Metro Creative SCW
Metro Creative SCW
Metro Creative Graphics, Inc., a closely held company based in New York , New York , is a provider of graphics services to newspapers throughout the US . It sought to secure equity capital to convert its graphics library into an electronic version. We determined that a much more attractive solution to securing capital was in financing the acquisition of its only major competitor, SCW, Inc. As it was essentially the purchase of a customer list, a significant increase in profits would accrue to our client from the increased revenues.
SCW, Inc., a West Coast division of The E. W. Scripps Company was engaged in an identical business. Previously SCW, Inc. had approached Metro Creative Graphics, Inc. to purchase its business. We initiated discussions and assisted management in its negotiations with The E. W. Scripps Company, helped the company prepare its financial plan and approached the most likely lenders.
OEM Capital’s presentation of the acquisition’s attractiveness to a number of lenders secured the required funding in a timely manner from the New York Graphics Arts Lending practice of Marine Midland Bank. The investment allowed Metro Creative Graphics, Inc. to implement its transition to an electronic version of its graphics library and launch its software subscription services and provide it with additional revenues and cash flow.
Our success with Metro Creative Graphics, Inc. illustrates that, whether a business is healthy or distressed, superior results can be realized for the shareholders by a well executed approach by merger and acquisition professionals who are knowledgeable about the state of the financial markets and the intentions of its participants.