ASR Nationwide & Allstar Recovery - Recapitalization
ASR Nationwide & Allstar Recovery - Recapitalization

THE TRANSACTION:

ASR Nationwide and Allstar Recovery have been recapitalized with an equity and debt investment by KLH Capital and Plexus Capital. Founders Investment Banking acted as the exclusive financial advisor to ASR Nationwide and Allstar Recovery’s shareholders in the transaction.

THE COMPANY:

Based in Jackson, Mississippi, ASR Nationwide and Allstar Recovery provide indirect and direct recovery and other automotive remarketing services to local and national clients across the United States.

THE SOLUTION:

Founded in the early 1990’s as a family-run direct auto recovery provider, Allstar Recovery experienced steady growth over its first 10 years—primarily in Mississippi. The family founded ASR Nationwide in 2004 to implement its strategy to offer indirect auto recovery services through a nationwide brokerage network. With a dual focus on direct and indirect auto recovery services, the companies experienced significant growth as Allstar increased its number of locations in the Southeast and ASR extended its geographical coverage domestically. Recognizing the opportunity at hand in a very fragmented industry, management engaged Founders to: i) to identify and secure funding with an investor who could provide capital for needs now and in the future, and ii) serve as a value-added, experienced partner to help the companies navigate its next phase of its growth and development. Ultimately, Founders advised on a transaction that helped accomplish the ownership group’s key goals:

  • realize liquidity to diversify personal wealth;
  • align with an investment partner that would provide the on-going capital needed to fund growth initiatives;
  • maintain significant ownership for the realization of future value;
  • retain operational control on a day-to-day basis to implement the growth initiatives that would drive future shareholder value;
  • establish a board of directors that provides oversight and advises on strategies that facilitate the realization of the firm’s full value potential.