Graphic Sciences, Inc. recently acquired by Intellinetics, Inc

Graphic Sciences, Inc. recently acquired by Intellinetics, Inc

by | Mar 27, 2020

Graphic Sciences, Inc. recently acquired by Intellinetics, Inc.

GRAND RAPIDS, MI – March 6, 2020– NuVescor Group is pleased to announce the successful sale of Graphic Sciences, Inc. to Intellinetics, Inc., (OTCQB: INLX).

Intellinetics, Inc., (OTCQB: INLX) is a cloud-based document solutions provider that specializes in document scanning and digital conversion services, located in Columbus, OH. Intellinetics acquired Graphic Sciences, located in Madison Heights, MI, as a wholly owned subsidiary. At present, each company will continue to operate under its own name, maintain current offices, and experience minimal changes in personnel.

A key reason for the acquisition of Graphics Sciences is management’s belief that there is a strong synergy between the two companies, since each provides document management products and services to highly-regulated, risk- and compliance-intensive markets. Intellinetic’s IntelliCloud™ solution suite will be expanded to include Graphic Sciences’ document scanning and microfilm services while Graphic Sciences customers will benefit from the option to gain anywhere, anytime access to their digitized documents via the IntelliCloud Document Management Platform. NuVescor Group, a West Michigan based mergers and acquisitions firm represented Graphic Sciences and introduced the investment opportunity to Intellinetics.

“Adding Graphic Sciences service offerings, industry knowledge, and relationships creates a natural synergy between our two companies”, said James F. DeSocio, President & CEO of Intellinetics. “Adding their document scanning services to our IntelliCloud solution suite will allow us to offer our clients the professional management of capturing their documents, storage of their documents, and secure access of their documents throughout their entire life cycle in whatever form or medium is most appropriate. Plus, Graphic Sciences provides some very specialized services such as book and newspaper scanning, microfiche to microfilm conversions, and long-term paper and microfilm storage and retrieval. This creates many new cross-selling opportunities for us.”

Gregory Colton, outgoing President of Graphic Sciences, Inc., added, “We believe that a larger organization will allow us to provide a wider array of services to our customers. Currently we scan and deliver our customers’ documents onto digital media, such as a DVD, thumb drive or a file on a server. With Intellinetics we will be able to deliver the anywhere, anytime access to those files that our customers have been requesting. We are enthusiastic about what Graphic Sciences and Intellinetics together can do for our customers.” Mr. Colton plans to retire after a transition period to ensure a smooth management integration of Graphic Sciences.

“The exceptional customer trust in Graphic Sciences, and the goodwill created over years, is a testament to the Graphic Sciences unwavering commitment to putting quality and data security first. This culture has its roots in the leadership of Gregory Colton and Tom Liebold, Vice President and General Manager of Graphic Sciences, and we appreciate and expect to benefit from the business and team they have built over the last forty years,” concluded Mr. DeSocio.

Intellinetics was advised on the transaction by Taglich Brothers, Inc., located in Huntington, NY.

About Intellinetics, Inc.
Intellinetics, Inc., located in Columbus, Ohio, is a cloud-based content services software provider. Its IntelliCloud™ suite of solutions serve a mission-critical role for organizations in highly regulated, risk and compliance-intensive markets in Healthcare, K-12, Public Safety, Public Sector, Risk Management, Financial Services and beyond. IntelliCloud solutions make content secure, compliant, and process-ready to drive innovation, efficiencies and growth. For additional information, please visit www.intellinetics.com.

About Graphic Sciences, Inc.
Located in Madison Heights, Michigan, Graphic Sciences, Inc. has been helping organizations become paperless for over 33 years. Through its Image Technology Group and production scanning department, hundreds of millions of images have been converted from paper to digital, paper to microfilm, and microfiche to microfilm for business and federal, county, and municipal governments. Graphic Sciences also provides its clients with long-term paper and microfilm storage and retrieval options.

About NuVescor Group

NuVescor Group, based in West Michigan, is a distinguished mergers & acquisitions service provider that partners with other professional service providers to provide the full array of disciplines needed to have successful and timely business transactions. NuVescor utilizes a proprietary proven process that greatly increases the success rates for business transactions as well as the customer experience.

Cautionary Statement Regarding Intellinetics, Inc.
Statements in this press release which are not purely historical, including statements regarding the synergies, cross-selling opportunities and other benefits of the Graphics Sciences acquisition; future business; and new revenues associated with any product, industry, market, initiative, service or innovation; market penetration; execution of Intellinetics’ business plan, strategy, direction and focus; and other intentions, beliefs, expectations, representations, projections, plans or strategies regarding future growth and other future events are forward-looking statements. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with acquisitions generally and the ability of the Company to achieve the intended benefits of the Graphics Sciences business specifically, the future business, operations and financial results of Graphic Sciences, the effect of changing economic conditions, trends in the products markets, variations in Intellinetics’ cash flow or adequacy of capital resources, market acceptance risks, the success of Intellinetics’ channel partners, technical development risks, and other risks, uncertainties and other factors discussed from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including in Intellinetics’ most recent annual report on Form 10-K as well as subsequently filed reports on Form 10-Q and Form 8-K. Intellinetics cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Intellinetics disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Intellinetics on its website at www.intellinetics.com or at www.sec.gov.

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Don’t Miss the Market: How to Know When it is Time to Sell!

Don’t Miss the Market: How to Know When it is Time to Sell!

by | Nov 7, 2018

Don’t Miss the Market:

How to Know When it is Time to Sell!

I remember a conversation I had with John whose business was doing extremely well. He was enjoying life and thought he was in a place that he could sell his business whenever he wanted, which would give him the financial resources to enjoy retirement. That was over 10 years ago, and John did not know his business value at that time was based on peak market conditions. John was in a small window of opportunity that could close at any time without much warning. He signed a large loan to expand the business, not knowing he would soon see his business and personal investments lose half of their value virtually overnight. Luckily, 10 years later John’s personal and business situation is almost back to where it was. However, now in his 70’s and with health issues, he cannot recapture the time he has lost waiting for peak market conditions to return.
The data was there but neither John nor I knew how to read it. Today we monitor important market conditions by tracking information such as: valuation multiples, interest rates, capital available for banks to lend, ratio of buyers to sellers and overall economic conditions.
We track this market data through subscriptions to multiple databases, and our team consolidates information from a variety of other sources. We also track the M&A market sectors specific to our clients. Understanding how to read this data is the key to knowing how to tell when there is a peak market and what type of value you could get for your business.
A summary of the data we use is described below starting at a macro picture of the market down to how the market is directly affecting the value of your specific business. This is accomplished by looking at the following:

Economic Outlook
• Key Economic Variables (actual and forecasted) shows the trends and predictions for real GDP, industrial production, consumer spending, consumer price inflation and business investment
• Commercial Rates Graph shows the changes and trends of commercial interest rates
• Commercial Loan Volume Graph shows the amount and trends of lending

Stock Market
• S&P Index Graph shows the trend and volatility of the large public stock market
• S&P EV/EBITDA Graph shows the valuation of the large public stock market
• Russell 2000 Index Graph shows the trend and volatility of the small public stock market
• Russell 2000 EV/EBITDA Graph shows the valuation of the small public stock market

Middle Market Environment (companies valued between $1 Million and $500 Million)
• US Mergers & Acquisitions Market Index provides the total number of transactions completed in the USA
• US Middle Market Monitor provides the average EBITDA multiple for transactions completed in the Middle Market
• US Private Equity Report provides the number of and EBITDA multiples for transactions completed by private equity groups
• US Strategic Buyer Report provides the number of and EBITDA multiples for transactions completed by corporate buyers acquiring other companies
• US Sector Activity provides the number of transactions by sector to see what areas of the economy have the most M&A activity

SME M&A Environment (companies with less than 250 employees and less than $50 Million in Revenue)
• Multiples by Size Graph indicates the valuation trend of companies of a given revenue size
• Multiples by Sector Graph indicates the valuation trend of companies in a given industry

NuVescor’s Proprietary Report: Specific Company M&A Environment (a specific proprietary report created just for your business based on specific buyers active in your industry)
• Multiples: private equity, strategic companies and individuals (if appropriate) are surveyed to obtain current EBITDA Multiples these buyers are willing to pay based on the characteristics of the unique business
• Deal Structure: the amount of cash versus seller financing or earn out these buyers are willing to pay

If you would like to receive a copy of the reports referenced above, please click below:

Click Here to Request Reports

Sincerely,
Randy Rua CEPA, CBA, MBA, CVB

AGET Manufacturing recently acquired by Madison Street Holdings, LLC

AGET Manufacturing recently acquired by Madison Street Holdings, LLC

by | Sep 24, 2018

 

AGET Manufacturing recently acquired by Madison Street Holdings, LLC

 

NuVescor Group is pleased to announce the successful sale of AGET Manufacturing to Madison Street Holdings, LLC.

AGET Manufacturing is in the air filtration sector and is a well-established Company that develops, manufactures, markets and sells a line of equipment used in nearly every manufacturing setting. The Company’s product line includes proven manufacturing support equipment with strong brand recognition.

AGET Manufacturing, operating in Adrian, Michigan, was founded in 1938 and has a long history of making and selling equipment for dust collection, with customers throughout the United States and around the world. The well-diversified customer base includes manufacturers in the wood working, metal processing, pharmaceutical, food, agriculture and plastics industries. Superior quality and excellent customer service have generated an exceptional reputation and loyal customer base. The primary collection units are cyclones and shaker baghouses.  Other products include blower/baghouse units, mist collectors, chip/mist collectors, rotary valves, back draft dampers, down draft tables, zipper ducts, and various combinations of equipment.  Rob DePierre, the former owner said, “I could not be happier with John and Lauren, AGET is poised for incredible growth and I have every confidence that they are the team to do it.”

Madison Street Holdings is owned by Lauren Cato and John Mitchem. Lauren is a graduate of the University of Michigan and Wayne State University Law School.  Lauren began her legal career with a focus on real estate and further refined that focus to the wireless communications industry in its infancy.  Following working as a Partner at Richard Conner Riley and Associates, LLC (RCR), and a Director at Black and Veatch following its acquisition of RCR, Lauren founded wireless site acquisition company Catalyst Network Services, LLC in and is currently its President. John is a graduate of Wayne State University in Industrial Engineering.  John began his automotive career in the steel processing industry as a metallurgist.  John worked in both Technical and Sales and Marketing leadership roles at Masco Industries, MascoTech companies, American Axle and most recently Vice President at MPG, a NYSE publicly traded company.

They saw in AGET an opportunity to leverage their combined business experience of Lauren’s 27-year legal background and business owner and John’s 30-year automotive supplier background to grow and develop the company. There is a strong management team in place and opportunity to expand sales into additional industries as well as increasing production capabilities for existing customers. According to Lauren, “We saw an immediate fit with the AGET team and are very excited to work closely with them to take AGET to the next level. Rob has done an incredible job streamlining processes, developing the management, marketing and sales channels and growing AGET to where it is today — a successful and profitable, well-run organization. “

NuVescor proudly served as the exclusive mergers and acquisitions advisor for the seller. For over a decade, NuVescor has been a leader in the Mergers & Acquisitions industry in Michigan. With years of experience and a unique proven process, the NuVescor teams works together to ensure successful and timely business transactions, delivering excellent results to their clients. For additional information, please visit www.nuvescor.com

Grand Rapids-based Auxo Investment Partners acquires die manufacturer

Grand Rapids-based Auxo Investment Partners acquires die manufacturer

by | Aug 16, 2018

Grand Rapids-based Auxo Investment Partners acquires die manufacturer

This article was originally published by MiBiz on August 7, 2018.

Written by  Mitch Galloway

GRAND RAPIDS — Manufacturer Midway Rotary Die Solutions has sold to a West Michigan-based private equity firm.

In its latest deal, Grand Rapids-based Auxo Investment Partners will add more capabilities to its die manufacturing platform with the investment in the Williamston-based manufacturer, said Managing Partner Jeff Helminski.

Included in the acquisition are 50 employees from Midway and a roughly 20,000-square-foot facility in Williamston, Helminski said. The 33-year-old company is the “quintessential story” of two entrepreneurs, Richard and Betsy Seeley, who “found their business and poured their professional life’s work” into building a “world-class organization,” he added.

“(Acquiring Midway) really expands our platform, giving us a larger share of a very fragmented industry, particularly the more sophisticated, technically demanding segment of that market,” Helminski told MiBiz.

The acquisition of Midway makes for the P.E. firm’s fourth acquisition in 11 months.

Prior to the acquisition of Midway, Auxo purchased two die companies in September of 2017 — the Elkhart, Indiana-based Atlas Die LLC and the Rochester Hills-based Bernal LLC —  as well as New Orleans-based barge company M/G Transport Services later that year, as MiBiz reported at the time.

By acquiring Midway, Auxo’s portfolio of companies will give customers access to dies ranging in size from 12 inches to larger than 100 inches, Helminski said.

“Adding Midway’s capabilities to what Bernal and Atlas do allow us to provide a complete product offering of rotary dies, including flexible dies, crush cut dies, rotary pressure dies, across the entire range of widths,” he said. “Midway fit a gap in the existing product portfolio that Bernal and Atlas had, and they were one of the first companies we identified when we bought Bernal and Atlas.”

According to Helminski, Midway serves the automotive, medical and food sectors. Some of the company’s clients include the Maplewood, Minn.-based manufacturing conglomerate 3M and the Norcross, Ga.-based corrugated packaging manufacturer WestRock.

“It was our dream when we bought Midway in 1985 with six employees to build it into a world class organization,” stated Rich Seeley, CEO of Midway Rotary Die Solutions, who will retire following the transition. “We spent the last 33 years providing the highest-quality products and service in our industry, and we couldn’t be more pleased to find, in Auxo, a partner who can help our colleagues continue to grow and develop opportunities to provide further innovation and value to our customers.”

Terms of the deal were not disclosed.

Following the acquisition, Ken Smott will become CEO of Midway to go along with his current leadership roles at Atlas Die and Bernal.

“Combining Midway with our existing portfolio of die producers allows us to offer our customers an increasingly broad, innovative suite of capabilities, helping them to deliver superior quality and efficiency in their own businesses,” Smott said in a statement.

Between its facilities for Midway and Bernal, Auxo is looking to hire roughly 10 employees, Helminski said.

The Grand Rapids-based M&A firm NuVescor Group LLC served as an adviser to the seller. Other advisers on the transaction include the Grand Rapids-based law firm Miller, Johnson, Snell & Cummiskey PLC, Indianapolis, Ind.-based law firm Barnes & Thornburg LLP, Chicago, Ill.-based accounting firm BDO USA LLP, Grand Rapids-based bank Mercantile Bank of Michigan, Columbus, Ohio-based investment firm Oxer Capital Inc., London-based insurance company Aon Plc. and Grand Rapids-based health insurance firm Advantage Benefits Group Inc.

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Editor’s note: This story was updated from its original version. 

Lakeland Finishing Corporation Merges with Monroe Group Holdings

Lakeland Finishing Corporation Merges with Monroe Group Holdings

by | Apr 3, 2018

Lakeland Finishing Corporation Merges with Monroe Group Holdings

NuVescor is pleased to announce the successful merger of Lakeland Finishing Corporation in Grand Rapids with Monroe Group Holdings in Grand Rapids.

Lakeland Finishing Corporation provides a full range of quality product finishing services to the automotive and transportation markets. Its specialty is coating of plastic molded automotive trim parts, as well as manufacture and supply of decorative plastic components for automotive interior and exterior trim.

It has experienced, expert employees who work with the latest technology and the top vendors in the industry to provide multiple finishing solutions on a wide variety of customer substrate materials. Lakeland also offers auxiliary services such as injection molding, pad printing, assembly and warehousing to save customer costs in handling and transportation.

Monroe Group Holdings, a subsidiary of Huizenga Group, is a privately held firm that provides highly engineered analog gauge pointers and light guides for the automotive industry.  This merger aligns the core competency of Lakeland and Monroe LLC bringing together a strong partnership between the companies in terms of leveraging a full compliment of vertical integration and plastic finishing.  The addition of Monroe’s vertical integration and capacity in tooling, molding, painting, assembly automation and engineering services allows for greater single source opportunities within their combined customer base.

NuVescor is a distinguished mergers & acquisitions service provider that partners with other professional service providers to provide the full array of disciplines needed to have successful and timely business transactions. NuVescor uses the Rua Transaction Process, a proprietary proven process, that greatly increases the success rates for business transactions as well as the customer experience. For additional information please visit www.nuvescor.com.