Griffin Represents e&e IT Consulting Services in Recapitalization With IMB Development Corporation and M&T Bank

Company Overview
e&e IT Consulting Services, Inc. (“E&E”), headquartered near Harrisburg, PA, was founded by Linda and Tracy Etter in 2002. E&E provides all levels of skilled IT consultants to clients in central Pennsylvania and surrounding areas on both a full- and part-time basis. E&E’s consultants provide a range of IT services, including systems infrastructure, development and support of web applications, help desk and user support. E&E provides these services to a variety of industries, including state and federal government, communications, retail, health care and manufacturing. E&E has been recognized for six years as one of the fastest growing companies in its region.

Situation Overview
The Etters desired to position E&E for its next phase of growth, to commence succession planning and to provide liquidity from their E&E equity investment by gradually transitioning ownership to another party while maintaining a significant ownership position and management involvement. These goals were complicated by E&E’s certification as a both a Women Business Enterprise (“WBE”) and a Small Business Enterprise (“SBE”), as any new third-party investment would need to comply with WBE and SBE certification requirements.

Griffin was engaged by E&E to (i) design a recapitalization plan that achieved the Etter’s goals, and (ii) raise the institutional senior debt and private equity capital required to finance the recapitalization. First, Griffin initiated, structured and negotiated the sale of a significant equity position in E&E and a related party entity to a minority-owned private equity firm, IMB Development Corporation, and a select group of women and private investors. This structure enables E&E to maintain its WBE and SBE status. Second, Griffin managed a competitive process to raise the senior debt required to fund the remaining recapitalization amount and to provide future working capital financing. E&E ultimately selected M&T Bank as its senior lender for the transaction.

For more information on this transaction, contact John A. Lee, Senior Managing Director, at 610.205.6106 or Patrick Wood, Vice President, at 610.478.2110.