Issue: 29
February 2015
2015 M&A Source Spring Conference Registration NOW OPEN!

Registration is now open for the 2015 M&A Source Spring Conference and Dealmakers Expo, to be held May 4-7 at the Sheraton in Atlantic City, NJ USA. Register now to take advantage of the early bird discount - rates increase after March 31!

The 2015 M&A Source Spring Conference will offer formal education as well as workshops and discussions focused on Capitalizing on the Recovery. The conference will feature three new courses - such as Tax Boot Camp for the M&A Deal Maker - and two recently updated courses. Additionally, conference attendees will have access to interactive workshops, daily networking opportunities, and the M&A Source Dealmakers Expo where Private Equity Groups (PEGs) are ready to meet face-to-face and make deals happen!

For more information on the Spring Conference, visit:

Interested in participating in the M&A Source Dealmakers Expo? Contact

In This Issue

The Beatles and Maharishi Yogi and the M&A Source

Joe Lindsey, M&AMI, CBI


For those of you who are young, back in the 1960's there existed an English rock & roll band named The Beatles. Their musical influence was global, and these four lads from Liverpool had an enormous amount of pressure thrust upon them. In an attempt to escape from the pressure, they sought guidance from Maharishi Mahesh Yogi and his worldwide Transcendental Meditation Movement.

Three Point Action Plan for Exit Success

Tracey Gilespie


Hopefully your business is not in the midst of a 'Perfect Storm'. The 'Perfect Storm' conjures up a powerful image of being overwhelmed and completely at the mercy of raging forces beyond one's control. Feelings of desperation, fear and anxiety abound, just hours after sunny skies and smooth waters prevailed.  How could things turn so quickly? Could preparation have made a difference?  Did the forecast predict this calamity? As I listened to an economic update last week, the 'Perfect Storm' scenario swirled in my head. Was I seeing into the future?  Is the storm approaching or on the distant horizon? And what is there to do about it?

Want To Improve the Value of Your Company Up to 5x Without Borrowing a Dime?
Gary Ampulski

A Study on Lower Middle Market Company Valuation Sensitivities

There has long been speculation among business owners and their advisors over how to place a value on privately held companies. Now, newly developed business valuation models which replicate historical buyer experience sheds some light on the topic and provides some very interesting insights into value creation opportunities for current business owners and potential buyers. Historical benchmarking data even in an old line manufacturing industry like the Commercial Print space indicates that while some savvy business owners are already starting to demonstrate progress in moving up the value curve, there is still significant upside in the future without requiring acquisition or other unscheduled investment.

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 

Key Employee Issues in the M&A Process:
Blackmailed or Cheated?
Brett Stacey

At a holiday party, a successful business owner assured key employees that they "would be taken care of" if ever the Company was sold. In fact, the owner went so far as to say that up to 10% of any sale proceeds would be available to key employees if the company sold for the right price. The only part of that statement that the key employees heard was "10% of the sale proceeds." Time went on and as fate would have it, the business owner wisely hired an investment banker and a deal to sell the company came to fruition. Only then did the key employee "promises" surface and threaten to scuttle the whole transaction. This situation is unfortunately quite common in middle market deals. The purpose of this article is to address various mistakes made by business owners in addressing key employee issues and to give some advice on how to avoid and mitigate these potential pitfalls. 

The Basics of Mezzanine Financing 
John Carvalho


Takeaway: A mezzanine structure allows an acquirer to reduce the cost of capital and boost returns on equity.


When selling a business, it is highly likely that retained equity, vendor financing or an earn-out will be weighed into the purchase price. Rarely are businesses sold for all cash, which means that a portion of the purchase price is at risk. For this reason, it's important for vendors to have a good understanding of the capital structure of the business before the deal on the sale is closed. How much debt will be needed by the purchaser to fund the deal? How much equity are they bringing to the table? What other types of capital will be used to finance the acquisition? 

 Click Here to Read More

Alternative to Bank Financing
Ron Stacey

At the beginning of the last recession, the Wall Street Journal recently published an article titled Lending Falls at Epic Pace.

"U.S. banks posted last year their sharpest decline in lending since 1942, suggesting that the industry's continued slide is making it harder for the economy to recover...besides registering their biggest full-year decline in total loans outstanding in 67 years, U.S. banks set a number of grim milestones. According to the FDIC, the number of U.S. banks at risk of failing hit a 16-year high at 702. More than 5% of all loans were at least three months past due, the highest level recorded in the 26 years the data have been collected. And the problems are expected to last through 2010."

Presented below are some simple explanations for non-traditional bank financing or alternative financing.

Welcome New 

M&A Source Members

Roger Akey

David Boykin

Carlos Diez

Timothy Taylor

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About Us
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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 1991 to address the challenges faced by merger and acquisition professionals. This international organization currently has more than 250 M&A dealmakers including intermediaries, investment bankers, attorneys, accountants, financial planners and others involved in the M&A process.