November, 2015     
The Alliance Newsletter is here: MidMarket Talk
MidMarket Talk:

Join Us In Welcoming Our Newest Members!

 

The Alliance of M&A Advisors was very impressed with the quality of applicants we received in October. Check out our new Members here.

 

Visit our Member Directory to find Alliance Members near you! 

Winter Conference!!!
Orlando, Jan 13 - 15
 Early Bird Rates Now Available!
The Alliance of M&A Advisors (AM&AA) Winter Conference heads to Orlando, FL this January 13-15, 2016.  Join a diverse roster of successful dealmakers to hear their insights about current market conditions, and how they get their deals over the finish line in this changing market.
We expect 500+ attendees representing countries from all over the world. You'll be in good company with key industry players that include:
  • Investment Banks and Intermediaries
  • Leading Private Equity Investors
  • Senior and Mezzanine Lenders
  • CPAs
  • Attorneys
  • Business Valuators
  • Consultants and other Advisors
Plan now to join us in Orlando. Register today to catch the best rates to attend!

The Alliance of M&A Advisors is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org
Program Level: Advanced
Delivery Method: Group Live
36 CPE Credit Hours earned

Upcoming Chapter Meetings
Make New Connections!

Attend one of our upcoming Chapter Meetings in a location near you! 
  
Dallas Chapter Meeting
Thursday, December 3rd  
7:00 AM - 9:00 AM CT

Midwest Chapter Meeting
Tuesday, December 8th 2015 
4:00 PM - 6:00 PM CT

Philadelphia Branch Holiday Party
Thursday, December 10th 2015 
5:30 PM - 8:30 PM ET

ACG/AM&AA/FEI/XPX
Holiday Party - DC Area
Wednesday, December 16th 2015 
5:30PM - 8:30 PM ET
DC.MD.VA Chapter Holiday Party
Thursday, December 17th 2015 
5:30PM - 8:30 PM ET



Get Featured!
Alliance Members, do you want to be featured in Midmarket Talk?
  • Send us your completed deal tombstones
  • Tell us about your speaking engagements
  • Send us your articles or white paper summaries

Gain CPE Credit!

 

Submit articles and educational material for our monthly Newsletters and receive CPE Credit! Please send to: lhuntley@amaaonline.org
 

Media Partners Events:
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2015 Energy Game Change Conference, December 10, 2015
Houston

Join Today!
Why Become a Member of The Alliance?
  • Gain access to valuable Member Benefit technology platforms
  • Gain a valuable network of M&A expert Members who act as resources for other Members
  • Featured on our Member Directory, accessible to the public
  • Receive discounted rates to Alliance of M&A Advisors events

 

2016 Dates Now Available 


 
February 29th- March  4th, 2016
Thunderbird Global School of Mgmt
Phoenix, AZ

May 2nd-6th, 2016
DePaul University Loop Campus
Chicago, IL

September 19th-23rd, 2016
DePaul University Loop Campus
Chicago, IL

November 14th-18th, 2016
Villa Graziadio Executive Center
Malibu, CA

The "Certified Merger & Acquisition Advisor" (CM&AA) designation serves to maintain the highest recognized standards of professional excellence for middle market corporate financial advisory and transaction services, and to provide a benchmark for professional achievement within that overall body of knowledge.

CM&AA 2016 Dates
Next year, the Alliance of M&A Advisors will celebrate their 50th CM&AA class. The Alliance launched the Certified Merger & Acquisition Advisor program in 2003. To date, roughly 900 middle market experts have attended this rigorous 5 day course.
The first CM&AA class of 2016 will be a special one, hosted at Thunderbird Global School of Management in Glendale, AZ February 29th - March 4th. While this class will continue to offer the same foundational curriculum as previous courses, it will also boast a unique, international spin in response to our diverse group of past attendees.
As CM&AA instructor, Chris Blees, explained , "Even transaction advisors who work in the lower Middle Market ($5 - 100M in enterprise value) are finding themselves working across borders to get deals done." The CM&AA program has been attended by middle market professionals from 30 different countries, including US based professionals interested in cross border M&A. "Given this changing market place," Chris continued, "M&A Advisors should want to understand the cross-border trends that impact Middle-Market transactions." 
The Alliance will celebrate it's 50th class on May 2nd - 6th, 2016 in Chicago, IL. In addition to earning the CM&AA designation, which serves to maintain the highest recognized standards of professional excellence for middle market professionals, attendees of the May class will receive a special discount of 50% off of the 2016 Summer Conference.
Read what Mike Adhikari, President of the AM&AA Advisory Committee and CM&AA Instructor has to say about the history and future of the course at the bottom of the page.

Average Multiples and Total Transaction Volume Down
Introduction: The Deal Stats Transaction Survey is a service of the Alliance of Merger & Acquisition Advisors┬« (AM&AA). AM&AA is the premiere international organization serving the educational and resource needs of the middle-market M&A profession. 
AM&AA Members were solicited to answer questions about themselves and their
services, as well as about the transactions they had closed during the period January 2015 through June 2015.
 
Average Multiples and Total Transaction Volume Down
 
The first half of 2015 posted lower average multiples for the first time in four surveys and also had lower median multiples in the current survey. The average and median multiples for done deals were down somewhat with the average multiple decreasing from 5.64 to 4.93 times EBITDA and the median multiple decreased from 5.37 to 4.62, led by a sharp decline in the multiples paid for manufacturing companies.

The total number of deals was down in the current survey as well, but still higher than the same period a year ago. Transaction dollar volume declined from high levels in the two prior surveys and was more in line with survey periods ending June 2013 and December 2013. Average deal size is variable from period to period but sometimes helpful in identifying trends. Average deal size declined to a the lowest level for M&A Advisors from the December 2012 to June 2015 period while average deal size for M&A Advisors increased for the third consecutive survey. The deal size for M&A Advisors tends to vary in a wider range than the deal size for M&A Brokers.

AM&AA defines deal makers in two categories: M&A Brokers and M&A Advisors.
M&A Brokers are primarily compensated on a success-fee basis while M&A Advisors
are primarily paid a consulting or advisory fee irrespective of a transaction closing. The
annual closing rates per individual varied between these categories. Annualized deals
closed per respondent were down for both M&A Brokers and M&A Advisors at 3.4 and
2.0, respectively.
 
For the full report, contact Lizabeth Huntley at lhuntley@amaaonline.org

The Parallel Avenue to Success

With the multitude of changes and challenges in today's durable medical equipment (DME) marketplace, successful entrepreneurs are seeking new opportunities where they can employ their skill and experience. Ask yourself: What opportunities and markets are right for my company, my customers, and myself? How do I successfully enter new, parallel markets without jeopardizing my current DME operation?
What is a Parallel Market? (And why should you care?)
Parallel markets are environments where DME owners can utilize their expertise despite some differences of language or philosophy. Parallel markets allow a DME provider to diversify risk and opportunity, with the possibility of expanding offerings within existing populations served.
Why? One of the silver linings in the aftermath of the initial competitive bidding phases is the emergence of a new diversification approach to the DME and related markets. For example, there are similar reimbursement sources to Medicare (e.g. Medicaid) that have been more stable with continuing growth as part of the Affordable Care Act expansion. While a successful DME owner may have a very strong market niche today, they know that considering other options within their skill set increases their prospects for the future.
The Path of Least Resistance
While some DME owners will consider organic (from the ground up) growth in parallel markets, most choose some form of acquisition. There are several good reasons why this is the case. First, acquisition will bring a DME into a new market much faster than organic growth, including the positive cash flow of an ongoing concern. Second, the human cost of acquisition to existing DME operations is generally less than a start up, resulting in decreased stress for the current management. Third, while some debt may be required, the financial returns of a well-chosen acquisition will often outweigh the anticipated savings of an organic start up.

* Learn more about our Certified Merger & Acquisition Advisor (CM&AA) program on the sidebar.
Alliance Member Recognized for Excellence
Connie Barnaba, President of Barnaba & Associates, recently reached out to The Alliance with good news. Her business was selected as the "Supplier of the Year" by the Houston Minority Supplier Development council.   The Houston Council is an acknowledged leader among the Business Councils affiliated with the National Minority Supplier Development Council, having been awarded "Council of the Year" six times in the past decade.

Connie explains that "By recognizing my business this year, the Council is recognizing the strength of my business model and the steps I have taken to position my business for success." The "Supplier of the Year" Award is usually given to a business that has already demonstrated outstanding financial performance.    Connie concluded her note to us, writing, "I'm sure they are aware of my CM&AA certification and my book.  And your recent endorsement certainly helped."

What a kind note from a valued Member of The Alliance! To set yourself apart as a Certified Merger & Acquisition Advisor, check out the 2016 CM&AA courses! 

Statesman Corporate Finance Announces Completed Deal
  
Alliance Member, Sid Shaver, recently sent us his completed deal tombstone. Sid is the Managing Director of Statesman Corporate Finance.
In a press release, Statesman described themselves as " a leading middle market investment bank with offices in Houston and Austin, Texas, providing merger and acquisition sell-side, buy-side, and general corporate financial advisory services to middle-market companies."
 
They announced the acquisition of DiPure Water Technologies, LLC by Ultrapure & Industrial Services, LLC, a subsidiary of Driessen Water, Inc.

 

 

Send your deal tombstones and other news to info@amaaonline.org.


      

ContinueReading

2016 Brings 50th CM&AA Class

 

Continued

 

Mike Adhikari, President of the AM&AA Advisory Board, has been a CM&AA instructor since nearly the beginning of the program. As an integral part of the Certification Committee, Mike has helped shape the program into what it is today and has developed his own curriculum for the "Transaction Valuation and M&A Standards" section. Recently, Mike spoke on his longstanding relationship with the program: "Since 2003, I have seen the program grow from 3 days to 5 days. We have expanded from M&A practice, traditional valuation, tax, and legal to include transaction valuation, balance sheet, corporate finance, value growth, and corporate M&A."

While the program has evolved over the years, students have consistently received high quality instruction from expert instructors. Unlike traditional academic courses, CM&AA instructors are practicing middle market experts, knowledgeable of current trends and able to give practical advice to attendees. Whereas academia tends to focus on larger, publicly traded companies, CM&AA instructors are entirely concerned with the middle market and offer much needed guidance and support to middle market practitioners.
When asked about the future of the CM&AA program, Founder and CEO, Mike Nall expressed a sense of responsibility, both to those holding the CM&AA and to future students: " The CM&AA is held in such high esteem among middle market practitioners, and we are very conscientious of that responsibility when developing curriculum for future courses." His closing sentiment could have been spoken by any Member of the Alliance or the Certification Committee, stating simply, "I look forward to another 50 classes."
* Additional CM&AA dates include September 19th - 23rd, 2016 in Chicago, IL, and November 14th - 18th, 2016 in Malibu, CA.
To register for a class, or to learn more about the program, please visit us online .



Contact us
222 N. LaSalle Street, Suite 300
Chicago, IL 60601
 
The Alliance of M&A Advisors┬« 
(The Alliance) is the premiere International Organization serving the educational and resource needs of the middle market M&A profession. Formed in 1998 to bring together CPAs, attorneys and other experienced corporate financial advisors, the Alliance's 1000+ professional services firms - including some of the most highly recognized leaders in the industry-draw upon their combined transactional expertise to better serve the needs of their middle market clients worldwide.