When Madison Street Capital, the Chicago-based middle market investment company, got the call from Mike Harris, the CEO of DCG Software Value, CEO Charles Botchway knew his company was up for the challenge Harris was throwing his way.
DCG Software Value is an international company that provides software estimations, function point analysis, and software value management services to companies that are expanding their reach in their perspective markets. Harris, an astute businessman, needed Botchway’s help merging with the Spitfire Group, a Denver-based tech consulting company.
Mr. Harris wanted Madison Street Capital to act as a financial advisor, according to Mr. Botchway, and Botchway knew his company was ready to handle the merger between these two IT leaders. Mr. Botchway put Jay Rodgers, one of Madison Street’s consultants, in charge of the project. The merger was a win for DCG Software Value and the Spitfire Group, according to Mr. Rodgers. The IT industry needed the combined expertise of these companies, and Rodgers and Madison Street Capital made sure all the details of the merger were executed properly.
According to the executives at Malvern Pennsylvania-based DCG Software Value and Spitfire Group executives, they will continue to use Madison Street Capital’s services in order to get all the merger bugs worked out.
One of the key factors in any merger is getting both companies to agree on the big merger topics as well as the small details that make the merger a smooth transition. Smooth transitions are what Madison Street is good at, according to MSC’s co-founder and COO Anthony Marsala.
Mr. Marsala is an expert in leverage finance. He is the 2015 recipient of the prestigious National Association of Certified Valuators and Analysts 40 under 40 award. Marsala is also a winner of the 7th Annual Emerging Leaders Award.
Tony also participated in the 2016 Crain’s Leadership Program. Tony Marsala and Charles Botchway built a strong boutique investment firm in Chicago because they knew there was a void in the market for a firm that focused on financial advisory services, financial opinions, merger and acquisition expertise and valuation services. Both men know public and privately held businesses need help navigating the rough waters in the global marketplace, so they built a team of professionals that could help those companies excel in their industries.
Madison Street Capital also has a strong presence in Emerging Markets like Mexico, Brazil and India. There are exciting opportunities in emerging markets, but there are also risks. Botchway and Marsala are not afraid to take calculated risks when all the research points to a big reward. Madison Street Capital was a finalist for the 15th annual M&A Advisor Awards. The people in the merger and acquisition industry know the M&A Advisor Awards is the equivalent of the Academy Awards in the film industry. Only the top merger and acquisition firms get that kind of recognition.
Another important piece of Madison Street Capital’s business model is the hedge fund that MSC manages. The investors who participate in the Madison Street Capital fund know their money is in good hands because Botchway and his team know how important emerging market investments are, especially IT emerging market investments.
Botchway and Marsala are a winning team and they built an executive investment team that knows how to maneuver during the good times as well as the bad. MSC is proud of the team’s strategy which is to find the right investments for their clients and to align companies for mergers that have something in common. Many middle tier mergers fail because all the ingredients that make mergers successful are missing, or if stockholders and regulators put roadblocks in place that can ruin the merger vibe, according to Marsala.
2017 was another profitable year for Madison Street Capital. Medium-size companies in the United States as well as companies in other countries need help controlling their finances. If all the financial tools are not in place, companies have a hard time turning a profit, and without an advisor to steer companies in the right direction they could fail.
Madison Street has a reputation for pulling companies out of difficult financial situations. Botchway and Marsala believe in building a basic financial foundation so companies can survive once a merger is complete. And their track record for completing successful mergers is impressive.