<ul><ul><li>2008 was a difficult year for the industry </li></ul></ul><ul><ul><li>“ Silver Lining” emerging in 2009 </li><...
DEAL STRUCTURE
BUYER CONSIDERATIONS <ul><li>Financial Opinions </li></ul><ul><li>Rising Public Multiples </li></ul><ul><li>Banks and Insu...
SELLER CONSIDERATIONS <ul><li>Revenue Sharing Arrangements, Sizable Multi-year Earnouts, and Cashless Mergers </li></ul><u...
THINGS TO CONSIDER WHEN VALUING YOUR FIRM <ul><li>Methodology </li></ul><ul><li>Management </li></ul><ul><li>Performance a...
RECENT TRANSACTIONS DATE TARGET ACQUIRER TARGET AUM (MM) % ACUIRED Jan-09 Seizert Capital Partners LLC Northern Lights Ven...
HOULIHAN SMITH & COMPANY HOULIHAN SMITH & COMPANY, INC. (“HOULIHAN”) is a nationally recognized valuation and investment b...
HOULIHAN SMITH & COMPANY Karl D’Cunha  is a Senior Managing Director at Houlihan Smith and oversees the firm’s financial a...
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Valuing Your Firm Karl D'Cunha, Houlihan Smith

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Valuing Your Firm Karl D'Cunha, Houlihan Smith

  1. 2. <ul><ul><li>2008 was a difficult year for the industry </li></ul></ul><ul><ul><li>“ Silver Lining” emerging in 2009 </li></ul></ul><ul><ul><li>Deal Volume down in 2009 relative to 2008 </li></ul></ul><ul><ul><li>2009 – Value Gap between buyer and seller </li></ul></ul><ul><ul><ul><li>Revenue Share </li></ul></ul></ul><ul><ul><ul><li>Cashless Deals </li></ul></ul></ul><ul><ul><ul><li>Longer Term Earnouts </li></ul></ul></ul><ul><ul><ul><li>New Landscape – Distribution is CRITICAL element for SUCCESS </li></ul></ul></ul>M&A OVERVIEW
  2. 3. DEAL STRUCTURE
  3. 4. BUYER CONSIDERATIONS <ul><li>Financial Opinions </li></ul><ul><li>Rising Public Multiples </li></ul><ul><li>Banks and Insurance Companies are most active sellers </li></ul><ul><li>Client-based Longevity </li></ul><ul><li>High Water Mark Issues </li></ul><ul><li>Culture Fit (Personality) </li></ul><ul><li>Fee Pressure by large institutional clients </li></ul><ul><li>Deal Consideration/ Structure (Cashless Environment) </li></ul><ul><li>Regulatory and Compliance Issues </li></ul>
  4. 5. SELLER CONSIDERATIONS <ul><li>Revenue Sharing Arrangements, Sizable Multi-year Earnouts, and Cashless Mergers </li></ul><ul><li>Price Disparity </li></ul><ul><li>Buyers Distribution Capabilities </li></ul><ul><li>Change of Control (Operate Autonomously) </li></ul><ul><li>Deal Structure (Earnout) </li></ul><ul><li>Regulatory Issues </li></ul>
  5. 6. THINGS TO CONSIDER WHEN VALUING YOUR FIRM <ul><li>Methodology </li></ul><ul><li>Management </li></ul><ul><li>Performance and Other Fees </li></ul><ul><li>Current and Projected AUM (Future Value) </li></ul><ul><li>Operating Expenses </li></ul><ul><li>Client Base </li></ul><ul><li>Marketing Team </li></ul>
  6. 7. RECENT TRANSACTIONS DATE TARGET ACQUIRER TARGET AUM (MM) % ACUIRED Jan-09 Seizert Capital Partners LLC Northern Lights Ventures LLC $1,200 Minority Feb-09 Apax Partners GIC Special Investments and Future Fund $40,000 8% Mar-09 Todd Investment Advisors MBO $3,515 20% Apr-09 Augustus Asset Managers Julius Baer $7,600   ---- May-09 MIR Investment Management Asset Management Finance $3,059 ---- Jun-09 Cowen & Co. Ramius $450 71% Jun-09 Conning & Company Aquiline Capital Partners $100,000 100% Jun-09 Tortoise Capital Advisors LLC MBO ( Mariner Holdings LLC) $2,000 35% Jun-09 Dresdner VPV NV MBO $1,700 100% Aug-09 Barclays Global Investors BlackRock $13,500 ----  Sep-09 AIC Ltd. Manulife Financial Corp $3,800 ----
  7. 8. HOULIHAN SMITH & COMPANY HOULIHAN SMITH & COMPANY, INC. (“HOULIHAN”) is a nationally recognized valuation and investment banking firm (Member FINRA, SIPC) based in Chicago, with offices in New York, Los Angeles, London, and Toronto. Houlihan provides comprehensive services to several of the largest public and private companies. We are recognized as a global leader in restructuring and financial opinions. We combine analytical precision with in-depth industry knowledge to address even the most sophisticated valuation challenges Our approach exceeds regulatory compliance requirements concerning corporate valuation, financial reporting, tax, and litigation support. Houlihan’s valuations are objective, independent, defensible, and thoroughly documented in order to meet the heightened requirements of regulatory agencies, auditors, and legal bodies. For additional information, please contact: Karl D’Cunha, CA Senior Managing Director kdcunha@houlihansmith.com (312) 499-5900 CHICAGO 105 W. Madison Street Suite 1200 Chicago, IL 60602 WWW.HOULIHANSMITH.COM
  8. 9. HOULIHAN SMITH & COMPANY Karl D’Cunha is a Senior Managing Director at Houlihan Smith and oversees the firm’s financial advisory practice. He is head of the firm’s Hedge Fund Advisory services group and a team leader of the firm’s Technical Standards Committee. Mr. D’Cunha has over 13 years experience in the alternative investments industry, including working with some of the largest hedge funds globally on valuation, restructuring and M&A issues. Mr. D’Cunha has prepared, supervised, and consulted upon assignments to US and International hedge funds, fund of funds, investment advisors, mutual funds and other entities. Mr. D'Cunha was previously an audit manager at Ernst & Young, LLP and PricewaterhouseCoopers, LLP with 8 years experience in the Investment Management industry group. Mr. D'Cunha holds a B.A. in Finance and Economics from University of Western Ontario and a Graduate Diploma in Accounting from McGill University. Mr. D'Cunha is a Chartered Accountant and a level III candidate in the Chartered Financial Analyst program. Mr. D’Cunha is a member of the following organizations: Canadian Institute of Chartered Accountants, CFA Society of Chicago, CFA Institute, Hedge Fund Association, New York Hedge Fund Roundtable, Association of Chartered Accountants in the United States, Association for Financial Professionals, Appraisal Issues Task Force, and American MENSA, Ltd.

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