Madison Street Capital Provides Critical Assistance To Sach Capital Group As They Acquire RMG Networks

When Sachs Capital Group decided to acquire RMG Networks, they made the decision to bring in Chicago’s Madison Street Capital in order to serve as their exclusive advisor. This international investment banking boutique connected them with the financing they needed which was provided by Merion Investment Partners and Virgo Capital.

RMG Networks is a firm that creates digital signage software, hardware, and services. They have more than half of the Fortune 100 as their clients. The Madison Street Capital manager that led his team’s efforts to manage this deal was Senior Managing Director Barry Petersen.

After the acquisition was completed Sach Capital Group’s Chief Executive Officer Gregory H. Sachs said that he was very pleased with the council that he was provided with by Madison Street Capital. They identified which financing firms would be the best fit for Sachs Capital Group and managed all of the details right up through when the deal closed.

Barry Petersen released a statement in which he said that he really enjoyed working with Gregory Sachs in order to close this private transaction. He found is a really interesting deal and feels that RMG Networks is poised to launch into further growth opportunities. He was especially interested in their new platform, Korbyt, which is used for corporate communication and digital signage in a cloud-based atmosphere.

As RMG Networks was taken private by Sach Capital Group their existing shareholders needed to be compensated. They had been trading on the NASDAQ Stock Exchange under ticker symbol RMGN. The shareholders were paid $1.29 per share in cash when this company ceased being publically traded on September 28, 2018.

Madison Street Capital was established in 2005 and has its headquarters in Chicago, Illinois. They now have additional offices in Africa and Asia as well. They will soon be opening an office in Austin, Texas, as well. They are an investment banking boutique that offers their services to mid-sized firms throughout the world. this company was founded by two entrepreneurs, Charles Botchway and Anthony Marsala, who both had years of experience in the financial industry.

They offer several financial services to their global clients. This includes providing advisory services during mergers and acquisitions transactions, financial asset management services, business valuation services, financial reporting, raising capital, tax planning, and wealth preservation. The team at Madison Street Capital reputation resolves around deep experience in multiple industries including financial services, medical devices, technology, aerospace, energy, construction, agriculture, and manufacturing.


Connect with Madison Street Capital on LinkedIn.

David Zalik grows GreenSky into one of largest fintech firms

Over the last 20 years, the trend among financial tech startups has been to vilify and denounce the traditional banking model. Companies like Lending Club and and OnDeck have explicitly rejected the traditional lending role, instead trying to create parallel systems that are able to better meet the needs of both lenders and borrowers.

But of those companies have struggled to stay afloat. David Zalik, the founder and CEO of GreenSky, had a very different idea about how to create value within the fintech sector. Rather than trying to burn the banking system to the ground through disruptive technology, Zalik embraced the world of traditional banking, using technology to eliminate frictions and create value for banks, merchants and customers by facilitating deals that would have otherwise fallen through.

This model has proven to be enormously successful. Within just 12 years, Zalik has been able to grow GreenSky from a startup that he funded by taking out a reverse mortgage to a company worth more than $4.5 billion. GreenSky is now poised to make its initial public offering, a move that analysts say could make it one of the best opportunities for IPO investors this year.

GreenSky has an incredibly simple yet hugely effective business model. The company started by helping home remodeling contractors extend credit with generous terms to customers, helping to facilitate many deals that would have otherwise fallen through due to the customer underestimating the true cost of the project that they wanted to complete.

Zalik quickly saw that this model could be replicated across many different sellers of big-ticket items. Today, GreenSky has over 17,000 merchants who are able to connect with 12 of the largest lenders in the country, including Region’s Bank, Fifth Third and Sun Trust. These merchants are able to offer customers truly amazing loan terms at the point of sale, often involving no payments and no interest for 12 months. Because the majority of the customers have extremely strong FICO scores, almost all of these loans are paid back before the higher rates kick in. And the banks who make the GreenSky-facilitated loans almost never contend with delinquencies.

Greensky Credit’s Staff

Greensky Credit was established several years ago. It was founded in the year 2006. David Zalik developed the company. The corporate is among the leading companies in the United States of America. The corporate’s headquarters are located in Atlanta, Georgia. However, it has another call center located in Covington, Kentucky. The company is backed by the most influential investors in the world. Some of them include Fifth Bancorp that is situated in Cincinnati, Ohio.

According to a journal in the US, the company is valued at $3.6 billion. The company’s value had elevated compared to a fund-raising that was conducted ranging at around $300 million. Additionally the corporate is backed up by other investors like Wellington management, DST global, Iconiq Capital and TPG.

According to a 2016 valuation that was conducted on various companies, Greensky Credit was awarded the prize of the most valuable growing, privately-owned company. However, there were no financial details that were disclosed. A private organization is not required to disclose its financial information to anyone. They don’t share information with the public.

Greensky Credit corporate is not that familiar with most of the consumers like other financial technology companies. The reason behind this is because the company doesn’t make out loans from its capital. The company’s staff signs up retailers and merchants from all over the country. These merchants primarily sell home improvements staff like aluminum siding, window replacement products and furniture.

Greensky Credit’s employees have been very hardworking and at the forefront to see that all critical services have been delivered. They provide solutions to all consumers. This way the lives of most consumers have improved. Subsequently, the lives of their families have been made better.

Additionally, most small businesses have expanded. Greensky Credit has been able to elevate small businesses into medium-sized corporates. Greensky staff is a dedicated team of employees that are ready to see the organization propel. The organization has over 670 employees. The company has had plans to increase the number of employees as it grows. Also, the CEO confirmed that they would soon extend their services so that they get to accommodate medical personnel like doctors and nurses into their services.