Tax Wise

Tax Wise

Company Overview

Develops professional tax preparation software used to complete and electronically file income tax returns and apply for refund anticipation loans.

Middle market private equity firm focused on companies in the business services, healthcare and education industries.

Situational Overview

Annually, largest competitor made offers to purchase the Company. Although the founders wanted liquidity, they were reluctant to sell to a strategic buyer because of the prospective impact to local employment.

Although the founders had made management transition plans by hiring a new CEO, he had no meaningful ownership in the Company

BCA believed that we could construct a narrowly marketed process strictly to select private equity firms that could provide significant initial liquidity, meaningful upside through limited rollover, preserve confidentiality and limit management distraction and create a significant option pool for current management.

BCA Strategy

Identified and approached a limited group of prospective financial buyers.

Assisted management in preparing investment materials that could be distributed to a wide range of funding sources that highlighted the opportunity for higher growth and profitability.

Helped UTS shareholders obtain definitive information on the range of liquidity that could be achieved through any combination of debt and equity investments.

Transaction Result

UTS completed a majority recapitalization led by Primus Capital.

A combination of debt and equity enabled shareholders to achieve substantial liquidity while retaining significant minority ownership.

The new option pool incentivized and enabled current management to participate in the Company’s value creation.

Recapitalization Led by
$65,000,000

“The BCA team exceeded our expectations, helping us anticipate and resolve the inevitable conflicts that occur with these types of deals. They were ready and able to handle the evolution of the sale from a technical standpoint while also helping reconcile the goals of the sellers, buyer, and management team. BCA went above and beyond what you'd expect to find with most firms and closed the deal.”

- Bill Anderson
CEO, Universal Tax Systems Inc