Capstone Headwaters, a leading middle market investment banking firm, advised SIB Fixed Cost Reduction, a provider of cost savings review and recovery services, on its sale to O2 Investment Partners, LLC. Terms of the deal were not disclosed.
SIB, headquartered in Charleston, SC, is a leader in fixed cost reduction services providing invoice analysis, vendor negotiation and cost monitoring for customers across a variety of expense categories including telecom, utilities, and waste management. The company earns contingent fees based on the savings found for clients.
Kevin Flounders, CEO of SIB commented, “We are very excited to partner with O2 to help us facilitate our next stage of growth. We have built a unique and robust platform and would like to continue our aggressive expansion. We also have a strategic plan to expand our service offerings and sales capabilities through targeted M&A and investments in our team. Our Company and platform are poised to scale and we believe O2 is the perfect partner to help us achieve our goals. We also believe that SIB will be a reliable partner to our clients and prospects in these uncertain times as executives look to manage their operations and cost structures.”
Capstone’s Fintech team was our advisor of choice due to their deep understanding of the market dynamics and how our solutions fit in the invoice services ecosystem. David Kelley, Chief Financial Officer commented, “Capstone provided unwavering support throughout the entire process to help us navigate the complexities of our deal structure and to find the appropriate partner that shared our vision.”
“The executive team comprised of Dan Schneider, Kevin Flounders and David Kelley have built a unique business with a loyal customer base that is poised to continue growing under new ownership”, stated David Francione, Managing Director, Fintech, at Capstone.
Pat Corden, Partner at O2, commented, “We are very excited to partner with Kevin Flounders, Dan Schneider, and the SIB team. SIB has established a strong position in its industry and we believe there is tremendous opportunity for organic growth in all types of economic environments. Our goal is to support management’s vision and supplement organic growth with a targeted M&A strategy.” Mr. Corden added, “We also want to thank our financial partners TCF Bank and LBC Small Cap Credit for their confidence and participation in this investment.”
O2 Investment Partners is a Midwestern based private equity firm that seeks to acquire majority interests in lower middle market B2B services, technology, and select niche industrial companies. The firm invests in businesses with earnings growth potential and a clear path to the creation of shareholder value.