Dec 14, 2022

Corridor Capital Sells Nationwide Property & Appraisal Services to Arcapita Group Holdings January 31, 2022 | Transactions Los Angeles, CA – Corridor Capital, through its affiliated funds (collectively, “Corridor”), has successfully sold portfolio company Nationwide Property & Appraisal Services (“Nationwide” or the “Company”), a leading technology-enabled real estate appraisal management company (“AMC”), to Arcapita Group Holdings, an alternative asset manager with a total transaction value in excess of $31 billion. With a belief in the future of Nationwide, Corridor and its institutional coinvestors, 747 Capital and Southfield Mezzanine, elected to rollover a minority interest into the transaction. Corridor acquired control of Nationwide in late 2016 and the sale marks the next milestone in its journey, fulfilling the aspirations of Nationwide founders Andy Lazev and Ryan Hernberg. Andy and Ryan had shared with Corridor their dream of working with an engaged operationally-oriented private equity firm to build their $35 million annual revenue business to over $100 million. Corridor applied its transformational partnership methodology, helping Nationwide ultimately achieve more than $140 million in annual revenue and increase pro forma adjusted EBITDA by approximately 5x over the holding period. Corridor teamed with the Nationwide founders to build sustainable scalable infrastructure and pursue both organic and acquisition-based growth. “It has been an honor to work with the Nationwide founders and leadership team to help evolve an already highly competitive business into one of the stand-out leaders in the US AMC market,” noted Corridor CEO Craig Enenstein. “Corridor’s purpose as a firm is to team with the management of small leadership companies to help them achieve their full potential.” Phase 1 – Infrastructure Implementation Collaborating with Andy and Ryan, Corridor focused on enhancing human capital, processes and systems. Human Capital: During the investment, Corridor assisted Andy’s and Ryan’s transitions and hired successor CEO Sri Velamati, a professional real estate and services executive with experience building large successful enterprises. Corridor established the construct for and recruited Nationwide’s first-ever executive leadership team with a Chief Operating Officer, Chief Revenue Officer, Chief Financial Officer and Chief Valuations Officer and other key functional leaders. Corridor partnered with the Company’s senior management to iterate on overall organizational design as well as key employee incentive programs. Processes: Corridor and the new CFO designed and implemented a modern finance function including budgeting, dashboard, reporting and controls functions and migrated the Company to a traditional board meeting cadence, lender management capabilities, and annual audits. Collaborating with the new CRO, Corridor identified and implemented a new approach to selling in the AMC sector by inducting Outside Account Managers (“OAMs”) to augment the sales team, yielding a material improvement in client-level market share capture. In core operations, the CEO, COO and Corridor worked together to perform client and product margin analysis and developed strategies to ensure competitive and appropriate pricing. Systems: Corridor worked with management to ensure a fully tech-enabled platform with automated order intake and order assignment processes that increased accuracy, reduced turn time and optimized organizational performance. The sales function implemented CRM to support growth at scale. Furthermore, Corridor pursued the normalization of systems procedures across the Company to permit easier integration of add-on acquisitions. Phase 2 – Organic and Acquisition-Based Growth Organic Growth: The CRO implemented a coordinated, focused new business development program yielding regional and national new client wins including leading lenders, Rocket Mortgage and United Wholesale Mortgage. The Company achieved significant incremental existing account penetration as a result of the OAM program and the build out of revised sales incentive plans. Acquisition-Based Growth: Corridor facilitated a strategic assessment of the AMC market, with particular focus on geographic and product expansion opportunities, resulting in a prioritized acquisition plan. On behalf of Nationwide, Corridor completed five add-on acquisitions resulting in increased geographic strength in numerous regions, new client pick-up that deconcentrated revenue, valuable human additions, and technology opportunities. The Corridor Operations team facilitated integration of the acquired businesses yielding talent and customer retention. Corridor believes that implementing its two-phase model transformed this founder-driven company into a mainstream enterprise well-positioned for sustainable long-term growth. Baird performed investment banking services and Morgan Lewis & Bockius provided legal services for the transaction. Duff & Phelps and RSM supported the process with accounting services. Lockton Companies provided risk and insurance services. © 2022 Corridor Capital. All Rights Reserved. Wetmore Tool & Engineering ​Wetmore Tool & Engineering is a market leader in specialty cutting tools, drill bits and fasteners, serving customers with needs for high precision solutions in the aerospace, automotive and industrial markets since 1950. Wetmore manufactures both custom and standard cutting tools and related products under the HP Manufacturing, Wetmore Cutting Tools and California Associated Products brands. Wetmore was acquired in 2019 by Dormer Parmet, a division of Sandvik Machining Solutions, a business area of Sandvik AB (SAND:SS). ​ × Managing Partner Craig Enenstein founded Corridor Capital, LLC in September 2005 to pursue control investments in lower middle market buyouts. Leveraging his operating and investment experience, Craig approaches investing as an active partner. Craig developed Corridor Capital to be a strategic and operational partner to the companies in which it invests and to work closely with the management and boards of directors of those companies. Prior to launching Corridor Capital, Craig led transactions for Omninet Capital, Liberty Digital and Knowledge Universe where he completed over two dozen private equity and venture capital investments totaling over $400 million across a wide range of industries. He developed a reputation for working closely with management of the portfolio companies to assist in business strategy, mergers and acquisitions sourcing and execution, capital access and structuring, operations restructuring and business planning. Prior to joining Knowledge Universe, Craig was a strategy consultant with L.E.K. Consulting and Bain & Company. Craig currently serves on the boards of CCT Holdco, LLC, Circuitronics EMS Holdings, LLC, Consolidated Flooring, LLC, IE Food Holdings, LLC, NPAS Holdings, LLC and Specialty Marketing & Communications Holdings, LLC. He also serves on the board of Naspers Limited, Wharton Graduate Executive Board of Directors, Wharton Private Equity and Venture Capital Association and MAKE IT IN LA. He has also served on the board of directors of AirPrime, Inc., Arrowsight, Inc., CDI Holdco, LLC, food.com, Game Show Network, LLC, IOP Holdings, LLC, MIH Holdings, Ltd., NameSafe, LLC, OpenTV, Inc. (Nasdaq: OPTV), Paramount Scaffold, Inc. TIR Systems, Limited (TSX: TIR) and TrashMasters, LLC. He served on the Wharton Alumni Executive Board of Directors for over 10 years (serving as President, Chairman and Chairman Emeritus for 7). Craig is an active member of Young Presidents’ Organization. He holds an M.B.A. from the Wharton School of Business, an M.A. in International Studies from the Lauder Institute at the University of Pennsylvania and a B.A. from the University of California at Berkeley. × SPM Marketing & Communications SPM Marketing & Communications is a La Grange, IL based brand advisory and fully integrated marketing services platform focused on hospitals, healthcare systems and the healthcare industry. SPM’s marketing and advertising services include branding, creative services, content marketing, digital, media planning & buying and consumer insights/research. As a leading healthcare marketing firm, SPM has worked with over 300 healthcare organizations in over 40 states. ​ Nationwide Property & Appraisal Services Nationwide is a Gibbsboro, NJ based appraisal management company (“AMC”), licensed in all applicable states with existing AMC legislation and active in facilitating independent appraisals throughout the entire country. The Company specializes in the management of appraisal and property valuation services for residential and commercial property lenders, including many of the country’s largest mortgage originators and banks. Nationwide’s commitment to maintaining the highest standards of compliance, service and appraiser quality has enabled it to rapidly become the preferred partner for more than 20,000 loan officers, 400 different lending institutions and 7,500 of the most skilled independent appraisers throughout the United States. ​ Circuitronics Circuitronics is an Irving, TX based provider of specialized printed circuit board (“PCB”) assembly and related electronic manufacturing services (“EMS”). The Company offers a broad set of capabilities, including rapid prototype development, complex and ruggedized PCB assembly, system assembly and test, design for manufacturing and design for testing services, and end-of-life supply chain services. The Company serves customers in several demanding industrial and energy end-markets, with a recognized specialization in high-mix, low-volume applications that have exacting quality requirements and/or complex layouts. Circuitronics has established itself as a regional leader by flexible, customized solutions for high quality products with exceptional customer service. ​ SCI Floor Covering ​SCI, headquartered in Southfield, MI, is the leading distributor and installer of floor covering products for the repair, maintenance and restoration of commercial, healthcare, multi-family and insured residential properties in Michigan. Since 1980, the Company has provided customers with superior service, quality and selection at competitive prices, while serving as a valued distribution partner to the country’s leading flooring manufacturers. In 2016, through its holding company Consolidated Flooring, LLC, the company acquired MC Flooring, the market leading distributor and installer of floor covering products for the multi-family segment in Kansas City. In 2018, through its holding company Consolidated Flooring, LLC, the company acquired Eastpointe Interiors, a leading distributor and installer of floor covering products for commercial properties in Western Michigan. ​