文档介绍：Private Equity Tools for Business Retention and Expansion
June 13th, 2012
John O’Dore, Managing Director
Meridian Capital, LLC
Family Owned Businesses Overview
What is Private Equity?
What is the role of an Investment Banker?
Examples of Private Equity Transactions in Washington State
Presentation Overview
What’s happening out there?
Substantial number of retirement age business owners:
Baby boomers own over 9 panies in the US, including over 80% of middle-panies representing approximately $5 trillion in assets
Significant number of business owners will be faced with crucial business transition decisions over the next 10 years
Several macro trends are driving strong M&A and business transition activity:
Scheduled Capital Gains increase from 15% to %
Acquisitive corporate and PE buyers due to strong cash positions
Improved revenue and earnings ing out of the recession
Many business owners defer decision making until it’s too late, leading to suboptimal transaction es
Characteristic
Small Market
Lower-Middle Market
Middle Market and Up
Revenue Size
<$10 million
$10 - $100 million
$100 million - $1 billion
EBITDA Size
<$1 million
$1 million - $15 million
$15 million - $50 million
Ownership Profile
Owner-managed
Owner-managed, professionally managed
Professionally managed
Owner or Manager Capital Motives
To manage cash in business, not balance sheet
To manage the business, not the balance sheet
To assets on the balance sheet
Ownership Goal
Lifestyle
Lifestyle – entity wealth creation
Entity wealth creation
System, Process Sophistication
Entry level, held with select employees
Adequate to strong system capabilities and procedures
Sophisticated, institutionalized
Capital Access
Debt
Business banking
Commercial banking
Corporate banking
Equity
Personal/family
Personal/private equity
Private equity
Outside Investment Interest
Mild
Strong
Strong
What is Lower-Middle Market?
Does this look familiar?
Sell to
Employee
Grow