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OCTOBER 2018 | VOL 20 | No. 5 Mergers & Acquisitions

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OCTOBER 2018 | VOL 20 | No. 5 Mergers & Acquisitions A PUBLIcatION OF THE InternatIONAL FactorING ASSOCIatION OCTOBER 2018 | VOL 20 | No. 5 MERGERS & ACQUISITIONS ALSO INSIDE: Congratulations! You’ve Closed the Deal; Now What? Why and How Banks Acquire Commercial Finance Groups Perspective from an Industry Veteran FactorAdvantage℠ A UNIQUE SOLUTION FOR FACTORS AND CLIENTS How Does FactorAdvantage Help You? Address collateral shortfall for bank payoff Provide overadvances for A/R Meet us at: and non-A/R requirements The Commercial Finance Association’s Eliminate MCAs and facilitate 74th Annual Convention first priority lien on A/R to you Booth #104 Provide mobilization financing for new contract Breakout Capital Finance is a leading financial technology company that uses best-in-class technology to provide a wide range of credit solutions to small businesses nationally. Built on transparency, education and advocacy for small business, the company is one of the fastest-growing direct lenders in the space and leads a world-class technology innovation effort. Breakout Capital Finance is a Principal Member of the Innovative Lending Platform Association and is an original advocate for the SmartBoxTM standard for transparency. ACCREDITED BUSINESS Learn more at breakoutfinance.com or call 888.318.3534 ® TABLE OF CONTENTS OCTOBER 2018 | VOL 20 | No. 5 PERSPECTIVE FROM AN INDUSTRY VETERAN By Allen Frederic CONGRATULATIONS! YOU’VE CLOSED THE DEAL; NOW WHAT? By Kwesi Rogers VALUATIONS FOR FACTORS By T.J. Humes and Tim Stute CALIFORNIA DREAMING AT THE 2019 ANNUAL IFA FACTORING CONFERENCE By Heather Villa WHY AND HOW BANKS ACQUIRE COMMERCIAL FINANCE GROUPS By Aaron P. Graft colUMNS LEGAL FACTOR: MERGERS AND ACQUISITIONS IN THE COMMERCIAL FINANCE INDUSTRY By Steven N. Kurtz, Esq. WHAT’S NEW AT IFA ADVERTISER INDEX 3i Infotech, Inc. ..........................................................27 Hitachi ........................................................................11 Breakout Capital ......................................................... 2 HubTran ....................................................................19 Capital One ............................................................... 35 International Factoring Association ...........9, 17, 23, 28 Cirrius Solutions ......................................................... 6 Tax Guard .................................................................. 15 FactorFox Software, Inc. ............................................11 Utica Leaseco, LLC ................................................... 36 The Commercial Factor | OCTOBER 2018 3 FROM THE execUTIVE DIrector BY BERT GOLDBERG After the conclusion of each year’s annual conference, I read the evaluations and start to think about what I can do to make the following year’s conference even better. Each year I’m told that it will be impossible to surpass the current year’s conference. With the 25th annual conference coming up in April, I think we may have hit another home run. We’ve just released the schedule for the 2019 annual • Strategic Roles of Factors in Expanding the Frontier of conference and I’m more excited than ever about the Trade in the 21st Century year’s lineup of speakers and activities. Each year the • Unique Challenges of Factoring in Latin America speakers are more relevant to running a Factoring opera- tion and the activities are more exciting. We continue to • Factoring 101 and Sales 101 expand our offerings to serve every type of employee • And Much More within an organization to every type of company. Whether you are a small Factor, up to a multi-national Asset Based We are also bringing back the very popular roundtables. Lender, we have something for you. This will give attendees the ability to network with other individuals with similar interests and backgrounds. The The 2019 conference will be held April 3-6 at The roundtables we have planned are: Manchester Grand Hyatt in San Diego, CA. The Hyatt has been ranked as California’s Leading Business Hotel and is • Roundtable for Women located on the bay and adjacent to the Gaslamp District in • Roundtable for Senior Executives beautiful downtown San Diego. • Roundtable for Young Professionals Some of the speaking session highlights include: • Roundtable for Small Factors • UNthink with Erik Wahl • Roundtable for Operational Issues • Recognizing the Technologies and Trends Transforming Some of our networking activities include the Triumph Factoring with Simon Anderson Welcome Reception, Thursday Evening Reception, Tax • Searching the Dark Web: Finding Fraud Online Guard Dessert Reception, Closing Event at Parq, Young • How Artificial Intelligence and Machine Learning will Professionals Reception, Chapter Receptions, and the Change the Factoring Industry Saturday Idea Exchange. • Economic Forecast with Elliot Eisenberg, Ph.D. We’ve also planned some excellent activities, including golf and a food tour. • If I Could Turn Back Time—What I’ve Learned From Mistakes Made Additional information about the conference can be found on page 24 and at www.factoringconference.com. • Bank Owned vs. Independent Factor Our 2018 classes and webinars have been extremely • Lightning Round Legal Panel popular with many of them selling out. Our 2019 courses • Report from the Courts will be announced soon and in order to avoid being disap- pointed, I suggest signing up early. • Blockchain—How Factors Can Utilize This Technology Thanks for your support of the IFA and I look forward to • How to Create Referrals for Your Factoring Practice seeing you at an upcoming event. • IGNITE BRILLIANCE in Your Culture (1/2 Day Training) • Supply Chain Finance 4 The Commercial Factor | OCTOBER 2018 NEWS INDUSTRY NEWS THE INTERNATIONAL International Factoring Association Announces Launch of the FACTORING ASSOCIATION Midwest Chapter 6627 Bay Laurel Place, Ste C The chapter will provide educational programs, serve as a venue Avila Beach, CA 93424 for members to network with local practitioners, exchange ideas MAILING: PO Box 39 Avila Beach, CA 93424-0039 and best practices, and discuss the impact of national and regional 805-773-0011 trends on their organizations. EXECUTIVE DIRECTOR Laurie A. Montplaisir, Esq., Shareholder with Robbins, Salomon & Bert Goldberg Patt, Ltd. founded the Midwest Chapter which spans ten states, PUBLISHED BY including Idaho, Illinois, Indiana, Iowa, Michigan, Minnesota, Mis- The International Factoring Association souri, Ohio, Tennessee and Wisconsin. EDITOR/DESIGN & GRAPHICS Only IFA members can join the chapter and current members R&W Publishing Associates, Chelsea Kirtley located in these states will be grandfathered in as members of the [email protected] • 727-450-9870 new chapter. ADVERTISING SALES R&W Publishing Associates For more information on joining the Midwest Chapter, contact [email protected] • 610-213-9105 Laurie by phone at (312) 456-0292 or by email at lmontplaisir@ ADVISORY BOARD rsplaw.com. If you would like more information about the IFA or are interested in forming a chapter in your area, contact Bert Goldberg Eric Belk Match Factors, Inc., Florence, SC by phone at (805) 773-0011 Ext. 302. Melissa Donald AmeriFactors Launches New Campaign with Legendary LDI Growth Partners, LLC, Walnut Creek, CA Football Coach Steve Spurrier Kee Kim Earlier this year, Spurrier returned to head coaching and Central Finance One, Inc., Los Angeles, CA Florida with the Orlando Apollos of the Alliance of American Foot- John Martin ball (AAF). As an official celebrity partner, Spurrier will be featured General Electric Company, Atlanta, GA in AmeriFactors latest marketing campaign which includes televi- sion, radio and social media. The campaign will launch just months Fred Moss Accord Financial Corp., Montréal, QC, CANADA before the Orlando Apollos’ inaugural season. Paul Schuldiner Paragon Financial Offers Fast Hurricane Florence Funding For Rosenthal & Rosenthal, New York, NY Business Clean-up Efforts Nel Somarriba Paragon Financial Group, Inc., an Asset Based Lending company New Century Financial, The Woodlands, TX specializing in No-Credit Risk Accounts Receivable Factoring and Kevin Wood Purchase Order Funding, offers fast funding for clean-up compa- Chesapeake Bank, Cash Flow Division, Gloucester, VA nies in the aftermath of Hurricane Florence’s expected damage. This includes storm debris clean-up, government contracts and The International Factoring Association’s (IFA) goal is to assist the factoring community by providing information, other business funding needs associated with the hurricane. training, purchasing power and a resource for factors. The This special program provides non-recourse, credit protected IFA provides a way for commercial factors to get together and discuss a variety of issues and concerns about the working capital for companies affected by Hurricane Florence look- industry. Membership is open to all banks and finance ing for fast working capital options to help their company stay cash companies that perform financing through the purchase of invoices or other types of accounts receivable. positive through increased demand because of the critical clean-up and repair needs. The Commercial Factor is published bi-monthly by the International Factoring Association. To subscribe, please email [email protected]. INDUSTRY TRANSACTIONS The Commercial Factor magazine invites the submission of articles and news of interest to the factoring industry. For Brookridge Funding and Veritas Financial Partners Provide more information on submitting articles or advertise- $19.3 Million Financing
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