BPO: Tech-enabled Services
Majority Recapitalization
May 2011
Situation:
FineLine was a very profitable and high growth supplier of printed bar-code labels and supply chain solutions for
retailers.
Two owners desired liquidity but wanted to participate in the future upside of the company with a compatible private-equity
partner
The owners also wanted to structure an option plan for key managers to participate in the continued upside of the
company
Process:
CHILDS conducted a full auction including over 200 strategic and private-equity firms
We had 21 indications of interest and eight management presentations
Received marked-up purchase agreements from three parties and closed with one 30 days after selecting the winning
party
Result:
Transaction was closed with Chicago Growth Partners, a partner that was culturally very compatible with management
and at a price that exceeded owner expectations by 30%
The CHILDS Difference:
Utilizing our experience of actually running a private equity-backed business we were able to determine quickly the
type of partner that management really wanted
Our rigorous transaction process maximized competition and allowed us to minimize the exclusivity period to get the
transaction price and structure that the owners wanted
CHILDS co-invested with Chicago Growth Partners in the deal
