November 2017
MidMarket Talk: November 2017
Welcome
New Members
Please join us in welcoming our
New Members   to the Alliance community!

 

Visit our Member Directory to find Alliance Members near you! 

Attend a Chapter Event Near You!
St. Louis
Wednesday, December 6, 2017

Arizona
Thursday, December 7, 2017

Midwest
Thursday, December 7, 2017

Mid-Atlantic Philadelphia Branch
Thursday, December 14, 2017

South Florida
Tuesday, December 19, 2017

Tampa Bay
Tuesday, January 23, 2018
Partner Events

Certified Value Growth Advisor Course

"It's about using all of your knowledge and skills in ways that nobody teaches" 

Monday, December 4 - Friday, December 8, 2017
Boston, Massachusetts 

**CM&AA Member Discount**
Recognizing Members
Cameron McKenzie CM&AA, has been invited to speak at the 9th Annual Private Equity & Latin America Forum, one of the largest Private Equity Events in Latin America!

December 4-5, 2017
Sao Paulo, Brazil
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 resources

 

-Be featured in our Member Directory, accessible to the public

 

-Receive discounted rates to Alliance  Events

 

2018 Winter Conference
Fueling Growth, Redefining Potential
W H O   A T T E N D S
International attendees include:
  • Investment Bankers
  • Private Equity Investors
  • Corporate Investors
  • Senior & Mezzanine Lenders
  • CPAs
  • Attorney & Legal Representatives
  • Business Valuators
  • Consultants
D E A L   B A S H
 
Meet the investment community to discuss potential opportunities. 
This is where deals are done.

N E T W O R K I N G   H Q

We know how valuable it is to have dedicated workspace when you are on the road.

Secure your space in the Alliance Networking Headquarters to manage all of your Winter Conference connections.

- 20 tables are available to reserve 
- Hours: Tues, 12pm - Thurs, 12pm 
- $250 for the week
V E N U E  &  H O T E L

 
The Impact of a Market Peak & the Need for Collaboration
By: Martha Sullivan, CM&AA, Partner, Honkamp, Krueger & Co, P.C. 
& Chuck Mohler, CM&AA, Principal, Eagle Corporate Advisors

During a recent Mid-Market Alliance Collaboration Committee call planning a session for the upcoming Winter conference, we talked about market dynamics. Had the market reached its peak in terms of the volume and in multiples? Many of us felt that we were indeed starting to see signs of cooling.

Price ranges are compressing. Previously, private equity funds competing for a potential target saw a wide range of prices from high to low - sometimes with a several turn spread. Prices now are coming closer together and the aggressive multiples are less common.  Continue Reading>>
How an Hourly Billing Model Can Allow Investment Bankers
to Reach Underserved  Clients
By: Frank Williamson, Founder, Oaklyn Consulting

One reason my career as an investment banker appeals to me is because I see how our work directly benefits people and the economy. Like other investment banking firms, my firm assists investor groups and startup-to-middle-market private businesses with mergers, acquisitions, capital-raising and strategic corporate finance decisions.
 
Unlike many other investment banking firms, though, we choose to charge time-based fees for our services, rather than base our compensation on the more common success-based billing model. We've found that this approach allows us to help clients who might otherwise choose to not work with an investment banking firm.  Continue Reading>>

 EBITDA - At a Glance
By: Chad Byers, CM&AA,  Founder & Managing Partner Symmetrical

If you are considering selling your company or investing in another, you are likely familiar with the term "EBITDA," which stands for earnings before interest, tax, depreciation, and amortization. In simplistic terms, EBITDA measures a company's operating performance, including its ability to generate cash flow.

EBITDA is almost always the key investment consideration, but it shouldn't be used in a vacuum. Our team has experienced the value of EBITDA firsthand, as well as the drawbacks.  Continue Reading>>
 
Using the Voice of the Customer to Mitigate M&A Risk
By: Anthony Bahr, Vice President, VOC Strategic Practice, Strategex  
 
A recent Deloitte survey of M&A dealmakers found that "customer retention and expansion" is the most important factor in achieving a successful deal.
 
In B2B deals, the ability to retain and grow the customer base post-close is even more critical. This is because the typical B2B firm has a highly concentrated customer base - 20% of accounts tend to generate 80% or more of revenue. Therefore, B2B firms with a high degree of customer concentration are very vulnerable to post-close customer attrition risk. If a single top account were to lower its spend post-close, there would be a material impact on the valuation and the long-term growth outlook for the company.

Key Considerations in Responding to an Unsolicited  Letter of Intent
By: Brian Blaylock, Snell & Wilmer & Gian (John) Brown, Holland & Hart

Considerations "Around" the LOI:

1.  Leverage Influences Everything.   Private, middle market M&A transactions are not one-size-fits-all.  Nearly everything is negotiable, and leverage influences all aspects of those negotiations.  Thus, securing (and maintaining!) leverage is often key to bringing a deal to a successful close.  Consider the factors that affect the positive and negative leverage that each party may have (including time, competition, necessity, and desire) and then focus on (i) getting information about the other side and (ii) controlling information about your side.  Don't underestimate the importance of maintaining credibility in this process (play your hand as well as you can, just don't overplay it). 
 
Thank You to Our Partners
  

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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.