The AM&AA was founded in 1998 by partners from 10 regional CPA firms to provide transaction advisory services for mergers and acquisitions. It aims to help members improve their knowledge and provide a network for sharing resources and completing successful deals. The AM&AA has over 1,000 members in 25 countries and is establishing new international chapters. It provides services for companies of all sizes, from small businesses to large corporations, across various industries and deal structures.

1. Mike Nall, CPA, CM&AA, CGMA
Founder
Alliance of Merger & Acquisition Advisors

2. The AM&AA
•Founded in 1998 by partners for 10 regional CPA firms to
provide a range of transactional advisory services essential for
successful M&A transactions.
•Primary goals:
–Help members improve their level of knowledge,
–Provide a network of trustworthy professionals with
whom they can share information and resources.
–Provide access to the tools to help them better market,
manage and implement successful engagements

3. Profile of AM&AA Members
Invest. Banker/M&A Intermediary
Consultant
Accountant
Corporate Development
Equity Investor
Business Valuator
Attorney
Asset Manager/Financial Advisors
Lender
Technology Specialist
Other
*54% of membership has CM&AA
29%
16%
15%
9%

4. The Body of Knowledge
Documented
The Alliance of M&A Advisors 2011
A Global Solution:

5. INTERNATIONAL EFFORTS
•1000+ Members in 25 different countries
•Established Chapter in Europe, focused efforts
to begin new Chapters in Asia and Brazil
•Cross Border Task Force committed to
developing an International M&A Best Practices
White Paper
Alliance of Merger & Acquisition Advisors 2011 5

6. Where Are Our Members?
•Australia
•Austria
•Brazil
•Bulgaria
•Canada
•China
•Germany
•Hong Kong
Alliance of Merger & Acquisition Advisors 2011 6
•India
•Israel
•Italy
•Lebanon
•Malaysia
•Mexico
•Philippines
•Puerto Rico
•Qatar
•Republic of Korea
•Saudi Arabia
•Singapore
•Spain
•Switzerland
•The Netherlands
•United Kingdom
•The United States

7. 7
Capital Markets Overview
Revenues
($millions)
5 150 500 1,000
Small
Companies Middle Market Large
Companies
5.4MM 300,000 2,000
P O P U L A T I O N
15% 40% 45%
G D P
2-3x 4-11x 12x +
V A L U A T I O N

8. 8
Example Exit Channel
Strategic Buyers Financial Buyers Related Buyers
Pure
Product /
IP Sale
Sale /
Merger
to
Strategic
Hybrid
PEG
“Add-On”
PEG
Platform
Buy-out
PEG
“Staged”
Re-Cap
PEG
Financed
MBO
Leverage
d
MBO
(ESOP?)
Long-
Term
“Staged”
MBO
JV to
“Staged”
Strategic
Sale

9. 9
•Owner Motives Matter – PrivateCo’s Values
Business Owners Choose a Transfer
Value!
Method Value World Value
Buy/Sell Asset Market Value $ 2.4 MM
MBO Investment Value 7.5 MM
ESOP Fair Market Value 9.2 MM
Equity Recap Financial Market Value 12.0 MM
Negotiated Owner Value 15.8 MM
Auction Synergy Market Value 16.6 MM
Public Public Value 18.2 MM

10. 10
•It’s a Recast World
–Which earnings level do you use to value?
•Reported EBITDA $1MM
•Recast EBITDA $2MM
•Synergized recast EBITDA $3MM
Using a ‘5’ multiple, the same company has a $5MM, $10MM,
and $15MM market value – depending on which earnings level is
used

11. 11
•Market Value - Conclusion
–Most private owners want to increase the value of
their company
–Risk – acquisition multiple is specific to a buyer and
reflects their risk assessment (hurdle rate)
–Return – EBITDA available post-transaction
–Big opportunity for us to help owners plan and
execute

12. Alliance of Merger & Acquisition Advisors
222 N. LaSalle, 3rd
floor
Chicago, IL 60601
www.amaaonline.com
Alliance of Merger & Acquisition Advisors 2011 12