Team Mucho to pursue acquisition, growth, and cross-selling strategy
The investment group purchased preferred stock at a price of $6.75 per share, which carry warrants at $6.75. Additionally, Team Mucho has secured up to $18 million of senior secured credit from Provident Bank and Huntington Bank for acquisitions and other uses.
"These funds not only serve as a stamp of approval on the validity and power of this merger, they also provide Team Mucho with the ability and financial strength to execute our strategic plan," said S. Cash Nickerson, chairman and CEO of Worthington, OH-based Team Mucho.
Team Mucho is a business process outsourcing company providing small and medium sized businesses both conventional and Internet-driven solutions. Through Team America, its human resource outsourcing division, clients are relieved of their human resource administrative responsibilities and liabilities, including employee benefits, risk management and payroll.
Through Mucho Inc., Team Mucho's online business center division, clients benefit from a comprehensive offering of products, services, expert business content, and interactive tools that give business decision-makers the ability to simplify their everyday business operations.
Team Mucho's strategic plan consists of five key initiatives:
- The web enabling of Team America's Team Direct system so clients and employees can perform all human resource tasks online, reducing overhead;
- The active pursuit of acquisition candidates in the professional employer organization industry (PEO);
- The cross-selling of other outsourcing services to human resource outsourcing clients and their employees to boost gross margins;
- The boosting of Team America's internal growth rate and;
- The offering of a non-PEO based human resource-application service provider to clients who are not candidates for the PEO service.
Managing Editor, HRHub.com
Starnoff@vertical.net
Source: Team Mucho Inc.