Engagement Results

Client:

Atlantic American Properties Trust

Industry:

Financial Services

Size:

$700 million assets under management

Expertise:

Senior Management

Assignment:

A privately held company owned by a private equity fund and a series of institutional investors, Atlantic American Properties Trust undertook the responsibility to fully integrate a second enterprise of similar size located in a different region of the country. The full integration of the new enterprise needed to occur in a manner which created a fully integrated management and professional services organizational capable of being sold to either a public company or secondary financial buyer within 2 - 3 years.

Actions:

A current principal of MainStream was appointed Chief Executive Officer of the Company and with the direct involvement of an in-place management team created an integration strategy for immediate implementation. A comprehensive due diligence effort ensued on the new enterprise, including a review of all in-place leasing contracts, property management agreements, development rights, and management contracts. Recognizing the different cultures and management practices that existed in the two different organizations, management created a "best practices" approach toward the integration of the two companies. Through a planned integration period of six months, the two organizations worked with diligence to meet the pre-determined plan time frames in terms of integration of personnel, IT systems, management structures, financial reporting, and other essential management responsibilities.

Results:

The two enterprises were fully integrated on a financial, strategic, operational, and management platform within six months of initiating the integration. Operating cash flow exceeded original underwriting projections by over 15% and the internal rate of return achieved by the institutional investors exceeded 75% over the holding period. The combined entity was subsequently sold to a publicly traded strategic buyer at a valuation level that exceeded the original underwriting expectations of the institutional shareholders.