Issue: 39 December 2015
Don't Forget to Renew Your Membership for 2016!
If you have not renewed your calendar year-based membership, it will expire at the end of this month. You should have received both a printed and electronic invoice recently. If there are any discrepancies in your records, don't hesitate to contact headquarters and let us correct it.
To renew your membership, you may visit, mail in a check, or call (404) 477-5810. All checks should be mailed to:

M&A Source
3525 Piedmont Rd NE
Building 5, Suite 300
Atlanta, GA 30305 
We appreciate your continued support!

M&A Source Headquarters
In This Issue
Save the Date for the 2016
M&A Source Spring Conference

May 2 - 5, 2015 
Rosen Shingle Creek
Orlando, FL
I Was Looking for a Dime and I Found a Quarter
Joe Lindsey, M&AMI, CBI
M&A Source Chairman  

"When I went to Chicago, I'll put it like this: I was looking for a dime and I found a quarter." - Buddy Guy
I recently attended the 46th M&A Source Fall Conference and Dealmakers Expo in Albuquerque, NM.  Our chosen theme was Challenges, Opportunities and Winning Strategies.  According to our Conference Planning Committee Chairman John Howe, "That theme reflects not only our outlook on the M&A profession at this time, but the programs we presented in Albuquerque."

Using Sell-side Due
Diligence to Maximize Deal Value, Minimize Negotiations

Vipul Barbhaya, Director, RSM US LLP
Nick Gruidl, Partner, RSM US LLP

The notion of conducting due diligence from the seller's side gained traction in the United States after the 2007 recession, when banks and other financial institutions tightened lending standards and steered clear of deals with even minor issues. In this environment, sell-side due diligence was vital to keep an M&A transaction intact. Even with today's improving credit availability and economic performance, sell-side due diligence provides several distinct advantages:

Verifying the accuracy of financial information. The easiest way to jeopardize a deal is to raise buyer concerns about the reliability of data offered by the seller. Because all relevant financial, operational and tax issues are reviewed for accuracy and GAAP conformance by an objective and credible third-party resource, sell-side due diligence directly addresses this issue.
Death, Taxes and Strategy
Dick Albu
Albu Consulting, LLC
"Only three things in life are certain: 1) death, 2) taxes, and 3) the fact that today's strategy won't work tomorrow.  At some point in the future, your products will become obsolete, your customers' tastes will change, and technology will render your business model uncompetitive.  Today's success will be tomorrow's old news.  The question is not if, but when."
This quote was written by Robert Simons, a Harvard Business School professor and author of Seven Strategy Questions, a book we often recommend our clients read.  It states the stark reality of business, no matter the economic times.   

Editor's Desk
As Chair of the Communications Committee and Editor of the BRIDGE, I welcome your questions, comments, suggestions, letters to the Editor, etc.  Our goal is to provide content that is relevant to our readers.  Your feedback will help us achieve that goal. 

Members of The M&A Source are encouraged to submit articles for publication. 
Mike Camerota, M&AMI, CBI 
Atchafalaya Measurement Completes First Add-On Acquisition
KLH Capital 

KLH Capital is pleased to announce that its portfolio company Atchafalaya Measurement, Inc. has completed the acquisition of Wildcat Measurement Service, Inc. ("Wildcat"). Wildcat, based in Artesia, NM, is a leading provider of oil and gas measurement equipment and services, servicing the Permian region. Wildcat has an outstanding reputation for providing safe, high quality, and reliable measurement services over the last 21 years.

2015 Darrell Fouts Award Recipient
David Ryan
President, Upton Financial Group, Inc. 
For those of you who don't know, Darrell Fouts was instrumental in the formation of The M&A Source and served as our first Chairman in 1992.  In honor of the contributions he made to the M&A Source, an award was created in Darrell's name by 2001 Chairman Robert (Bob) Gurrola.  

Different Ways To Think About Recaps
Prospect Partners
Investment strategy counsels managing portfolio risk by holding a mix of stocks, bonds, and other assets, so one's eggs are not concentrated in a single basket.
For business owners, diversifying is particularly crucial. They started their company and invested tremendous time and personal savings into growing it. Now may be the moment to establish a safety net, freeing up hard-earned wealth for other needs, like retirement and children's education. A recapitalization is one way to accomplish these important goals. There are many reasons why owners might recapitalize. Here are six common ones.

Key Value Drivers that Maximize Price
Ron Stacey
Legacy Advisors
Maximizing value is a process focused on three areas generally applicable to all businesses: 1) Maximize free cash flow, 2) Minimize risk and 3) Grow. Yes, it really is that simple but it's not as easy as it looks. These three items are inter-related and require a comprehensive, well-reasoned plan, competently executed, to achieve success. For example, a proprietary technology company with competent management is likely to enjoy high margins (cash flow, with the caveat of reinvestment), limited immediate competition (reduced risk) and exceptional demand for its product or service (growth). Let's look at some specific areas under each of these categories. 

New Members 
November 2015

Steven Beal
Patrick Bice
Dexter Braff
Kate Faust
Michael Fay
Becky Hammer
Michael Holloman
Doug Hubler
David Long
Mauricio Maurer
Perry Morren
Market Pulse 2015 Q3 Now Available! 


About Us  M&A Logo
The association is organized and operated to promote members' professional development to better serve their clients' needs, and to maximize public awareness of services performed by intermediaries and ancillary advisors who facilitate solutions available for lower middle market merger and acquisition transactions.

The M&A Source was established in 1992 to address the challenges faced by merger and acquisition professionals. This international organization currently has more than 350 M&A dealmakers including intermediaries, investment bankers, attorneys, accountants, financial planners and others involved in the M&A process.