At Corporate Strategies, we are business developers and problem solvers. We create successful outcomes for company owners, law firms, banks, investors and corporations both public and private. Our history of successes includes private equity firms, hedge funds, insurance companies, shareholder groups and litigation capital providers among others. These clients required our immediate attention on critical issues and we achieved timely, successful outcomes.
Corporate Strategies led the successful acquisition of Lineal Industries, Inc., www.Linealind.com located in Pittsburgh, PA. from Primoris. Lineal Industries was founded following World War II and incorporated in 1955. Lineal serves pipeline customers and utilities in Pennsylvania, Ohio, W. Virginia, Virginia and New York. Lineal is a specialty contractor, focused on midstream and downstream pipeline integrity, pipeline maintenance, right of way maintenance, facility integrity services, facility maintenance, specialty construction services, and field fabrication.
Lineal specializes in small, critical need capital projects up to $30 Million. Corporate Strategies arranged the capital necessary for its acquisition and expansion into new markets. Following its acquisition, the company was headquartered in Houston, Texas, and is expanding its services into the southwestern US midstream and petrochemical markets. Lineal Industries is led by Tim Connolly as CEO. Connolly is a principal shareholder of Lineal Industries and also CEO of Corporate Strategies.
A Texas energy and real estate investment firm faced significant, multi-million dollar losses from investor claims against their firm. These claims were due to malpractice committed by outside professionals previously serving the investment firm who were inadequately researching and evaluating opinions issued on its transactions. Two days after courtroom testimony provided by Corporate Strategies Founder and CEO Tim Connolly, the jury returned a $17 MM verdict in favor of our client and the case was settled that same week for $10,000,000.
Corporate Strategies' client was a major borrower at a regional Houston bank. He was in default on a significant number of loans totaling millions of dollars owed to the bank and bankruptcy was under active consideration.
The cross-default provisions in his loans jeopardized major property holdings owned by minority shareholders as well as the borrower. In order to prevent foreclosure on the borrower's assets, Corporate Strategies negotiated forbearance agreements on all the borrower's bank loans and arranged a non-bank funding of $7.5 million to pay off the bank's loans secured by the properties. In February 2020, 2 1/2 years following the original transaction, Corporate Strategies arranged a follow-on $8 million loan for the minority shareholders to buy out the majority shareholder. The former minority owners now control the majority ownership of a re-invigorated company.
A financial holding company based in Texas was facing a large number of foreclosed energy and real estate assets, with minimal in-house management resources to manage or operate these assets. Corporate Strategies researched various investment companies and found many had a preference for certain types of asset classes that fit their management profile. We negotiated multi-million dollar exchanges as well as outright sales of troubled assets among financial and private equity investor groups. Each party received assets they were more comfortable managing, and the parties improved their ability to add asset value and ultimately sold their preferred portfolios at greater realized prices as markets recovered.
A Houston based family-owned Mexican restaurant chain asked Corporate Strategies to develop and implement a loyalty program for their upscale customer base. The desired outcome was to encourage more frequent dining by their most loyal customers. We designed and produced a pre-paid Platinum VIP Members Card and a Gold VIP Members Card that provided significant savings to the Cardholder. We trained restaurant management and waitstaff in selling the VIP Cards. In the first full year after its launch, the VIP Card program resulted in over $7 million in prepaid Card sales, increasing customer visits and generating higher average check totals.
The VIP Members program is owned by Corporate Strategies and a shareholder group and is planned for future expansion to other hospitality clients.
Our client had a multi million dollar investment in a Canadian vitamin and protein manufacturer. Unknown to the investor, the company was placed into an involuntary receivership in Canada, jeopardizing our client's entire investment. Corporate Strategies successfully negotiated the Canadian Court's receivership claims for 50 cents on the dollar, increased the company's revenues by 60 per cent over 18 months, preserved the client's investment and enhanced the company's future value.
A Corporate Strategies technology client became publicly traded and completed a substantial convertible bond financing with a Connecticut-based hedge fund. The fund agreed to a one year stock lock up, prohibiting stock sales and no shorting of any kind. Suddenly, stock volumes rose and share price plummeted from massive sales occurring out of a Canadian brokerage firm, damaging shareholder values and jeopardizing other prospective investments in the company.
Our research indicated the hedge fund was shorting the stock from an account in Canada. After we obtained written proof of the short sales from the Canadian brokerage firm, the hedge fund was forced to "buy in" common stock from the public market in an amount equal to those shares shorted in violation of their contractual lock up provisions. Our client's stock stabilized and appreciated in value once the shorted shares were covered by the open market purchases.
A Florida based restaurant chain had received signficant capital funding from our client and was no longer a viable enterprise. Our client wished to avoid the time, expense and uncertain outcome of the bankruptcy process. Corporate Strategies successfully negotiated the payoff of all creditors at 10 to 15 cents on the dollar, saving our client legal and court costs of many times the total cost of the settlement. This is an excellent example of a succesful outcome defined by minimizing losses from a troubled investment.
A Vermont based, 40 year old US Department of Defense contractor- manufacturer of electronics for the defense industry was burdened with excessive costs and continuing negative cash flow. Over a 24 month period, Corporate Strategies re-engineered manufacturing processes, lowered costs and accelerated deliveries. The company was subsequently acquired by one of its competitors in a transaction arranged by Corporate Strategies.