The document discusses avoiding mistakes during transactions by providing lessons learned from experience. It summarizes an event presented by Bryan Livingston and Paul Puri of M&A International, the world's leading mid-cap investment banking organization. The document provides information on transaction planning, potential buyer motivations, types of transactions, and examples of enhancing transaction prices.
02 Mar 10 - Business finance options seminar - the choices simplified
A seminar looking at the building blocks of business finance and helping to unravel the jargon.
Speaker: Mike Stutter
Structuring and Financing a Partner BuyoutGreg Tobben
Buying Out a Business Partner or Shareholder: Structuring and Financing the Deal
When an entrepreneur starts a new business, planning for a buyout of a business partner years in the future is rarely a top priority- but maybe it should be.
As businesses grow and evolve, so too do ownership or shareholder groups. The same partners or investors who took a company from startup to $20 million in revenues aren’t necessarily the right people to grow the company from $20 to $50 million, or $50 to $150 million, and so on.
Layer in retirements, partnership disputes and absentee or non-strategic owners receiving generous compensation, and making changes in ownership becomes increasingly more important (and costly) as the business grows.
On the next few pages, we’ll discuss:
1. When a Partner Buyout is a Solution
2. Valuing the Business
3. Structuring a Partner Buyout
4. Financing a Partner Buyout
5. Questions a Business Owner Should Ask When Raising Capital
6. Using an Investment Banker to Raise Capital for the Buyout
About Access Capital Partners:
Access Capital Partners is a middle market investment bank that provides strategic advisory services, raises capital for companies (growth, refinancing, restructuring, acquisitions, partner buyouts, management buyouts, leveraged buyouts), and helps business owners sell or recapitalization their companies.
We are shareholder centric and have deep experience in the middle market. With over 100 transactions representing over $8 billion in volume, business owners leverage our experience as they navigate through inflection points and ultimately achieve personal liquidity.
02 Mar 10 - Business finance options seminar - the choices simplified
A seminar looking at the building blocks of business finance and helping to unravel the jargon.
Speaker: Mike Stutter
Structuring and Financing a Partner BuyoutGreg Tobben
Buying Out a Business Partner or Shareholder: Structuring and Financing the Deal
When an entrepreneur starts a new business, planning for a buyout of a business partner years in the future is rarely a top priority- but maybe it should be.
As businesses grow and evolve, so too do ownership or shareholder groups. The same partners or investors who took a company from startup to $20 million in revenues aren’t necessarily the right people to grow the company from $20 to $50 million, or $50 to $150 million, and so on.
Layer in retirements, partnership disputes and absentee or non-strategic owners receiving generous compensation, and making changes in ownership becomes increasingly more important (and costly) as the business grows.
On the next few pages, we’ll discuss:
1. When a Partner Buyout is a Solution
2. Valuing the Business
3. Structuring a Partner Buyout
4. Financing a Partner Buyout
5. Questions a Business Owner Should Ask When Raising Capital
6. Using an Investment Banker to Raise Capital for the Buyout
About Access Capital Partners:
Access Capital Partners is a middle market investment bank that provides strategic advisory services, raises capital for companies (growth, refinancing, restructuring, acquisitions, partner buyouts, management buyouts, leveraged buyouts), and helps business owners sell or recapitalization their companies.
We are shareholder centric and have deep experience in the middle market. With over 100 transactions representing over $8 billion in volume, business owners leverage our experience as they navigate through inflection points and ultimately achieve personal liquidity.
Acquisition Financing for Fundless Sponsors: 6 Ways to Negotiate Better Indep...Greg Tobben
Independent sponsor economics are paramount for those operating under a fundless sponsor model. Key components such as deal fees, management fees and carried interests are the reason you're in business.
In this presentation, Acquisition Financing for Fundless Sponsors: 6 Ways to Negotiate Better Independent Sponsor Economics, we'll walk through several practices you can use to get more transactions across the finish line and put yourself in a better position when negotiating with capital providers.
About Access Capital Partners:
Access Capital Partners is a middle market investment bank focused exclusively on raising capital for fundless or independent sponsors, operating executives, management teams and family offices.
We've Leveraged Years of Experience in Raising Capital Across a Wide Variety of Situations to Develop a Focused Effort Tailored to the Unique Needs of Independent or Fundless Sponsors.
Lighter Capital Live: Revenue-Based Financing (Session #1)Lighter Capital
On Thurs May 31st Lighter Capital, Carney Badley Spellman, and Actively Learn hosted the inaugural Lighter Capital Live session. This session covered the basics of revenue-based financing and then we had an active partner and client share their perspective of this financing model. More information on Lighter Capital can be found at www.lightercapital.com.
1. What is the difference between corporate finance and entrepreneurial finance?
2. How do we know whether an idea has the potential to become a viable business opportunity?
3. Describe and discuss some of the best financial practices of high growth, high performance firms. Why is it also important to consider production and operation practices?
4. Identify some types of financing that are associated with each of the following stages of new venture development: research and development, start up, early growth, rapid growth and exit?
5. At what stage of venture development is each of the following most likely to invest, an angel investor? A venture capitalist? Why?
Making the Most Out of the Independent Sponsor Model - Access Capital Partners Greg Tobben
For most independent sponsors, especially new ones, it’s helpful to get perspective on how different groups have implemented the independent sponsor model and learn what’s working for other groups and what’s not.
As advisors to this expanding group of investors, we speak regularly with both new and long-time sponsors, as well as independent sponsor capital providers. Here are 6 guidelines to help you get the most out of the independent sponsor model:
At the Master or PhD levels, this course examines the framework for return on investment calculation and criteria in new ventures, cash management techniques and controls for small businesses; equity and debt sources and their criteria for investment in new businesses; additional sources of capital and entry strategies for new businesses. This course covers the financial skills needed at each level and phase of a new venture‟s development. Students review the equity and debt markets for startup firms and alternative entry strategies such as franchising and acquisition. At the end of this course, an online assessment will be conducted!
Interested in buying the company that you’ve been helping to build but are unsure of the implications behind a management buyout? Or are you a company owner looking to sell and wondering what the concerns of a prospective management team could be? Join our experts & learn everything you need to know to pursue a successful MBO.
To view this Welch LLP webinar (and others), click here: http://www.welchllp.com/resource-centre/videos/webinars/
Corporate overview ppt deck designed for leading global investment firm founded and specializing on financial mergers and acquisitions based in New York City.
Acquisition Financing for Fundless Sponsors: 6 Ways to Negotiate Better Indep...Greg Tobben
Independent sponsor economics are paramount for those operating under a fundless sponsor model. Key components such as deal fees, management fees and carried interests are the reason you're in business.
In this presentation, Acquisition Financing for Fundless Sponsors: 6 Ways to Negotiate Better Independent Sponsor Economics, we'll walk through several practices you can use to get more transactions across the finish line and put yourself in a better position when negotiating with capital providers.
About Access Capital Partners:
Access Capital Partners is a middle market investment bank focused exclusively on raising capital for fundless or independent sponsors, operating executives, management teams and family offices.
We've Leveraged Years of Experience in Raising Capital Across a Wide Variety of Situations to Develop a Focused Effort Tailored to the Unique Needs of Independent or Fundless Sponsors.
Lighter Capital Live: Revenue-Based Financing (Session #1)Lighter Capital
On Thurs May 31st Lighter Capital, Carney Badley Spellman, and Actively Learn hosted the inaugural Lighter Capital Live session. This session covered the basics of revenue-based financing and then we had an active partner and client share their perspective of this financing model. More information on Lighter Capital can be found at www.lightercapital.com.
1. What is the difference between corporate finance and entrepreneurial finance?
2. How do we know whether an idea has the potential to become a viable business opportunity?
3. Describe and discuss some of the best financial practices of high growth, high performance firms. Why is it also important to consider production and operation practices?
4. Identify some types of financing that are associated with each of the following stages of new venture development: research and development, start up, early growth, rapid growth and exit?
5. At what stage of venture development is each of the following most likely to invest, an angel investor? A venture capitalist? Why?
Making the Most Out of the Independent Sponsor Model - Access Capital Partners Greg Tobben
For most independent sponsors, especially new ones, it’s helpful to get perspective on how different groups have implemented the independent sponsor model and learn what’s working for other groups and what’s not.
As advisors to this expanding group of investors, we speak regularly with both new and long-time sponsors, as well as independent sponsor capital providers. Here are 6 guidelines to help you get the most out of the independent sponsor model:
At the Master or PhD levels, this course examines the framework for return on investment calculation and criteria in new ventures, cash management techniques and controls for small businesses; equity and debt sources and their criteria for investment in new businesses; additional sources of capital and entry strategies for new businesses. This course covers the financial skills needed at each level and phase of a new venture‟s development. Students review the equity and debt markets for startup firms and alternative entry strategies such as franchising and acquisition. At the end of this course, an online assessment will be conducted!
Interested in buying the company that you’ve been helping to build but are unsure of the implications behind a management buyout? Or are you a company owner looking to sell and wondering what the concerns of a prospective management team could be? Join our experts & learn everything you need to know to pursue a successful MBO.
To view this Welch LLP webinar (and others), click here: http://www.welchllp.com/resource-centre/videos/webinars/
Corporate overview ppt deck designed for leading global investment firm founded and specializing on financial mergers and acquisitions based in New York City.
An objective and comprehensive approach to evaluating the variety of strategic options available to lenders with a decision making construct for action.
The low-interest period is forcing most insurers to control and monitor their financial investments. In contrast to a risk focused
approach seen in recent years, yield controlling and monitoring will have top priority. In order to reach this goal, many
insurers are modernizing and enhancing their data warehouses. BearingPoint is offering a predefined investment data warehouse comprising the most required KPIs, reports and the underlying data model.
Presentation slides from seminar looking at how to grow the value of your business, originally presented at Liverpool Crowne Plaza Hotel together with GrowthAccelerator and Natwest Bank
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Unveiling the Secrets How Does Generative AI Work.pdf
Mergers and Acquisitions: Preparing for Change
1. Avoiding Crucial Mistakes During a Transaction
Lessons learned “in the trenches”
Presented by Bryan Livingston and Paul Puri
1
2. M&A International – The World’s Leading Mid-Cap
Investment Banking Organization
Worldwide Transactions Closed by MAI ( deal volume)
M&A International, Inc. offers the unparalleled resources of over
600 professionals in M&A advisory and investment banking
offices operating around the globe.
We seamlessly advise our clients on acquisitions, divestitures and
financing. In 25 years, M&A International Inc. has grown to be the
leading M&A advisory provider for mid-cap companies.
We combine local market knowledge with professional discipline
and sector expertise. Our industrial practice is strongly focused on
energy services, manufacturing and distribution worldwide.
About M&A International, Inc.
2
3. Professionals
• Founded and chairs M&A International Inc.'s
Construction and Engineering Services Group
• Vice President, National Accounts Designtex
(Steelcase Inc.)
• MBA (George Washington University)
• BS (United States Naval Academy)
• Attended US Naval Nuclear Propulsion School
and operational prototype training after
graduation and commissioning
Bryan Livingston
CEO and Managing Director
Direct: 214.382.4464
bryan.livingston@cadallas.com
• Global Head of M&A International’s Energy
Investment Banking Group.
• MBA (Southern Methodist University)
• BS (Cornell University)
• Paul has active clients across oilfield service
and manufacturing sectors. He has unlocked
over half a billion dollars of liquidity to his
North American clients in sell-side
transactions.
3
Paul Puri
CDO and Managing Director
Direct: 214.382.4492
paul.puri@cadallas.com
3
5. 5
Transition Planning – 1 to 2 years
Advice that generates $ Millions more at closing
Management Readiness
Put the right management team in
place
Invest in employees who can grow
the business
Assure other stakeholders are
onboard
Financial Readiness
Upgrade financial reporting
systems and internal controls
Audited Financial Statements
High quality bookkeeping and
accounting standards
CFO with high credentials
Taxes filed and paid
1 2
3
Operational Readiness
Deploy technology to give you
day-to-day insight into order
flow, WIP, invoices & payables
Create competitive advantages
in the marketplace through
patents and product or service
uniqueness
Diversify your client base to
avoid customer concentration
Manage order flow and pricing
risk through longer term
customer contracts
Understand your limits as an
entrepreneur
55
6. Transition Planning – 1 to 2 years
Advice that generates $ Millions more at closing
Put the right management team in place
Empower that team to make the critical decisions
Invest in employees who can grow the business
Assure other stakeholders are onboard with the transaction
Understand your limits as an entrepreneur
Understand the risks of timing the transaction amidst highly
volatile commodity pricing cycles
6
Management Readiness
Work yourself out of your Job
6
7. 7
Transition Planning – 1 to 2 years
Advice that generates $ Millions more at closing
Deploy technology to give you day-to-day insight into your
business, such as order flow, WIP, invoices & payables
Create competitive advantages in the marketplace through
patents and product or service uniqueness
Diversify your client base to avoid customer concentration
Manage order flow and pricing risk through longer term
contracts
7
Operational Readiness
Manage Risk & Invest in your Operations
7
8. 8
Transition Planning – 1 to 2 years
Advice that generates $ Millions more at closing
Upgrade financial reporting systems and internal controls
Audited Financial Statements
High quality bookkeeping and accounting standards
CFO with high credentials
Taxes filed and paid
8
Financial Readiness
Get your Financial Systems in Order
8
9. Proprietary Capabilities You Need from an
Investment Bank
Personal & Industry Networks
Deep International Contacts and
References
Established closing record in Oilfield
Services and Manufacturing
Private Equity relationships
throughout the energy industry
Compelling Marketing
Materials
Identifying Well-Suited &
Qualified Prospects
Expert Interaction with
Prospects
Skillful Negotiating of Key
Terms
Facilitating a Smooth
Closing
VALUE ENHANCEMENTCONTACTS
Seasoned M&A Veterans
Operational Focus
Results-oriented
Power Negotiators
Trustworthy
Energy Services Specialist
PROFESSIONALS
1 2 3
99
10. M&A Process – Maximizing Value and Fit
3 to 9 months
Negotiation
Interact with Buyers
Negotiate Letter of
Intent (LOI)
Solicit Offers
Seller Reporting
Narrow Buyer List
Acceptance of Offer
Closing
Due Diligence
Negotiate Definitive
Agreement
Close Transaction
Preparation
Company Research
Industry Research
Financial Analysis
Buyer Targeting &
Behavior Research
1010
11. 11
Mistakes that can cost you $ Millions at closing
Management Risk
Entrepreneur owns all the client
relationships
No seasoned, outside management
team that can run the business
No clear business or growth strategy
over the next 3-4 years
1
Financial Risk
No formal accounting records
Large family deductions
No retained equity
High debt
Substantial exposure to
commodity price
Inability to stand up to a
formal due diligence process
3 4 Business and Transaction Risk
Substantial customer
concentration or order risk
High employee turnover
High dollar claims, such as
legal, IRS, or OSHA challenges
Not understanding the unique
motivation of each buyer to
pursue an acquisition
2 Operational Risk
Manual processes
No competitive advantages, no
longer term client contracts
No insight into day-to-day
order flow, WIP, inventory,
payables
1111
12. Some Understanding of Buyer Motivations
Ability to act as a single-source supplier to larger customers operating across the various segments of the North
American energy industry
Desire to commit significant financial resources to further develop and invest in operating infrastructure and
provide a strong platform for future expansion
Secure improved access, service, and volume purchasing benefits from suppliers
End market, product, service, and/or geographic diversification
Diversification of clients
Investment in new ideas and best-of-breed management teams and entrepreneurs
Improved customer benefits through lower inventory investment or reduction of transaction costs
1212
14. Comments
14
Tweet your takeaway from this educational session.
@MidlandEnrgExpo #MEECapAlliance
Tweet your takeaway from this educational
session.
@MidlandEnrgExpo #MEECapAlliance
14
15. Our Success Over 3 Decades is Based on Attributes
Important to the Clients We Serve
Confidentiality Independence
Seamless cross-
border continuity
International
network
Extensive contacts
with direct access
to many relevant
decision makers in
the industry
Sector expertise in
key energy sectors,
including
manufacturing,
distribution and
services
Cross-border price premium
1515
16. Oil & Gas Infrastructure Industrial Space - Keys
to Sustained Success
Our confidential bidding process:
Generates premium prices
Gives you a choice among
attractive options
We know who is buying and why
We use a systematic process
and highly talented people
1
2
3
1616
17. MAI Oil & Gas Equipment & Supply
Chain Subsector Focus
Pipeline valves and instrumentation
Pipeline application castings
Standard and specialty drilling tools
High-precision, ultra-hard drilling and
refining tools
Transportation equipment
manufacturing
Tool and die equipment
Refinery specialty parts and equipment
Fabrication
1717
18. MAI Oil & Gas Infrastructure Services Subsector
Focus
Site preparation
Drilling and workover
Equipment rentals
Offshore and logistical support
Flow back
Hydraulic fracturing
Pipeline and drilling
measurement
Pipeline construction, services
and maintenance
Water hauling
Wireline
Perforation
1818
20. Minority Recapitalization
PE investment which provides a minority (less than 50%) equity interest
Key Elements
Finance growth
Provide partial liquidity for a business owner’s estate
Recapitalization gives shareholders a partner that is willing to fund growth with the common
objective of creating significant future value
Most private equity firms invest with a 5-7 year investment horizon
Continuity of key management team is critical
Leaves daily operating control (and usually voting control) in the hands of present management
2020
21. Majority Recapitalization
PE investment which provides a majority (more than 50%) equity interest
Key Elements
Same elements as minority recapitalization except that voting control passes to PE
Recapitalization includes leveraging of company
Sellers typically retain 10% – 40% equity
2121
22. Leverage & Dividend
Refinance and distribute proceeds to shareholders
Key Elements
Provides liquidity to shareholders while retaining 100% equity interest
Tax considerations based upon corporate form
Attractive credit markets
2222
23. Strategic Sale
Acquisition of all or substantially all of the company
Key Elements
Synergies
Consolidation of a competitor
Leveraging intellectual property or strong market position
Time to market new/competitive product/service usually a key factor
2323
24. Acquisition / Merger
Acquire or merge with similar company with different characteristics
Key Elements
Opportunity for increased scale / valuation
Potential for margin enhancement
Probably defers sale transaction given time needed for integration
2424