Success Stories

Acquisition of Private Company Owned by a Founding Family
Partnership with Proven Management
Exit Via Strategic Sale

In the early 1990's, Sunquest Vacations Ltd. was Canada's largest independent vacation wholesaler. Founded in 1972 by Patrick S. Brigham, Sunquest was consistently profitable. However, by 1992 Sunquest was faced with a problem. Sunquest needed to gain greater control over its air transportation to ensure the provision of high quality service to its clients, and to fend off increasing competition from commercial airlines entering the packaged tour business.

These challenges created new business risks and major capital requirements, significantly changing the nature of the business. At the same time, Mr. Brigham wanted to reduce his day-to-day involvement with the business and sell some of his equity holdings prior to implementing a new growth strategy. Subsequently, he started an orderly transition of management with the hiring of professional managers, and in 1993 Mr. Brigham began the process of finding a financial partner to assist in implementing this new growth strategy.

Soon after they met, CAI and Mr. Brigham began to work together to devise a structure that would satisfy Mr. Brigham's personal aims. After extensive discussions, in September 1993 CAI acquired a controlling interest in Sunquest, with the balance of Sunquest's equity being held by Mr. Brigham and Sunquest's management and directors.

Following the transaction, CAI worked closely with Mr. Brigham and Sunquest's management to implement the new growth strategy and to increase profitability. Actions taken include the following:

An Air Transport Strategy
Sunquest formed a strategic alliance with an aircraft operator, thereby allowing the Company to better control its service, and significantly reduce operating costs per seat mile.

Risk Programs
Historically, Sunquest reserved hotels on a non-commitment basis. However, because of the significant volumes controlled by Sunquest, CAI encouraged management to enter into "at-risk" commitment programs under which Sunquest would firmly commit to blocks of rooms at selected properties, thereby securing advantageous rates. In reality, such "at-risk" commitment programs added relatively little risk to Sunquest's business. They did, however, substantially increase profit margins.

Expansion Initiatives
CAI worked with management to grow the business via internal expansion and acquisition.

In August 1995, Airtours plc, the UK's largest wholesale tour operator, offered to purchase all of the outstanding common stock of Sunquest. The bid was accepted.

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