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FocalPoint Raises Growth Capital Resolution Economics
Beverly Hills, CA, April 4, 2008 — Resolution Economics LLC (“Resolution Economics”), one of the nation's premier labor economics and statistical consulting firms, has raised growth capital in the form of senior subordinated debt to support a management-led recapitalization of the Company to fund working capital and growth. FocalPoint Partners arranged, structured and negotiated the terms of the financing with Praesidian Capital.
Resolution Economics provides sophisticated economic and statistical analysis, as well as information collection and data management services. The firm has significant experience analyzing economic damages in class action, multi-plaintiff, and single plaintiff cases, especially in the areas of labor/employment, health care, and antitrust. The firm’s clients include major law firms, Fortune 500 companies, government agencies and insurance companies, as well as smaller companies and single plaintiffs.
“FocalPoint brought us investment proposals from a multitude of capital sources, including equity partners, but we ultimately felt the less dilutive debt capital alternative from Praesidian would allow us to maximize shareholder value in the long-run,” said Ali Saad, managing partner at Resolution Economics LLC.
“We are excited about the opportunity to partner with Dr. Ali Saad, Robert Crandall and their entire management team,” said Jason Drattell, managing partner at Praesidian. “Resolution Economics has clearly established itself as a leader in the area of labor and employment litigation, providing economic and statistical consulting. They are well positioned to enjoy continued growth.”
“Financing a ‘dividend recap’ for a professional services firm was challenging in light of current credit market conditions,” noted Duane Stullich, managing director at FocalPoint. “However, Praesidian saw past the lack of traditional collateral that business services companies like Resolution Economics have, and focused on the proven track record and quality of the management team”
Subsequent to the recapitalization, the company brought on Phil Rowley, formerly of LECG, who is well-known nationally as both an expert, and business development leader. Mr. Rowley joined in a leadership role, and together with Dr. Saad and Mr. Crandall, has helped Resolution Economics open offices in Chicago and San Francisco. The Chicago office is led by Kevin O'Brien, a nationally known expert in health care matters. In addition, the company has added as partners Stefan Boedeker and Dr. Paul Wazzan, two well-known experts in areas such as health care, statistical analysis, securities and finance issues.
About Resolution Economics, LLC
Resolution Economics, LLC, founded in 1998, traces its professional roots back to Price Waterhouse's Employment Economics Group. With offices in Los Angeles and Chicago, the firm is national in reach and has practice areas in employment and healthcare litigation matters, antitrust, intellectual property, insurance coverage and commercial damages. For more information, visit www.resecon.com.
About Praesidian Capital
Praesidian Capital partners with small and mid-sized businesses, providing private debt capital. With a focus on its core competency in mezzanine lending, Praesidian invests in established, historically profitable companies often in connection with a management/leveraged buyout, recapitalization or refinancing. Based in New York City, Praesidian manages over $400 million in committed capital. For more information, visit www.praesidian.com.
About FocalPoint
FocalPoint is a leading independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), and financial restructurings. The firm’s primary focus is on middle-market companies with revenues between $20 million and $250 million in the business services, consumer, healthcare, industrial and technology sectors.
Please contact Duane Stullich or Nishen Radia at (310) 405-7000 with any questions about this transaction.
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