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January 2012 |
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In This Issue:
- Practice Management: Creating
Great Strategy for Your Firm
- Baird PE Adds Two New OP’s to
Oversee Deal Sourcing
- Ernst & Young Says M&A Will Top
Boardroom Agenda in 2012
- H.I.G. Adds Marc Cramer to Drive
Middle-Market Acquisitions
- Would a Return to “Boring Banks”
Help Buyouts?
- Exclusive Passes for MMIBA/NACVA
to MWE’s 2012 HC/PE Event
- Sell-side Connection: Edgewater
Seeks Mid-Market Materials Companies
- Regulatory Update: SEC to Exempt
Intermediaries and Brokers?
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MMIBA Board of Directors:
Dennis Roberts CPA, CVA, ABV, CMAP
Andrew Sherman, ESQ., CMAP
Parnell Black,
MBA, CPA, CVA
Richard Jackim, JD, MBA, CEPA
Andy Smith, CPA/ABV, ASA, CVA, CMA
Scott D. Miller,
CPA/ABV, CVA, CMAP
Editor:
Joe DiPietro
editor@mmiba.com |
Practice Management:
Creating Great Strategy for Your Firm in 2012
It Starts With Good Choices
In a wonderfully brief but insightful article, Joan Magretta, who is a
senior associate at the Institute for Strategy and Competitiveness at
the Harvard Business School, compares Jim Collins and Michael Porter’s
work – both gurus of Business Strategy – to deduce five essential
questions for you as you re-tool and button down your firm’s strategy
for 2012.
You can read the article here. |
Baird Private Equity Adds Layden,
Robertson as Operating Partners
Bring Them Your Business Services and Health Care Opportunities
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Baird
Private Equity has added Donald W. Layden, Jr. and Frederick A.
Robertson, MD as Operating Partners. Layden and Robertson will
work with BVP's sector-focused teams in sourcing, evaluating and
overseeing portfolio company investments.
Click here to learn more about them and them and the deals they
want to see. |
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Ernst & Young Says Fundamentals and
Mounting Pressure for Growth Will Prevail Over Uncertainty in 2012
Dynamics, Core Industries
Will Bring M&A Back to Top of Boardroom Agendas
Strong fundamentals, led by an increased focus on growth, should
generate an up-tick in deal flow in 2012, according to Ernst & Young
Transaction Advisory Services.
Click here to read the detailed analysis
and commentary. |
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H.I.G. Capital Names Marc Kramer Managing Director
He Has $1.5 Billion to Spend on Middle-Market Acquisitions
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H.I.G. Capital, a leading private
equity investment firm, has announced the addition of Managing
Director Marc Kramer to the firm's New York office. Mr. Kramer
joined H.I.G. Capital to invest out of the $1.5 billion pool of
equity capital allocated to H.I.G.'s Middle Market investments.
Click here for more details on doing business with H.I.G. and Marc
Kramer. |
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Would a Return of “Boring Banks” Help
Buyouts?
A Growing Consensus Think It’s Time for a Return to Glass-Steagall
But is this Wishful Thinking?
There’s no doubt that a stable US banking system is an imperative for
doing M&A – especially with respect to the necessary working capital
needs the new business operator (buyer) brings to the table. There are
many today who argue that that is not going to happen until banks are
forced to return to their pre-bank-as-investment-house roots. And for
many in this camp, that means a return to the days of strict Glass-Steagall
rules. Some say that would be a disaster.
Click here to read a NY Times essay called “Bring Back Boring Banks”
that takes the former of the two arguments. |
Exclusive MMIBA/NACVA Member Offer:
Five Passes Are Available to…
McDermott’s 2012 Healthcare Services Private Equity Symposium
Thursday, March 8, 2012 * JW Marriott Marquis * Miami, Florida
| Most of us don’t
need an excuse to head to Florida in March, but here’s a good one
anyway: A very special opportunity to attend McDermott’s 2012
Healthcare Services Private Equity Symposium. |
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It is the premier PE/HC conference
and networking event addressing critical business issues specific
to healthcare services private equity transactions. The outlook
for healthcare investing is very positive and this an exciting
time in spite of the volatility in the market. |
The conference is a must for brokers,
intermediaries and investment bankers seeking to build relationships
(and engagements) with private equity principals, lenders serving
private equity sponsors, and C-level executives from all segments of
the healthcare services sectors.
Joe DiPietro, Editor of this publication, has five specially-priced
passes to the event that are exclusively available to MMIBA and NACVA
members for only $395 each. The passes are $795 through the event
producer and will cost more as the event approaches. This is an
incredible savings of $400 per pass, or $2,000 for the group of five.
Please note, this is a first come first serve opportunity. You can
reach Joe at Editor@MMIBA.com, or at (815) 206-0780.
Click here to learn more about the event. |
Sell-Side Connection:
Edgewater Seeks Lower Middle-Market Performance Materials Companies
Do you have a Performance Materials Company listed – or maybe a
contact you’ve been working with? If so, the Midwest-based PE firm,
Edgewater Capital would like to speak with you.
Investment Criteria:
- Industries - Performance
materials, defined as specialty chemicals, pharmaceuticals, and
specialty materials.
- Recurring Revenues - $10 million
to $150 million. Focus is $20 million to $50 million.
- Recurring EBITDA - In excess of $2
million with minimum EBITDA margins of 10 percent.
- Annual Gross Margins - Exceeding
20 percent.
- Geography - Continental United
States (may consider Canada).
- Add-on acquisitions - No size
constraint but must meet margin criteria described above
Contact Information:
Chris Childres
Edgewater Capital Partners, LP
Phone: (216) 292-3838
childres@edgewatercapital.com |
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Regulatory Update: SEC and FINRA to
Exempt Intermediaries and Brokers?
Prospective Legislation and Rules Changes Gaining Traction |
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As most of you are aware, unless you are a licensed Broker Dealer, or
have the proper licenses and work for a BD, you cannot sell the stock
of a company in the sale of a business; it must always be an Asset
Sale. Even on the smallest and most private transaction. Any violation
of the laws regarding this could bring you substantial civil penalties
and fines, possible criminal charges, and crippling legal fees. Some
of you know peers that have been bankrupted for inadvertently
breeching the rules regarding this. Some of you have peers that lost
their entire fee at the closing table when their client’s attorney
used these laws to blackmail them out of their commission. (“As
licensed attorney and an Officer of the Court, I do not have to report
you if you are willing to simply forgo your fee….”) |
These draconian rules and penalties are actually an unintended
consequence of laws passed in the 1930s to reign in unscrupulous stock
brokers that were rampant at the time, not those within the
private-transaction M&A and business broker sector – all of whom are
now regulated under various state laws anyway. Additionally, the
initial BD costs ($150K) and annual related expenses ($75K) are simply
way beyond the capacity of most small intermediary practices.
For years, leaders within the business broker and intermediary
community have been working together and lobbying Congress for
exemptions for those who sell the stock of a company in a private
business sale. And just recently it appears that there might be some
serious traction in this regard. Several members of Congress have now
formally communicated to Mary Shapiro, who heads the SEC, that they
wish to begin rules changes and/or legislation that would provide
these exemptions. The SEC has yet to reply, but it seems that the tide
may finally and favorably be turning for a more sane oversight system
of business brokers and private-transaction intermediaries.
Stay tuned for more reports on this issue over the next several
months. |
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McLean, VA 22102
Phone: (800) 677-2009 Fax: (801) 486-7500
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