Issue: 34
JULY 2015
Save the Date for the M&A Source Fall Conference!

Mark your calendars today for the 2015 M&A Source Fall Conference, which will be held at the Hyatt Regency in Albuquerque, New Mexico from November 9-12, 2015. The course schedule is now available! Be sure to check our webiste for additional updates on conference activities next month. 

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

In This Issue

Licensing Exemption Bill Update

Joe Lindsey, M&AMI, CBI

M&A Source Chairman


As someone who is engaged in the business transfer industry, you are probably aware of how vitally important pending legislation (HR 686 & S 1010) is to our profession.  Our profession includes M&A intermediaries, investment bankers, business brokers and strategic advisors such as attorneys, CPAs, exit planners, wealth managers and others.  The "others" include our clients, the small business owners and entrepreneurs who depend on our services.

Myths About Middle Market Valuation Multiples
Ron Stacey

Sometimes it seems as if the only requirements to be an investment banker are the ability to multiply two (usually single-digit) numbers together, and write your name. Hence, upon finishing the second grade, everyone is qualified. For example, take an EBITDA (earnings before interest, taxes, depreciation and amortization) of $10MM and the median lower middle market valuation multiple of 5, which incidentally has nothing to do with the number of fingers on your hand. Continuing, 10 times five is 50 and voila, the value is $50MM. So what's with post-graduate education from top schools for top prices and years of toiling long hours in the concrete canyons of Wall Street ? Perhaps, there is more to it.

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Professional M&A Negotiating Adds 20%+ to the Client's Selling Price

Kenneth B. Hoganson, Jr.
M&A Source Chairman (1996)

Professional M&A intermediary negotiating can add huge value to our clients. The task is for intermediaries to convince sellers to use your service even when they initially have their own buyer. However, as a value-added service, M&A negotiating does not get the attention and respect it rightly deserves. Witness two recent client case studies.
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 

Establishing Deadlines in Your M&A Deals
Jamie Grant


Takeaway: The difference between a goal and a dream is that a goal has a deadline. The same can be said about the difference between a deal in principle and a "done deal."

Imagine you're getting married. The date is set, all the arrangements have been made, and you are scheduled to leave for a two week honeymoon in Paris the week following the nuptials. You have given your clients notice of your plans, and matters that require your attention have been scheduled around your trip. Then a freak weather event grounds all air traffic and the guests can't make it to the wedding. Do you delay by a few days and shorten your trip? Push everything back a few days? But then what about the client meeting scheduled for the Monday you get back?

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Done Deal & Looking For More: KLH Recapitalizes BluSky Restoration

KLH Capital is pleased to announce that it has partnered with the management team of BluSky Restoration ("BluSky") to complete a recapitalization of the business. BluSky, based in Centennial, CO, provides commercial, industrial, governmental, and multi-family restoration, renovation, environmental, and roofing services with an emphasis on commercial, large losses, and emergency restoration services across the continental United States

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Valuing the Business: Some Difficult Issues

Ed Telling, Jr.

M&A Source Chairman (1994 & 1995)


Business valuations are almost always difficult and often complex. A valuation is also frequently subject to the judgment of the person conducting it. In addition, the person conducting the valuation must assume that the information furnished to him or her is accurate.

Here are some issues that must be considered when arriving at a value for the business: Product Diversity - Firms with just a single product or service are subject to a much greater risk than multiproduct firms.

Welcome New 

M&A Source Members


Hal Blackwell, Jr.
Michael Dean McDonald
Matthew Scovanner
Gregg Tobin 

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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.