Financial Asset Management Systems (FAMS) Acquired by Management and Public Buyout Firm

Kaulkin Ginsberg views transaction as symbolic of active M&A market

BETHESDA, MD, February 6, 2006 – Kaulkin Ginsberg Company today announced the sale of Financial Asset Management Systems, Inc. (FAMS), a leading accounts receivable management company, to management and American Capital Strategies, Ltd. (Nasdaq: ACAS). Kaulkin Ginsberg Company initiated this transaction and served as advisor to FAMS.

The acquisition of FAMS was completed in 2005 by American Capital, a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion, and the senior management team at FAMS. The transaction was structured as a buyout of the stock of the company owned by the founding partners, R.T. Cardwell and T.M. “Pete” Nance. The terms of this transaction were not disclosed. All senior managers will remain with FAMS and have an equity stake in the business. Noted Mr. Cardwell, “We wanted to make sure the sale was a good fit for all of FAMS’s existing employees and a great opportunity for the senior management team.”

“Attractive industry fundamentals, combined with FAMS’s strong, non-cyclical revenue base and potential for growth, make this an excellent investment for American Capital,” said American Capital Managing Director Jon Isaacson. “We look forward to working with FAMS’s strong and seasoned management team.”

According to Jim Paxton, the President and CEO of FAMS, “Our management team and I are very pleased to become a part of American Capital’s portfolio of companies. Their financial strength and exceptional leadership coupled with our strong platform will position FAMS to accelerate its already impressive track record for growth.”

As companies and governments continue to recognize the benefits of outsourcing non-core business functions, such as accounts receivable management, to third party experts, well-run service providers like FAMS are poised for tremendous growth. According to Brian Greenberg, Managing Director of Kaulkin Ginsberg, “The growth of outsourcing is just one of the positive catalysts that drove M&A activity to a record-breaking level in 2005.” According to Kaulkin Ginsberg Company, the ARM industry generated over $1.7 billion in mergers and acquisitions in 2005, the second consecutive year of record M&A activity. Greenberg added, “We expect this level of deal activity to continue in 2006 as buyers are still aggressively pursuing market leaders across multiple sectors.”

About Financial Asset Management Systems (FAMS)
Founded in 1993, the company services clients predominantly in the financial services, government/education, and telecommunication/wireless industries and employs approximately 500 professionals in four offices located in Atlanta and St. Louis. Its headquarters is located in Atlanta, Georgia. FAMS provides contingency collections, outsourcing, client care, and customer relationship management (CRM) services.

About American Capital
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to private and small public companies and through its asset management business is a manager of debt and equity investments in private companies and commercial loan obligations. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.

About Kaulkin Ginsberg Company
Kaulkin Ginsberg Company is the leading advisor to the Accounts Receivable Management industry. Since 1991, the firm has advised on more than 100 ARM transactions with aggregate deal value in excess of $2.5 billion. The Strategic Advisory Group provides merger, acquisition, and valuation advice; operational consulting; and executive search services. The Research Group produces industry-specific publications and custom research products. The Kaulkin Ginsberg family of companies also include Kaulkin Media, publisher of the most popular sources of industry information such as CollectionIndustry.com(TM) and Credit & Collection Daily(TM). Read more about Kaulkin Ginsberg at www.kaulkin.com.

LATEST BLOGS

Options Abound for Sellers of Lower Middle Market Businesses

July 18, 2017

There is no shortage of buyers for a selling company in the lower end of the middle market. Sorting through all prospective buyer candidates to find the very best for your business is a challenge that any owner shouldnt take lightly.....

» see this post    » all posts


Changing with the Times: Cybersecurity in Collection

July 13, 2017

Collection agencies have a lot of valuable information that hackers are looking to get their hands on. Are you protected?....

» see this post    » all posts


Is Your Business Prepared for a Sale?

July 11, 2017

Preparing a business for a potential sale is not only a defensive move that an owner can take, but it is also prudent to business. Here are a few ways to make sure you're prepared.....

» see this post    » all posts


RECENT ANNOUNCEMENTS

Kaulkin Ginsberg Moves Its Market Intelligence Online

June 8, 2017

Kaulkin Ginsberg is changing the way busy owners, executives, and senior leaders access strategic market intelligence with the launch of KG Prime. KG Prime is a comprehensive and easy to use web-based service that provides users with economic, market segment, and other forms of strategic research.....

» see more




AXIAL FORUM - Publishes "Succession Planning - A Critical Missing Element in Many Family-Owned Businesses"

June 7, 2017

AXIAL FORUM, a web-based strategic mediator for the M&A industry, recently published an article succession planning by Topline Valuation Group. This article was co-authored by members of the Topline Valuation Group and Kaulkin Ginsberg team....

» see more




ACA of Texas Publishes "Three Critical Healthcare Industry Trends for Outsourced Business Services" in its Winter 2017 Magazine

March 16, 2017

The ACA of Texas Publishes "Three Critical Healthcare Industry Trends for Outsourced Business Services" by Kaulkin Ginsberg in its Winter 2017 Magazine. Kaulkin Ginsberg details its belief that the growth in patient lending and financing programs, clinical integration networks, and physician quality reporting systems for the Centers for Medicare and Medicaid Services (CMS) could have profound effects on companies focused on servicing healthcare providers in 2017 and beyond.....

» see more