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CPC Associates
The Company
CPC Associates (the “Company” or “CPC”) is a mailing list compiler, broker and list manager to the direct mail industry. CPC also provides value added database and marketing services including data hygiene and enhancement, data profiling and modeling and electronic mail deployment. The Company has a diverse client base including many Fortune 500 companies.
“KPMG Corporate Finance was absolutely amazing. KPMG was given an extremely short period of time to identify potential equity partners, help negotiate terms and assist in concluding the transaction with the sellers. KPMG’s knowledge of the market space and its personal relationships with equity firms made the management buyout a reality.”
CPC Associates
The Situation
The shareholders of CPC were in the initial stage of exploring their exit alternatives when the Chief Operating Officer (the “COO”) approached them with his interest in acquiring the Company. The owners granted the COO a period of limited exclusivity to raise the necessary capital to purchase the Company. Consequently, the COO engaged KPMG's Corporate Finance to advise him on his purchase of CPC and assist him with raising and structuring the capital necessary to purchase the Company.
The Solution
Given the limited period of exclusivity, KPMG Corporate Finance conducted an expedited limited auction. Leveraging our industry contacts with private equity firms and other sources of capital, we contacted several parties that were interested in investing with the COO. Further, we coordinated and assisted with management presentations and subsequent due diligence with those interested parties. After receiving many offers, the COO selected Kinderhook Industries, LLC as his financing partner. KPMG Corporate Finance assisted the COO in negotiating the terms of the buyout, including the management team’s equity ownership and employment terms. KPMG Corporate Finance’s extensive industry experience and contacts with a broad range of financial sponsors were fundamental to our ability to conduct a successful competitive auction in an expedited manner.
