Conversations with Thought Leaders from the M&A Community
Tom Turner – Deutsche Bank Principal Finance – Credit Market Update
Posted on July 23, 2008
Disclaimer: The opinions or recommendations expressed are those of the author and are not representative of Deutsche Bank AG as a whole.
Tom Turner is a Vice President in the Principal Finance Group of Deutsche Bank, the world’s sixteenth largest bank ranked by shareholder equity. Principal Finance delivers global expertise across a wide range of markets, industries and asset classes. The Principal Finance group provides leveraged financing solutions to middle market and larger borrowers. It can provide liquidity for both performing and non-performing assets in transactions ranging from $20 million to $2 billion. Acting on a principal basis, DB can execute transactions that otherwise may not be possible in traditional capital markets. Investments take the form of senior, subordinated or mezzanine debt, customized credit derivatives and selected equity.
- Focus areas include:
- Illiquid Asset Financing
- Acquisition financing
- Contract monetization
- Project/Infrastructure finance in developed and emerging markets
- Renewable energy financing
In this interview Tom talks about the current state of the credit markets and gives his insight as to the future course of the liquidity crisis currently underway. Prior to joining Deutsche Bank, Tom was employed on the agency side of the street where he was responsible for managing debt financings in aggregate principal amount exceeding $50 billion.
Length: This audio interview is about 23 minutes long.
Categories: Strategic Buyers, Intermediaries, Merger Integration, Industry Sectors, Private Equity, Financial Planning, Business Sale, Business Acquisition, Negotiation, Valuation, Audio
Tags: acquisitions, cross border M&A, M&A, mergers, mergers and acquisitions, multinationals, Private Equity
Deborah Douglas – Breaking Down Glass Walls
Posted on June 25, 2008
Like NFL football and (until recently) NASCAR racing, M&A has traditionally been a bastion of male domination. For many years now our guest Deborah L. Douglas has been proving that, as with most other human activities, women can compete and can compete well.
Deborah began her M&A career in the late 1970’s with Touche Ross & Co. (a Big 8 accounting firm now part of Deloitte & Touche) and eventually rose to become that firm’s Director of Merger & Acquisition Activities. In 1989 the Deloitte and Touche merger provided Deborah with the opportunity to leave public accounting unfettered by a non-compete. She formed the Douglas Group in St. Louis, an intermediary firm which represents middle market companies as advisor and intermediary in merger and acquisition transactions.
Deborah is the author of an intriguing book called “Cashing In!”, a very down to earth guide to the perils and potential of business sales aimed at business owners, but very relevant to advisors and buyers as well. I really enjoyed reading this book and would recommend that you click on the link above and purchase a copy.
In this interview, Deborah talks about her experience as an M&A intermediary and the obstacles she has encountered as a woman in a man’s world (simple answer – none). She also provides some good insight for any business owner contemplating the sale of her or his company.
Click here to purchase “Cashing In!” by Deborah Douglas on Amazon.
Length: This audio interview is about 16 minutes long.
Categories: Financial Planning, Industry Sectors, Negotiation, Business Acquisition, Business Sale, Audio
Tags: acquisitions, Business Sale, cross border M&A, M&A, mergers, mergers and acquisitions, Podcasting
Andy Greenberg – Valuing Middle Market Companies
Posted on May 9, 2008
Getting real valuation data on lower middle market acquisitions by private buyers has always been one of the most elusive aspects of the M&A business. While there have always been a number of data services available that highlight the valuation of most public company deals, these sources provide only spotty information on private transactions.
Our guest today is Andy Greenberg co-founder and CEO of GF Data Resources of W. Conshohocken, PA. GFDR is a relatively young company which collects, analyzes and reports on private equity-sponsored M&A transactions in the $10 million - $250 million value range. The firm has analyzed more than 500 transactions, reported by about 80 private equity firms, and provides industry drilldown data in more than 100 NAICS categories and sub-categories.
GFDR was launched by two Philadelphia-based deal professionals, Andy Greenberg and Graeme Frazier, who were frustrated by the scarcity of accurate data on middle market transactions. GF Data Resources offers its reports to subscribers on a quarterly basis and soon will make detailed valuation data continuously available through its website, www.gfdataresources.com.
You can access publically available summaries of information provided to the GFDR’s subscribers by clicking here. One of the most interesting data points that the company provided in its 2007 yearend report is the chart below, which confirms everyone’s suspicion that 2007 was a particularly good year for sellers of middle market firms, notwithstanding the market downturn in the second half of the year. Purchase multiples averaged 6.3 times EBITDA in 2007 plus Buyer’s Transaction Expenses (BTE) which added another 4.4% to the purchase price or an additional .3 times EBITDA.
Length: This audio interview is about 17 minutes long.
Categories: Private Equity, Strategic Buyers, Financial Planning, Valuation, Business Sale, Business Acquisition, Audio
Tags: acquisitions, Business Sale, M&A, mergers, mergers and acquisitions, Podcasting, Private Equity
Geoff Alexander - Where to go When the Bank Says No
Posted on April 26, 2008
It’s no secret that banks have tightened their credit standards in recent months. As you can see from the chart below, we are in the midst of the third such period of tightening since 1990 and there doesn’t appear to be an end in sight. The shaded area indicates periods of recession that followed the earlier credit crunches.
This week’s interview is the first in a series covering financing alternatives for middle market businesses trapped in the credit squeeze. Our guest, Geoff Alexander, is Director - New Business Development for The Comvest Group, a private equity firm that has created a fund called Comvest Capital, to meet the financing needs of growing middle market companies with revenues from $15 million to $500 million. Comvest Capital provides a diverse range of financing alternatives, including mezzanine debt and growth equity as well as unitranche or one stop shop solutions. In recent months Comvest has been quite busy working with companies that have been pushed out by existing lenders that are tightening their credit standards.
Geoff is responsible for sourcing new deal flow and analyzing prospective investments for Comvest. Prior to joining Comvest, he worked as a Senior Associate at hedge fund PDP Capital Investments. Mr. Alexander graduated from Berea College with high academic honors and a degree in Business Administration with a Finance Concentration.
Length: This audio interview is about 19 minutes long.
Categories: Industry Sectors, Private Equity, Financial Planning, Audio
Tags: acquisitions, Podcasting, Private Equity
