june 09 - boissevain agile equity
Post on 14-Jan-2015
813 Views
Preview:
DESCRIPTION
TRANSCRIPT
381 Park Avenue South
Suite 823
New York, NY 10016, USA
Tel: +1 212.475.1100
Fax: +1 212.475.1101
Presentation to
June 24, 2009
Agile Equity Introduction
Leading M&A advisory firm founded in 1996 with headquarters in New York City and an office in Washington, DC.
Serves public and private companies on M&A advisory transactions.
Extensive domestic and international cross-border transaction experience including Australia, Canada, India, Israel, Japan, South Korea and U.K.
Deep sector expertise:
2
Technology
• Telecom• Software• Security• Hardware• Wireless
Business Services• BPO• Marketing
Services• Logistics
Media/Digital Media• Ad Networks• Infrastructure• Content
Multichannel/Distribution• Specialty
Retail• B2B
Distribution• Service
Providers
Healthcare
• BPO• RCM• Imaging• Devices
Agile Equity Introduction
Selected BPO Transactions
3
Represented Firstsource Solutions in this India to US M&A engagement. Firstsource Solutions acquired MedAssist Holding, Inc., a leading provider of revenue cycle management in the US healthcare industry for $330M.
IT BPO Services
Buy Side
Advised India based ICICI OneSource in their acquisition of MedPlans Partners for $42M. The acquisition ICICI deepen its position in the healthcare vertical with enhanced capabilities in complex claims adjudication and billing.
Healthcare BPO
Buy Side
Advised Vocel, a Bertelsmann portfolio company and pioneering wireless push technology firm, in an investment by Motorola, Inc. (NYSE:MOT) through Motorola Ventures, its strategic venture capital arm.
Media/ Digital Media
Sell Side
CJAdvisor to Jastec International, Ltd which acquired Network Security imaging and virtual search software company LTU Technologies, Inc.
IT BPO Services
Buy Side
Jastec Advised this Israeli software developer on its sale to Microsoft.
Network Security
Sell Side
Market Conditions
Demand for differentiated companies remains high– Strategic buyers continue to seek opportunistic acquisitions to gain scale,
increase market share, enter new growth areas and achieve cost synergies– Venture Capital portfolio companies are looking for exit strategies in a market
where the IPO market is not an alternative
Debt is clearly more expensive and leverage ratios have tightened, but financing remains available
– Total debt multiples are lower in the second half of 2008, as compared to the second half of 2007, as banks have tightened their lending standards
– ABL facilities have tightened and covenants are tougher; liquidation value has taken hold
– However, strong cash flow and balance sheet still commands lender appetite
Net cash balance sheets offer flexibility and speed
Acquisition pricing expectations by sellers are moderating to reflect weaker economic and business outlooks for 2009
Middle Market M&A
4
Venture Capital
Venture Capital financing saw a slight decline in terms of deal volume and value in 2008
1Q09 down over 40% in terms of value and volume on an annualized basis
Historical Trends
5
19951996
19971998
19992000
20012002
20032004
20052006
20072008
YTD $-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Amount # Deals
US $ Billions # Deals
Market Conditions
Digital Media/Advertising– Dynamic ad optimization and content distribution – Growth in mobile ad networks
Digital goods on mobile devices– OneTXT deal is emblematic of this trend, facilitating purchases of virtual
goods over handheld devices
Healthcare IT– Expected influx of Obama dollars– Hot Sectors:
• Electronic Medical Records• Medical Billing• Revenue Cycle Management
Pockets of Opportunity
6
Market Conditions
M&A option vs. later stage investment
Capital is available– Providers are seeking late-stage investments
Buyers seeking to invest in growth– Organic growth has been challenging in the current economic environment
Drive for growth has inflated some sectors, perhaps too much
Strategic Options
7
Case Study
Hispanic television network
Institutional investors wanted exit– Due to their own liquidity concerns
Company healthy and growing
Result:– Agile Equity generated 3 written offers– Deal will close with the best offer next week
Project Bueno
8
Case Study
$4 Billion Asian company seeking investment in medical billing or Legal Process Outsourcing (LPO) space
– Medical Billing (HIT) sector attractive due to anticipated government spending– LPO sector hot due to cost cutting amidst the global recession
Interested in enhancing outsourcing capability similar to India– Capitalizing on local labor market and existing infrastructure
Result:– Agile Equity selectively pursuing attractive targets for consideration
Project Outsource
9
Contact Information
10
Agile Equity, LLC381 Park Avenue South; Suite 823New York, NY 10016V: 212.475.1100F: 212.475.1101http://www.agileequity.com
Ben BoissevainManaging Partnerbenb@agileequity.com
top related