SC&H Capital, a leading investment bank specializing in M&A advisory for middle-market companies, is pleased to announce that its client, Flipcause, Inc. (“Flipcause” or the “Company”), has been acquired by Software4Nonprofits (“S4NP”).
Flipcause provided cloud-based fundraising and donor management software, tailored for small to mid-size nonprofit organizations. The Company faced severe liquidity constraints following a regulatory escalation that culminated in the Company’s third-party payment processor freezing a substantial portion of funds and terminating services. With its primary transactional engine halted, Flipcause was unable to process ongoing distributions, resulting in an unsustainable disruption for over 3,200 nonprofit subscribers.
To protect the core software platform and establish an orderly transition, Flipcause filed for chapter 11 bankruptcy protection and initiated an immediate asset sale process to preserve the platform’s underlying utility for the nonprofit ecosystem.
SC&H was retained by the Chapter 11 Trustee and acted as the investment banker managing the expedited marketing and sale process under the strict governance of the federal bankruptcy court. Despite intense operational pressures and a complex creditor matrix, SC&H solicited interest from 172 groups that executed NDAs.
The bid from S4NP to acquire Flipcause’s proprietary software code and intellectual property was deemed the highest and best. Following the closing of the sale, S4NP began the integration and migration of the software framework into its own infrastructure under a redesigned, secure product line.
“The rule in my family is simple: When people need help, you show up. Nonprofits deserve a partner with shared values and reliable service,” said Scott Rassatt, CEO of S4NP. “All nonprofits deserve partners who show up for them – just as their donors and volunteers do.”
“From the beginning of this process, our priority was to find a buyer who would not only understand the technical value of the platform but also possess the integrity and financial stability to heal a deeply disrupted network,” said Matt LoCascio, Principal at SC&H Capital. “With over 20 years of experience supporting North American nonprofits, S4NP is the perfect steward to rebuild this community’s trust. By immediately moving clients to a secure, independent merchant model that ensures direct fund ownership, they are actively protecting these vital organizations and safely restoring their fundraising capabilities.”
About SC&H Capital
SC&H Capital is an investment banking and advisory firm specializing in mergers and acquisitions (M&A), employee stock ownership plans (ESOP), distressed M&A, capital raises, financial restructurings, and business valuations for middle-market companies nationally. SC&H Capital delivers services across numerous industries including technology, healthcare, manufacturing, consumer, business and professional services, and government contracting. We are recognized for delivering relevant market insights and tailored solutions to help owners achieve their true strategic value. To learn more, visit www.schcapital.com.
