Post on 18-Jan-2015
description
Capital for Entrepreneurs since 1956
Legal Notice
• This is not an offer to sell or a solicitation of an offer to buy securities.
• Securities are offered through Corporate Finance Securities, Inc.
• Corporate Finance Securities, Inc. is a member firm of FINRA and SIPC.
Current Market Conditions
• Improving deal activity• Premium for larger deals• No premium for quality• More debt, less equity• Lower interest rates• Higher taxes
Deal ActivityDeals per Year
Source: GF Data Resources
2007 2008 2009 2010 20110
50
100
150
200
250
Buyout Multiples by Industry
Source: GF Data Resources
EBITDA Multiples by Industry
2007 2008 2009 2010 20115.0
5.5
6.0
6.5
7.0
7.5
Health Care Services Business ServicesManufacturing Distribution
Buyout Multiples by Deal SizeEBITDA Multiples
Source: GF Data Resources
2007 2008 2009 2010 20114.0
5.0
6.0
7.0
8.0
10-25 mil 25-50 mil 50-100 mil 100-250 mil
Premium for Larger DealsBuyout Multiples by Deal Size
Source: GF Data Resources
1 2 3 4 55
5.5
6
6.5
7
7.5
8
10-50 mil 50-250 mil
Premium for Quality DealsBuyout Multiples by Deal Quality
1 2 3 4 55
5.5
6
6.5
7
Above Average OtherSource: GF Data Resources
More Debt
Source: GF Data Resources
2007 2008 2009 2010 20110.0x
1.0x
2.0x
3.0x
4.0x
2.8x2.3x
1.7x2.3x 2.4x
0.8x0.9x
0.8x0.7x 0.9x
Sub Debt/EBITDA Sr Debt/EBITDA
Debt Multiples
Less Equity
Source: GF Data Resources LLC
2007 2008 2009 2010 2011
42.7% 47.3% 52.8% 51.0% 48.2%
13.7% 15.8%17.9% 12.1% 14.5%
43.6% 36.8% 29.3% 36.9% 37.4%
Senior DebtSub DebtEquity
Equity and Debt Contributions
Lower Interest
Source: GF Data Resources
Senior Debt
2007 Q1 Q2 Q3 Q4
2008 Q1 Q2 Q3 Q4
2009 Q1 Q2 Q3 Q4
2010 Q1 Q2 Q3 Q4
2011 Q1 Q2 Q3 Q4
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
90-Day LIBOR Spread
Higher Taxes
2010 2011 2012 20130.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Partner IncomeS Corp IncomeC Corp IncomeCapital Gains
Top Federal Tax Rates
Recent Transactions
Corporate Finance Associates
www.cfaw-houston.com
One of America’s oldest and largestmid-market M & A advisory firms