Madison Street Capital (MSC), a reputable international investment banking firm headquartered in Chicago, IL acted on behalf of ARES Security Corporation as its financial advisor. The announcement was released to SAT Press on January 10th, 2017 by the MSC’s Chief Executive Officer, Charles Botchway. He oversaw the entire transaction from start to end while Senior Managing Director Reginald McGaugh headed the advisory services and successfully arranged the minority equity and subordinated debt investment. ARES is a leading security risk management solutions provider in Vienna, Virginia protecting operational systems for the government and industries, including energy, nuclear, and transportation. Mr. McGaugh selected Corbel as the financing partner to help the company with its new and non-controllable capital investment.
The minority recapitalization will help ARES with investment structure to develop substantial worth in equity. The partnership between the two is to provide flexibility in using the capital without limitations and to support operations. ARES is now able to continue its operations to increase sales drive and to invest in new opportunities for generating revenue. Reginald McGaugh and his team worked on the ARES and Corbel financing partnership transaction through the processes of fund raising, due diligence, and valuation analysis. Before the transaction closed, Corbel was managing $95 million in capital.
Madison Street Capital reputation as financial advisor start building in 2005, when the firm was founded. MSC Advisors are experienced and provide services for reorganization, mergers & acquisitions (M&As), governance, and bankruptcy. Charles Botchway and Anthony Marsala are Co-founders of Madison Street, and started the firm to deliver services to public and private owned businesses. MSC also offers asset management, financial reporting valuation, and corporate advisory services. In 2015, the firm predicted a significant increase in M&A transactions by the end of 2016, which proved to accurate.
MSC’s 2016 Hedge Fund M&A Outlook showed the firm had an increase in transactions the end of Fourth Quarter 2015. Compared to 2014, MSC experienced an increase in volume transactions of approximately 27 percent, from 32 transactions to 42 hedge fund transactions in 2015. In 2016, the banking firm continued to act as financial advisor for many of its clients and closed even more transactions, including Pearl Human Care Pvt. Ltd and Dowco Group of Companies, to name a few. Madison Street Capital brought in the New Year the closing of a successful financing partnership transaction between ARES Security Corporation.