Everberg Capital provided a first-lien term loan and preferred equity to Signal 88 Security to support a management buyout.
Founded in 2003, Signal 88 is a global leader in security services franchising, serving residential, commercial, retail, and institutional clients.
The company provides customized security solutions, including law enforcement personnel, patrol vehicles, and dedicated security officers to monitor specific areas and ensure community safety.
Since its inception, Signal 88 has seen significant growth through franchise expansion, innovation, technology adoption, a strong national brand presence, and an international customer base.
In 2018, Signal 88 was featured on the Inc. 5,000 list of America’s Fastest Growing Companies. The company continues to offer opportunities for local franchise owners, including veterans, retired military, and police officers.
Situation:
The Company was run by its founder, holding a minority position alongside McCarthy Capital. Recently, Signal 88’s founder sought to buy out the sponsor to secure majority ownership of the company.
Engagement:
*Auctus Capital Partners assisted the founder with a recapitalization transaction and secured growth financing.
*The funding was provided by a structured capital fund, Everberg Capital, with investment from Orix Capital Partners as co-investors.
*The capital structure combined preferred equity and debt from Orix, along with a significant rollover from the founder into common equity, enabling him to achieve majority ownership post-closing.
Outcome:
*The transaction was executed efficiently, closing within 45 days from the signing of Letter of Intent (LOI)
“We value our relationship with Auctus Capital Partners and their dedicated team of advisors,” said Reed Nyffeler, CEO of Signal 88. “This transaction will support our continued growth and allow us to expand our successful franchise model, driving innovation and addressing evolving safety and security challenges.”
