ir amaa presentation 9-2015
TRANSCRIPT
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Mike Nall, CPA, CM&AA, CGMAFounderAlliance of Merger & Acquisition Advisors
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The AM&AA•Founded in 1998 by partners for 10 regional CPA firms to provide a range of transactional advisory services essential for successful M&A transactions.
•Primary goals: –Help members improve their level of knowledge, –Provide a network of trustworthy professionals with whom they can share information and resources. –Provide access to the tools to help them better market, manage and implement successful engagements
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Profile of AM&AA Members Invest. Banker/M&A Intermediary Consultant Accountant Corporate Development Equity Investor Business Valuator Attorney Asset Manager/Financial Advisors LenderTechnology SpecialistOther
*54% of membership has CM&AA
29%16%15%9%9%8%7%4%1%1%1%
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The Body of Knowledge Documented
The Alliance of M&A Advisors 2011
A Global Solution:
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INTERNATIONAL EFFORTS
•1000+ Members in 25 different countries
•Established Chapter in Europe, focused efforts to begin new Chapters in Asia and Brazil
•Cross Border Task Force committed to developing an International M&A Best Practices White Paper
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Where Are Our Members?
•Australia•Austria•Brazil•Bulgaria•Canada•China•Germany•Hong Kong
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•India•Israel•Italy•Lebanon•Malaysia•Mexico•Philippines•Puerto Rico•Qatar
•Republic of Korea•Saudi Arabia•Singapore•Spain•Switzerland•The Netherlands•United Kingdom •The United States
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Capital Markets Overview
Revenues($millions)
5 150 500 1,000
Small Companies Middle Market Large
Companies
5.4MM 300,000 2,000P O P U L A T I O N
15% 40% 45%G D P
2-3x 4-11x 12x +V A L U A T I O N
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Example Exit Channel
Strategic Buyers Financial Buyers Related Buyers
PureProduct / IP Sale
Sale / Merger
to Strategic
HybridPEG
“Add-On”
PEGPlatform Buy-out
PEG“Staged”Re-Cap
PEG Financed
MBO
Leveraged
MBO(ESOP?)
Long-Term
“Staged”MBO
JV to “Staged” Strategic
Sale
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•Owner Motives Matter – PrivateCo’s Values
Business Owners Choose a Transfer Value!
Method Value World Value
Buy/Sell Asset Market Value $ 2.4 MMMBO Investment Value 7.5 MMESOP Fair Market Value 9.2 MMEquity Recap Financial Market Value 12.0 MMNegotiated Owner Value 15.8 MMAuction Synergy Market Value 16.6 MMPublic Public Value 18.2 MM
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•It’s a Recast World–Which earnings level do you use to value?
•Reported EBITDA $1MM•Recast EBITDA $2MM•Synergized recast EBITDA $3MM
Using a ‘5’ multiple, the same company has a $5MM, $10MM, and $15MM market value – depending on which earnings level is used
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•Market Value - Conclusion–Most private owners want to increase the value of their company–Risk – acquisition multiple is specific to a buyer and reflects their risk assessment (hurdle rate)–Return – EBITDA available post-transaction–Big opportunity for us to help owners plan and execute
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Alliance of Merger & Acquisition Advisors222 N. LaSalle, 3rd floorChicago, IL 60601www.amaaonline.com
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