Calling Corporate Matchmakers | Firm with good family values seeks partner with cash
Photo/Courtesy
Victor Melfa, founder of The Training Associates.
Photo/Courtesy
Victor Melfa, founder of The Training Associates.
Most companies don't talk publicly about decisions to look for a buyer or a bigger partner with more resources, but that hasn't stopped The Training Associates of Westborough.
On The Upswing
The Westborough-based company, which provides information technology trainers, began issuing public statements about the search two quarters ago, saying that it is looking for a company interested in buying all or part of it, or in making some other beneficial partnership. Such an investment would be a major step for the company, which was founded by Victor Melfa, 73, 40 years ago, but is now led by his daughter Maria, the CEO.
But it's certainly no fire sale, company officials contend. The firm has posted double-digit growth averaging 70 percent for the last four years, according to Jeanne Picardi, the company's marketing director. It also grew its sales by 82 percent during the first quarter of this year, compared to the same time last year.
The company has hired Briggs Capital, based in Dedham, to help them find the right match.
"I don't think it's odd; there are all kinds of reasons that a company may want to be sold. Many companies do so in a private fashion, but just as many hire an investment bank and put a book on the street broadcasting to dozens of potential investors," said William Cowen, managing partner in venture capital company Long River Ventures Inc., in Westborough and Hadley, said. Long River Ventures invests in early stage companies.
If the process is properly managed, with good communication to customers and partners, it can be a positive process, he said.
The Melfas decided that although TA was a private company that did not traditionally release much financial information, communicating publicly could make more potential partners aware of their search and would outweigh any negatives.
And although TA's growth has spurted in the last few years, talking publicly about the search initially did have a slightly negative effect.
"When we first made this public, people were scared," Picardi said. "We also sent the announcement to thousands of customers and our partners, saying this is a positive move. People are so used to having this type of move when something is failing, which is certainly not the case with TA."
But continued communication with its customers and partners, educating them about why the company was doing it, helped people understand that the company wanted to capitalize on factors that could allow it to flourish and grow.
"The process really began about a year and a half ago," said Jeanne Picardi, describing Victor Melfa's decision to pursue a strategic buyer or partner. "He has put a lot of blood, sweat and tears into building this growing business and now he'd like to do some other things like charitable work and spend more time with wife." Maria Melfa plans on remaining with the company, whether it stays independent or not.
"This is a process that is unbelievably demanding with a lot of criteria that must be satisfied on both sides," Picardi said.
The company's double-digit growth means it can take its time to find the right match, Picardi said.
"We have the benefit of not being hungry. They're (the Melfas) very flattered at the amount of interest and they're taking the process very seriously."
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