asa presentation 2012
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![Page 1: ASA Presentation 2012](https://reader035.vdocument.in/reader035/viewer/2022062617/54bbc9dd4a7959336b8b46bb/html5/thumbnails/1.jpg)
Capital for Entrepreneurs since 1956
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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.
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Current Market Conditions
• Improving deal activity• Premium for larger deals• No premium for quality• More debt, less equity• Lower interest rates• Higher taxes
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Deal ActivityDeals per Year
Source: GF Data Resources
2007 2008 2009 2010 20110
50
100
150
200
250
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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
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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
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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
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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
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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
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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
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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
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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
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Recent Transactions
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Corporate Finance Associates
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www.cfaw-houston.com
One of America’s oldest and largestmid-market M & A advisory firms