Why Huron?

RME (division of LeadingResponse)

Corporate Carve-out

Overview

Huron Capital partnered with the management team of Response Mail Express (“RME”), including founder and President Jorge Villar, to purchase the business from its parent DME in 2008.  RME is a top generator of leads for financial advisors primarily using the seminar program that it pioneered fifteen years earlier. RME became the foundational business for LeadingResponse, Huron’s platform to build a leading customer acquisition business serving multiple verticals known as LeadingResponse.  As part of the acquisition, RME’s management became owners for the first time by purchasing a large equity interest alongside Huron and receiving significant incentive equity.

Why Huron?

Management had a unique opportunity to buy the division they were running and sought a partner who shared their passion and vision for growth.  Huron had a similar passion and saw an opportunity to leverage its deep experience in document processing services and multi-channel lead generation programs in other vertical markets such as education.

Building Leaders

Huron worked with the leadership team to reach numerous key milestones in its quest to drive equity value:

  • Led a separation from the corporate parent by putting RME on strong stand-alone footing with investments such as hiring a CFO, implementing a new ERP and accounting system, and investing in technology.
  • Completed the acquisition of IM Solutions, a top provider of online leads to attorneys, which provided leadership in a new vertical and an online lead generation skillset that is critical to the overall LeadingResponse platform.
  • Launched initiatives to penetrate new verticals organically.
  • Repositioned RME as a pure play marketing services business by outsourcing all print operations.

Results

These investments have translated into earnings growth, more focused operations and positive momentum in the business.  Huron remains an investor in LeadingResponse and is actively pursuing additional growth opportunities. 

Keys to Success

Plan carefully and ensure the appropriate systems and people are in place.  Pursue new product offerings through synergistic add-on acquisitions.

"We had enjoyed a successful 13 year history under our original corporate parent, DME, but their focus on other business opportunities made the spin-off of RME a natural decision in 2008. Huron worked closely with us during the divestiture process to ensure we had the proper corporate infrastructure to function as a stand-alone business once we had separated from DME."

Jorge Villar, President and Founder of RME

Case studies are for illustrative purposes only and are not meant to be used for investment purposes.