Situation Overview:
The sole owner of a successful and growing, privately-owned, provider of transportation management services, was looking to bring in investors to grow the business.
Our Client:
- Based in Los Angeles, California, Custom Tours, Inc. doing business as Kushner & Associates (https://www.kushnershuttles.com/) (“K&A”) is the market leader in the provision of transportation management services for Meetings, Conventions and Special Events.
- The Company’s largest clients are under multi-year contracts and have been with K&A for many years.
- K&A was founded by Linda Kushner more than 55 years ago and for the past 30+ years has been owned and operated by her daughter, Susan Kushner.
The Goal:
- Maximize the value for the Company, while ensuring the future success of the business and wellbeing of its employees, by partnering with new investors to help grow the business.
- Reward longstanding, loyal employee base with transaction bonuses and equity ownership going forward.
The Outcome:
- Successful majority recapitalization with Caldicot Capital, a family office investment firm, and Tamarix Capital, a private credit fund.
- The new capitalization provides a stronger foundation to expand the Company’s capabilities, enhance innovation and growth and create additional value for clients.
- Ms. Kushner remained a significant equity holder and continued in her role as CEO and as a member of the Board of Directors. The process also provided an avenue for key full-time employees to become equity holders and for the Company’s Managing Director, Jon deKarr, to also join the Board of Directors.
- Susan Kushner, CEO and Owner of K&A, said “I would like to thank David Bonrouhi at Calabasas Capital for his exceptional guidance throughout the entire process. From the outset, David took the time to learn about my company and gained a deep understanding of our business, its value, and my personal needs as well as the long term goals for the company. He diligently evaluated potential partners, ultimately identifying Caldicot Capital as the right strategic fit. His attention to detail at every stage ensured a smooth, well-managed process which has resulted in a strong partnership with growth on the horizon.”
- David Bonrouhi, Co-Founder and Managing Director of Calabasas Capital, said “We are thrilled to have had the opportunity to work with K&A as its advisor on this transaction. The Company’s strong financial profile, including high margins, solid growth, long-term contractual revenue and attractive free cash flow characteristics made it a very compelling investment opportunity. Key to the Company’s success has been its culture and maintaining this key element of the business was the primary consideration for Ms. Kushner throughout the process and in selecting Caldicot and Tamarix. With its new financial partners, K&A is well-positioned to continue its strong growth both organically and via acquisition in this fragmented space. While the medical convention space has been K&A’s key strength in the market, the Company has only begun to scratch the surface on addressing other market segments including corporate events, tradeshows, and sporting events. We look forward to tracking the Company’s continued success.”
