MB Business Capital, a division of MB Financial Bank, N.A., announced it recently provided a new $15,500,000 senior credit facility to Texarkana, Arkansas based Tri-State Iron & Metal Co., Inc. (“Tri-State”), a client of Butler Snow Advisory Services, LLC (BSA). Tri-State is a third-generation, family-run business that has been in business since 1947. They are a metals recycler that recycles both ferrous and nonferrous materials, as well as a small amount of paper and plastic. MB’s credit facility will be used going forward to fund working capital needs and acquisitions.

“MB Business Capital understands and has extensive experience working with cyclical companies like Tri­ State. We creatively structure facilities that allow our borrowers to have full control over their availability requirements. We are very happy to welcome Tri-State Iron & Metal Co., Inc. to MB.” says Michael Sharkey, President of MB Business Capital.

“We have been in business for over 70 years and in that time we have had two banks. Now that we are with MB Business Capital we look forward to working together with them as our third banking relationship. Their desire to understand our business and growth plans are what helped us decide to make the change. Our family and team here at Tri-State look forward to a long lasting relationship built on trust and understanding of the dynamic environment we operate in.” says Howard Glick, CEO of Tri-State Iron & Metal Co., Inc.

BSA provided assistance on the new transaction. Butler Snow Advisory is a subsidiary of the law firn of Butler Snow LLP. With offices in Memphis and Nashville, Tennessee, Birmingham, Alabama and Jackson, Mississippi, BSA works with clients throughout the country as they address their most critical challenges and opportunities, helping to lead their businesses through periods of growth and transformation. Butler Snow Advisory specializes in providing executive-level strategic guidance to private, family owned and closely held companies

“MB Capital was a pleasure to work with throughout the process of establishing this new credit facility. Their team displayed a genuine desire to understand the metal recycling business and to architect a solution that was customized to our needs. The Tri-State team has delivered outstanding results in the face of market fluctuations, and this new facility will ensure that ample capital exists to support future growth. Butler Snow Advisory is pleased to have partnered with Tri-State and MB Business Capital to forge this new relationship.” said Scott Stone, Principal at Butler Snow Advisory.

About MB Business Capital
MB Business Capital is the asset based lending division of MB Financial Bank, a commercial bank headquartered in Chicago, Illinois. MB Business Capital seeks asset based lending opportunities in the $5 million to $50 million range and is offering dedicated syndication opportunities of up to $100 million. The firm can also provide access to the full range of business banking products and services offered by MB Financial.


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When pitted against other states in the union, it’s often said that Mississippi scrapes the bottom of the barrel (or ranks at the top of a not-so-flattering list). Often overlooked, however, are conditions that can contribute overall to a favorable business climate: a strategic geographic location, tax-exempt financing programs and the nation’s lowest cost of living are just a few factors that lure companies to the Magnolia State and encourage home-grown entrepreneurs to set up shop here.

There are more than 43,000 small- to medium-sized private businesses operating in Mississippi. Though recovery for local economies has been slower than that of the national economy, evidence of resurgence for Mississippi companies is on the horizon: the combined annual sales of the Mississippi Business Journal’s Top 100 Private Companies in Mississippi topped $25 billion for the first time ever with the Journal’s 2015 list. To boot, 10 of those companies began in the past 15 years – making their successes all the more impressive.
Dozens more Mississippi companies are poised for growth in the coming years, yet many may be unaware of how to take their company to the next level.

What is Growth Capital?
As a company generates profits, owners may elect to reinvest some of that money back into the company, establishing a growth capital fund. Fund dollars can be socked away, earning interest, until it’s deemed the company has a use for it – an acquisition or expansion, for example. More often than not, however, a company’s needs or opportunities exceed the cash on they have hand. What then?

Options for Capital
Each company and its needs are unique, and there are many sources of capital – from traditional lenders, like banks and other institutions, to venture capital firms to Uncle Moneybags, your great aunt’s second husband. But there are two main categories of financial capital: debt and equity. To best illustrate their uses, advantages and drawbacks, I’ll refer to client scenarios we’ve seen over the years.

Scenario 1: Growth through Acquisition
Consider Company X: a developer and manufacturer of medical devices and technologies headquartered in the Southeast. The company owned intellectual property, including multiple patents, and was funded historically with private, individual investors. Now, Company X had the opportunity to acquire an established, 25-year-old manufacturing and assembly company with solid free cash flow.

Company X was able to use multiple sources and forms of financial capital to make this acquisition. Since the company being acquired had real assets that could be used as collateral and adequate cash flow to repay the debt, Company X was able to utilize commercial bank debt capital. (In addition, individual investors contributed equity capital, resulting in their owning a piece of the combined company – similar to owning shares of a stock in a publicly traded company. But more on equity capital in our second scenario.)

Debt capital is attractive in many instances, including its all-around fit; debt financing is used to fund most any type of business. In addition to banks and other lenders that traditionally come to mind, financing is also available through the Small Business Administration (SBA) and local institutions. Relative to equity capital, debt capital is typically a short-term financing option, and the relationship with the lender is concluded once funds have been repaid.

On the flip side, the downside of debt capital is the monthly obligation that accompanies it. Companies strapped for cash must consider the burden of repaying a chunk of their monthly revenues to the lender. Whereas a company may have flexibility in repaying equity capital, the debt note will come due each month, regardless of the company’s success. Consequently, a dip in revenue can spell trouble for some enterprises.

Scenario 2: Reducing Competition through Acquisition
Consider Company Y: a second-generation, family-owned textiles business. Company Y’s owners had been in business for more than 15 years, financing the company’s growth themselves, largely via bank debt that the family guaranteed. Company owners had the chance to make an acquisition that would dramatically shrink their competitive landscape. Despite sizable annual revenues, the company was already leveraged with bank debt and had limited options to secure additional debt capital from a traditional lender. Therefore, the only real form of financial capital the business could use to make the acquisition was equity capital – that is, cash in exchange for an ownership stake in the company.

When considering equity capital, it’s important to understand that accepting money from others – now investors in your company – changes the game in a number of ways. Issuing ownership in exchange for capital means you’ll have to determine the value of your company – oftentimes more an art than a science, and a subjective one at that. Particularly in the case of a family-owned business, owners may be reluctant to share ownership with anyone new – especially someone outside the family. It’s safe to say that infusing equity capital into a company ushers in a fair amount of new “red tape.”

One upside of equity capital is that it doesn’t have to be paid back on a monthly basis, thereby diverting funds from the company. On average, investors look for a return on their dollars in the subsequent three to five years – allowing majority owners breathing room to nurture the company and make it profitable. In addition, if the business goes under, there’s no one to pay back. And, although bringing in another owner may be a downside to some, the introduction of new blood and new experiences and perspectives can ultimately benefit the company.

In the case of Company Y, we helped secure capital in exchange for a stake in the company, allowing our client to make the acquisition, retain a majority stake in Company Y and shrink his competition. A few years later, we helped the owner sell Company Y, whose valuation and position in the marketplace was strengthened because of the prior acquisition.

Scenario 3: Launching New Products
Lastly, consider Company Z: a young, emerging technology company. With a decade-long proven track record in the market, Company Z was about to embark on an aggressive growth plan through the introduction of multiple products. Company Z funded its early growth with equity capital, while establishing solid commercial banking relationships that provided them with several debt capital vehicles for day-to-day operations. Because Company Z had adequate cash flow for debt repayment, when evaluating options to finance the launch of these new products, they elected to use mezzanine capital and subordinated debt.

Mezzanine capital is considered a hybrid between debt and equity. It generally looks like debt capital in that it has an interest rate, a term and associated conditions, but with the added upside of longer maturities and more flexible terms and structure. Generally, it is subordinate to commercial bank debt, which, in terms of repayment, sits in a senior position. A mezzanine lender typically has warrant coverage, allowing the security to convert to equity in the company if the loan is not paid on time or repayment conditions aren’t met. Variations of this type of financing may also allow the borrower to repay some of the money in equity as well.

In this case, Company Z chose mezzanine financing because it was far less expensive than equity capital and had less stringent terms and conditions than that of commercial banking/senior debt.

Again, no one type of financing is suitable in every situation. There are many factors that should be considered when seeking capital, and consultation with a qualified capital intermediary is strongly recommended. With analysts anticipating the second consecutive year of growth in the state’s gross domestic product since the downturn, Mississippi’s private companies could be poised to ride the wave.

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Butler Snow Advisory Services, LLC
(BSA), announced today the company’s continued expansion with the addition of Sam J. Jenkins, Managing Director, to its Memphis location and Blair R. Badham, Managing Director, to its Birmingham office.

“We’re excited about our continued growth in both Memphis and Birmingham and are pleased to add two accomplished professionals to our team,” said President and CEO Matt A. Thornton.  “Sam and Blair have extensive corporate and investment banking expertise, and they will be tremendous assets to our team and to the clients we serve.”

Sam Jenkins

Sam Jenkins

Jenkins has more than 35 years’ experience in corporate finance and investment banking, including a 28-year career with First Tennessee Bank.  As Executive Vice President of corporate banking, he led and managed the bank’s efforts to attract and maintain Middle and Corporate Market clients across the country, helping develop and implement marketing and business development strategies. Under Jenkin’s leadership, the Corporate Banking Group was ranked first company-wide for overall Contribution Income (NIBT), Contribution Income per FTE, Treasury Services Sales, Deposits Acquisition, Derivative and Loan and Ancillary Fee Production for 2005-2008.

Jenkins joins the BSA team from Capstone Financial Services, a Memphis-based corporate advisory firm he founded in 2009 to serve commercial and corporate clients, community and regional banks and private equity capital providers across the Southeast. He holds a B.A. from the University of Alabama, with a focus on finance and banking, and an M.B.A. from the University of Memphis, where he graduated first in his class.

Badham brings over a decade of experience in corporate finance, strategy and operations to the group.  Previously, he served as Director of Business Development for EBSCO Capital, the investment division of EBSCO Industries with $300 million in committed equity capital.  Headquartered in Birmingham, EBSCO Industries is a privately held conglomerate comprised of over 20 businesses and more than $2.5 billion in annual revenue.

Blair Badham

Blair Badham

During his time at EBSCO Capital, Badham established the firm’s business development function and was responsible for deal origination, investment opportunity analysis and the overall marketing strategy for the firm, an effort that led to the successful sourcing and closing of a number of new platform and add-on acquisitions.

Prior to his tenure at EBSCO Capital, Badham served in multiple capacities for Jemison Metals, a Birmingham-based steel service center, where he helped the firm grow by expanding its presence with Fortune 500 manufacturers.  Badham began his career in commercial banking, where he worked in the commercial and industrial lending group at First Commercial Bank for five years.

Badham earned a B.S. from the University of Alabama and an M.B.A., with honors, from Samford University’s Brock School of Business.

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Butler Snow Advisory Services (BSA) is pleased to announce that Michael E. Harris, a seasoned business executive, has joined as principal in its Memphis office. He brings more than 40 years of corporate leadership and business experience to the BSA team.

Harris most recently served as executive vice president and chief operating officer of Highwoods Properties, Inc. (NYSE: HIW), a publicly traded real estate investment trust (“REIT”), based in Raleigh, N.C., and a member of the S&P MidCap 400 Index. Harris retired from Highwoods on Aug. 31 after 19 years of service, and has recently relocated back to Memphis.

Mike Harris

Mike Harris

“Mike will bring broad and valuable experience to Butler Snow Advisory Services, and will spearhead our continued growth in the Memphis and Mid-South markets,” said Matt Thornton, president and chief executive officer of BSA. “Mike played a significant role in the highly regarded senior leadership team at Highwoods, and we are thrilled to provide his strategic and transactional expertise and knowledge to our team, and our clients.”

Throughout his career, Harris has been intricately involved in virtually all aspects of leading and managing the operations of a company – from the development, leasing, acquisition and management of commercial real estate to oversight of various corporate divisions, including regional operations, development services, asset management, corporate marketing and human resources.

Prior to joining Highwoods, Harris was executive vice president of Crocker Realty Trust before Highwoods’ acquisition of that company in September 1996. Before joining Crocker, Harris spent 15 years as senior vice president, general counsel and chief financial officer of Towermarc Corporation, a privately owned real estate development firm. Harris began his career serving seven years as a senior commercial lending officer at First National Bank-Little Rock and Union Planters National Bank-Memphis.

Harris earned a bachelor’s degree in international relations and affairs from the University of Mississippi, a Juris Doctor from the University of Arkansas School of Law and a master’s of business administration (finance) from the University of Memphis. He is a member of the Urban Land Institute, Lambda Alpha International Land Economic Society (past president – Memphis chapter) and a past member of the American and Arkansas Bar Associations. He has also served on the advisory board of directors of Wachovia Bank – Memphis and Allen & Hoshall, a design and engineering firm.

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Brookhaven Medical, Inc., has announced the acquisition of FutureMatrix Interventional and CreatiVasc Medical, Inc., in a deal that further facilitates collaboration on a medical device aimed at reducing complications during dialysis treatment for the more than 400,000 dialysis patients in the United States.

“These are two premier medical device companies with great management and engineering teams,” said Brookhaven Medical CEO John Feltman.  “As Brookhaven-logoa major investor in CreatiVasc’s research and development since 2013, we are pleased to welcome CreatiVasc and FutureMatrix to the Brookhaven family. Medical advancements on the part of both companies support Brookhaven’s mission of embracing innovation to improve clinical outcomes resulting in cost savings for the healthcare system.”

FutureMatrix and CreatiVasc have collaborated for two years to develop an advanced balloon technology, key to the CreatiVasc Hemoaccess Valve System®.  This device allows the flow of blood in an AV graft to be turned on and off between dialysis sessions.

“We believe this innovation will reduce or perhaps even eliminate the complications associated with clotting and infection that commonly occur in dialysis patients who have AV grafts,” Feltman said.

According to a recent study in the New England Journal of Medicine, greater than 75 percent of patients with AV grafts must undergo an interventional surgical procedure within 12 months of implantation. Use of the Hemoaccess Valve System® stands to dramatically improve the quality of life for dialysis patients by largely eliminating these frequent interventional surgeries – effectively saving billions of dollars in associated healthcare costs, including those funded by Medicare.

“The Hemoaccess Valve System® has the potential to become the standard of care for dialysis graft implants, and we believe it may represent the most significant innovation in dialysis devices in more than 30 years,” Feltman said.

CreatiVasc expects to begin expanded human clinical trials for the Hemoaccess Valve System® in Summer 2015, and the device is expected to enter the market late next year.

Brookhaven also announced that CreatiVasc CEO Steve Johnson will serve as President of Brookhaven Medical, Inc.

“We have a dedicated team leading Brookhaven and are optimistic about our future,” Feltman said. “There are many exciting new products and customers in our pipeline, and we are evaluating several possible acquisitions as we move forward with our plans to build Brookhaven into a major diversified medical device company.”

Brookhaven Medical is a client of Butler Snow Advisory.  Members of the BSA team worked with Feltman on the company’s transaction, including Rick Gernert, Matt Thornton and Wesley Roberts.

About FutureMaxtrix
FutureMatrix Interventional is a leading multinational developer, manufacturer and marketer of innovative medical technologies in vascular, urology and surgical specialties.  Founded in 1993, FMI employs 340 employees at its manufacturing facility in Athens, Texas.

About CreatiVasc
Based in Greenville, South Carolina, CreatiVasc Medical, Inc., is an eight-year-old company that is currently developing a revolutionary Hemoaccess Valve System® for dialysis patients.  CreatiVasc is one of only three companies in the United States chosen for inclusion in the U.S. Food and Drug Administration’s (FDA) Innovation Pathway.  The Innovation Pathway ultimately aims to shorten the overall time and cost for the development, assessment and review of major breakthrough medical technologies that hold the promise of improving patient care and generating significant savings for the healthcare system.

About Brookhaven Medical, Inc.
Brookhaven Medical, Inc., is based in Atlanta, Georgia, and is an emerging developer, manufacturer and marketer of innovative medical technologies and solutions.  Brookhaven Chairman and CEO John Feltman is a serial entrepreneur and former investment banker who has two decades of experience creating and investing in a wide range of medical device companies.

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Butler Snow Advisory Services, LLC (BSA), announced today its expansion into the Birmingham market, adding even more experience to the team with the addition of C. Scott Stone.


Scott Stone

“We’re thrilled to have Scott join Butler Snow Advisory and lead our Birmingham office,” said President and CEO Matt A. Thornton. “His work with companies of all sizes, from Fortune 50 to startups, adds additional depth to our team and positions BSA to provide strategic guidance to companies in the growing Birmingham market.”

Stone has more than 20 years’ experience working with firms, both public and private, to evaluate the financial and operational interconnections that ensure profitability. His business advisory experience is vast, and he has served companies in CFO- and COO-in-Residence roles. He has evaluated technology solutions and utilization, developed management presentations to investors and financial institutions and advised executive teams and Boards of Directors on key business challenges and effective solutions for their firms.

Stone served in CFO and CAO roles for a $60M sector leading software provider, where he led a balance sheet restructuring that included multiple equity and debt capital transactions, as well as acquisitions and dispositions. He has served as COO of various companies, helping to grow client bases by a third and building multi-million-dollar sales pipelines. Stone also has extensive experience in the development and implementation of financial and operational planning and budgeting processes for companies.

As Marketing Director and Director of Finance & Business Operations for a Fortune 50 company, Stone led financial and operational functions for a two-state area that delivered more than $650M in annual revenues. Before joining BSA, he founded and served as Managing Partner of Sightline Resources, a financial and management consulting company.

Stone has a Masters of Professional Accountancy and a Bachelor of Science in Accounting from the University of Southern Mississippi. He is also a Certified Public Accountant and a Certified Information Technology Professional.

The Birmingham opening marks the company’s fourth location since its start in January 2011, with additional offices in Jackson, Miss., and Memphis and Nashville, Tenn.

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West Memphis, Ark. — Curtis Lumber officially broke ground on a $5 million store project in West Memphis on Wednesday. Project completion is expected by summer 2015 with a grand opening tentatively scheduled for July.

“This is a big step for Curtis Lumber,” said President/CEO BJ Curtis. “We’re excited about expanding into this area and look forward to serving residents, contractors and business owners in West Memphis, Marion and Downtown Memphis.”

Located on approximately four acres at 1001 Highway 77, the 32,000-square foot home center will feature a full-service Ace Hardware with convenient drive-thru lumber warehouse, garden center and flooring department.

Curtis plans to carry the full line of Ace Hardware brands, including Craftsman, DeWalt and Husqvarna, as well as products by Yeti and Big Green Egg.

Curtis Lumber will be continuing its proven track record of providing the best products and service in the area. “We already deliver materials into the Marion and West Memphis area and encourage new customers to shop with us now. However, having a brick and mortar location will enable an enhanced customer shopping experience, faster local delivery, and more efficient processing of returns.” said Curtis.

In addition to providing excellent products and service, Curtis Lumber is also very proud to be providing local employment.

“We’re looking to hire a mix of part-time and full-time employees for a total of 12 to 15 new hires,” added Curtis.

Curtis Lumber currently owns and operates Caldwell Lumber in Wynne, which will undergo a rebrand in the near future.

Curtis Lumber is a long-time partner with Butler Snow Advisory, who provides financial advisory and strategic consulting services to the growing company.  Other project partners include Suiter Construction Company, Inc., general contractor; Centennial Bank and Fidelity National Bank, financers; and SEACAP Financial, financial advisors.

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Butler Snow Advisory Services (BSA) is pleased to announce that Rick Gernert has joined as principal in their Nashville office. He brings more than 30
years of experience in the financial services industry.


Rick Gernert

“Rick will bring a wealth of experience to Butler Snow Advisory,” said Matt Thornton, President and CEO of BSA. “We are thrilled about the knowledge and value he
will provide to our team and our clients.”

Gernert most recently served as a founding shareholder of Iroquois Capital Group and managing director in its Investment Banking Group, as well as president of Iroquois Capital Advisors. Gernert has experience working with early-stage venture capital entities and has been an advisor to institutional investors and high net worth individuals.
Prior to his work at Iroquois Capital Group, Gernert was a managing director of Koch Ventures, a $150 million early-stage venture capital entity. He has also held the position of vice president of business development at EDS Corporation in Dallas, where he was responsible for internal mergers and acquisitions and its private equity investing.

Gernert holds a bachelor’s degree in accounting from the University of Mississippi as well as Series 7, Series 24, Series 63 and Series 79 licenses.

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Butler Snow Advisory Services, LLC (BSA), a leading strategic consulting and transaction advisory company based in the Greater Jackson area – has named Wesley Roberts to their team of professionals.

Most recently, Roberts served as a manager in the transaction advisory services department of Ernst & Young, LLP in Nashville, Tenn., where he managed and participated in financial due diligence engagements, particularly related to acquisitions by private equity investor groups and strategic corporate buyers. RobertsW-grid

“Wesley’s transaction advisory experience at Ernst & Young make him a perfect fit for our growing company,” said Matt A. Thornton, President and CEO of BSA. “We are excited to welcome Wesley to the team, and look forward to his leadership in guiding our capital markets initiatives. We are particularly encouraged to have him in Nashville, where we see exceptional financial and business opportunities.”

In his role at Butler Snow Advisory, Roberts will focus on transaction advisory services, which include capital formation, buy-side and sell-side representation, mergers and acquisitions.

Roberts holds a bachelor of business administration and a master of accountancy from the University of Tennessee. He is also a certified public accountant, licensed in the state of Tennessee.

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