Global Resale Expands Capabilities with Acquisition of CFA Trading

Further Expansion into Europe Shows Growth of the Circular Economy

Austin, TX, March 20, 2020 – Global Resale (“The Company”), a leading, global provider of aftermarket services and reverse logistics, focused on resale, processing and disposition of technology devices, announced today that it has completed the purchase of CFA Trading (“CFA”). Terms of the transactions were not disclosed.

CFA, founded in 2004 and based in Poole, UK, is a leading technology refurbishing company in the UK. The company has become the largest Microsoft Authorized Refurbisher (MAR) in Europe, and refurbishes, repairs, and upgrades computers, mobile devices and other IT assets.

“We are thrilled to partner with CFA to expand our refurbishment capabilities globally and increase our processing capacity,” said Jeff Zeigler, CEO of Global Resale. “Our team has worked with CFA co-owners Leon Lindblad and Jo Seager for more than 15 years and know first-hand they live up to their motto of ‘Innovative Refurbishment’ by focusing on the quality of their systems for repairing and upgrading equipment, and thinking of every important detail when serving customers.”

“We feel strongly that Global Resale is the perfect match to lead our company into the future,” said Leon Lindblad and Jo Seager, the husband and wife team who founded and own CFA. “Global Resale’s strong market presence and deep relationships across the industry will allow us to grow and reach new customers in the U.K. and around the world.”

About Global Resale
Global Resale is a full-service, international resell and reverse logistics business focused on the mobile, IT, and electronics sectors. Global Resale partners with the leading manufacturers, carriers, lessors, retailers, resellers, and large corporate accounts to handle their worldwide reverse logistics needs. With state-of-the-art processing centers in Texas (Global Headquarters) and Essex (European Headquarters), Global Resale serves as a single-source solution for its partners, offering the full range of reverse logistics capabilities, including takeback, collection, inventory, data sanitization, repair, harvesting, and resell. For more information please visit www.globalresale.com.

About CFA
CFA is one of the leading technology refurbishing companies in the UK. The company has become the largest Microsoft Authorized Refurbisher (MAR) in Europe, and refurbishes, repairs, and upgrades computers, mobile devices and other IT assets. The main principals of CFA center around our green credentials and our circular economy ethos. Our talented team of engineers have created a range of market leading processes that are unique to CFA and standard bearers in the industry. For more information please visit www.cfatrading.co.uk.

MEDIA CONTACT:

Zach Kouwe
Dukas Linden Public Relations
212-704-7385

PRESS RELEASE


Capstone Nutrition granted ISO/IEC 17025 Accreditation through A2LA

Ogden, UT, March 9, 2020 – Capstone Nutrition (“Capstone” or the “Company”) announced today it has been granted ISO/IEC 17025:2017 accreditation from the American Association for Laboratory Accreditation (A2LA) (certificate #5682.01) in association with Capstone’s in-house testing laboratory for nutrition and dietary supplements.

Capstone Nutrition is one of the largest contract manufacturers of health and dietary supplements in the United States, and has served customers throughout the world for 28 years. It is rare for a contract manufacturer to be granted ISO/IEC 17025 accreditation, and provides a significant advantage for the Company’s customers and their globally-recognized brands by demonstrating impartiality and consistency in testing. A2LA is considered a premier accreditation body.

“Achieving ISO 17025 accreditation has been a key focus of our Capstone Quality Team,” said Kevin Elsberry, Capstone COO. “I am extremely proud of our team, their passion for improvement, and their discipline to this standard. This achievement is further evidence that Capstone’s ongoing commitment to science, performance, and trust is the foundation for providing the highest standard of testing and quality assurance for our products.”

“Earning A2LA ISO 17025 accreditation is consistent with our vision, mission, and values” said Capstone Director of Quality, Ryan Bitter. “It confirms our laboratory discipline, expertise, and commitment to safety and quality. We have excellent scientific personnel, strong processes, and will continue expanding our analytical capabilities to add value for our Capstone team, our customers, and consumers.”

“This high bar in accreditation confirms the importance of discipline as a Capstone value,” added James Hinkle, Plant General Manager. “Being disciplined in our individual roles and processes allows us to live up to our “Life Improved” motto for our team and our customers. This is one more way we show that we passionately innovate, formulate, manufacture and sell superior quality nutrition.”

About Capstone Nutrition

Capstone Nutrition is the leading pure play, turnkey developer and manufacturer of high-quality nutrition. It is a one-stop shop for innovators in nutrition, led by experienced and dedicated scientists and trusted industry professionals. Since 1992, Capstone has been formulating, developing, manufacturing and packaging a wide range of capsules, tablets, and powders for customers around the globe. Headquartered at a state-of-the-art facility in Ogden, Utah, Capstone is known for exceptional quality and market-leading product development. The Company maintains the highest industry certifications recognizing its exceptional manufacturing standards, including Australia’s Therapeutic Goods Administration (“TGA”), NSF GMP, and NSF for Sport certification. For more information, please visit www.CapstoneNutrition.com.

MEDIA CONTACT:

Zach Kouwe/Doug Allen
Dukas Linden Public Relations
212-704-7385

Here’s how the US can get the best out of 5G

By Andrew S. Weinberg, Founder, Managing Partner and Chief Executive Officer, Brightstar Capital Partners

  • The global economic impact of 5G is estimated to exceed $12 trillion dollars in the next 15 years.
  • The US risks being left behind in rolling out 5G connectivity.
  • But with the right approach, the US can still play a leading role.

Around the world, businesses, governments and NGOs are excitedly anticipating the benefits of 5G. This truly revolutionary technology will unlock enormous opportunity: connecting underserved populations; bringing economic prosperity to remote areas; making communities smarter and safer; and powering growth in a vast array of technological fields.

However, the infrastructure required to support 5G is not being rolled out at a consistent pace around the world. In China, for example, the state-controlled economy allows for the broad and rapid deployment of 5G infrastructure. By contrast, wireless providers in the US must work with local, state and federal governments, regulators and thousands of local communities in order to build the required infrastructure.

If the US does not take a more focused and deliberate approach to enable the extensive infrastructure needed to accommodate this transformative technology, it will risk being left behind.

Greatest infrastructure project in US history

Commonly referred to as 5G, the fifth generation of mobile broadband technologies delivers significant improvements over the 4G standard, including much faster data rates and sharply reduced network communication delays (known as latency). 5G therefore can support massive growth in connectivity and traffic density/volume – enabling more mobile and connected communities, economies and institutions worldwide.

5G has been called the “greatest infrastructure project in US history.” The economic value derived from deploying 5G in such areas as artificial intelligence, autonomous vehicles, the internet of things (IoT), industrial software, robotics, and semiconductors is expected to top $2 trillion by 2025. Longer term, the global economic impact of 5G is estimated to exceed $12 trillion dollars in the next 15 years.

However, the widespread adoption of 5G will require vast new infrastructure. A McKinsey study estimates that implementing such 5G applications as enhanced mobile broadband, IoT, and mission-critical applications will require a 10-fold increase in network performance over current levels. Thus, mobile operators must invest in major infrastructure enhancements, including (but not limited to) access to spectrum, cell sites, fiber optic networks, fronthaul and backhaul. By some estimates, the cost of implementing 5G technology worldwide is expected to reach at least $2.7 trillion by the end of 2020.

Harmonizing local processes

Across the US, telecom carriers and cable providers have committed extensive capital to implement 5G. At the national level, the FCC has created much of the required regulatory framework. Yet, more work must be done to harmonize disparate regulatory and permitting processes at the state and local levels. Local permitting processes must be fast-tracked to enable construction of cell sites and other infrastructure. Existing national standards should be adopted consistently by states and localities. And, local jurisdictions should add more resources to manage the process.

Developing a skilled workforce

A skilled workforce is also essential. Workers installing 5G equipment need to have the necessary technical capabilities – and in some cases must also be able to climb 100-foot utility poles.

In today’s tight US labor market, carriers and cable companies need to partner with local governments and educational institutions to ensure access to well-trained workers.

To secure the assistance of local governments in harmonizing rules and processes, and collaborating on training programs, the private sector must educate officials about the benefits of 5G – and the painful consequences of falling behind in implementation. In this regard, I want to applaud the efforts of CTIA, which represents the US wireless industry, to inform the public of the enormous potential of 5G and the need to facilitate wide scale implementation.

Global examples of 5G leadership

If the US wishes to lead in the deployment of 5G – as I believe it must – it will need to keep pace with other countries that have made 5G implementation a top priority. While experts differ as to which nations lead in 5G, most rankings include China, South Korea, Australia, Qatar, Switzerland, Finland, Spain and United Arab Emirates. The US is somewhere in the top five, however.

In China, for example, the government’s 13th Five-Year Plan describes 5G as a “strategic emerging industry” and “new area of growth.” Similarly, South Korea also has made it a policy to stimulate 5G deployment, setting the ambitious goal of creating 600,000 jobs and $73 billion in exports by 2026.

The US can play a leading role

While the US should be concerned that other countries are leading in 5G deployment, there are some bright spots. The US is still ahead of China in launching commercial service. While Chinese operators don’t plan to start selling 5G service until 2020, the major US wireless carriers have rolled out mobile 5G service in several cities, or have announced definitive plans for doing so.

Some local governments and/or public-private partnerships in the US are also working to accelerate 5G deployment. In 2017, Sacramento, California, announced a pilot with Verizon to deliver super high speed wireless connectivity. Similar pilots are in process or pending in Ann Arbor, Michigan; Atlanta, Georgia; Dallas and Houston, Texas; Denver, Colorado; Miami, Florida; Seattle, Washington; and Washington, D.C.

If the US does not maintain a leading role in 5G deployment, it risks delaying the benefits that will accrue from greater connectivity, in areas such as job creation, education, health and safety, and community development. Equally important, the US should have a fair share of the global economic opportunity that will result from 5G’s technological advances.

For the US to effectively implement 5G on a nationwide scale, it must:

  • Harmonize and coordinate state and local government rules and permitting processes.
  • Institute training programs to ensure a supply of skilled labor.
  • Form public-private partnerships to accelerate 5G innovation and deployment.

The private sector also must play a leadership role. As the founder of a private equity firm whose portfolio includes a leading telecom services provider, I am aware of the operational challenges and capital demands associated with 5G implementation. It is essential that US corporations and investors make it a priority to provide the investment dollars and intellectual capital needed to make 5G a reality.

MEDIA CONTACT:

Zach Kouwe/Doug Allen
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

Davos Dispatch: Andrew Weinberg, Founder, Managing Partner & CEO of Brightstar Capital Partners Shares Five Highlights from the World Economic Forum’s 50th Annual Meeting

I’ve been fortunate to attend the World Economic Forum’s Annual Meeting in Davos for nearly the last decade. While there are always engaging conversations and interesting themes, I felt this year was marked by a tangible change in the conversations. The emphasis moved from deliberation to action. In session after session and behind the scenes, I noticed a more detailed dialogue taking place – one focused on what can be done to address the most important issues of the day rather than just discussions on what the issues are. Here are some of my highlights:

  1. Stakeholder Capitalism. This year, the theme of the Annual Meeting was “Stakeholders for a Cohesive and Sustainable World.” While this concept may seem ephemeral or conceptual, it permeated every session I attended or spoke at, as well as the dialogue on the sidelines. The question wasn’t whether to engage all stakeholders, including employees, customers, communities, investors, and shareholders, but more specifically how to do it effectively.

    Leaders in offices and boardrooms across the world, in both public and private companies, are trying to figure out the answers. With new constituents being the focus of stakeholder capitalism, finding the right balance between them all will be a key challenge that businesses will have to address going forward.
  2. Climate Change Occupied Center Stage. Microsoft certainly helped lead the way going in to the Forum’s Annual Meeting with their recent announcement on a plan to be completely carbon neutral by 2050. With the topic taking center stage throughout the program, I’m optimistic that we’ll see similar announcements from the world’s largest companies often in collaboration with governments and other stakeholder groups.

    There’s no doubt that Microsoft’s announcement served as a catalyst, as did the Forum’s Climate Initiative, but future generations were well represented in the discussion for the first time. Greta Thunberg’s speech attracted worldwide attention and the Forum’s own media analysis showed “How to Save the Planet” was the media’s #1 topic.

    But the key point for me is not the increase in the number of discussions or media coverage, but the dramatic shift in the nature of these discussions towards specific goals and initiatives. Organizations across the board, from incumbents to disruptors to companies and countries with the largest CO2 footprints, are all trying to figure out the best ways to proactively deal with climate change and mitigate climate risk.
  3. From Understanding Technology Disruption and the 4IR to Ecosystem Strategies. One of the more interesting things I did at Davos was moderate a panel on “ecosystem strategies,” or how companies create value by designing orchestrated networks that span multiple industries and sectors. (For a deep dive on ecosystem strategies check out this Harvard Business Review article.)

    We’ve never been at a more interesting time for disruptive technology, or a more critical time for creating ecosystem. It’s a complex conversation, but one that many innovative companies are having. The reality is, given the rapidly changing nature of industries, figuring out how and why to develop an ecosystem strategy is vitally important to any company’s competitiveness. With the stakes so high, it’s imperative to examine the past and learn from examples of organizations that were able to create successful ecosystems, and also from those that failed.
  4. The Rise of Private Equity. One major highlight was participating in a panel on the future of private equity and how themes that other corporate leaders are discussing fit into the asset class. The growth of private equity has been enormous. In 2009, private equity firms completed 1,927 deals worth $142 billion, according to the financial data firm Pitchbook. By 2018, there were 5,180 private equity deals worth $727 billion. That still pales in comparison to the overall capital markets, but it’s encouraging to see both LPs and GPs engaging to better understand what the future drivers of growth will be.
  5. The Shift Continues from Public to Private Markets. I also participated in two investment stewardship sessions, and was struck by the consensus that the massive shift of capital from public to private markets is going to continue for the foreseeable future. In the US, for example, the number of public companies has decreased by more than half since 2007, while the number of private companies keeps growing. Right now, there are roughly 200,000 privately-held and family-owned companies in the middle market alone. For us at Brightstar Capital Partners, that means a continued focus on founder, family and entrepreneur led businesses. We’re determined to understand the needs of these businesses, what they can teach us, and how we can help them grow and successfully navigate the challenges ahead.

MEDIA CONTACT:

Zach Kouwe/Doug Allen
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

Renee Noto Offers Insights on US Middle Market Investment in Private Equity Wire’s Special Report: Private Equity Global Outlook 2020

By Mark Kitchen
29/01/2020 – 8:24 AM

2020 Top 10 tech predictions – To introduce the Private Equity Wire Global Outlook Report 2020, the team at RFA has made the following 10 predictions on technology and how they might impact the industry over the next 12 months. We took a considered approach before settling on these 10 trends based on what we’ve seen across our client base, the conversations we’ve had (and continue to have) on a daily basis, as well as from research into business drivers and emerging technology:

  1. Spend on technology will increase (for successful firms anyway). Studies show that profitable firms spend proportionately more on technology than their counterparts with shrinking margins. Interesting that the old adage “spend to accumulate” is appropriate for technology spend too.
  2. Hybrid and public cloud use will increase as the major vendors continue to add more services. BUT this will add complexity so managers will need to engage with experts in public cloud management.
  3. SaaS adoption will continue to rise due to its simplicity, reliability and predictability. From OMS to CRM systems, SaaS adoption is growing.
  4. Serverless Computing will continue to grow in popularity simplifying operations and enabling agility for managers.
  5. Data analytics intelligence will improve workforce optimisation and inform product and service transformation. This is a huge growth area across the sector – we have multiple projects going on with clients to give them better data analytics as well as live dashboards and cloud based data warehousing.
  6. The “digital workspace” will be even more important. Employees expect and will soon demand the freedom, the flexibility and tools to do their jobs well from anywhere without relying on phones or email.
  7. Alternative fund managers will use AI technology to power automation solutions that will drive efficiencies and allow them to do more with less manpower as well as utilising automation tools within workflow management.
  8. Managers will strive to keep headcounts as lean as possible. They will do this by continuing to outsource functions.
  9. Security Operations, Automation and Response (SOAR) will be the buzz phrase of 2020. As attacks increase in velocity and sophistication, so responses must become faster. Intelligent cybersecurity is the way forward.
  10. Technology Risk Management will take centre stage in 2020. Risk assessments are critical for alternative fund managers.

THE MACRO PICTURE

What is your outlook for US middle market investing?
Renee Noto, President, Brightstar Capital Partners
Even though the total number of US middle market private companies far exceeds the number of public companies, the landscape for private capital investments continues to become more competitive. True proprietary deals require more time, more work and new ways of discovery. Since inception, we have been deliberately proactive about expanding our network of relationships among founder and family-owned companies in the United States.
We made a purposeful decision to invest in the infrastructure necessary to build on our strong ties with the communities and business associations that can be sources of proprietary deal flow, and in a communications network that reaches the right target audiences.
In 2020, private equity firms will need to prove they are true value-added partners to the businesses they look to acquire, not just capital. Identifying opportunities to add value will be increasingly difficult in an environment where prices for assets are reaching all-time highs. Firms will need to innovate and think of new ways to approach finding investment opportunities.

For full article, click here

MEDIA CONTACT:

Zach Kouwe/Doug Allen
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

Gateway Bobcat Announces Mike Allen as CEO, Succeeding Founder Dan Anich

John Hopper, General Manager of Acme Operations, appointed to serve as COO

ST. LOUIS, MISSOURI – January 15, 2020 – Gateway Bobcat, LLC (“Gateway Bobcat” or the “Company”) is pleased to announce the appointment of Mike Allen as its new CEO, effective January 1, 2020. Allen, who served as President of Gateway Bobcat, succeeds the Company’s founder Dan Anich in the role. Dan has led the Company since its founding in 1990, and will continue to serve as an advisor and member of the Board of Directors. Gateway Bobcat also announced today that John Hopper, who served as General Manager of Acme Operations, one of the Company’s wholly-owned subsidiaries, will assume the role of COO for the Gateway Bobcat platform.

“Mike is the right leader for Gateway Bobcat moving forward,” said Reidar Brekke, Chairman of the Board of Gateway Bobcat. “He has been an integral part of the Company for more than 20 years, and has shown a great ability to use his operational expertise to help the Company grow and serve our customers.”

Gateway Bobcat is a leading provider of Bobcat® and Doosan®-branded industrial equipment sales, parts and service, and rental services, with 17 locations across the Midwest and Southeast.

“Having worked with Mike for more than two decades, I am thrilled that he will succeed me as CEO of Gateway Bobcat,” said Founder Dan Anich. “Mike has worked alongside me as we’ve grown our company from 1 to 17 locations and worked to create a best-in-class operation. His passion for the Company, our employees and our customers make him an excellent choice.”

“I look forward to helping Gateway Bobcat reach even greater heights,” said Mr. Allen. “Dan is an incredible example to follow, and working alongside him I saw firsthand how his hard work and entrepreneurial spirit helped the Company excel. In addition, we are thrilled John Hopper will join us as COO. He’s helped Acme Operations develop a tremendous reputation in the industry for putting customers first, and he’ll have an immediate impact on our organization.”

About Gateway Bobcat
Gateway Bobcat, founded in 1990 and based in St. Louis, MO, operates principally as a provider of Bobcat® and Doosan®-branded industrial equipment sales, parts and service, and rental services across its footprint of 17 dealership locations spanning Missouri, Illinois, Indiana, Kentucky, Tennessee, North Carolina, South Carolina, and Georgia. For more information, please visit www.bobcatofstl.com.

MEDIA CONTACT:

Zach Kouwe/Doug Allen
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

InfraServ Expands to Southeast with Gateway Bobcat’s Acquisition of Acme Operations

Combined company will operate 17 locations across the Midwest & Southeastern United States

St. Louis, MO, December 16, 2019 – InfraServ US, LLC (“InfraServ”), an industrial equipment dealership and services platform, announced today that it has completed the purchase of Acme Operations, LLC (“Acme Operations”). The acquisition was completed through InfraServ’s subsidiary, Gateway Bobcat, LLC (“Gateway Bobcat”), a leading provider of Bobcat® and Doosan®-branded industrial equipment sales, parts and service, and rental services. Terms of the transaction were not disclosed.

Acme Operations, based in Greenville, SC, is a full service Bobcat dealership group offering new and used sales, rentals, parts and service across six locations in North Carolina, South Carolina and Georgia. With the closing of the transaction, the combined company will operate 17 locations spanning 8 states across the Midwest and Southeastern United States.

“Acme Operations has an excellent reputation in our industry for serving the needs of its growing customer base. I have had a long working relationship with John Hopper and we are thrilled to partner with their outstanding management team to create a best-in-class operation across a broad geographic footprint,” said Mike Allen, President of Gateway Bobcat.

“We look forward to a bright future with the Gateway Bobcat team. We share a common focus of putting customers first, and we will leverage our combined services to continue with that focus,” said John Hopper, General Manager of Acme Operations.

About Gateway Bobcat
Gateway Bobcat, founded in 1990 and based in St. Louis, MO, operates principally as a provider of Bobcat® and Doosan®-branded industrial equipment sales, parts and service, and rental services across its footprint of 11 dealership locations spanning Missouri, Illinois, Indiana, Kentucky, and Tennessee. For more information, please visit www.bobcatofstl.com.

About Acme Operations:
Acme Operations, based in Greenville, SC, is a full service Bobcat® equipment dealer offering new and used sales, rentals, parts and service in North Carolina, South Carolina and Georgia. Acme Operations has a full parts and service department at each of their 6 locations. For more information, please visit www.acmeops.com.

MEDIA CONTACT:

Zach Kouwe/Doug Allen
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

CTIA Announces QualTek Chairman Andrew Weinberg as New Board Member

Washington D.C. – CTIA, the wireless industry association, announced today that Andrew Weinberg, Chairman of QualTek, has joined CTIA’s Board of Directors, effective January 1, 2020.

QualTek is one of the largest providers of turnkey services to the North American telecommunications, infrastructure and power industries. Led by C.E.O. Scott Hisey, the company delivers a range of services including engineering, installation, fulfillment, program management, and recovery services through its more than 100 operation centers in North America.

“QualTek plays a key role in the wireless ecosystem, and we welcome Andrew’s wide range of experience to our Board of Directors,” said CTIA President & CEO Meredith Attwell Baker.

“I’m honored to join CTIA’s Board of Directors during this exciting time for wireless,” said Weinberg. “I look forward to working with other leaders on the Board to help shape our industry’s future.”

Weinberg serves as CEO, Chair of the Investment Committee, and Managing Partner at Brightstar Capital Partners, which he founded in 2015. Since Brightstar completed its acquisition of QualTek in July 2018, Weinberg has served as the company’s Chairman, where he helps oversee long-term strategy and planning. He also serves on the boards of InfraServ U.S., Global Resale, Texas Water Supply Company and Capstone Nutrition, all Brightstar portfolio companies.

The full list of the CTIA Board of Directors is available here.

MEDIA CONTACT:

Luke Kopetsky
lkopetsky@ctia.org

Capstone Nutrition Wins “Manufacturer of the Year” for Second Year in a Row

Ogden, Utah, November 6, 2019 – Capstone Nutrition (“Capstone” or the “Company”), one of the largest contract manufacturers of health and dietary supplements in the United States, has received the 2019 Utah Manufacturer of the Year Award from the Utah Manufacturers Association (“UMA”). This is the 2nd consecutive year Capstone was awarded this honor. The UMA selected Capstone from among the most exceptional Utah manufacturers, who together produce more than $20 billion in economic output. Members of the Capstone team were presented the award at the annual UMA Awards Ceremony on Saturday, November 2nd, 2019.

“Among a field of very qualified manufacturers, we are thrilled to be recognized once again as UMA’s pick for Manufacturer of the Year. This back-to-back award validates Capstone’s remarkable efforts in continuing to embrace our cultural values as a team, and being disciplined in our individual roles. Our vision of ‘Life Improved’ means we share success as a team, including our customers, vendors, shareholders and community. Capstone’s success is due to our dedicated and talented people, and their families who support them,” said Jared Leishman CEO. “I’m proud to be part of a great team of people who love to work here, and who make some of the best and most innovative nutrition products in the world.”

Capstone continues to make huge strides in an enterprise-wide LEAN transformation led by COO Kevin Elsberry and Plant General Manager James Hinkle. Commenting on the journey, Elsberry said, “It’s been invigorating to see how quickly our team has embraced and applied the principles of LEAN thinking. We are seeing results of a true cultural shift every day in operational improvements, increased efficiency and industry-leading performance.” Remarking on the team’s rigor, Hinkle added, “I am proud of the team! They continually embody the cultural values and constantly challenge the status quo. It is great to be part of such a high-performance team!”

Adam Adelmann, EVP of Sales and Commercial Operations added, “We care about our customers. We are their champions, and it shows. With each operational barrier we remove, and with every new efficiency we gain, we are continually coming through for our customers and adding value for their brands around the world. Capstone is proud to be recognized once again as UMA’s Manufacturer of the Year. It reinforces our message that Capstone Nutrition is the right partner to deliver innovative, premium quality products for an extremely good value.”

About Capstone Nutrition
Capstone Nutrition is the leading pure play, turnkey developer and manufacturer of high quality nutrition. Capstone is a one stop shop for innovators in nutrition, bringing to bear the experience of dedicated scientists and trusted industry professionals. Since 1992, Capstone has been formulating, developing, manufacturing and packaging a wide range of capsules, tablets, and powders for customers throughout the globe. Headquartered at its state-of-the-art facility in Ogden, Utah, Capstone is known for exceptional quality and market-leading product development. The Company maintains the highest industry certifications recognizing its exceptional manufacturing standards, including Australia’s Therapeutic Goods Administration (“TGA”), NSF GMP, and NSF for Sport certification. For more information, please visit www.CapstoneNutrition.com.

MEDIA CONTACT:

Zach Kouwe/Doug Allen
Dukas Linden Public Relations
212-704-7385
brightstar@dlpr.com

M&A and the Family Business: Insights from Matthew Allard, Partner at Brightstar Capital Partners

At Brightstar Capital Partners, we invest in and partner with founder and family-owned businesses to help bring them to the next level. A vital element of our value-creation strategy is the broad industry expertise and leadership of our investment team and portfolio company partners.

Here, Brightstar Partner @Matthew Allard provides his insight into the role mergers and acquisitions (M&A) can play in a family business and the various issues that arise during transactions. Matt was recently invited to speak to business owners and others at the Family Business Alliance about this exact topic. Matt has over 25 years in the financial services and investment industry, including extensive experience in M&A. He currently serves as Vice Chairman of @QualTek and as a Board member of @Texas Water Supply Company, both Brightstar portfolio companies.


How can M&A help a family business?

On a fundamental level, M&A can help a business grow by acquiring new divisions, entering new geographic markets, or providing new services. Divesting underperforming business units or subsidiaries that no longer fit into the strategy of the overall company can also help free up cash and redeploy capital into areas that are more beneficial.

In a successful family business, family members often have different objectives with regards to monetizing their stake in the company versus reinvesting into the business. Think about it this way: as we go through a third-generation ownership and assume three children in each generation, the business will go from 3 to 9 to 27 stakeholders pretty quickly. And those 27 people can have different objectives and different ways in which they want to be involved with the company. Some may want to receive current income, some may want to fully monetize, some may want to invest. M&A is a way to satisfy those different interests.


When is the right time for you to think about M&A?

Anytime that you’re thinking about significant change in strategy, growth or liquidity is probably the right time to think about M&A. M&A is a very meaningful event in the life cycle of a business and it needs to be thoughtfully considered as do various inflection points.

If your business is growing organically and you’re developing new products and services on a consistent basis, M&A may not be necessary. It also might not be the right strategy if you have a full family shareholder base that’s in complete agreement on what the overall objectives of the business are.

But in those situations where there are differing opinions or new strategies and objectives, M&A can be an important tool to accomplish those goals.


How does a business prepare itself when it’s considering M&A, and what are the key criteria?

One critical thing you need to do right off the bat is look in the mirror. It’s common to place a lot of focus on the due diligence aspect of M&A, but before you start researching other businesses you have to take a thoughtful look at your own strategy, product lines, growth targets etc. Taking an inward review of your business as you start the process is key to informing what type of M&A strategy will create the most value.

Owners also must realize once you make a decision to embark on an M&A strategy, whether you are buying or selling, it’s typically a 9 to 12-month process. You have to identify either buyers or sellers, prepare yourself to buy or sell, conduct legal, accounting and operational reviews and hire advisors. Financing is also extremely important – how are you going to pay for a new business? Is it going to be personal funds, bank loans, or third-party capital? What is the structure of the financing?

Often times you hire advisors for each of those segments. It’s essential to make sure those advisors understand your goals, and that you develop a good rapport with them.


What are key trends that we’re seeing?

M&A trends often do follow the general health of the economy. Notwithstanding tariffs, and other global issues, we’ve been in a 10-year plus positive economic cycle. And we’ve seen similar trends on the M&A side – larger deal volumes, and importantly, higher valuations.

Average EBITDA multiples for comparable businesses have increased 30-40% from their low point in 2009 and 2010. Many deals were getting done at 8x trailing EBITDA 10 years ago, many of those deals are going for north of 10x or 12x EBITDA today.

At this moment the trends are positive. Nobody has a crystal ball for what things will look like in 6 or 12 months or even a few years down the road. But, generally in a healthy economy and with a high level of business confidence, folks look to M&A as a growth strategy and value creator.


How can a Private Equity firm be a good partner when it comes to M & A?

By bringing in a private equity partner, for either a majority or minority transaction, a family can simultaneously stay involved and continue to own and operate the business, take a cash dividend for themselves and diversify into other areas and grow the business. Private equity can also help if some family members want to disengage from the business, but also want to ensure it will carry on and continue to grow.

The key is building trust with the right private equity firm. They will be your long-term partners and they’re going to have members who will be on your Board of Directors. They have valuable insights and opinions. Some you may agree with, some you may not. Hopefully the end result will be a partnership that creates significant value – where you grow the business to make it bigger, more profitable, and ultimately more valuable.

Let me give you an example: Take a middle market company whose principal investor is in his late 60s and whose focus, like many family business owners, is on his preferred cash coupon. A private equity firm, alongside the company’s management, can purchase his stake, bring new capital into business, and embark on an M&A strategy that grows the company’s EBITDA significantly over time. In addition, a good private equity firm can introduce management to new customers, assist with operational efficiencies and help employ best practices as the company grows.

Ultimately M&A can be a very effective strategy to take a business to the next level and private equity can play a very significant role in that, especially in the middle market. The key is finding the right partners and building trust with the firms and people helping you throughout the process.

MEDIA CONTACT:

Zach Kouwe/Doug Allen
Dukas Linden Public Relations
212-704-7385