Butler Snow Advisory’s Scott Stone was recently quoted in an Axial Forum article on the use of the discounted cash flow (DCF) method of company valuation.  The article, which highlighted the method’s down-trending favor among advisors and finance experts, can be read on the Axial website.

Stone is a Principal in BSA’s Birmingham office where he works with clients to evaluate the financial and operation interconnections that help ensure their firm’s profitability.

Read More


There are many important considerations that face a company’s management team in preparing for a transaction: enterprise valuation, industry multiples, managing key client relationships, management team focus and delivering the news to employees are just a few.  However, there are several items that we consistently see receiving little focus, or are focused on too late, that can have a material impact on deal proceeds and the closing process.

Having GAAP Financials

Scott Stone

Financial statements prepared according to GAAP or IFRS are critical, especially if a sophisticated or larger buyer is involved. Any differences in accrual methods of the seller and the buyer or GAAP will work against seller.  Vacation and PTO accrual are a good example, as differences in accrual methods will either come out of the seller’s pocket or will negatively impact employees, thus straining the relationship between buyer and seller.

Establishing Target Working Capital
Pay attention to this early, preferably before going to market.  If seller is not prepared to understand how it will function, they will be unable to defend themselves in final negotiations – and it will cost them cash at closing.  The structure of the working capital calculation and the company’s working capital cycle should be taken into consideration when deciding when to take the company to market.  Depending on structure and timing, the seller may find himself inadvertently financing a significant portion of the sale of the company.

Establishing Timeline Expectations
Setting sellers’ expectations at one year for the sale of a business is hard enough, and becomes even harder if buyers submit a bid with an unrealistically short period of exclusivity.  Buyers should be asked to resubmit a bid with a more realistic timeframe, or the bid value itself should be discounted in the auction.

Blair Badham

Maintaining a Competitive Environment
Having more than one bid is not enough. Sellers should not put themselves in a position of needing the transaction to close for financial reasons, or they will risk turning over complete control of the process to the buyer.  Therefore, messaging about the reasons for sale are extremely important in the early stages as well as in the final stages of the process, and alternative bidders should be kept “on deck” so the seller has options if the deal falls apart.  Simply put, if the seller is going to walk away, or threaten to walk away, they need a place to walk to.  It’s also important to manage the seller’s interaction with buyer representatives when discussing deal points – if the seller falls in love with the deal, a valuable bargaining tool is lost.

Paying early and close attention to these four items will help sellers maximize their cash at closing and also allow them to arrive at the finish line in a more predictable and less stressful manner.

For more information about preparing your company for a sale or any other BSA service offerings, call 877.832.7629 or contact any member of the Butler Snow Advisory Team.

Click here to download a print-friendly PDF of this article.

Read More


Butler Snow is pleased to announce that Steve Groom – former chief legal officer of CoreCivic, formerly Corrections Corporation of America, and long time executive – has joined the firm’s Nashville office. He will serve in a dual capacity as a principal in the firm’s business advisory subsidiary, Butler Snow Advisory Services (BSA), and practice in the law firm, Butler Snow, in an of counsel role.

Steve Groom

Groom has extensive business, financial services and dispute resolution experience, and most recently was executive vice president, general counsel and secretary to CoreCivic, where he will continue to serve as special counsel.

“Steve is a successful executive, who has broad corporate and legal experience, and not only will he be an asset to the firm but will help spearhead Butler Snow Advisory’s efforts in Nashville,” said Donald Clark, Jr., chairman, Butler Snow. “Steve has played a significant role in the executive leadership team at CoreCivic, and we are thrilled to have his strategic counsel and legal experience available to our team and our clients.”

Throughout his career in the corporate world, Groom has gained experience and knowledge in the areas of corporate governance and strategy, risk management and compliance, banking and finance, leadership training and development, as well as a significant involvement in mediations and arbitrations. Groom is a Rule 31 listed general civil mediator.

“I am excited to join Butler Snow’s Nashville team and look forward to working with both the law firm and its business advisory subsidiary”, said Groom. “As a client of the firm for the past 15 years, I have the greatest respect for the firm’s competence and professionalism. The added benefit of having the opportunity to leverage both my legal and corporate advisory experience for the benefit of both entities’ clients makes Butler Snow a great fit for me.”

In addition to spending almost a decade in the private practice of law before joining CoreCivic, Groom served for 11 years in executive, senior management and general counsel roles with SunTrust Banks, Inc. He began his career as a banker with Memphis Bank and Trust Company.

Groom serves on the board of advisors of Lipscomb University’s Institute for Conflict Management and is an adjunct faculty member teaching mediation, negotiation and conflict resolution. He serves on the board of visitors of Lipscomb University’s College of Business and the board of directors of the American Cancer Society.

Groom is a member of the National Association of Corporate Directors, Society of Corporate Compliance & Ethics, Tennessee Association of Professional Mediators, International Institute for Conflict Prevention and Resolution, Association for Conflict Resolution, Risk Management Association, Tennessee Bankers Association, Bank Lawyer’s Committee, Tennessee Bar Association, Nashville Bar Association, Dispute Resolution Resource Center and the International Association of Privacy Professionals.

Groom received his undergraduate degree from Lipscomb University, where he ran track and cross-country as a scholarship athlete. He received his Juris Doctor from the University of Memphis Law School, where he was a member and author of the Law Review.

Read More


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.

 

Read More


CLEVELAND, OHIO — Constant Aviation, offering full-service maintenance, repair and overhaul with a nationwide network, announced the completion of its acquisition of StarPort, a full-service MRO and FBO based in Sanford, FL (KSFB).  Butler Snow Advisory Services represented Starport in the transaction.

Stephen Maiden, President and CEO of Constant Aviation, said, “The acquisition of StarPort provides us continued growth in the Southeast with a 75,000-square foot facility that supports maintenance, interior, paint and FBO operations. It represents an opportunity to expand our business into the exterior paint market, while significantly enhancing our presence in the southeast region of the country. Our transition
plans include the immediate investment of approximately $2M into the paint facility. The upgrades to the paint facility will help increase capacity, allow for quicker turn times, and will utilize the best advancements in technology. The integration of StarPort into the Constant network will be done strategically so that our organization can continue to operate as a collective unit. Our initial focus at the Orlando-based location will be adding team members to boost capacity and increase capabilities.”

“StarPort is well known for their superior paint and interior refurbishment capabilities, specifically on the Falcon, Hawker/Beech, and Bombardier platforms. Constant will be investing in training and necessary tooling to expand the product line offerings to include our niche aircraft which will begin with the Embraer, Cessna and Gulfstream airframes,” continued Maiden.

About Constant Aviation

Constant Aviation has locations at Cleveland Hopkins International Airport, Cuyahoga County Airport, Birmingham International Airport, Las Vegas International Airport and Orlando Sanford International Airport. Constant specializes in airframe and engine maintenance, major repairs, avionics, interior refurbishment, paint, parts distribution and accessory services. As one of the fastest growing MRO’s in the country, Constant Aviation understands the importance of aircraft availability, predictability and minimizing operational costs for their customers. Constant Aviation has raised the bar in aircraft maintenance expectations and provides customers with a one-stop shop option when it comes to maintenance events.  For more information, please visit www.constantaviation.com or call 216.261.7119.

Read More


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.

Read More



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.

Read More


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.

Read More


On January 1, 2011 about 8,000 Baby Boomers (people born between 1946 – 1964) turned 65 years of age. Every day for the next 18 years, others will turn 65 at the same rate. While many may know about this trend, a lesser known fact is that, according to the US Census Bureau, 70% of all businesses (with more than 1 person on the payroll) or 4.2 million businesses are owned by people over 53 years old.

What are the prospects for transferring those businesses when the owner is ready? The need to liquidate ownership will impact all of us, young and old, as the boomers try to capture the wealth that they have created over their lifetime. But there is good reason to believe that there is going to be far less of it than they might expect. In fact, the elements of a perfect storm are brewing.

If every owner in the over 53 crowd is depending on selling their business to fund the next stage of their life (be it retirement or something else), the amount of capital required to close all those transactions is over $10 trillion dollars. Where is the money going to come from to fund those acquisitions?

There has been a stock market bubble, a housing bubble, a dot-com bubble, but never before have we seen an owner demographic bubble. This “age wave” is coming like a tsunami.

There is currently about $535 billion in funds available (“private equity overhang”) to acquire businesses — nowhere near the amount of equity needed to do even 10% of the transactions that will be up for sale. Even if fresh investment capital becomes available, the amount of supply will drive values down significantly.

There is a Market Transfer Cycle, and every 10years there has been some kind of recession. It is currently a seller’s market but the bull has had a long run and it will get tired sometime over the next three years. It always does. When it does, it will become a buyer’s market of major proportion and only the strongest deals will get transacted.

There are three major forces at work and together they are impacting the owner’s situation exponentially:

  • Many businesses for sale. In addition to those businesses owned by retiring baby boomers, there are over 7,700 companies in inventory that are currently owned by private equity firms that will become available. Furthermore, there are owners less than 65 years old who will be seeking capital for growth initiatives. There will be lots of competition for the retiring business owners and all of it will drive prices down.
  • There are not nearly enough funds to satisfy all the sellers looking to transact. Private equity fundraising won’t be able to keep up. Limited funding will make buyers very selective and only the A++ deals will get done and even they will have reduced purchase price multiples.
  • The economy goes in cycles and there is only about another three years left to the current seller’s market. Can an owner really afford to wait it out until the market cycles back? It may take significantly longer than any time in the past.

What’s the result? Only the best deals — maybe top 10% — will get transacted. If owners miss this current cycle they will have to wait at least eight years until the market starts to turn in favor of doing deals again, all the while, the boomers are flooding the market with their companies up for sale.

So, if you are a business owner, with thoughts of selling anytime in the next eight years, how do you achieve getting your company in a very competitive position for a transaction?

First: Establish a sense of urgency and a realistic view of the value of your business today. Look at it the way a buyer would. Remember the value for the buyer is based on what he can get out of it, not what you put into it.

Second: Get a road map developed now to increase value. This can be done without significant growth, dramatic improvement in earnings or even increasing your debt. Hitting the current seller’s market window means getting the business ready for a sale process in the next two years (it might take another year to find, negotiate, and close on an acceptable transaction).

Third: Create priorities for how you focus your efforts over the next 2-3 years. You’ve spent a lifetime working “in” the business, now it’s time to start working “on” the business. This isn’t like selling your house where you can get it market-ready in a month or so.

And finally: Get some help from an expert. The storm is coming and riding it out without eroding value will be extremely difficult. The issues here are vast and complex so find a professional who has a portfolio of clients that have done precisely this. You can’t go it alone and expect to be successful. You haven’t done it thus far and so you probably are ill-equipped to do it in the future. After all, you still have a business to run and other demands on your time. The ROI on this kind of help is significant but there aren’t that many qualified advisors available who can help you plan and execute a value enhancement process that will get you where you need to be -well within that top ten percent.

Boomers have been a driver of economic growth and consumer spending even before the early eighties (remember the hula hoop?) when they started to reach their peak earning years. This demographic group turbocharged rates of home ownership, consumer spending and, most important of all, employment. Almost everyone has either paid or benefited from the taxes they have generated. Will their business ownership legacy be another boon or a victim of a perfect storm?

This article was written by Gary Ampulski and was originally published on FORUM by Axial, April 8, 2015.  Gary is Managing Partner of Midwest Genesis and is not affiliated with Butler Snow Advisory Services, LLC.  

Read More


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.

Read More