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Diamond Capital Advisors Records Successful Transaction with In Sync Advertising’s acquisition of Bemis Balkind

In Sync Acquisition Creates 360º Marketing Solution

In Sync Advertising’s acquisition of Bemis Balkind creates a 360º marketing solution for its clients. In Sync is a leader in audio visual motion picture advertising having created campaigns for such movies as Silver Linings Playbook, Ted, Home Alone, Midnight in Paris and many others over the past 20 plus years. Smitty, as he is commonly known, the owner of In Sync asked Diamond to advise him on the purchase of Bemis Balkind – a firm specializing in print, digital and web advertising. Although the owners of the two companies knew and respected each other (having previously worked together) Smitty realized the potential difficulty of structuring a favorable deal while maintaining the trust for a future working relationship. Smitty needed the enthusiasm of the Bemis Balkind owners to make combined entities work.

 

The challenge for the Diamond team was to structure a deal both parties could live with in spite of a wide gap in the perception of value. The first step was to establish some agreed upon facts. The accounting firm of Gumbiner Savett did a complete review of the books and conducted extensive interviews with the management to confirm historical data and give the Diamond Team an idea of potential synergies. Everything was transparent. This process allowed both sides to move away from their original positions.

 

In this transaction, unlike most others, Diamond was not just an advocate for one side, but played the role of trusted advisor to both parties. In many instances the owners of Bemis Balkind looked to David Herman for suggestions on deal structure. This dynamic was especially important when the working capital decreased during the negotiations. The solution was to assure the sellers that the deal would close and allow them to earn back any working capital shortfall.

 

The end result was that the transaction closed and Smitty becomes the Chief Executive Officer of the new entity. The sellers, who will each be co-presidents, have employment contracts, bonuses and earn-outs designed to reward them for past and future contributions. They will be able to realize far more than a market valuation. The buyer has increased his company’s value by adding substantial revenue and important synergistic expertise. Now In Sync + Bemis Balkind can offer its clients a start- to-finish connected marketing campaign.

 

In Sync Advertising’s acquisition of Bemis Balkind creates a 360º marketing solution for its clients.  In Sync is a leader in audio visual motion picture advertising having created campaigns for such movies as Silver Linings Playbook, Ted, Home Alone, Midnight in Paris and many others over the past 20 plus years.  Smitty, as he is commonly known, the owner of In Sync asked Diamond to advise him on the purchase of Bemis Balkind – a firm specializing in print, digital and web advertising.  Although the owners of the two companies knew and respected each other (having previously worked together) Smitty realized the potential difficulty of structuring a favorable deal while maintaining the trust for a future working relationship.  Smitty needed the enthusiasm of the Bemis Balkind owners to make combined entities work.

 

The challenge for the Diamond team was to structure a deal both parties could live with in spite of a wide gap in the perception of value. The first step was to establish some agreed upon facts.  The accounting firm of Gumbiner Savett did a complete review of the books and conducted extensive interviews with the management to confirm historical data and give the Diamond Team an idea of potential synergies.  Everything was transparent.  This process allowed both sides to move away from their original positions. 

 

In this transaction, unlike most others, Diamond was not just an advocate for one side, but played the role of trusted advisor to both parties.  In many instances the owners of Bemis Balkind looked to David Herman for suggestions on deal structure.  This dynamic was especially important when the working capital decreased during the negotiations.  The solution was to assure the sellers that the deal would close and allow them to earn back any working capital shortfall.

 

The end result was that the transaction closed and  Smitty becomes the Chief Executive Officer of the new entity. The sellers, who will each be co-presidents, have employment contracts, bonuses and earn-outs designed to reward them for past and future contributions.  They will be able to realize far more than a market valuation.  The buyer has increased his company’s value by adding substantial revenue and important synergistic expertise.  Now In Sync + Bemis Balkind can offer its clients a start- to-finish connected marketing campaign.

Diamond’s Media and Entertainment Practice team members David Herman, Robert Smith and Roman Lefranc advised In Sync on this successful transaction.