The Client
The Sytex Group, Inc. (TSGI), formerly headquartered in Doylestown, PA, provided information technology solutions and technical support services to the U.S. Department of Defense and other federal agencies. TSGI, through its three operating divisions, was focused on technology engineering and systems integration; command & control, communications, computers and intelligence; information operations/information warfare; network security solutions; security assistance and training; and integrated logistics and business management systems.
The Opportunity
Syd and Sharon Martin co-founded the Sytex Group in 1988. Based on their extensive expertise, they founded TSGI with the goal of providing a broad range of technology services to the U.S. Department of Defense and other federal agencies. Their strategy was to grow the business through a combination of strategic acquisitions and organic growth.
In 1994, Syd and Sharon began a search for an accounting and advisory firm to provide services to TSGI. Based on the nature of TSGI's growth strategy, its rapid pace of change, its ownership, and its exit plans, Syd and Sharon were looking for a firm with significant expertise in advising fast growing companies, a focus on closely-held businesses, experience assisting companies with due diligence, extensive corporate and individual income tax expertise, and strong relationships in the banking community. After considering a wide range of firms, Syd and Sharon selected Kreischer Miller.
The Solution
Kreischer Miller assembled a multidisciplinary team of accounting, tax, technology, and executive search professionals to serve TSGI. The team included members with extensive government contracting and transaction support experience, ensuring that TSGI had access to the expertise needed to address the complex issues impacting TSGI during a period of rapid growth. Over the course of TSGI's relationship with Kreischer Miller, TSGI’s business grew from $5mm in annual revenue to over $450mm, with more than 3,000 total employees. During that time, Kreischer Miller provided audit services; assisted TSGI in connection with multiple acquisitions; addressed federal, multi-state, and local tax issues for TSGI and its owners; advised TSGI regarding incentive programs for its employees; assisted in the hiring of key executives; and was very instrumental in planning for and obtaining financing needed for planned acquisitions.
The Outcome
After leading the company for almost 20 years, Syd and Sharon received an offer from Lockheed Martin to purchase TSGI. Again, Kreischer Miller's transaction support and tax services professionals were there to support TSGI and its owners until the successful closing of the transaction. The transaction with Lockheed Martin did not include one of TSGI's subsidiaries, MacAulay Brown, Inc., which Syd and Sharon retained and continue to operate. In light of the outstanding service provided by Kreischer Miller to TSGI, Syd and Sharon had no question that Kreischer Miller was the right firm to serve MacAulay Brown, Inc. on a continuing basis after the transaction with Lockheed Martin. "Kreischer Miller has always delivered high-quality professional services to meet our strategic business needs. There simply isn't any scenario in which we believe we would be better served by a firm other than Kreischer Miller; they are a valuable team member," Syd said.
Over the course of its relationship with MacAulay Brown, Inc. Kreischer Miller has continued to provide a broad range of services, supporting Syd, Sharon, and the company as they have successfully executed a strategy resulting in 2010 revenues in excess of $300 million. As Syd mentioned, "We have full faith in Kreischer Miller's ability to meet any business challenge we may face. Their technical expertise and focus on client service make them a value-added partner in our success."