Founded in 1995 by Ran J. Flam, Sparta Systems is the industry leader for global quality management systems (QMS). Its TrackWise product is a web-based software application used by quality, manufacturing, and regulatory affairs professionals to manage quality and compliance issues across the enterprise. In early 2002, Mr. Flam sought financial and strategic advice to support the company's growth.

The Challenge

Sparta was gaining traction in the marketplace and identified other key areas for growth. But like most entrepreneurs, Mr. Flam did not want to risk the equity he worked to build up if his assumptions were wrong. Mr. Flam decided to diversify his net worth as well as find the right financial partner to help Sparta execute its plan.

The Solutions

AIG Capital bought 80% of Sparta Systems. AIG's experience in the pharmaceutical industry made them an ideal financial partner. Over the past few years AIG has successfully built Sparta Systems into the industry leader for global quality management systems. Mr. Flam continues to the run the company.

Arbor Value Add

• Received five LOIs before signing with AIG Capital
• Increased the valuation from the original LOIs by over 40%
• Worked with Sparta on improving operational efficiency prior to a transaction
• Explained the nuances of each LOI