Your SlideShare is downloading. ×
The March Group | Leading Mergers & Acquisitions Firm Presentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

The March Group | Leading Mergers & Acquisitions Firm Presentation

1,656
views

Published on

The March Group is a leading global investment banking firm for the private middle market offering unique coverage across the U.S. and around the world.Our primary focus is North American private …

The March Group is a leading global investment banking firm for the private middle market offering unique coverage across the U.S. and around the world.Our primary focus is North American private companies with revenues up to $200m and profitable operations. With over 23 years in middle market operations, The March Group is proven as today's leading M&A firm.

Published in: Business, Economy & Finance

1 Comment
0 Likes
Statistics
Notes
  • During an economic downturn is a great time to buy a business. You can do some very creative negotiating, but it is critical that you use a savvy M&A firm like The March Group to guide you through the process. I've used The March Group for more than one transaction because of their knowledge and experience in deal making.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total Views
1,656
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
109
Comments
1
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Talking point Give examples of dealmaker industry experience
  • Talking point for “evaluate over 1,400 companies per year” We have a thorough understanding of mid-market businesses. We only take a select few forward.
  • Transcript

    • 1. Doing Business in the USA Mid-Market M&A Mr. Thomas M. Braun Executive Vice President The March Group
    • 2. Introduction
      • The March Group
        • Leading global investment banking firm specializing in mergers, acquisitions, divestitures and capital raising for the U.S. private mid-market
        • Offices throughout North America
        • 23+ years of mid-market experience
    • 3. Events of the Day
      • Attributes of the market
      • Benefits to buyers worldwide
      • Current acquisition and investment climate
      U.S. Private Mid-Market
    • 4. Keynote Speaker Arthur Ward, Jr. VP, M&A Advisor The March Group
      • Over three decades of successful business experience as an entrepreneur, negotiator and corporate executive
      • As an entrepreneur, acquired, grew and sold six midsize companies. Deal-making experience spans 20 years and includes 2,000+ transactions
      • As a corporate executive, served as IBM senior manager and Exxon senior vice president. At IBM, developed strategies to ensure effective, profitable introduction of new products and services. At Exxon, led development and implementation of business growth strategy resulting in acquisition of 33 companies in four years
    • 5. Keynote Speaker Arthur Ward, Jr. VP, M&A Advisor The March Group
      • Art Ward has been quoted in dozen of business publications, including The Chicago Tribune, Business Week, Nation’s Business, Florida Trend and Inc. Magazine .
      • He is a fellow of the Reed Institute of Chicago and has spoken to hundreds of groups.
    • 6. Acquisition Opportunities
      • Why Invest in the U.S.?
      • Why the Mid-Market?
      • Current Trends
    • 7. Attributes
      • Scale
      • Economy
      • Labor Market
      • Culture
      • Growth Trends
      • Exchange Rates
    • 8. Scale Population (millions) Per Capita GDP per capita income Source: IMF, 2007 GDP ($ tt) Consumer Base U. S. 305 $45,845 13.9 Germany 82 $34,181 2.8 U. K. 61 $35,134 2.1 France 64 $33,281 1.9 Ireland 5 $43,144 1.8 Italy 59 $30,448 1.8 Spain 46 $30,120 1.3 Canada 34 $38,400 1.3
    • 9. Scale
      • World GDP:
        • U.S. represents 26%
        • U.S. and Canada represent 29%
      Source: IMF, 2007
    • 10. Deal Activity Global M&A Transactions Source: Mergerstat Review, 2006, 2007, 2008
    • 11. Labor Market Source: The Economist, Pocket World in Figures, 2008 Edition Employment Costs for production employees: $ per hour
    • 12. Labor Market Source: OECD Factbook 2008: Economic, Environment and Social Statistics Percent of labor cost per employee:
    • 13. Labor Market Source: OECD Factbook 2008: Economic, Environment and Social Statistics Percent of workforce with advanced education:
    • 14. Labor Market Source: 2007 Global Competitiveness Report Percent of workforce that are union members:
    • 15. Exchange Rates Source: Oanda.com
      • The U.S. Dollar
        • Two years ended January 1, 2009, the dollar has declined…
          • 5% against the pound sterling
          • 14% against the Euro
        • The U.S. is on sale!
    • 16. Private mid-market
      • Over 1 million mid-market companies in the US
        • Revenues up to $500 million
        • Make up 80% of US economy
        • Make up 88% of all deals done (by volume) in the U.S.
      Source: Dun & Bradstreet
    • 17. U.S. Mid-Market 99.6% Private 1,037,880 companies 0.4% Public 4,163 companies Source: Dun & Bradstreet, 2007 Turnover: $2M – $500M > 1m companies
    • 18. Mid-Market M&A
      • Strategic buyers looking for smaller targets
        • Ease of finance
        • Ease of board approval
        • Shareholders apprehensive towards larger deals
        • Relatively fewer integration issues
        • Risk spread across number of smaller deals
        • Empirical data supports better returns
    • 19. Mid-Market M&A
      • Over a 20 year horizon, small buyouts returned 25% versus 11% for mega buyouts
      Source: http://money.cnn.com/2007/04/11/magazines/fortune/demos_privateequity.fortune/index.htm ROI
    • 20. Mid-Market Transactions Deals Closed Below $500 Million Source: Mergerstat Review 2008 and Mergerstat Review 2006
    • 21. Mid-Market Transactions Percentage of Deals with Disclosed Value by Range Source: Mergerstat Review 2008 and Mergerstat and Mergerstat Review 2006 Deal Value (US$MM) $0 - $25 $25 - $50 $50 - $100 $100 - $500 Over $500
    • 22. Mid-Market Transactions Type of Payment Other Stock Combination Cash 47% 31% 21% 1% Source: Mergerstat Review 2008
    • 23. Offshore Transactions Involving Private Target Companies: 1984 – 2007 Source: Mergerstat 0% 10% 20% 30% 40% 50% 60% 70% 80% '84 '85 '86 '87 '88 89 ‘ 90 ‘ 91 ‘ 92 '93 '94 '95 '96 '97 '98 '99 ‘ 00 ‘ 01 ‘ 02 '03 '04 Percentage of Global Transactions 90% '05 '06 '07
    • 24. Offshore Transactions 31% 16% 18% 27% 8% $0 - $25 $25 - $50 $50 - $100 $100 - $500 Over $500 Source: FactSet Mergerstat Custom Report Deal Value (US$MM)
    • 25. The Acquisition Process Identification of Target Local Incentives Confidentiality Agreement Financing Alternatives Confidential Discussions/ Negotiations Letter of Intent or Term Sheet? Due Diligence Additional Negotiations Purchase Agreement Pre-Closing Closing Post-Closing Integration with Purchaser Similar to Acquisitions around the globe
    • 26. Summary
      • Tremendous opportunity
      • No better time than now
        • Currency Exchange Rates
        • Tax Rates
        • Interest Rates
        • Baby Boomer Bonanza for Buyers
      North American Private Middle Market
    • 27. Baby Boomer Bonanza
      • “ The baby boomer generation is aging. Over the next 10-15 years small businesses will be sold at a pace that dwarfs any previous activity…
      • In the next 10 years, however, we will be moving into a buyer’s market .”
      • San Antonio Business Journal, 2007
    • 28. The March Group — An Overview Mr. Art Ward, Jr. Vice President The March Group January 14, 2009
    • 29. The March Group – Overview
      • A leading global investment banking firm for the private middle market
      • Offering unique coverage across the U.S. and around the world
      • Primary focus: North American private companies with
        • Revenues up to $200m
        • Profitable operations
      • 23+ years in the mid-market
    • 30. The March Group – Overview
      • We specialize in North American and trans-Atlantic mid-market M&A and Corporate Finance
      • The best access to the North American mid-market
        • Insight into thousands of private companies
        • Relationships with thousands of US buyers, investors and access to their multi-company portfolios
    • 31. The March Group: A Deeply Resourced Organization
      • Offices
        • North American HQ: South Florida
        • Additional offices throughout the world
      • Professionals
        • Over 175 professionals & support staff
        • Research team dedicated to the mid-market and niche industries
        • Experienced dealmakers
          • Hundreds of years of cumulative experience
    • 32. The March Group
      • Currently in the market with over 250 mandates in over 50 different industry niches
      • We assist buyers and investors in making sense of the North American mid-market and identify appropriate targets and opportunities
    • 33.
      • We assist in arranging financing either in the US or Europe either at the parent level or at the acquisition target level
      • We assist when other major investment banks have no interest in the transaction
      The March Group
    • 34. North American Coverage
    • 35. General Industry Coverage Agriculture, Forestry & Fishing 0.5% Building Materials & Construction 17% Manufacturing 24% Transportation, Utilities & Communications 6% Wholesale & Retail 26% Finance, Insurance & Real Estate 0.5% Services 26%
      • Aerospace
      • Trucking & automotive
      • Logistics
      • Financial services
      • Consulting
      • Food
      • Metals & mining
      • Energy & utilities
      • Biotechnology
      • Telecom, cable, & wireless
      • Printing & publishing
      • Textiles, fabrics, materials
      • Retail services
      • Business Services
      • Chemicals
      • Hospitality
      • Technology
      • Building products
      • Construction services
      • Engineering
      • Machining & tools
      • Textiles
      • Paper & packaging
      • Paints & coatings
      • Agricultural equipment
      • Measuring devices
      • Environmental services
      • Software
      • Staffing
      • Security systems
      • Healthcare services
      • Architecture
      • Wholesale distribution
      • Consumer products
      Industry Sub-Sectors
    • 36. Capabilities MAXIMIZE VALUE Mergers & Acquisitions Capital Raises Leveraged Buyouts Divestitures Cross-Border Valuations
    • 37. Expertise – Sell-side
      • North American privately owned middle-market companies where owners want to retire or to diversify
      • North American private equity backed businesses which are part of a maturing portfolio
      • US ‘orphan’ / non-core businesses owned by large multi-nationals
    • 38. Expertise – Buy-side
      • Identifying and managing the acquisition process for North American targets on behalf of U.K. And EU groups
      • Introducing U.K. And EU targets to US strategic and financial groups interested in offshore deals and managing the acquisition process
      • Capital raising in North America for US and EU companies to support acquisitions and introducing the acquirer to new sources of financing
    • 39. Why The March Group?
      • Mandate matching seller inventory ready for acquisition
      • On the ground value assessment
      • Multiple funding options and choices
      • Accelerated closing resources
      • Coverage in all major North American markets
    • 40. Typical Acquisition Timeline Research Solicitation 2-3 Months Information Gathering LOI Due Diligence & Closing Typically 3-5 Months Process & Timetable
      • Engage The March Group
      • Confirm acquisition criteria
      • Research target population meeting acquisition criteria
      • Present target profiles
      • Prioritize targets
      • Confirm tactics for approaches
      • Create buyer overview
      • Make approaches to agreed prioritized targets
      • Provide result feedback
      • Determine if genuine sellers
      • Introduce buyer
      • Obtain financial and commercial information
      • Assess and visit
      • Evaluate and determine whether to submit LOI
      • Submit LOI
      • Negotiate LOI
      • Countersign LOI
      • Coordinate due diligence process and timescale
      • Start exclusivity period
      • Explore financing if necessary
      • Continue negotiation of legal documentation
      • Complete due diligence
      • Raise capital if necessary
      • Plan integration
      • Close
    • 41. Prepared Sellers
      • Financially Committed
        • Clients pay a sizable retainer prior to buyers being contacted
      • Reasonable Expectations
        • Clients receive a detailed valuation prior to buyers being contacted
      • Efficient Process
        • Financial information and other due diligence items are professionally prepared in advance
      • Constantly adding new deal flow
        • New sellers acquired monthly
    • 42. Access to Sellers www.corporations4sale.com www.corporations4sale.com/comingattractions
    • 43.  
    • 44.  
    • 45. Thank you