Griffin Advises Management Team in its Acquisition of a Controlling Interest in Association Headquarters, Inc.

Company Overview
Founded in 1978 and based in Mount Laurel, NJ, Association Headquarters, Inc. (AH) is one of the largest association management companies in the United States. AH provides a full suite of essential, day-to-day outsourced services to non-profit trade and professional societies in the United States and internationally. AH’s services include executive management, strategic planning, accounting, data management, marketing, membership management, meetings/events management, technology and other services.

Situation
Management wanted to purchase a controlling interest in AH from its founder. The founder was receptive to the concept, having long preferred a management purchase as opposed to a financial or strategic purchaser, but wanted the transaction to close before year-end 2012 for tax-planning purposes. Management, however, lacked the financial resources to purchase the Company on their own and faced a short time frame in which to structure the transaction and raise the third-party capital necessary to fund the acquisition.

Solution
Griffin was formally engaged to assist management in August, 2012. Griffin quickly assessed the viability of the management buyout and assisted management in structuring and negotiating the terms of the AH acquisition, advised management on the appropriate capital structure for the acquisition, and managed a competitive capital raising process to privately place the senior debt required to fund the acquisition. Griffin procured multiple financing offers, and Management ultimately selected Susquehanna Bank, located in Lancaster, PA as their senior lender for the transaction. The transaction closed on December 3, 2012, with Management holding a controlling equity interest, and the founder still holding a significant equity stake.

For more information on this transaction, please contact John A. Lee, Senior Managing Director, at 610.205.6106.