Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Mergers and Acquisition Activity | Daren Shaw Summit 2016 Panel

556 views

Published on

Mergers and Acquisition Activity: Accelerating growth strategies and evaluating exit plans

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

Mergers and Acquisition Activity | Daren Shaw Summit 2016 Panel

  1. 1. December 8, 2016 Accelerating Growth Strategies and Evaluating Exit Plans DIRECTOR & OFFICER TRAINING CONFERENCE
  2. 2. Private and Confidential | 2 Accelerating Growth Strategies & Evaluating Exit Plans  Moderator:  Daren Shaw, Managing Director, D.A. Davidson & Co.  Panelists:  Shayne Kennedy, Partner, Latham & Watkins  Steve Hobbs, Managing Director, Protiviti  Steven Ridge, Director, Strategic & Financial Planning, Dominion Questar  Randall Hopkins, Senior Managing Director, NASDAQ  Steve Kaminsky, CFO, Instructure
  3. 3. Private and Confidential | 3 Middle-Market M&A Activity Solid  Although middle market M&A activity is down by approximately 25% from 2015, valuations remain at or near record high levels Note: Middle-market defined as transactions between $10 and $250 million Source: Pitchbook, D.A. Davidson & Co. Volume($inBillions) NumberofTransactions Middle-Market M&A Activity, Q4 2012 – Q3 2015 $17 $20 $24 $26 $24 $28 $25 $28 $31 $24 $27 $29 $24 $19 $21 253 258 346 360 346 395 355 365 427 354 380 399 330 261 260 0 100 200 300 400 $- $10 $20 $30 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Volume $B # of Transactions Source: Pitchbook, D.A. Davidson & Co.
  4. 4. Private and Confidential | 4 3.6x 2.8x 2.9x 2.9x 3.3x 3.4x 3.6x 3.8x 3.7x 4.0x '07 '08 '09 '10 '11 '12 '13 '14 '15 Q3 '16 Debt Availability for Transactions  The average senior debt-to-EBITDA ratio for acquisition-related financing for the last ten years has been 3.4x - current levels are 18% higher  Strong leverage multiples and low interest rates have supported higher valuation multiples  Potentially lower tax rates would allow for more capital to service debt, even in the face of an increasing interest rate environment Source: S&P/LCD/Bloomberg as of 9/30/2016 Total Senior Debt / EBITDA: 2007 – Q3 2016
  5. 5. Private and Confidential | 5 $- $100 $200 $300 $400 $500 $600 $700 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Earlier 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Still Lots of Private Equity “Dry Powder”  PEGs have significant dry powder for new deals  Strategic buyers also actively seeking acquisitions to supplement organic growth  Competition for quality deals will remain high Source: PitchBook Private Equity Capital Raised & Dry Powder, 2005-2015 ($ in billions) $inBillions Cumulative Overhang Overhang by Vintage $496 $575 $642 $621 $553 $551 $560 $632 $608 $624 $288
  6. 6. Private and Confidential | 6 IPO Activity Stalled, Now Inching Back  2016 has been the slowest for U.S. IPOs since 2009  Only 80 companies have listed on U.S. markets in the first nine months of the year, versus 143 in the same period in 2015 Source: Dealogic, D.A. Davidson & Co. Volume($inBillions) NumberofTransactions IPO Activity in U.S., 2006 – 2016YTD $50 $65 $31 $27 $45 $42 $47 $62 $96 $36 $1 $7 $8 247 288 51 64 171 146 145 229 293 174 9 33 38 -50 50 150 250 350 $- $20 $40 $60 $80 $100 $120 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016

×