In recent weeks, we have seen a good deal of acquisition activity in the factoring industry. Three deals are especially worthy of noting for this month's newsletter. Perry Capital to Acquire Capital Factors Perry Capital has reached an agreement to acquire the assets and business of Fort Lauderdale, Florida based Capital Factors and Capital Tempfunds, a subsidiary of Regions Financial Corporation (www.regions.com). Terms of the deal have not been disclosed. Capital is the nation's fifth largest factoring company, doing more than $3 billion in volume annually. Going forward, Perry Capital will invest up to $100 million of capital to support management's strategy to build a leading commercial finance company to serve the middle market. Andrew Tananbaum, a highly regarded veteran of the commercial finance industry, will make a significant investment in addition to serving as CEO of the new company, to be called Capital Factors. The new company, which will employ more than 200 people, will be headquartered in New York City and Fort Lauderdale, with regional offices in Highpoint, North Carolina, and Los Angeles, California. CIT Acquires Assets of Receivables Capital Management, A Division of SunTrust On April 1, CIT (www.cit.com) announced that it had acquired substantially all of the factoring assets of Receivables Capital Management (RCM), a division of SunTrust (www.suntrust.com). Although exact terms were not disclosed, the acquired gross receivables were approximately $867 million, with a net amount of approximately $238 million. "This transaction is consistent with CIT's strategy to pursue growth opportunities that have synergies with core business lines and meet our return and equity targets," said Jeffrey M. Peek, CIT's Chairman and Chief Executive Officer. CIT has nearly $60 billion in total assets under management, and has approximately 6,000 employees in North America, while SunTrust has approximately $159 billion in assets. Greystone & Co., Inc. Announces Affiliate Purchase of Metro Factors New York, NY, - April 11, 2005 - Greystone & Co., Inc. (www.greyco.com) announced the completion by its affiliate Greystone Metro Financial, LP, of the Asset Purchase of Metro Factors, Inc., Dallas, TX (www.metrofinancial.com). The details of the deal were not disclosed. Founded in 1974, Metro is one of the nation's largest firms targeting small and middle-market business-to-business companies in need of improved cash flow and credit management. Metro provides specialty Factoring Services to the transportation, staffing, manufacturing, distribution, import, processing and service industries. Almost all of the management and staff have been retained and the operation will remain in Dallas. Jonathan Coven, representative for Greystone, comments on the transaction. "Greystone made the decision back in 2004 to expand into the Specialty Working Capital Market with the hiring of Drew Neidorf to start an Asset Based Lending Division. We were in the process of searching for someone to run a Factoring Division when the Metro opportunity arose. The timing was just perfect. We are very excited to combine our depth of capital with the experience and web-based systems that Metro brings to the table. We expect to reshape the Factoring Market for years to come". About Greystone Servicing Corporation, Inc. Greystone & Co., Inc. with its affiliated companies, is a private investment and real estate organization with expertise in a range of loan products, servicing, trading, securitization and transaction structuring. Since its founding in 1988, Greystone has fostered a work ethic that is motivated by tangible results. Greystone remains a well capitalized, privately held company whose success is a result of thoughtful innovation, superior product knowledge, focused transaction management and outstanding service to its clients. About Metro Factors Inc. Services Metro Factors Inc. dba Metro Financial Services, is one of the largest privately held factoring companies in the U.S. dedicated to serving the needs of small to medium-sized companies. Metro has provided billions of dollars in factoring services to thousands of successful clients throughout the United States Metro provides a suite of accounts receivable management solutions including: factoring, customer credit analysis, guarantees against non-payment of receivable, collections, related bookkeeping, and management reports utilizing the advanced technology of MetroLink, Metro's proprietary Web-based 24/7/365 information system. Tom Siska, Managing Director at FactorHelp tells us: http://www.factorhelp.com/05April.pdf (originally posted ABF Journal, April 2005) The digital age is upon us. Is your financial services company an industry leader or laggard? Are you losing sales to your competitors with out-dated marketing materials? Do your direct mail pieces captivate and generate maximum revenue? Is your website an effective member of your sales team? The internet has become the backbone of the sales process as a web address has become more important than a street address. How does your web presence compare with your competitors? A recent study suggested that 85% of all internet traffic is generated from search engines. Is your website optimized to appear at the top of search listings? A website or direct mail piece often provides a potential customer a critical first impression of your company, products and services. A sale can be lost in the first seconds if your message is unclear or poorly portrayed. Are you using obsolete marketing materials from several years ago? Rest assured that your competitors are retooling their business collateral with the latest design and printing tools. From web design, print design, direct mail, search engine optimization and programming services, we represent the pinnacle of marketing, creative and technical expertise. Our award-winning staff delivers only best-in-class business materials that strengthen brand equity and increase revenue. Every creative effort is hand tailored to aggressively capture its target while collectively reinforcing the desired brand image. FactorHelp Design & IT is the marketing solution for today's progressive company! Interested in more information about the path to successful marketing? Visit Our Website, Request Information or Send Us An Email. The International Factoring Association presents… The Sales Training Course, May 12th-13th at the Monte Carlo Hotel & Casino in Las Vegas, NV. Topics to be covered include: The Basics of Marketing, Developing a Marketing Plan, Establishing your 'Piece' of the Market, Protecting Your Turf, Selling Tactics, Territory Management, Time Management, Selling Tools What have past attendees said about this course and the instructors? - "Very informative. The informal nature of the course and interaction of the attendees added an excellent "hands on" perspective" - "I enjoyed their passion and energy, in addition to the stories of their experience. They are thoughtful and contemplative - which helps their message be succinct and organized. I enjoyed it much! Thanks!" Sign up and register today. A special rate* at the Monte Carlo of $95 has been negotiated for this event. You can make reservations by calling the Monte Carlo at 888-529-4828 and ask for the XFACTM1 rate. *You must book your rooms by Tuesday, April 12th, to receive the discounted room rate. Please visit the IFA website for details. - http://www.factoring.org/index.cfm?page=events Thomas G. Siska Managing Director FactorHelp, Inc. tsiska@factorhelp.com Jon Eckhouse Vice President FactorHelp, Inc. jon@FactorHelp.com