Client: Founded in 1998, Custom Control Concepts, Inc. is a leading design and manufacturer of digital Cabin Management and In-Flight Entertainment Systems (CMS/IFE) for wide-body commercial aircraft. The Company is located in Kent, Washington and supplies its fully-customized systems to top aircraft completion centers worldwide. By focusing on the high-end corporate and private jet market, the Company has been able to generate impressive growth and margins in a niche market. CCC has a staff of over 80 professionals, including more than 20 engineers.

Situation: Custom Control Concepts was originally managed by two partners but with the passage of time, only one remained, in the capacity of Managing Partner. Over the years, several failed attempts by the inactive shareholders to gain liquidity for their interests caused the legal advisor to refer the matter to Exvere. Exvere's knowledge of the aerospace industry and successful track record working with minority owners were motivating factors in this referral.

Challenge: The object was to develop a structure that protected the company from undue risk or limited its growth potential while providing liquidity for the minority shareholders. Since one partner had signed away his voting rights, little leverage was available to assist in negotiating a settlement. Despite this road-block, Exvere developed a novel approach based on securitizing a future sale option that led to an eventual agreement among the parties.

Outcome: The resulting redemption of the outstanding minority interests by the Managing Partner provided the necessary protections for the company's future. Compensation for the selling shareholders included cash and secured notes.