Gainline Capital Partners has sold Source Advisors to BV Investment Partners
Source Advisors, headquartered in Fort Worth, Texas, is a market-leading tax incentive solutions provider to a range of clients, including small and medium-sized businesses and scaling to the Fortune 1000 in the United States and internationally. Working in conjunction with its clients’ certified public accounting firms, Source Advisors offers a unique combination of highly specialized consulting services and software tools for its core services, including research and development (R&D) tax credits, cost segregation, Section 179D, Section 45L and last-in, first-out inventory solutions. Source Advisors recently expanded its product portfolio to include a proprietary automated R&D tax credit software platform, GOAT.tax.
Gainline Capital Partners acquired Source Advisors in March 2020 as part of a carve-out from Exela Technologies. Under Gainline’s ownership, Source Advisors launched the GOAT.tax platform and executed two add-on acquisitions, further building out its R&D tax credit and cost segregation practices, making it one of the largest, independent and specialized tax incentive solutions providers in the United States. Lincoln led a highly efficient process that resulted in robust interest in the company, due to a highly compelling investment thesis coupled with thoughtful targeting of highly motivated potential future partners for the business. Lincoln’s process delivered numerous high quality options to the shareholders with BV Investment Partners ultimately prevailing.
BV’s partnership will help Source Advisors further accelerate its core organic and inorganic growth strategies in part by leveraging potential partnerships with BV’s existing portfolio companies and its long-term experience in successfully growing technology-enabled service models. BV will support Source Advisors’ growth strategy that centers on continued generation of timely thought leadership content, sales and marketing investments to grow market awareness of Source Advisors’ offerings as well as the incubation of new technology offerings to complement GOAT.tax.
Mike Iannelli, Managing Director and co-head of Lincoln’s Business Services Group, commented, “Source Advisors is a prime example of the vast opportunity that exists for expert firms to outsource critical functions to the office of the Chief Financial Officer (CFO) in companies of all sizes. As the pressure mounts for the CFO to not only provide strong financial controls and regulatory compliance within organizations but also to act as a proactive business partner to operations and to free up capital for strategic investment, CFOs need increasing leverage in the form of human capital and technology to execute on their mandates.
“Source Advisors’ combination of experienced technical experts enabled with proprietary software helps its clients to maximize the benefit from various tax incentive programs established by federal and state governments to spur long-term economic objectives, including innovation, investment, sustainability and employment. The company delivers its highly demonstrable return on investment while ensuring tax compliance and supporting its clients for the long term, driving outstanding revenue retention and growth making it a leader in a large and highly fragmented addressable market with ample opportunity for further penetration.”
Gainline Capital Partners
Gainline is a private equity firm that invests in profitable U.S.-based mid-market companies. The firm focuses on being the first institutional capital and specializes in partnering with management teams to help execute their vision, drive sustainable growth and create long-term value.
BV Investment Partners
BV is an active investor and financial partner to leading mid-market software, information and business services companies. Since 1983, it has made over 100 platform investments totaling more than $4 billion in equity capital across ten funds. BV focuses exclusively on partnering with founders, entrepreneurs and executive teams to help accelerate revenue and earnings growth through organic and acquisition-driven initiatives.
Lincoln provided invaluable leadership to Source Advisors throughout the sale process. The Lincoln team’s ability to utilize analysis and deep industry expertise to help articulate the complexities of Source Advisors’ business model and market dynamics were critical to demonstrating the full opportunity being pursued by President, Chris Henderson, and team. Lincoln’s outreach to a carefully selected group of high quality and knowledgeable potential buyers yielded a very successful process and an outstanding outcome for Gainline and the management team.
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