/compliance and technology services to support companies throughout their business lifecycle.
“We look forward to working with the Addison team to build new synergies while enhancing our ability to deliver high-value services for our clients. This also provides many career opportunities for our team that will allow them to continue growing professionally.”
The acquisition strengthens Addison Group’s presence in several high-growth Texas markets, anchored by a tenured leadership team with deep industry expertise and business relationships. The transaction is aligned with Addison’s strategy to broaden its national service footprint through organic growth and acquisition of high-growth, high-margin firms with strong client relationships and complementary service offerings. Bridgepoint’s niche expertise augments the consulting arm of Addison Group’s business, providing the opportunity for continued expansion of its service offerings. This is Addison Group’s second acquisition in the past six months and solidifies the organization’s status as a leader in the human capital market.
“We saw a clear opportunity to leverage Addison Group’s high-caliber team, proven performance, and industry-leading growth with a well-established firm offering a full suite of management consulting services and similar growth strategy,” said Thomas Moran, CEO of Addison Group. “The alignment between our two firms, both operationally as well as culturally, provides a unique platform for exceptional delivery. Our combined services, consisting of high level management consulting as well as a broad variety of human capital services, gives customers access to a wider range of service options to help achieve business goals.”
“This exciting partnership provides Bridgepoint the incredible opportunity to leverage Addison’s national presence to accelerate our growth strategy and extend our services,” said Bob Smith, Co-Founder and Principal of Bridgepoint Consulting. “We look forward to working with the Addison team to build new synergies while enhancing our ability to deliver high-value services for our clients. This also provides many career opportunities for our team that will allow them to continue growing professionally.”
Bridgepoint has a team of 140 finance, technology and risk professionals that provide expertise and support to companies in transition, including those experiencing high-growth, meeting compliance objectives, or transforming their technology infrastructure.
Bridgepoint Consulting will continue to maintain its headquarters in Austin, Texas. The company’s Principals and team will retain their roles within the expanded organization.
G2 Capital Advisors, an investment banking firm based in Boston, served as investment advisor for Bridgepoint Consulting.
TalentBurst, Inc. (“TalentBurst”), a leading provider of Global Talent Cloud solutions including IT Staff augmentation, Life Sciences Staff augmentation, High Hazard Payroll, and 1099/IC Validation and Compliance Solutions to more than 80 Fortune 1000 corporations in USA and Canada, today announced the acquisition of IBA Software Technologies, Inc. (“IBA”). IBA’s best-in-class technical staff augmentation, consulting, and systems integration services for its clients in the discount retail space will enhance TalentBurst’s unmatched collection of services & solutions essential to today’s organizations.
Headquartered near Boston and established in 1975, IBA has a 40-year track record of proven success in technical staffing and has become a trusted partner for Fortune 500 clients seeking highly skilled professionals. A rising number of major corporations struggling to meet their hiring needs with quality candidates are now turning to outsourced services solutions such as IBA. The acquisition will expand TalentBurst’s leading Information Technology staffing services platform to the discount retail industry and enhance its continued growth trajectory.
“We have seen some exciting growth and adding a company like IBA to our platform makes us that much more competitive. IBA has a long and impressive track record, and we are looking forward to seeing the success of this new venture play out for everyone involved” said TalentBurst CEO Brad Talwar. “This is a very exciting time for everyone under the TalentBurst umbrella as we continue to grow and expand our offerings.”
Joe Clerico, Founder of IBA commented, “Combining with TalentBurst is a big win for our customers and our employees, and will accelerate growth for all parties involved. Being able to tap into the financial and recruiting resources that TalentBurst has to offer will be a game changer.”
G2 Capital Advisors, LLC (“G2”) served as the exclusive buy-side advisor to TalentBurst, Inc. on the transaction. “G2 was a great partner, they worked to quickly understand what was important to each of the stakeholders involved so the right deal structure could be put in place” added Brad.
About TalentBurst
TalentBurst is a leading provider of contract Information Technology, Engineering, SaaS, Bio-Pharma, Accounting & Finance, Marketing, Utility and Compliance staffing solutions to over 80 Fortune 1000 corporations. TalentBurst has branch locations in Boston, San Francisco, Miami, Milwaukee and international offices in Toronto, Canada, and Gurgaon, India. Through the Payroll division the firm provides Employer Of Record (EOR), high hazard and 1099 payroll compliance solutions, currently supporting customers in US, Canada, UK, India, Chile and Singapore. Visit www.talentburst.com for more information.
About IBA Software
Established in 1975, IBA Software Technologies has been providing technical staff augmentation, consulting, and systems integration services to Fortune 500 companies with a major focus on Retail store, warehouse and Internet based businesses. IBA provides local, regional, and national clients with consulting services ranging from on-site, short-term, long-term, and permanent staff augmentation to special projects and off-site systems development. IBA also offers e-Commerce and e-Business support services.
About G2 Capital Advisors
G2 Capital Advisors provides investment banking, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors. G2 has been fortunate to have been mandated on over 140 engagements since inception across our core sectors in both uptrend growth and downtrend situations.
CLIENT
VideoLink LLC is a provider of broadcast quality production solutions to simplify live, on-air appearances for top cable and network television organizations worldwide since the company was founded nearly 25 years ago by Doug Weisman and Gina Chudnow. Deploying the same high-quality, easy-to-use technology, VideoLink is a trusted partner for Fortune 500 and enterprise companies, as well as institutions seeking a wide variety of video services to achieve their marketing and communications goals.
SITUATION
VideoLink’s founders were seeking a solution to recapitalize the business and find the right partner to help the company execute on its clearly defined growth strategy. Management had identified several organic and acquisition growth opportunities, which build upon the company’s current national platform, diversified service offering and solid customer base.
ENGAGEMENT
G2 represented VideoLink as the exclusive sell-side advisor responsible for running a targeted and high-touch sale process. “Throughout this process G2 was a tremendous partner, they quickly understood our business and were able to help us engage with the right group in AVI-SPL,” said Richard Silton, President and CEO of VideoLink.
OUTCOME
The transaction was successfully executed through a sale to AVI-SPL, a portfolio company of H.I.G. Capital. AVI-SPL is the global leader in enterprise grade audio visual systems integration and collaboration solutions. “We are thrilled to combine AVI-SPL’s and VideoLink’s best-in-class broadcasting technology, and bring high-quality video and production to our customers,” said AVI-SPL CEO John Zettel. “Combining with AVI-SPL brings tremendous benefits to our customers and our employees, and will rapidly accelerate growth for VideoLink. Our products and services are highly complementary, and we are excited to now have the access to the resources and market presence that AVI-SPL has built,” added Silton.
“We are excited with the successful outcome of the transaction for the entire VideoLink team,” said Jeffrey Unger, Chairman and CEO of G2 Capital Advisors. “We are pleased with the outcome of this transaction and are confident all parties have achieved a truly productive solution.”
About G2 Capital Advisors
G2 Capital Advisors provides investment banking, financing and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.
We are pleased to announce that our client, Accounting Management Solutions. Inc. (“AMS”), has joined CliftonLarsonAllen, LLP (“CLA”). As part of CLA, the AMS team will operate out of its existing locations in Waltham, MA and New York, NY — providing accounting and finance project consulting services, part-time and interim resources, and professional search. AMS Founder and CEO, Jim Bourdon, and his team will play a key role in CLA’s commitment to provide a broad array of outsourcing services nationwide.
“AMS joins CLA as a strategic decision to support the next phase of growth for AMS, while simultaneously advancing CLA’s national outsourcing services,” stated Jim Bourdon. “AMS is enthusiastic about being able to offer our clients access to a national network of resources and will continue to provide our clients with the exceptional service they’ve come to expect.”
The transaction was successfully executed through a sale to CliftonLarsonAllen, LLP (“CLA”), a professional services firm delivering integrated wealth advisory, outsourcing, and public accounting capabilities to help clients succeed professionally and personally.
G2 Capital Advisors were invaluable in seeing me through the successful sale of my firm,” said Jim Bourdon, AMS CEO, “They were professional and diligent and extremely good to work with as a team, laying out the expectations and the timelines throughout the process. I feel they did an exceptional job and would highly recommend them to anyone who wants a top notch team to represent them in selling their business.”
ABOUT AMS
Accounting Management Solutions, Inc., founded in 1998, is a leading provider of staffing and professional services. The Company offers accounting, financial management, outsourcing, and consulting services to privately-held and publicly traded businesses. AMS has served nonprofit organizations, publicly-traded and privately-owned companies in the technology, life sciences, healthcare, manufacturing, retail, and service industries. The AMS management team was seeking a strategic partner to execute its growth strategy. Management has identified several organic and acquisition growth opportunities to build upon the Company’s current platform, diversified service offering, and solid customer base.
ABOUT CLA
CliftonLarsonAllen, LLP, is a professional services firm delivering integrated wealth advisory, outsourcing, and public accounting capabilities to help clients succeed professionally and personally. CLA’s headquarters are in Minneapolis, Minnesota, and they have 90 locations across the United States.
ABOUT G2 CAPITAL ADVISORS
G2 Capital Advisors is an integrated multi-product, sector-focused boutique investment bank. G2 Capital Advisors delivers unique investment banking solutions and uncompromising advice by pairing highly experienced C-level executives with specialist investments bankers in both growth and stressed situations.
CLIENT
The Dolan Company, a diversified business information and professional services provider, sought to divest Counsel Press, a non-core operating business. Since 1938, Counsel Press has assisted attorneys in all 50 states with expert assistance in preparing, filing, and serving appeals in state and federal appellate courts nationwide and several international tribunals through its experienced staff of attorneys, appellate consultants, and appellate paralegals. Counsel Press’ operations include fully staffed offices in 12 locations nationwide and production centers in 6 locations.
SITUATION
The Dolan Company, majority owned by investment funds affiliated with Bayside Capital, Inc., embarked on a revitalization plan in the summer of 2014. Dolan sought to divest non-core business units, including Counsel Press, in an effort to focus on and invest behind core service offerings. “G2 guided the process from start to finish and allowed us to focus on our core businesses while still successfully completing the sale of the Counsel Press business,” said Mark McEachen, CEO of the Dolan Company.
ENGAGEMENT
G2 Capital Advisors was engaged by The Dolan Company to run a targeted, highly involved sales process to a select set of strategic and financial buyers. G2 worked closely with Counsel Press’ existing management team, the Dolan Company, and prospective buyers to structure and execute the carve out transaction in an efficient and expedited manner.
OUTCOME
The transaction was successfully consummated through a sale to Gladstone Investment Corporation (NASDAQ: GAIN), a publicly traded business development company that seeks to make debt and equity investments in small and mid-sized businesses in the United States. “G2 ran a well-organized, high-touch process that resulted in a very successful outcome which exceeded our expectations,” said Jackson Craig, Managing Director of Bayside Capital, Inc. The aggregate Gladstone investment totaled $32.5 million in a combination of equity and debt.
“We are thrilled with the successful completion of the transaction for our client at Dolan and Bayside,” said Jeffrey Unger, CEO of G2 Capital Advisors. “The operational perspective that G2 brings to our mandates continues to be a critical driver of our clients’ success.”