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M&A Outlook
What to Expect in the Year ahead:
Who’s Buying and Why?
Which Sectors Are “Hot” in 2014?
...
M&A Outlook

Presenter 
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here

• Strategic Acquirers
• Increasing international interest in Houston
• Sale of Excel En...
M&A Outlook

Presenter 
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here

Investors Looking to Put Capital to Work
• Investors wary in 2013 due to uncertainty 
s...
M&A Outlook

Presenter 
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here

Increased activity in 2014
• Deal activity fueled by:
• Large cash reserves
• Interest ...
M&A Outlook

Presenter 
Logo
here

Which Sectors are “Hot”?
• Investors predict 4 industries having most potential 
for gr...
M&A Outlook

Presenter 
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here

Energy/O&G Sector
• M&A Drivers:
• New technology 
• Geographic growth 
• Product/servi...
M&A Outlook

Presenter 
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here

All‐In Valuations

Note: 2013 H1 volume is 
annualized

Source: GF Data

Copyright © 20...
M&A Outlook

Presenter 
Logo
here

All‐In Valuations

Source: GF Data

Copyright © 2014. 
Presenter 
Logo
here

M&A Outlook
Size Premium
TEV

2003-08

2009

2010

2011

2012

2013
YTD

Total

N=

10-25
25-50
50-1...
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M&A Outlook
TEV/EBITDA – By Industry
INDUSTRY

2003-08

2009

2010

2011

2012 2013 YTD

Manufacturi...
M&A Outlook

Presenter 
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here

Transaction Structure Trends

Source: GF Data

Copyright © 2014. 
Presenter 
Logo
here

M&A Outlook
Leverage Trends
Debt Multiples
Sub Debt/EBITDA

Sr Debt/EBITDA

4.0x
3.5x
3.0x
2.5x

1.0...
M&A Group Contacts
Tim Moore, CPA
Managing Shareholder, Doeren Mayhew
moore@doeren.com
Steven Silverman, CM&AA 
M&A Direct...
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M&A: Deals in 2013, Expectations for 2014

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Attendees at Doeren Mayhew's 2014 client conference listened in to licensed investment bankers Steven Silverman and Tim Moore to find out their expectations for the mergers and acquisitions marketplace in 2014, including which sectors are “hot,” who’s buying and why, and what you can expect for the year ahead.

Published in: Business, Economy & Finance
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Transcript of "M&A: Deals in 2013, Expectations for 2014"

  1. 1. Presenter logo Here M&A Outlook What to Expect in the Year ahead: Who’s Buying and Why? Which Sectors Are “Hot” in 2014? Copyright © 2014. All Rights Reserved
  2. 2. M&A Outlook Presenter  Logo here • Strategic Acquirers • Increasing international interest in Houston • Sale of Excel Engineering to Ramboll  • A “Second Bite of the Apple” • Second bite almost as big as first… • What if I get a knock at the door? • Hybrid approach Copyright © 2014. 
  3. 3. M&A Outlook Presenter  Logo here Investors Looking to Put Capital to Work • Investors wary in 2013 due to uncertainty  surrounding ACA, monetary policy and economic  environment • Private Equity ended 2013 with a record high $1  trillion of dry powder… 2013 cited as best year for PE  fundraising since financial crisis • Meanwhile, strategic buyers continue to hold large  amounts of cash  Copyright © 2014. 
  4. 4. M&A Outlook Presenter  Logo here Increased activity in 2014 • Deal activity fueled by: • Large cash reserves • Interest rates at historic low • Improved consumer confidence • Opportunities in emerging markets • Middle market expected to be most active sector • 77% of 2014 deals expected to fall in the middle  market (KPMG) • Smaller deals easier to finance and integrate Copyright © 2014. 
  5. 5. M&A Outlook Presenter  Logo here Which Sectors are “Hot”? • Investors predict 4 industries having most potential  for growth in 2014: • Health care • Technology • Energy • Manufacturing • Changing regulations in healthcare and financial  services, increased O&G production and evolving  world of technology will increase investment  opportunities Copyright © 2014. 
  6. 6. M&A Outlook Presenter  Logo here Energy/O&G Sector • M&A Drivers: • New technology  • Geographic growth  • Product/service growth  • Customer growth • Challenges:  • Regulatory uncertainty  • Valuation disparities • Volatile energy prices  • Inability to forecast future performance Copyright © 2014. 
  7. 7. M&A Outlook Presenter  Logo here All‐In Valuations Note: 2013 H1 volume is  annualized Source: GF Data Copyright © 2014. 
  8. 8. M&A Outlook Presenter  Logo here All‐In Valuations Source: GF Data Copyright © 2014. 
  9. 9. Presenter  Logo here M&A Outlook Size Premium TEV 2003-08 2009 2010 2011 2012 2013 YTD Total N= 10-25 25-50 50-100 100-250 5.4 6.1 6.7 7.7 4.9 6.2 6.5 8.8 5.3 6.1 6.8 6.8 5.2 5.8 7.4 7.5 5.5 6.3 6.6 7.5 6.0 7.7 7.2 6.0 5.4 6.1 6.8 7.6 312 266 196 62 Total 6.1 5.9 6.1 6.1 6.2 7.0 6.1 836 N= 479 29 73 93 131 31 836 Please note that N for 2003-08 encompasses six years of activity 2013 Data is through 3Q . Source: GF Data Copyright © 2014. 
  10. 10. Presenter  Logo here M&A Outlook TEV/EBITDA – By Industry INDUSTRY 2003-08 2009 2010 2011 2012 2013 YTD Manufacturing Business services Health care services Retail Distribution Publishing/ Media Technology Other 5.9 6.1 6.7 6.5 6.0 7.4 5.7 5.7 5.7 5.8 6.3 5.2 5.6 7.4 6.6 6.4 5.9 6.0 6.7 5.5 5.4 4.2 5.5 5.7 6.0 6.5 7.4 6.1 6.0 6.1 8.1 5.1 5.9 5.8 7.3 6.3 6.3 11.4 7.4 6.3 5.8 6.6 7.7 5.1 7.6 5.9 NA 6.7 N= 964 91 191 193 228 73 Total N= 5.9 6.1 6.9 6.3 6.0 7.3 6.3 5.8 749 310 165 54 186 33 38 205 1740 Please note that N for 2003-08 encompasses six years of activity. 2013 Data is through 3Q Source: GF Data Copyright © 2014. 
  11. 11. M&A Outlook Presenter  Logo here Transaction Structure Trends Source: GF Data Copyright © 2014. 
  12. 12. Presenter  Logo here M&A Outlook Leverage Trends Debt Multiples Sub Debt/EBITDA Sr Debt/EBITDA 4.0x 3.5x 3.0x 2.5x 1.0x 1.0x 2.4x 2.4x 2011 2012 0.7x 0.8x 1.0x 2.0x 1.5x 1.0x 1.8x 2.2x 2.6x 0.5x 0.0x 2009 2010 2013 1H Source: GF Data Copyright © 2014. 
  13. 13. M&A Group Contacts Tim Moore, CPA Managing Shareholder, Doeren Mayhew moore@doeren.com Steven Silverman, CM&AA  M&A Director, Doeren Mayhew silverman@doeren.com Yasmine Malik Senior M&A Analyst, Doeren Mayhew malik@doeren.com Presenter  Logo here
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