Liquidity and Succession for a Management-Owned Businesses
Client: TranService Logistics recapitalized by ZS Fund LP.
Transaction: In May 2007, ZS Fund completed a recapitalization of TranService Logistics and its affiliated companies for an undisclosed amount. TranService is a leading national land-based transportation, distribution and logistics provider that has enjoyed long-standing relationships with marquee customers. As of the transaction date, the company had a growing revenue base well in excess of $100 million. The company, founded in 1969, was owned and managed by two senior industry executives whose ongoing involvement was viewed as key by customers and employees.
The Burnham Solution: Burnham’s familiarity with management-owned businesses and extensive relationships with private equity funds enabled us to quickly identify the most appropriate backer. The resulting recapitalization introduced a new senior executive to the management team and provided liquidity for the existing owners while assuring their continued participation in management and ownership.