Connecticut Mergers & Acquisitions

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Gary Mathias - Managing Director, Carter, Morse and Mathias presented this at the Crossroads Connection Breakfast - Exits & Trends, in Stamford CT on 4/12/2011.

Gary Mathias brings 20+ years of experience as an entrepreneur, investment banker, and private equity investor across diverse industries including healthcare, technology, manufacturing, and business services. He was previously the co-founder and president of a software company (sold to Scansource) and the chief operating officer of a health care distribution company. In addition to his operating experience, Gary was senior vice president at GE Equity, partner of an Atlanta-based investment banking firm, and executive vice president of a private equity firm that acquired and developed a portfolio of healthcare services and information technology companies.
Gary currently serves on the board of the Stamford Chapter of the Connecticut Venture Group, has been a judge for the Crossroads Venture Fair since 2000, and has been a board director for Diabetes Support Systems, DJJ Technologies, and Dome Imaging Systems

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Connecticut Mergers & Acquisitions

  1. 1. M&A Trends <br />Venture and P/E Backed Companies<br />2001-2010<br />Presentation to<br />Crossroads Connection <br />Regional Network Series<br />April 12, 2011<br />
  2. 2. Boutique investment bank founded in 1987<br />300+ clients served over 25 years<br />Senior banker orientation focused on building shareholder value<br />Services include <br />Business sales & divestitures<br />Buy-side advisory<br />Capital raises (venture and private-equity)<br />Financial and strategic advisory<br />1<br />
  3. 3. Highlights<br />Exits By Companies Owned By Financial Sponsors (< $500 M)<br />Exits recovered to their 2007 peak<br />MA and NY companies were the most active with exits; CT is a distant 4th<br />Major industries experiencing exits are Software, IT and Consumer<br />Strategic buyers represent the vast majority of exits<br />Acquisitions by Private Equity Investors (<$500 M)<br />10% of overall M&A activity of all private companies sold in the region<br />Above 2009 bottom but still 40% below 2007 peak in number of transactions<br />Major industries are Consumer, Industrial and Business Services<br />2<br />
  4. 4. Exits By Sponsored Companies <br />Headquartered In the Region<br />
  5. 5. M&A Trends in the Region (2001-2010)<br />HQ in the Region<br />Deals < $500M<br />Excluding real estate<br />1450 reported deals<br />4<br />Number of Sponsored Company Exits<br />Source: Capital IQ<br />
  6. 6. M&A Trends in the Region (2001-2010)<br />HQ in the Region<br />Deals < $500M<br />Excluding real estate<br />700 reported deals<br />In $ Billions<br />5<br />Total Value of Sponsored Company Exits<br />Source: Capital IQ<br />
  7. 7. M&A Trends By HQ State (2006-2010)<br />6<br />Number of Sponsored Company Exits<br />Privately held companies<br />Deals < $500M<br />Excluding real estate<br />840 reported deals<br />Source: Capital IQ<br />
  8. 8. M&A Trends By Industry (2001-2010)<br />7<br />Top 10: Number and % Share of Sponsored Company Exits<br />Source: Capital IQ<br />
  9. 9. M&A Trends By Industry & State (2006-2010)<br />8<br />Number of Sponsored Company Exits<br />HQ in the Region<br />Privately held companies<br />Deals < $500M<br />Excluding real estate<br />Source: Capital IQ<br />
  10. 10. M&A Trends By Buyer Type (2001-2010)<br />9<br />% of Sponsored Companies Acquired by Strategic Buyers<br />HQ in the Region<br />Privately held companies<br />Deals < $500M<br />Excluding real estate<br />1435 reported deals<br />Average: 87.5%<br />Source: Capital IQ<br />
  11. 11. Notable CT Deals<br />10<br />Source: Capital IQ<br />
  12. 12. Private Equity Investment Activity<br />In Regional Companies<br />
  13. 13. M&A Trends in the Region (2001-2010)<br />HQ in the Region<br />Deals < $500M<br />Excluding real estate<br />Exits by sponsored and non-sponsored companies<br />12<br />M&A By Private Equity Buyers<br />Source: Capital IQ<br />
  14. 14. M&A Trends in the Region (2001-2010)<br />HQ in the Region<br />Deals < $500M<br />Excluding real estate<br />Exits by sponsored and non-sponsored companies<br />13<br />Private Equity – Exits versus Acquisitions<br />Share Based on $ Value<br />Source: Capital IQ<br />
  15. 15. Summary<br />Strategic buyers will continue to drive exit cycles for financial buyers/investors<br />Limited organic growth<br />Cash on the balance sheet<br />Management incentivized to grow through acquisitions<br />Private equity buyers are more active on both sales and exits<br />Fund life cycles putting pressure on managers to invest remaining funds and liquidate holdings<br />Easing of senior credit is fueling leveraged transactions<br />Private companies in mature industries have limited strategic buyer options<br />Industrial, business services, hardware and IT services<br />14<br />
  16. 16. Contact:<br />Gary Mathias<br />Managing Director<br />gmathias@cartermorse.com<br />Thank You<br />

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