Welcome to the October issue of ACM Capital Partners’ Value Line newsletter. In this exciting issue, we discuss the pooling of our clients’ risks in an effort to save on both property and casualty, as well as health benefits for 2015 and beyond. We also discuss the successful completion of the debt restructuring for our water meter manufacturer located in Central Florida.
ACM WORKS WITH ITS INSURANCE PARTNERS TO CREATE RISK POOLS FOR ITS CLIENTS’ P&C AND H&B
The firm has been actively working on leveraging its resources and expertise to create shared insurance risk pools, either through related parties or through the formation of offshore captives.
“This move is a natural extension of our present service offering for our clients,” said ACM’s Managing Partner, Jim Martin.
We have identified significant savings for our clients which we began to achieve, through pooling, in late 2012. While our focus initially was on the property and casualty side of our clients’ risks, we have expanded our capability into the health and benefit areas as well. This progression will serve our clients well as Obamacare kicks in for 2015 and beyond.
For more information on this program, kindly contact Ms. Tiffany Augusta at taugusta@acmcapitalpartners.com
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ACM WORKS WITH THE USDA AND FINALIZES THE RESTRUCTURING OF $5M IN DEBT
This case embodies the Great Recession in so many ways. We had previously discussed the initial transaction for this water meter testing company located in Ocala, Florida.
The company, founded thirty years ago, had grown throughout the U.S. and the Caribbean. The founders had purchased its building before the Great Recession and made substantial improvements to the facility, including the installation of test benches and related equipment.
During the Great Recession, municipalities had slowed orders for the test benches and related equipment. Further exacerbating the slowdown, the real estate market in Central Florida collapsed which prompted the lender to call the note.
ACM was hired in late 2013 to assist the founder and his wife with the negotiations with the lender and its co-lender, the USDA. After several months of negotiations, ACM successfully closed on a revised payoff with the lender. The corporate debt was one piece of the equation as ACM had to deal with the lender and the USDA on the personal guarantees. After several months, the co-lenders agreed to a global settlement in late October. The result was a $5M forgiveness for the husband and wife.
Said the founder in a letter sent to our firm, “I still cannot imagine how you accomplished this feat and were able to convince the bank to accept a buyout deal that we were not capable of doing ourselves, and that allowed our trusted employees to continue their work at this thirty year old company….Our personal thanks from my wife and me, as we can now live in peace without a business failure and bankruptcy in our history or future.”
