Watermark Windows - Watermark Advisors

Transcription

Watermark Windows
Fall 2013
Watermark Advisors Celebrates
11 Years
2
Interview with Dr. David Furse:
Keys to Building a Winning
Corporate Strategy
3
Reflections on 2013 M&A
Markets in the U.S. and
Southeast
6
List of Southeast M&A
Transactions (Jan 1, 2013 – Jun
30, 2013)
o
o
o
o
o
Florida Transactions
Georgia Transactions
North Carolina Transactions
Tennessee Transactions
South Carolina Transactions
About Watermark Advisors
Member FINRA/SBIC
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Watermark Advisors Celebrates
Eleven Years
Watermark Advisors just celebrated eleven years in business and its path is unique for an investment
banking firm. “We began Watermark in 2002, right in the midst of big bank mergers where there was a
perceived void to serve private companies in sell-side M&A and capital raises,” Executive Managing
Director Hagen Rogers shares. “By 2009 though, we realized that over half of all businesses referred to us
resulted in our communication back that they were not prepared for a transaction.” After years of “No’s”
Rogers turned to former professors at the Owen Graduate School at Vanderbilt University, where he
received his MBA and was on the school’s Alumni Board.
Dr. David Furse, Adjunct Professor of Management at Owen met with Rogers and challenged him to solicit
more information from the marketplace as to why so many companies were not ready for investment
banking transactions. “We met or surveyed nearly 100 companies and discovered several fascinating
takeaways. We learned that many companies are very knowledgeable about their industry, but could
benefit from an outside expert with deep subject matter expertise in corporate strategy. While many had
used management consultants before, they reported disappointment as they implemented the plans.
Also, while most companies surveyed had a board of directors, they still believed they needed to reach out
to external consultants for help in areas like strategy,” Rogers adds. “We found that too many companies
either have a push strategy, which is not a great way to approach strategy, or a 12-month ‘long term’ view
on strategy, which is not long enough, or they have holes in their strategy.”
Watermark also discovered that too many companies, both publicly and privately owned, were not
utilizing acquisitions in their growth plans as frequently as they should. “On average, we found that
companies that should be making three or more acquisitions over a span of ten years were making one or
two at most. Studies show that companies that excel in becoming market leaders use M&A as a vehicle in
order to grow. We believe M&A is an essential part of strategy once you reach a certain revenue
benchmark. If you are not using M&A, then you must expect high organic growth. For most in our
analysis, high organic growth also was not happening,” Rogers shared.
“Since M&A can be dangerous if you don’t have a great strategy, we believe the two go together and
strategy leads M&A, not the other way around.” Watermark took action on these discoveries by adding
Dr. David Furse to their team. “David brings over thirty years of corporate strategy experience and
teaches it at the Executive MBA level at Vanderbilt. What we really like about David’s style is that he
demystifies strategy for clients and helps create a highly actionable strategy where he places a great deal
of emphasis on the first six months,” Rogers shares.
Watermark is finding success in its strategy and acquisition efforts for companies. “In 2013, we have been
helping a manufacturer identify new adjacent markets to expand into through an acquisition. We also just
finished working with a private company in helping them establish a five year strategy where ten of their
senior management team worked with Dr. Furse to build a highly actionable strategy to increase revenue
and grow profitability.”
“It is very satisfying work to help companies identify and execute on strategy and acquisitions,” Rogers
concludes. “Our team is optimistic on where we are heading as a company and our place in creating value
in the marketplace.”
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3
Keys to Building a Winning Corporate
Strategy
Q: Do larger companies struggle with
strategy?
Dr. Furse has over 30 years
experience as a strategy
consultant, professor and
entrepreneur. His list of clients
served includes John Hopkins
Hospital, Cedars Sinai Medical
Center, Hospital Corporation of
America, Bridgestone/
Firestone, SunTrust Bank, and
Proctor & Gamble.
His areas of expertise include:
strategic planning, branding,
marketing communications
and consumer behavior. Dr.
Furse teaches the capstone
strategy projects course and a
special topics course entitled,
“Thinking Like a CEO” in the
Executive MBA program at the
Owen Graduate School of
Management at Vanderbilt
University.
DF: When they do, it’s usually because
they make them too complicated.
Strategy needs to be simple. If not, over
time it will confuse the people trying to
execute it and make it cost way too much.
The strategy is just the guidance for what
you do every day. It needs to leave
flexibility for execution, but still keep the
organization on course. To do this,
strategies need only three essential parts:
Vision (Where are we going?), Roadmap
(What are the milestones we need to
hit?), and Resources (How will we pay for
it?)
Roadmap just walks the milestones each
year back to today. If you can achieve the
year-1 milestones, your odds of success go
way up. Over 60% of strategies fail to
achieve their objectives due to poor
execution – too many moving parts that
become unnecessary, confusing, and
irrelevant over time. You should know
within six months of launch if your strategy
will work, but only if you keep it simple.
Q: Are there specific strategies for
companies with low or declining
profitability?
DF: There is no one-size-fits-all strategy.
Each one must be uniquely crafted to that
company’s strategic challenges. The goal
Q: What is your approach to help
of strategy is to improve the competitive
companies develop a better strategy?
position of the company and increase its
DF: I like strategies that you can fit on one corporate valuation.
page. I have a template called the
For companies experiencing low or
StrategyMap© that does that. If it takes
declining profitability, the most important
more than a page, it’s too complicated.
thing is to understand the fundamental
There is a lot of work behind that page,
reasons for the problem. While low
but you have to be able to communicate
profitability expresses a financial problem,
the strategy quickly. The more pages it
it has its root causes in operations or
takes you to describe the strategy, the
marketing. If your inventory turns are
more likely it is to fail.
lower than your competitor’s, your
strategy must address how to improve
My process requires you to create a
them. If your product mix is overly
picture of the future (Vision) with 3-6
dependent on commodity products with
quantifiable milestones that define
strong price competition, your strategy
whether or not you have reached it. The
purpose of the Vision is not to predict the must address how to increase the mix of
future, but to communicate the future you differentiated products that can demand a
premium price. You might do this through
want and think is achievable. The
To Hear More from Dr. Furse on Strategy Topics, Click Here
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Strategy
R&D, acquisitions, or strategic
partnerships. These are all strategic
initiatives that take time to play
out.
Q: What strategies work best for
companies in slow growth
industries?
DF: Look at the parts of your
business that are growing most
rapidly today. Even in slow-growth
(usually mature) industries there
are pockets of robust growth. You
are just not in them. Mergers,
acquisitions, or strategic
partnerships are a solution as long
as you have value to offer to a
You have to think it before you can
do it. Be patient, determined, and
enlist your whole organization to
make it happen. Strategies start
with communication of a compelling
idea (vision) and a believable
roadmap that people want to get
behind.
homework in between. The
process is particularly useful for
incoming CEOs with new senior
management teams. The strategy
making process is ideal for vetting
the team and getting the key
players on the same page.
How do you help companies to
develop a new strategy?
Q: If a company is profitable and
growing, when is the right time to
revisit strategy?
DF: I act as a facilitator and coach in
the strategy making process. If you
have someone else come up with
your strategy, you still have to
execute it, so you are much better
off developing it yourself. Just do it
DF: You should never un-visit your
strategy. You execute on the
Roadmap milestones every day,
but you are also scanning the
environment for significant
changes in the trends and
“Even in slow-growth industries, there are pockets
of robust growth. You are just not in them.”
strategic partner or the ability to
make an acquisition. Even if you
are not financially sound enough for
an acquisition in the next year or
so, do what you can to improve
your financial performance to allow
an acquisition in the future.
Strategies are about looking ahead.
Reaching the vision involves hitting
roadmap milestones so that a
robust strategic vision is achievable.
right. Once you get over the belief
that it must be complicated,
creating it is surprisingly straight
forward. I didn’t say it was easy,
which is why most companies that
are struggling need a mentor or
coach to help them unlearn a lot of
bad habits. I have found that I can
take even a $200-$500 million
revenue company or division
through the StrategyMap© process
in about four days, with time for
assumptions on which your
strategy is based. Often, the most
notable of these changes are
assumptions about how your
competitors will respond. You are
always re-evaluating the Roadmap,
but most likely about how to
execute it, not to change the
milestones. Your strategy is what
keeps the whole organization
focused on accomplishing the
Vision. If it’s a large company,
Strategy
each division or department has its
own part of the Roadmap to
execute. Every conversation, every
action is either on-strategy or offstrategy, depending on whether it
addresses the strategic milestones
of the organization. You want to
minimize off-strategy activities.
Q: Can you give an example of a
public company that was doing fine
but revisited strategy and has since
knocked it out of the ballpark?
DF: There a quite a few, but John
Deere is one of my favorites. They
are not flashy and generally don't go
for home runs. Home runs in
business are usually fortunate
mistakes. Much better is to strive
for a consistently high batting
average. Strategic execution is less
about heroics than showing up
every day and working toward a
common vision.
Watermark calls this consulting/
banking relationship the Paradigm
Process. One recent strategic client
engagement helped management
focus on six fundamental milestones
that tripled the projected corporate
valuation. The strategy also set out
a schedule of strategic acquisitions
which would have a dramatic
impact – and when the resources
should be available to make them.
Each client and strategy is unique,
but the outcome is always to
increase the value of the company.
Q: How have you helped
Watermark clients recently?
My role as a strategy consultant is to
help Watermark clients improve
their readiness to take advantage
growth opportunities. As an
investment banking firm,
Watermark uses these strategies to
negotiate more favorable terms for
its clients in the capital markets.
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U.S. M&A Markets Defy Expectations
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by Falling Sharply in 1H 2013
U.S. M&A markets during the first half of 2013 could
best be described as hesitant. The availability and
inexpensiveness of both debt and equity capital were
not enough to dispel buyers’ concerns over rising
costs of business and hints of Fed tapering. Coming
into 2013, corporate cash balances and private
equity dry powder totaled $2.45 trillion. It seemed
the canons were loaded to continue 2012’s robust
M&A markets into 2013, but the cumulative effect of
tax hikes, increased healthcare costs, and whispers of
Fed tapering contributed to uncertainty. Increased
activity in credit markets was mostly misleading, as
most debt issuances were used for refinancing rather
than acquisition capital. The chart below and those
on the following pages further the story on the first
half of 2013.
 1H U.S. M&A activity down 19.7% from
2H 2012, and down 13.6% from 1H 2012
despite record levels of corporate cash
and private equity dry powder
 Deals below $100MM trending down
significantly as a share of total M&A
market
 Number of $2.5Bn+ deals have doubled
since 2009
 Top 5 industries during 1H 2013
comprised 80.5% of all M&A dollar
volume: Technology, Energy, Healthcare,
Consumer, and Industrials
1H '13 U.S. M&A Activity Was Slowest Start since 2009
6,000
4,690
5,000
# of Deals
4,000
4,918
5,191
4,826
4,828
5,191
4,169
3,950
3,425
3,000
2,000
1,000
0
1H
2009
2H
2009
1H
2010
2H
2010
1H
2011
Undisclosed Size
EV - <$100MM
EV - $500MM - $1Bn
EV - $1Bn+
2H
2011
1H
2012
2H
2012
1H
2013
EV - $100MM - $499MM
EV = Enterprise Value
Source: FactSet Mergerstat
U.S. M&A Markets Defy Expectations
7
by Falling Sharply in 1H 2013
Valuations for Deals $10MM-$250MM Rise During 1H
2013 As Acquirers Compete Over Fewer Opportunities
9.0x
Enterprise Value/EBITDA
8.5x
8.0x
8.0x
7.5x
7.5x
7.2x

Rising multiples during the first half of 2013
were driven by the imbalance of acquirers
to sellers

The very active 4Q 2012 saw the exit of
many of the market’s most eager sellers,
leaving acquirers to compete for fewer
deals in 1H 2013

Similar to the broader U.S. activity, a long
term look at M&A in the Southeast1 shows
a trend towards deals less than $10MM
and greater than $100MM

Florida, Georgia, and North Carolina are
the Southeast’s most active M&A markets
7.7x
7.2x
7.0x
6.5x
6.0x
5.5x
5.0x
2010
2011
2012
1Q 2013
2Q 2013
*Excluding EV/EBITDA multiples >15x,
media, telecomm and technology deals
Southeast1 M&A Activity Has Steadily Declined Since 2011
1,000
15.7%
% of Total Deals
80%
60%
25.1%
37.6%
40.1%
23.5%
31.0%
34.1%
35.1%
23.9%
37.6%
46.7%
34.8%
42.4%
33.9%
27.6%
31.6%
37.0%
40%
20%
35.2%
38.5%
27.9%
800
600
400
40.8%
0%
200
Total # of Deals
100%
0
1H 2010 2H 2010 1H 2011 2H 2011 1H 2012 2H 2012 1H 2013
Deals - EV < $10MM
Deals - EV $10MM - $99MM
Deals - EV > $100MM+
Total Deals
[1] FL, GA, NC, SC, and TN
Source: GFData, Pitchbook, Baird Capital Markets, Mergerstat Factset, S&P Capital IQ, & Quarton Partners
U.S. Private Equity Deal Activity on
8
Track for Slowest Year Since 2009
1H 2013 Private Equity Activity Drops 28% from 1H 2012


Deals under $500MM in value dropped
from 66% of total invested capital in 1H
2012, to 40% in 1H 2013
22% of all invested private equity capital
during 2Q 2013 was generated by 3 megadeals
$400
$360
2500
1,985
2000
$320
2,106
$280
1,807
$240
1500
$200
1,023
$160
1000
738
Though a moderate slowdown was
expected after a fast-paced 4Q 2012, this is
a surprising shortfall
$120
$80
500
Average Deal Size ($MM)

3000
Average deal sizes continue to drift higher,
rising another 9.5% to $189MM in 1H 2013
from 2012
# of Deals

$40
0
$0
2010
2011
2012
1H 2012
1H 2013
Deals <$25MM
Deals $25MM - $100MM
Deals $100MM - $500MM
Deals $500MM - $1Bn
Deals $1Bn+
Average Deal Size ($MM)
Equity Contributions Have Remained Stable Since 2011, Illustrating
a Consistent Relationship Between Debt and Valuation

Increasing proportions of senior debt and
unchanged equity contributions
compressed sub debt financings in 1H 2013
The trend of increasing appetite for
leverage took a breather during 1H 2013, as
total debt-to-EBITDA of 3.3x remains
unchanged
4.0x
80%
35.5%
60%
12.6%
36.7%
36.5%
42.1%
15.9%
16.0%
10.8%
3.0x
51.9%
47.4%
47.5%
47.1%
2.5x
2010
2011
2012
1H 2013
3.5x
40%
20%
0%
Equity
2.0x
Sub Debt
Senior Debt
Total Debt/EBITDA
Source: GFData, Pitchbook
Average Total Debt/EBITDA

% of Capital Committed
100%
Despite Slow Start to 2013,
Conditions Still Ripe for a Strong
Finish in U.S. M&A Markets
The environment is still promising for M&A markets to pick up and finish strong during the
remaining months of 2013. There are still trillions in unallocated capital and a challenging
domestic organic growth scenario remains for many industries. In particular, private
equity funds will face pressure from investors to act as their portfolio companies continue
to age. Average hold times and ages of private equity portfolio companies currently stand
at an all-time high. Below are our opinions on what influenced the first half of 2013 and
what will likely influence the second half.
Drivers of U.S. M&A Activity
1H 2013
- Central Bank Easing
- Geopolitical Landscape
- Global Economic Environment
- Regulation
- Tax Increases
+ Operating Companies Executing Clear Strategies
+ Corporate Cash
+ Private Equity Dry-Powder
+ Stock Market Performance
± Credit Markets
± Domestic Economic Environment
2H 2013
- Geopolitical Landscape
- U.S. Debt “Crisis”
- Regulation
- Tax Increases
+ Central Bank Easing
+ Corporations Making Acquisitions
+ Corporate Cash
+ Credit Markets
+ Private Equity Dry-Powder
± Domestic Economic Environment
± Global Economic Environment
+ Positive Impact on M&A
- Negative Impact on M&A
± Neutral Impact on M&A
We believe U.S. corporations will turn more attention to domestic acquisition
opportunities as well. Though the domestic growth story remains lackluster, foreign
markets have also lost some of their appeal after China released worse than expected
economic numbers during the first two quarters. This combination makes domestic M&A
an increasingly attractive option for growth strategies. In particular, look for large deals
to drive increases in M&A dollar volume.
9
Southeast U.S. Merger and Acquisition
10
Transactions January to June 2013
Florida Deals
Closed
Seller (Division/Unit Sold)
2-Jan-13 Rexam plc /cosmetics,
toiletries, and household care
products/
2-Jan-13 SEACOR Holdings, Inc. (Seacor
Energy, Inc.)
2-Jan-13 Zenprise, Inc.
4-Jan-13 Water Place Group LLC
Target
City
London
Buyer
Sun Capital
Partners, Inc.
Fort
Par Petroleum
Lauderdale Corp.
Redwood
City
Miami
Citrix Systems, Inc.
Lakeside Villas
Apartments LLC
Golden Gate
Capital
Buyer
City
Target Business Description:
Boca Raton Produces dispensing systems and make up packaging
for the Cosmetic and Personal Care markets
Denver
Distributes renewable fuels and blendstocks
Fort
Develops and markets mobile management software
Lauderdale
Kendall
$459.00
$14.00
$335.00
Operates a garden-style condominium community
$15.20
Provides process chemicals and functional additives for
the fertilizer, industrial minerals and asphalt industries
$500.00
7-Jan-13 Snow Phipps Group (ArrMaz
Custom Chemicals)
Mulberry
7-Jan-13 AssuredPartners, Inc. (Benefit
Concepts, Inc.)
Lake Mary WageWorks, Inc.
8-Jan-13 Cytochroma, Inc.
Markham OPKO Health, Inc.
Miami
Develops pharma treatments for those suffering from
vitamin D insufficiency and secondary
hyperparathyroidism
$290.00
1-Feb-13 Xinergy Ltd. /Straight Creek &
Red Bird Thermal Coal Mining/
Knoxville
Miami
Mines for coal
$47.20
H.I.G. Capital
Management, Inc.
4-Feb-13 Harris Corp. (Harris Broadcast
Communications)
Melbourne The Gores Group
LLC
6-Feb-13 MDT Personnel LLC
Clearwater TrueBlue, Inc.
8-Feb-13 IdeiasNet (Bolsa de Mulher SA)
12-Feb-13 Century Capital Management
LLC (Digital Risk LLC)
19-Feb-13 Cross Country Healthcare, Inc.
/Clinical Trial Services Div/
20-Feb-13 Sun Capital Partners, Inc. (Lee
Cooper Group Ltd.)
20-Feb-13 Channel Intelligence, Inc.
Rio de
Janeiro
Maitland
Batanga, Inc.
MphasiS
Boca Raton ICON PLC
Miami
Iconix Brand
Group, Inc.
Celebration Google, Inc.
San
Francisco
EV Enterprise
EV/
EV/
Value ($mm) Revenue EBITDA
San Mateo Provides employee benefit administration and
consultancy services
Los Angeles Supplies hardware and software that creates, manages,
transmits, distributes and monetizes video content
Tacoma
$17.00
$175.00
Operates as a temporary staffing provider
$53.40
Coral Gables Provides women related information through Internet
$22.83
Bangalore Provider of Risk, Compliance and Transaction
Management Solutions
Dublin
Provides outsourcing services for clinical research
$175.00
$55.75
New York Supplies licensed iconic denim brands
$47.20
Mountain Provides online marketing and management services
View
$125.00
Transactions $10MM and Above
Source: Mergerstat Jan 1, 2013 – Jun 30, 2013
Transactions January
January to
to June
June 2013
2013
Transactions
11
Florida Deals cont.
Closed
1-Mar-13 Aurora Capital Group (NuCo2,
Inc.)
4-Mar-13 Rayonier, Inc. /Wood Products
Ops/
Target
City
Buyer
Stuart
Praxair, Inc.
Jacksonville International Forest
Products Ltd.
Buyer
City
Danbury Manufactures fountain beverage
carbonation products
Vancouver Operates sawmills
Mako Resources LLC
6-Mar-13 Exponent Private Equity LLP
(Dreams Ltd.)
London
Sun Capital Partners,
Inc.
Chantilly
ACI Worldwide, Inc.
New York Provides web and phone based financial
technology services to financial institution
$231.18
Bradenton
Franklin Covey Co.
Salt Lake Provides business consulting and
City
traditional sales training courses
$12.70
Fidelity National
Jacksonville Provides mobile financial services
Information Services,
Inc.
$153.85
14-Mar-13 mFoundry, Inc.
Larkspur
Boca Raton Manufactures and retails beds and
mattresses
Landmark Apartment
Trust of America, Inc.
Richmond Operates a real estate investment trust
engaged in residential property
management
$30.00
18-Mar-13 The Longaberger Co.
Newark
Computer Vision
Systems Laboratories
Corp.
Boca Raton Manufactures hand-crafted wood products
$20.31
31-Mar-13 Profesionales en Transacciones
Electronicas SA
Bogota
ACI Worldwide, Inc.
4-Apr-13 Matariki Forestry Group
Auckland
11-Apr-13 Zeno Office Solutions, Inc.
Tampa
15-Apr-13 AW Solutions, Inc.
15-Apr-13 Regional One, Inc.
Longwood
Miami
Rayonier, Inc.
Xerox Corp.
InterCloud Systems,
Inc.
Exchange Income
Corp.
Naples
Provides electronic transaction processing
services
$11.40
Naples
Operates hospitals
$202.50
Jacksonville Carries forestry activities
$60.00
Boca Raton Provides infrastructure services for the
telecommunications industry
$10.18
1.43x
8.27x
$308.08
Norwalk Provides copiers, printers, mailing and
document management solutions
Winnipeg Provides aircraft leasing, parts and services
9.50x
$52.69
Tampa
St. Petersburg Health Management
Associates, Inc.
4.50x
$100.00
15-Mar-13 Elco Holdings Ltd. (Landmark
Residential Holdings)
1-Apr-13 Bayfront Health System, Inc.
EV/
EBITDA
$80.00
Tampa
12-Mar-13 Ninety Five 5 LLC
Provides seafloor mineral exploration and
controls mining licenses for offshore
mineral deposits
$1,100.00
5-Mar-13 Odyssey Marine Exploration,
Inc. (Oceanica Resources S. de.
R.L)
11-Mar-13 Online Resources Corp.
Tulsa
EV Enterprise
EV/
Value ($mm) Revenue
$80.00
2.53x
Southeast
SoutheastU.S.
U.S.Merger
Mergerand
andAcquisition
Acquisition
12
Transactions
TransactionsJanuary
Januaryto
toJune
June2013
2013
Florida Deals cont.
Closed
17-Apr-13 API Technologies Corp. (3
Sensors Businesses)
25-Apr-13 AutoInfo, Inc.
Target
City
Orlando
Buyer
City
Buyer
Measurement Specialties,
Inc.
Boca Raton Commonwealth Associates
Group Holdings LLC
EV Enterprise
EV/
EV/
Hampton
Manufactures precision positioning sensing,
temperature sensing and inertial
measurement products
$51.35
New York
Provides logistics and freight management
services
$49.02
Sarasota
Provides management and information
technology support services to the healthcare
industry
1-May-13 Diamond Castle Holdings LLC
(Managed Health Care
Associates, Inc.)
New York Roper Industries, Inc.
1-May-13 SeniorTrust of Florida, Inc. (5
Skilled Nursing Businesses)
St.
Diversicare Healthcare
Petersburg Services, Inc.
Brentwood Owns and operates skilled nursing facilities
$15.50
6-May-13 Mansfield Energy Corp.
(Mansfield Gas Equipment
Systems Corp.)
Gainesville Clean Energy Fuels Corp.
Seal Beach Operates compressed natural gas fueling
stations
$20.05
7-May-13 U.S. Imaging Solutions LLC
(Tonertype LLC)
10-May-13 Florida Chemical Co.
22-May-13 Boyd Gaming Corp. (Dania JaiAlai)
Tamps
DEX Imaging
Winter
Haven
Flotek Industries
Las Vegas Dania Entertainment
Center LLC
28-May-13 H.I.G. Capital Management, Inc.
(Anvis Group GmbH)
Miami
Tokai Rubber Industries,
Ltd.
30-May-13 Big Country Energy Services LP
Brooks
MasTec, Inc.
31-May-13 Advanced Materials & Services St. Charles HEICO Corp.
Group (Reinhold Industries, Inc.)
6-Jun-13 C-Lift LLC
Galliano
SEACOR Holdings, Inc.
Tampa
$20.50
Produces bio-based products used in solvents,
oil and gas chemicals, and fragrances
$102.00
Hallandale Provides amusement and recreational services
$65.50
Komaki
Manufactures and supplies anti-vibration
products for automotive driving dynamics,
comfort, and road safety
Coral Gables Provides pipeline construction services
$173.55
0.65x
1.00x
10.30x
0.43x
$128.27
Hollywood Manufactures custom composite components
and sheet molding compounds
$130.00
Fort
Manufactures boat lifts
Lauderdale
$25.40
Cleveland Manufactures aircraft instruments
$35.02
10-Jun-13 Aerosonic Corp.
Clearwater TransDigm Group, Inc.
19-Jun-13 Continental/Rockbridge North
Shore Hotel LP (Hyatt Place
Pittsburgh-North Shore)
Columbus Chatham Lodging Trust
Palm Beach Owns and operates hotels and resorts
$40.00
24-Jun-13 OnCure Holdings, Inc.
Englewood Radiation Therapy
Services, Inc.
Fort Myers Provides management services and facilities to
radiation oncology physician groups
$125.00
6.35x
$1,000.00
Operates office supply stores/Provides
commercial printing services
Houston
0.18x
1.13x
8.18x
13
Georgia Deals
Buyer
1-Jan-13 Hologic, Inc. (LIFECODES
Business)
Bedford
Immucor, Inc.
Norcross
9-Jan-13 KEH, Inc.
Smyrna
D Cubed Group LLC
New York Dealer of photography products
$26.60
0.80x
0.50x
Closed
Buyer
City
EV Enterprise
EV/
Value ($mm) Revenue
Target
City
Sells molecular and antibody-based assays
$85.00
15-Jan-13 Pergo AG
Trelleborg Mohawk Industries,
Inc.
Calhoun
Manufactures and distributes laminate
flooring
$150.00
21-Jan-13 LINPAC (Ropak Corp.)
Fountain
Valley
Atlanta
Produces rigid, plastic shipping containers
$265.00
BWAY Corp.
31-Jan-13 NiSource, Inc. (Retail Services
Business)
Merrillville AGL Resources, Inc.
Atlanta
Provides warranty protection and energy
efficiency leasing solutions
$120.00
27-Feb-13 Parthenia Medical Group, Inc.
North Hills ExamWorks Group, Inc.
Atlanta
Provides occupational health services
$11.80
29-Mar-13 Ocwen Financial Corp. (FeeBased Businesses)
1-Apr-13 Aquilex LLC (Specialty Repair and
Overhaul Business)
Atlanta
Norcross
Altisource Portfolio
Solutions SA
Luxembourg Provides mortgage services
$218.60
Azz, Inc.
Fort Worth Provides maintenance, repair and
revitalization services to the nuclear and
fossil fuel power generation markets
$250.00
1-Apr-13 Unitas Capital Pte Ltd. (Exego
Group Pty Ltd.)
Hong Kong Genuine Parts Co.
Atlanta
Supplies and resells aftermarket
automotive parts and accessories
3-Apr-13 Genworth Financial, Inc. (Liberty
Home Equity Solutions, Inc.)
Richmond Ocwen Financial Corp.
Atlanta
Provides mortgage services
Calhoun
Develops, manufactures, and distributes
ceramic tiles
Atlanta
Operates as a blank check company
$175.01
Norcross
Provides mobile tracking services
$10.00
Chicago
Provides value-added energy commodity
supplies and procurement consulting
services
$20.00
3-Apr-13 Marazzi Group S.p.A.
12-Apr-13 Artemis Acquisition Corp.
17-Apr-13 TeleNav, Inc. (Enterprise
Business)
Modena
Mohawk Industries,
Inc.
Philadelphia Sharewell Capital
Group, Inc.
Sunnyvale FleetCor Technologies,
Inc.
1-May-13 AGL Resources, Inc. (Compass
Energy Services, Inc.)
Atlanta
Integrys Energy Group,
Inc.
2-May-13 Cox Enterprises, Inc. (4 Radio
Stations)
Atlanta
Sinclair Broadcast
Group, Inc.
Hunt Valley Provides television broadcasting operations
EV/
EBITDA
$1,142.86
0.94x
1.12x
$22.00
$1,170.00
$99.00
1.40x
8.10x
14
Georgia Deals cont.
Closed
Target
City
Buyer
City
Buyer
2-May-13 Fulghum Fibres, Inc.
Augusta Rentech, Inc.
3-May-13 Sofinim NV (Spano Invest
NV)
Antwerp Mohawk Industries, Inc.
24-Jun-13 Singapore Airlines Ltd.
(Virgin Atlantic Ltd.)
West
Sussex
Los Angeles Provides contract wood chip processing
services
Delta Air Lines, Inc.
EV Enterprise
EV/
Value ($mm) Revenue
EV/
EBITDA
$112.00
Calhoun
Holding company
$168.26
Atlanta
Operates airlines and tours
$457.00
0.20x
North Carolina Deals
Closed
Target
City
Buyer
Buyer
City
EV Enterprise
EV/
Value ($mm) Revenue
22-Jan-13 Monarch Ventures
(GroSocial, Inc.)
Charlotte
Infusionsoft, Inc.
Gilbert
Provides social media marketing services
$25.00
22-Jan-13 ManageIQ, Inc.
Mahwah
Red Hat, Inc.
Raleigh
Provides enterprise cloud management and
automation solutions
$104.50
25-Jan-13 Kenactiv Innovations, Inc.
Scottsdale Organic Plant Health, Inc.
Charlotte Manufactures fiber products for commercial
and industrial markets
$17.15
31-Jan-13 FairPoint Communications,
Inc. (Idaho Ops
Charlotte
Blackfoot Telecom Group,
Inc.
Missoula Provides telecommunications services
$30.00
1-Feb-13 Patriot State Bank
FuquayVarina
CapStone Bank
Raleigh
Operates as a bank holding company
$10.60
13-Feb-13 Nextreme Thermal
Solutions, Inc.
Durham
Laird PLC
London
Designs & manufactures thermal and power
management products
$60.00
15-Apr-13 Solais Lighting, Inc.
Stamford
PowerSecure International,
Inc.
16-Apr-13 Prodigy Diabetes Care LLC
Charlotte
OK Biotech Co., Ltd.
Wake Forest Manufactures led lamps
Hsinchu
Manufactures and distributes glucosemonitoring medical devices
$14.95
$34.51
2.20x
EV/
EBITDA
15
North Carolina Deals Cont.
Closed
3-May-13 Atlantic Power Corp. (Path 15
Subsidiaries)
31-May-13 Baxano, Inc.
Target
City
Boston
Buyer
City
Buyer
American Transmission
Co. (Duke Energy Corp.)
San Jose TranS1, Inc.
Charlotte Provides electric services
Wilmington Develops and supplies medical devices
21-Jun-13 GrassRoots Biotechnology, Inc.
Durham Monsanto Co.
St. Louis
Engages in discovery of genomic technologies
for agricultural crops
24-Jun-13 Genstar Capital LLC (PRA
International, Inc.)
Raleigh
London
Provides outsourced research services to
pharma, bitoech, and medical device industries
Cinven Ltd.
EV Enterprise
EV/
EV/
$56.00
$26.64
2.83x
$20.00
$1,300.00
Tennessee Deals
Closed
7-Jan-13 SESAC, Inc.
25-Jan-13 Covenant Surgical Partners,
Inc.
4-Mar-13 Total Quality, Inc.
14-Mar-13 Hostess Brands, Inc. (Drake's
Brand)
29-Mar-13 Wallace Theater Corp II
(Hollywood Theaters, Inc.)
30-Apr-13 Phoenix Capital Co. Ltd. (TEAC
Corp.)
15-May-13 Gen Cap America, Inc.
(Challenger Lifts, Inc.)
Target
City
Buyer
Nashville
Rizvi Traverse
Management LLC
Nashville
DFW Capital Partners
Grand Haven Forward Air Corp.
Irving
McKee Foods, Inc.
Buyer
City
Birmingham Represents songwriters, and their right to be
compensated for having music performed
Teaneck
Acquires and operates single and limitedspecialty ambulatory surgical centers
EV Enterprise
EV/
EV/
$800.00
5.60x
$111.50
Greeneville Provides cold chain logistics services
$71.00
Collegedale Produces snack cakes
$27.50
1.30x
Portland
Regal Entertainment
Group
Knoxville Operates movie theaters
$238.00
Tokyo
Gibson Guitar Corp.
Nashville Manufactures and distributes audio-visual
equipment and computers
$96.21
0.40x
Snap-On, Inc.
Kenosha Designs, manufactures, and distributes a
comprehensive line of superior car lifts, jacks
and auto lift accessories
$38.00
0.80x
Memphis Operates a network of behavioral healthcare
facilities
$34.00
Nashville
31-May-13 Universal Health Services, Inc. King of Prussia Strategic Behavioral
(PEAK Behavioral Health
Health LLC
Services LLC)
19.00x
10.31x
16
South Carolina Deals
Closed
Target
City
Buyer
24-Jan-13 Park Place Corp. (Comfortaire
Corp.)
Greenville Select Comfort Corp.
25-Jan-13 USEC, Inc. (NAC International,
Inc.)
Norcross
27-Feb-13 Geomagic, Inc.
Hitachi Zosen Corp.
Morrisville 3D Systems Corp.
Buyer
City
Minneapolis Designs, manufactures and markets air and
foam mattresses
EV Enterprise
EV/
EV/
$15.50
Osaka
Provides specialized fuel management services
$45.00
Rock Hill
Develops & commercializes geometric modeling
& inspection software solutions
$55.00
1.14x
17
Member FINRA/SBIC
Watermark Advisors is a growth-focused investment banking & advisory firm. We are
trusted advisors to C-suite executives and owners on diagnosing, designing,
developing and executing growth plans so that our clients are better positioned and
more profitable. The Watermark Paradigm Process is our unique platform to deliver
deep functional expertise in certain critical areas of business.
Investment Banking
Paradigm Process
 Mergers
 Strategy
 Acquisitions
 Innovation
 Divestitures
 People
 Sell-side M&A
 Processes
 Capital Raises
 Corporate Valuations &
Fairness Opinions
For additional information:
www.watermarkadvisors.com
Notice and Disclaimer
This document, “Watermark Windows”, is intended for discussion purposes only. All of the information contained herein is general in nature and has not been
independently verified by Watermark Advisors. It does not present any absolute conclusions, specific determinations of value or any projected outcome with respect
to any transaction. Watermark Advisors and their respective affiliates and representatives make no representation or warranty, express or implied, regarding the
completeness or accuracy of any of the information contained herein.
Watermark Advisors does not offer tax or legal advice. The forward-looking statements and opinions made herein express the views of Watermark Advisors and
should not be relied upon as statements of fact. Such statements and opinions should not be construed as a guarantee of any particular market performance or the
performance of any particular transactions or types of transactions discussed herein. References made to future changes in legislative matters (federal or otherwise)
are made based on the understanding that future elements within the U.S. political environment cannot be predicted and therefore, changes in taxation matters also
cannot be predicted and information presented in this document should not be relied upon as an assurance as to what changes may be experienced in U.S. tax law or
other legislative matters.

Watermark Windows - Watermark Advisors

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