Show Me The Money

Show Me The Money A Look at the Capital Markets & How to Access Them

3 Questions To Explore ,[object Object],[object Object],[object Object]

Four Primary Segments Of The Capital Markets

Investors Are Returning To The Public Equity Markets Source: Investment Company Institute

The Number Of Successful Stock Offerings Is On The Rise… ,[object Object],Source: CapitalIQ

Overall Middle Market Deal Volumes Are Beginning To Trend Up… Note: Transactions valued between $10-$250 million Source: CapitalIQ

… And Middle Market Transaction Multiples Are On The Rise Note: Transactions valued between $10-250 million Source: W.Y. Campbell & Company

The Vast Majority Of Private Equity Deals Are In The Middle Market… Lower middle market deals under $50 million remained the most popular during 4Q09 (over 50% of deal flow) Source: PitchBook Platform

There Are Two Categories Of Institutional Buyers & Investors … collectively comprising a very broad universe of potential buyers and investors

Who Are Financial Buyers? Private Equity … Venture Capital … Hedge Funds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Private Equity Groups focus on the middle and large markets > 8,000 firms

Private Equity “Overhang” Suggests Money Will Be Invested…

… Based On Financial Incentives For Private Equity Pros ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Time fuse on capital

What Financial Buyers Are Looking For ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Who Are Strategic Buyers? “ Strategics” are operating businesses (public and private) Why do they buy? ,[object Object],[object Object],[object Object],How do they buy? Combination of cash, stock, performance earnouts, and management/employee contracts

Strategic Buyers Are Motivated To Put Their “War Chests” To Work Source: CapitalIQ

What Strategic Buyers Are Looking For ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What Are Investors Looking For? ,[object Object],"Focus solely on the future earning power..." Berkshire Hathaway, Annual Report Profits Time $ $ $ $ $ $ $ $ $ $ $ $ $

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Returns = Cash Flows Cash flows are judged using these two factors: Growth Quality

[object Object],[object Object],[object Object],Understanding The Role Of Risk From A Market Perspective…

Key Areas Of Focus For Your Company’s Team 6 areas are major determinants of value and are key for generating cash flow Focusing on these areas will improve the value of your business whether or not you are seeking a liquidity event or growth capital

Where Is Your Company In Its Lifecycle? What is the optimal lifecycle “curve” for your company? How can you influence the “slope” of the curve?

Show Me The Money

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