Sr. Management Seminar

Size: px
Start display at page:

Download "Sr. Management Seminar"

Transcription

1 Sr. Management Seminar Governance Structures Managing People Driving Stock Value Capital Needs of a Newly Leveraged ESOP Corporate Governance at an ESOP Company October 12,

2 A Successful Sale to an ESOP. Done! 3 What Else Do You Need to Attend To? The Head Honcho 4 2

3 When the founder/owner/ceo sells to an ESOP and retires Who s large and in charge? 3

4 There s a Legal Framework for This 7 Corporate Ownership 8 4

5 So Who Owns the Stock in an ESOP? 9 So Who Owns the Stock in an ESOP? The ESOP Trustee! 10 5

6 Corporate Governance in an ESOP Company So, does the Trustee run the company? 11 Corporate Governance in an ESOP Company Then who does run the company? 12 6

7 The Role of the Trustee A fundamental role of the Trustee is to elect the company s Board of Directors. So, what does the Board do? 13 A Little History 14 7

8 Role of the Board at an ESOP Company Represents the shareholders Acts as their agent Oversees company operations Above all, attends to the long term sustainability of the company. 15 The Role of the Board A fundamental role of the board is to select and hire the CEO. The board appoints the company officers and sets their compensation. 16 8

9 The Role of the Board They only meet 4 days per year. So who s in charge the other 361 days? The Management Team! 17 So Who s in Charge at an ESOP company? Company Management ESOP Trustee Board of Directors 18 9

10 The Governance Collaboration While all three parties play a role in ESOP company corporate governance, the greatest responsibility falls to the Board of Directors. The Trustee is responsible for seeing that an effective board is in place (and monitoring to confirm that they remain effective). Thereafter, the Trustee is a relatively passive investor not its role to manage the business. The Board appoints management, sets their compensation, monitors management performance and, where performance is poor, must act to correct the situation. 19 So Back to our Opening Question When the founder/owner retires Who s going to run the show? 20 10

11 The Answer Begins with The Board of Directors must take charge of the transition! But (you say) we don t have a board. Most founder-run companies don t. So what do you do? 21 Building a Board of Directors 22 11

12 A Director s Job Description Knowledge Skills What does someone need to know to be a Director? What new knowledge would help your board? What skills are needed to be an effective director? What additional skills would enhance your board? Behavior How do want someone to act while being a Director? What attitudes, beliefs are needed to be successful? 23 Composing a Board Out of Individuals Constitution of the Board: Inside vs. outside directors Skill sets offered by each Collegiality and vigorous debate Personal Dynamics A Director is a Director, but Not all Directors are willing to be equal. Avoid dominance of personality 24 12

13 The Ideal Corporate Director Personal Style (the more the better): Team mentality Consensus builder Large picture thinking Ego control all are smarter than any Good listener Broad experience with a range of solutions More wisdom than knowledge 25 Practical Considerations Where will you find good candidates? Industry contacts Networking in the ESOP community? How will you select them? Resumes, references, interviews how do we do it? How do you decide? Who does it? What will be their obligations? How many meetings? Committee work? Travel?, etc. Term of office? How will you reimburse them? What s fair compensation? 26 13

14 Sr. Management Seminar Governance Structures Managing People Driving Stock Value Capital Needs of a Newly Leveraged ESOP Managing People In a Strong Employee Owned Company Jennifer Briggs 14

15 How is it different? Managing the individual in the job Leading participative teams Enabling the power of the many for planning and decisions organizational citizenship Why do it? The ESOP is the financial mechanism Leadership builds the EO environment Participative management Yields 8 11% more growth than expected (NCEO) 2.5X more revenue in engaged companies (Hay Group) 15

16 The Leader Mindset Do this Trusting and open develop open (book) culture Inclusive and interconnected Nourishes alignment and unification Values over rules Servant leader Leads the employee AND shareholder dynamic 16

17 Not this (limiting) Fear and control Silos Bureaucratic Authoritarian leadership Efficiency vs. effectiveness Not this Laisse Faire Autonomy with no alignment or unity Lack of systems of accountability and consequences Negative pluralistic subcultures 17

18 The Leader Mechanics & Methods Mechanics and Methods Check your vision purpose, mission, values Plan future, aspirational culture Develop managers Teach financial literacy Mentor business literacy 18

19 Mechanics and Methods Build community Integrative planning Committees Agile teams Values > norms Rights and Responsibilities EO companies are multidimensional considering the employee, the team and the shareholders at every step of the way 19

20 Sr. Management Seminar Governance Structures Managing People Driving Stock Value Capital Needs of a Newly Leveraged ESOP What Matters to Value? Learn the Business Drivers of value Threat of New Entry Products/Services Customers/Suppliers Geography Competitors Regulatory environment Bargaining Power of Buyers Substitute Products Degree of Rivalry Bargaining Power of Sellers 40 20

21 How Does Company Performance Effect Value? All else equal Factor Higher than Expected Lower than Expected Annual Performance Increase Decrease Long-term Prospects Increase Decrease Margins Increase Decrease Taxes Decrease Increase Free Cash Flow Capital Spending Decrease Increase Working Capital Decrease Increase Earnings Volatility Decrease Increase Risk Decrease Increase Discount Rate 41 But is All Else Equal? Not everything is in the company s control What has happened in the stock market? Where are similar companies priced? What is the pricing of industry transactions? Is the Company s performance/ outlook similar or different than others? Has the Company s risk changed? Duff & Phelps October 8,

22 What Value is Measured? Let s distinguish enterprise value from equity (stock) value Enterprise Value is the value of Company s operations before considering debt, cash, or other assets/ liabilities Enterprise Value = Debt Equity Equity Value is the what remains of Enterprise Value for stockholders/ ESOP 43 How is Enterprise Value Determined? Mimic willing buyer/ seller concept Selected Public Companies M&A Multiples Enterprise Value Discounted Cash Flow 44 22

23 Review Outlook -- Discounted Cash Flow Analysis Analyze Historical Financial Performance Estimate Terminal Value Select Discount Rate Review Projected Income Statement and Balance Sheets Model Expected Free Cash Flows Discount Expected Free Cash Flows Understand Robustness of Projections Review Capital Spending Needs Compare Derived Enterprise Value to Other Analyses Evaluate Financial Forecasts Assess Working Capital Needs and Forecasts Adjust Accordingly 45 Where are Market Multiples? Which companies are driven by similar factors as the subject company Broad comparability Size Business lines/product mix Customers/Markets served Geography Financial performance Nature of competition Stage of business (e.g., mature, start-up) Degree of vertical or horizontal integration Factor 2 Factor 3 Factor 1 Refined Set 46 23

24 What Matters in Concluding a Value? Selected Public Companies Mechanics Valuation methods are initially performed independently Conclusions under each methodology should be consistent M&A Multiples Discounted Cash Flow Judgement Understanding the company s story matters to analytical choices. For example: How risky is the company? Are the opportunities real? Has management previously performed to projections? 47 Sr. Management Seminar Governance Structures Managing People Driving Stock Value Capital Needs of a Newly Leveraged ESOP 24

25 The recent strengthening in inflation data further raises the probability of another rate hike in December J.P. Morgan expects the Fed to let $18bn of its balance sheet run off this year, followed by an additional $229bn of USTs and $166bn of mortgages in 2018 Tax reform, if revenue negative in early years, would increase these figures Following the extension of the debt ceiling suspension through December 8th, J.P. Morgan now estimates that Treasury s extraordinary measures will last into 2018 Hurricane relief spending and potential tax reform introduce uncertainty, but J.P. Morgan expects the new drop dead date to be sometime in the second quarter Range of 10 year U.S. Treasury yield forecasts 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% J.P. Morgan High Median Low Present 3.05% 3.00% 3.25% 3.35% 2.89% 2.48% 2.60% 2.75% 2.40% 2.45% 2.50% 2.55% 2.20% 2.00% 1.95% 1.90% 1.90% Present 4Q17 1Q18 2Q18 3Q18 Source: J.P. Morgan, Bloomberg as of 9/15/17 Spreads and structure remain borrower friendly amidst rising benchmark rates and increased regulatory requirements for banks 50 Increases in LIBOR (nearly 100 bps in the last 18 months) are driving up borrowing costs However, spreads have remained generally stable since 2014, with quarterly averages ranging from 176 bps to 215 bps 2Q17 50spread average reflected a modest 5 bps decline versus 1Q2017 A breakdown of revolvers by spread shows a decline in the number of higher priced deals since 2014, reflecting reduced M&A, a healthier economy, and greater competition. This decline has bottomed out in recent quarters All in borrowing costs (L + spread) Average LIBOR spread (Large MM) Revolver issuance by spread (#of deals) 7% 6% 5% 4% 3% 2% Avg. LIB Spread Large MM 3-month Libor 3Q15 2Q17 LIBOR: 33 bps 130 bps Spread 181 bps 188 bps All-in 204 bps 318 bps 2Q17 L bps 280bps 260bps 240bps 220bps 200bps 180bps 160bps 1Q14 L bps 2Q16 L bps 2Q17 L bps < 100 bps bps bps bps >= 250 bps 140bps 50 1% 120bps 0% Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 100bps Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 - Source: Thomson Reuters Source: Thomson Reuters Source: Thomson Reuters 25

26 Leverage tolerance has increased since the 2008/09 recession 51 The majority of transactions are getting done with 5 year tenors, with a more limited amount in the 3 4 year range Leverage tolerance has increased since recession as economic conditions have improved and lenders have faced increased competition. 51 Average max debt / EBITDA covenant Average senior leverage tolerance Average total leverage tolerance 100% < 2.5x 2.5x - 3x > 3x 100% < 3x 3x - 3.5x 3.5x - 4x > 4x 3.40x 90% 90% 80% 80% 3.20x 70% 70% 60% 60% 3.00x 50% 50% 2.80x 40% 40% 30% 30% 2.60x 20% 20% 10% 10% 2.40x 0% 0% Q17 Source: Thomson Reuters Source: Thomson Reuters Source: Thomson Reuters Framework for cash flow prioritization A strong balance sheet to execute strategic priorities 52 Re-invest in business and pursue M&A to create value and generate growth Ensure that investments satisfy minimum risk-adjusted hurdle rate Prioritize deals with synergies Ensure that liquidity is adequate Hold liquidity as necessary to protect against downturns or take advantage of opportunities Liquidity issues more likely to lead to financial distress than leverage Maintain the right mix between cash and bank liquidity Optimize the capital structure If over-levered, de-lever to achieve an optimal capital structure Target a capital structure that is sustainable through-cycle Distribute excess cash to shareholders Ordinary dividends Share repurchases Special or variable dividends 26

27 Debt/equity mix depends on management/shareholder objectives and constraints 53 Capital structure objectives Capital structure restraints 4 5 Shareholder return Cost of capital Business/risk industry Strategic flexibility Capital markets access Set strategic/capital structure goals to maximize shareholder value Higher leverage increases return required by investors to compensate for risk Management has to balance increased equity return with increased risk of high leverage Debt is cheaper than equity and interest is tax deductible Debt preserves control / is nondilutive Firm value increases with increased leverage until distress gets priced in Higher business / industry risk limits ability to leverage Cyclicality Sensitivity to economy Technology Regulation Product obsolescence Managements have different risk tolerances Management needs to: Consider leverage reduction to limit the potential for financial distress in a downturn Preserve flexibility to weather downturns Preserve liquidity Access to markets increases with higher credit rating Access to markets can be volatile The more flexibility a capital structure offers, the higher the cost of capital 54 Types of Capital Inside Equity Flexibility and Resources Senior Cash Flow Loan Second Lien Mezzanine Private Equity Seller Note Asset Based Loan Economic Cost 27

28 Characteristics of financing alternatives 55 Underwriting Criteria Asset Based Loan Cash Flow Senior Loan Second Lien Mezzanine Private Equity Seller Note Asset values Enterprise value (multiple of EBITDA); Enterprise value (unless special assets Enterprise value and earnings None strong stable cash flow are available Security Interest First lien on all assets First lien on all assets Secured but junior to first lien holders None None Pricing Floating based on LIBOR Floating based on LIBOR Floating based on LIBOR Fixed at 11% - 13% (9% current + 4% PIK) Yield enhanced with PIK interest and/or warrants (20%-25%) Typically fixed at a market rate Maturity 3-5 years 5-7 years 6-7 years 5-7 years Class A common or preferred Put at 5th year After all other debt Other Considerations Minimal amortization Annual amortization Annual amortization Prepayment penalties May have financial May have financial Appraisal based covenants (dependent covenants (dependent Equity dilution upon company size, etc.) upon company size, etc.) Minimal covenants Subordinated Management/investment fees Board and Committee governance Pro rata taxes Pro rata preemptive rights Consent rights for material transactions and changes to business Deeply subordinated Management fee Company s must balance their competing needs for capital 56 Aggregate Cash Flow Over Five Years $185 $350 $460 $275 $30 $200 $80 Capex Cash dividends Repurchase of Common Stock Total Obligations Cash Flow from Operations Cash and Investments 28

Financing ESOP Transactions- Lenders Perspective

Financing ESOP Transactions- Lenders Perspective Financing ESOP Transactions- Lenders Perspective 2015 California/Western States Chapter Conference Denver, Colorado September 24, 2015 Kurt Mair SVP and Western Regional ESOP Director Wells Fargo & Co.

More information

SESSION TITLE. Fall ESOP Forum Financing an ESOP Transaction. ESOP Feasibility

SESSION TITLE. Fall ESOP Forum Financing an ESOP Transaction. ESOP Feasibility Financing an ESOP: Seller Notes & Bank Financing Presented by: Shaun McGehee Prairie Capital Advisors One Lincoln Centre 18W140 Butterfield Road, Suite 800 Oakbrook Terrace, IL 60181 630.413.5579 smcgehee@prairiecap.com

More information

Advanced Leveraged Buyouts and LBO Models Quiz Questions

Advanced Leveraged Buyouts and LBO Models Quiz Questions Advanced Leveraged Buyouts and LBO Models Quiz Questions Types of Debt Transaction and Operating Assumptions Sources & Uses Pro-Forma Balance Sheet Adjustments Debt Schedules Linking and Modifying the

More information

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET MARKET INSIGHTS 1Q 2018 DEBT CAPITAL MARKETS EXECUTIVE SUMMARY Borrowers are seeing increased liquidity and strong competition among lenders in the middle market and in asset-based lending, making it an

More information

Overall M&A Market Commentary

Overall M&A Market Commentary Overall M&A Market Commentary Middle market M&A activity continued its decline in 3Q17, recording another quarter of lower deal volume and lower dollar value. While on the surface this is disconcerting,

More information

M&A Financing. Presentation to: FEI NE WI Chapter. April 19, 2016

M&A Financing. Presentation to: FEI NE WI Chapter. April 19, 2016 M&A Financing Presentation to: FEI NE WI Chapter April 19, 2016 Agenda Characteristics of Attractive M&A Targets Key Financial and Tax Considerations Typical M&A Financing Participants Typical Buyout Capital

More information

Corporate Capital Trust, Inc. Quarterly Earnings Presentation. Quarter Ended March 31, 2018

Corporate Capital Trust, Inc. Quarterly Earnings Presentation. Quarter Ended March 31, 2018 Corporate Capital Trust, Inc. Quarterly Earnings Presentation Quarter Ended March 31, 2018 CCT Overview CCT The Basics CCT is a business development company focused on making originated, senior secured

More information

ESOPs: Continuing a Legacy 10/30/2018. THOUGHTWARE Manufacturing & Distribution THOUGHTWARE. Cara Benningfield Partner Bowling Green

ESOPs: Continuing a Legacy 10/30/2018. THOUGHTWARE Manufacturing & Distribution THOUGHTWARE. Cara Benningfield Partner Bowling Green THOUGHTWARE Manufacturing & Distribution THOUGHTWARE ESOPs: Continuing a Legacy Cara Benningfield Partner Bowling Green 270.781.0111 Angela Fisher Managing Consultant Bowling Green 270.781.0111 November

More information

INTRODUCTION TO ESOP FINANCING

INTRODUCTION TO ESOP FINANCING ESOP Financing Discussion Topics INTRODUCTION TO ESOP FINANCING Presented by: Will Bloom Head of Capital Markets Chartwell Financial Advisory What are the general Types of FinancingAvailable? Are the capital

More information

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET MARKET INSIGHTS 2Q 2018 DEBT CAPITAL MARKETS EXECUTIVE SUMMARY Middle market clients have a unique borrowing opportunity, with banks competing to originate new loans for clients. In the leveraged loan

More information

State of the Middle Market M&A Private Equity Financing

State of the Middle Market M&A Private Equity Financing State of the Middle Market M&A Private Equity Financing Webcast: May 10, 2011 DEBT ADVISORY GROUP The Capital Markets Desk for the Middle Market State of the Middle Market Agenda Agenda Update on Market

More information

Webinar Series ESOPS: CONTINUING A LEGACY 10/31/2017. October 31, Cara Benningfield Partner

Webinar Series ESOPS: CONTINUING A LEGACY 10/31/2017. October 31, Cara Benningfield Partner Webinar Series ESOPS: CONTINUING A LEGACY October 31, 2017 Cara Benningfield Partner cbenningfield@bkd.com Angela Fisher Manager afisher@bkd.com 1 TO RECEIVE CPE CREDIT Participate in entire webinar Answer

More information

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET MARKET INSIGHTS 4Q 2017 DEBT CAPITAL MARKETS EXECUTIVE SUMMARY In the middle market, bank loan capital is available at attractive levels. For leveraged middle market companies, non-bank lenders are driving

More information

Leverage Lending, Dividend Recaps, and Solvency Opinions. Jeff K. Davis, CFA September 17, 2013

Leverage Lending, Dividend Recaps, and Solvency Opinions. Jeff K. Davis, CFA September 17, 2013 Leverage Lending, Dividend Recaps, and Solvency Opinions Jeff K. Davis, CFA September 17, 2013 1 The pricing of credit is forever cyclical. Jim Grant Grant s Interest Rate Observer 2 SECTION ONE Leveraged

More information

Corporate Capital Trust, Inc. Quarterly Earnings Presentation. Quarter Ended December 31, 2017

Corporate Capital Trust, Inc. Quarterly Earnings Presentation. Quarter Ended December 31, 2017 Corporate Capital Trust, Inc. Quarterly Earnings Presentation Quarter Ended December 31, 2017 CCT Overview CCT The Basics CCT is a business development company focused on making originated, senior secured

More information

LPL Financial. Investor Presentation Q October 26, Member FINRA/SIPC

LPL Financial. Investor Presentation Q October 26, Member FINRA/SIPC LPL Financial Investor Presentation Q3 2017 October 26, 2017 Member FINRA/SIPC Notice to Investors: Safe Harbor Statement Statements in this presentation regarding the Company's future financial and operating

More information

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET LOANS

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET LOANS MARKET INSIGHTS 3Q 2018 DEBT CAPITAL MARKETS EXECUTIVE SUMMARY Middle market investors continue to compete on price and less restrictive documentation, prompted by a sentiment change in leveraged lending

More information

2017 Exit Academy. Evaluating Alternatives and Valuation

2017 Exit Academy. Evaluating Alternatives and Valuation 2017 Exit Academy Evaluating Alternatives and Valuation Sales Critical Issue Where is Company in Its Lifecycle? Introduction Growth & Adoption Penetration and Maturation Consolidation and Decline Debt

More information

ESOPS: CONTINUING A LEGACY

ESOPS: CONTINUING A LEGACY ESOPS: CONTINUING A LEGACY November 19, 2015 Cara Benningfield, CPA Director cbenningfield@bkd.com 1 TO RECEIVE CPE CREDIT Participate in entire webinar Answer polls when they are provided If you are viewing

More information

Q Shareholder Presentation March 2, American Capital. All Rights Reserved. Nasdaq: ACAS

Q Shareholder Presentation March 2, American Capital. All Rights Reserved. Nasdaq: ACAS Q4 2008 Shareholder Presentation March 2, 2009 2004 American Capital. All Rights Reserved. Nasdaq: ACAS Safe Harbor Statement Safe Harbor Statement Under the Private Securities Litigation Reform Act of

More information

Not created equal: Surveying investments in non-investment grade

Not created equal: Surveying investments in non-investment grade Winter 2018 Not created equal: Surveying investments in non-investment grade U.S. corporate debt Institutional investors searching for yield and current income opportunities have increased their allocations

More information

Financial Analyst Training Programme 10 Days

Financial Analyst Training Programme 10 Days Financial Analyst Training Programme 10 Days Delegate Profile: This course is targeted at delegates who are new to banking and finance and provides a comprehensive overview of financial reporting, financial

More information

1Q 2015 Stockholder Supplement

1Q 2015 Stockholder Supplement 1Q 2015 Stockholder Supplement May 6, 2015 Safe Harbor Notice This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are

More information

Growth Finance Expertise. Mergers & Acquisitions. Business Banking

Growth Finance Expertise. Mergers & Acquisitions. Business Banking Growth Finance Expertise Mergers & Acquisitions 1 Introduction Irish businesses, such as Version 1 in technology and Glanbia in agrifoods, have shown that a well-executed Mergers and Acquisitions (M&A)

More information

Private Equity Overview

Private Equity Overview Private Equity Overview June 10, 2010 State Universities Retirement System Rob Parkinson, Associate Agenda Asset Class Overview Market Update SURS Private Equity Portfolio Asset Class Overview Benefits

More information

Goldman Sachs BDC, Inc.

Goldman Sachs BDC, Inc. Goldman Sachs BDC, Inc. Investor Presentation www.goldmansachsbdc.com Disclaimer and Forward-Looking Statement The information contained in this presentation should be viewed in conjunction with the earnings

More information

Industry Consolidations Recognizing Banking Opportunities in Acquisition- Driven Companies

Industry Consolidations Recognizing Banking Opportunities in Acquisition- Driven Companies Industry Consolidations Recognizing Banking Opportunities in Acquisition- Driven Companies Business strategy is a key driver of client needs and customized banking solutions. There are many tools and techniques

More information

IBP Exam Topics Table of Contents

IBP Exam Topics Table of Contents Table of Contents Accounting...2 Income statement...2 Balance sheet...2 Cash flow statement...2 Financial statement analysis...3 Financial reporting...3 Advanced Accounting...3 Excel...3 PowerPoint...3

More information

Thomson Reuters LPC Loan Conference Middle Market Panel Discussion September 22, 2011

Thomson Reuters LPC Loan Conference Middle Market Panel Discussion September 22, 2011 Thomson Reuters LPC Loan Conference Middle Market Panel Discussion September 22, 2011 Middle Market Panel Regions Capital Markets Terry Katon Managing Director and Group Head 704.335.9618 terry.katon@regions.com

More information

UNIVERSITY TRAINING BOOT CAMP

UNIVERSITY TRAINING BOOT CAMP UNIVERSITY TRAINING BOOT CAMP MERGERS & ACQUISITIONS AND LBO MODELING CURRICULUM AND DETAILED COURSE DESCRIPTIONS +1 (212) 537-6631 +1 (212) 656-1221 (fax) ABOUT WALL ST. TRAINING WALL ST. TRAINING OVERVIEW

More information

BMO Harris Bank Sponsor Finance Q Leveraged lending guidelines take hold.

BMO Harris Bank Sponsor Finance Q Leveraged lending guidelines take hold. BMO Harris Bank Sponsor Finance Q2 2015 Transaction Trends This issue of Transaction Trends includes data and commentary on relevant and interesting developments affecting middle market leveraged finance

More information

Introduction. PEs: the invesment process and the Value Creation

Introduction. PEs: the invesment process and the Value Creation Introduction PEs: the invesment process and the Value Creation 1 Contents - Introduction - PE Stages and Investment Process - Initial Strategic Definition: Types of deal and PEs - Deal Sourcing - Initial

More information

First American Financial KBW Mortgage Finance & Asset Management Conference June 1, 2017

First American Financial KBW Mortgage Finance & Asset Management Conference June 1, 2017 First American Financial KBW Mortgage Finance & Asset Management Conference June 1, 2017 2015 First American Financial Corporation and/or its affiliates. All rights reserved. q NYSE: FAF Safe Harbor Statement

More information

NCSHA 2018 HFA Institute. Municipal Market Update

NCSHA 2018 HFA Institute. Municipal Market Update NCSHA 2018 HFA Institute Municipal Market Update Disclaimer, LLC ( RBC CM ) is providing the information contained in this document for discussion purposes only and not in connection with RBC CM serving

More information

Frequently Asked Questions about Asset-Based Lending

Frequently Asked Questions about Asset-Based Lending Bank of America Merrill Lynch White Paper Frequently Asked Questions about Asset-Based Lending December 2013 Executive summary Contents Asset-based lending offers a powerful financing solution for midsized

More information

Industry Consolidations Financing Alternatives for Acquisition-Driven Companies

Industry Consolidations Financing Alternatives for Acquisition-Driven Companies Financing Alternatives for Acquisition-Driven Companies Charles A Sheffield President, Sheffield Capital Advisors This article focuses on the trends and financing opportunities for clients who are pursuing

More information

Financial Overview. Gil Borok Chief Financial Officer

Financial Overview. Gil Borok Chief Financial Officer Financial Overview Gil Borok Chief Financial Officer Forward Looking Statements This presentation, and those immediately following, contain statements that are forward looking within the meaning of the

More information

Goldman Sachs BDC, Inc.

Goldman Sachs BDC, Inc. Goldman Sachs BDC, Inc. Investor Presentation www.goldmansachsbdc.com Disclaimer and Forward-Looking Statement The information contained in this presentation should be viewed in conjunction with the earnings

More information

Kohlberg Capital Corporation

Kohlberg Capital Corporation UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December

More information

Applied Corporate Finance. Unit 4

Applied Corporate Finance. Unit 4 Applied Corporate Finance Unit 4 Capital Structure Types of Financing Financing Behaviours Process of Raising Capital Tradeoff of Debt Optimal Capital Structure Various approaches to arriving at the optimal

More information

Overall M&A Market Commentary

Overall M&A Market Commentary Overall M&A Market Commentary The U.S. economy continues to show strong momentum with 2Q18 GDP growth recorded at 4.2%. The Blue Chip consensus estimate for 3Q18 GDP growth of 3.3% and the Atlanta Fed

More information

2018 IBP Exam Topics Table of Contents

2018 IBP Exam Topics Table of Contents 2018 IBP Exam Topics Table of Contents Level I Accounting... 2 Income statement... 2 Balance sheet... 2 Cash flow statement... 2 Financial statement analysis... 3 Financial reporting... 3 Excel... 3 Powerpoint...

More information

American Woodmark s Acquisition of RSI Home Products December 1, 2017

American Woodmark s Acquisition of RSI Home Products December 1, 2017 American Woodmark s Acquisition of RSI Home Products December 1, 2017 Forward Looking Statements This communication contains certain forward-looking statements within the meaning of the Private Securities

More information

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET LOANS

DEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET LOANS MARKET INSIGHTS 1Q 2019 DEBT CAPITAL MARKETS EXECUTIVE SUMMARY Last year was a strong year for the corporate loan markets, including middle market and ABL, leveraged loans, and investment grade. Strong

More information

Automotive Finco Corporation

Automotive Finco Corporation Automotive Finco Corporation Investor Presentation June 2017 1 Forward Looking Information This presentation and the documents incorporated by reference herein contain forward-looking statements and forward-looking

More information

Good Morning Truckee! Business Succession 2017 Opportunities-Options-Impact

Good Morning Truckee! Business Succession 2017 Opportunities-Options-Impact Good Morning Truckee! Business Succession 2017 Opportunities-Options-Impact Agenda Setting the Stage - The Closely-Held Wealth Dilemma Business Succession Alternatives Employee Ownership Succession for

More information

Agreement in Principle on Financial Restructuring. June 2 nd, 2017

Agreement in Principle on Financial Restructuring. June 2 nd, 2017 Agreement in Principle on Financial Restructuring June 2 nd, 2017 Disclaimer This presentation has been prepared by CGG S.A. ( CGG ) in the context of the negotiations between it and certain of its creditors

More information

CB Richard Ellis Group, Inc. Investor Presentation

CB Richard Ellis Group, Inc. Investor Presentation CB Richard Ellis Group, Inc. Investor Presentation March 2011 Forward Looking Statements This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation

More information

Negotiating Finnish Intercreditor Agreements by Mika J. Lehtimäki

Negotiating Finnish Intercreditor Agreements by Mika J. Lehtimäki Negotiating Finnish Intercreditor Agreements by Mika J. Lehtimäki Finnish market participants have used already for years intercreditor agreements governed by Finnish law. However, it appears fair to say

More information

2019 Preliminary Financial Outlook Call. December 19, 2018

2019 Preliminary Financial Outlook Call. December 19, 2018 2019 Preliminary Financial Outlook Call December 19, 2018 Legal Notices Forward-Looking Statements This presentation and the oral remarks made in connection herewith may contain forward-looking statements

More information

ZEBRA TECHNOLOGIES SECOND-QUARTER 2016 RESULTS. August 9, 2016

ZEBRA TECHNOLOGIES SECOND-QUARTER 2016 RESULTS. August 9, 2016 ZEBRA TECHNOLOGIES SECOND-QUARTER 2016 RESULTS August 9, 2016 Anders Gustafsson Chief Executive Officer Mike Smiley Chief Financial Officer 2 Safe Harbor Statement Statements made in this presentation

More information

HD Supply Holdings, Inc. Announces 2017 Second-Quarter Results and Reaffirms Full-Year Guidance

HD Supply Holdings, Inc. Announces 2017 Second-Quarter Results and Reaffirms Full-Year Guidance Investor Contact: Charlotte McLaughlin HD Supply Investor Relations 770-852-9100 InvestorRelations@hdsupply.com Media Contact: Quiana Pinckney HD Supply Public Relations 770-852-9057 Quiana.Pinckney@hdsupply.com

More information

The issuing entity is offering the following classes of notes: Class A-1 Notes. Class A-2 Notes. Class A-3 Notes

The issuing entity is offering the following classes of notes: Class A-1 Notes. Class A-2 Notes. Class A-3 Notes Prospectus Supplement to Prospectus dated April 11, 2014. CAPITAL AUTO RECEIVABLES ASSET TRUST 2014-2 Issuing Entity $643,200,000 Asset Backed Notes, Class A $38,190,000 Asset Backed Notes, Class B $36,180,000

More information

Virtu Financial Agrees to Acquire KCG Holdings Creating the Leading Global Electronic Market Making and Agency Execution Firm

Virtu Financial Agrees to Acquire KCG Holdings Creating the Leading Global Electronic Market Making and Agency Execution Firm Virtu Financial Agrees to Acquire KCG Holdings Creating the Leading Global Electronic Market Making and Agency Execution Firm April 20, 2017 Disclaimer CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

More information

STATE OF THE MARKET TODAY AND WHAT TO EXPECT TOMORROW

STATE OF THE MARKET TODAY AND WHAT TO EXPECT TOMORROW STATE OF THE MARKET TODAY AND WHAT TO EXPECT TOMORROW Thomson Reuters LPC s Second Annual Middle Market Loan Conference Ioana Barza Director of Analysis ioana.barza@thomsonreuters.com OVERVIEW From 40,000

More information

Incorporating M&A into the Strategic Planning Process

Incorporating M&A into the Strategic Planning Process Incorporating M&A into the Strategic Planning Process Western Independent Bankers Education Summit & Expo San Diego September 22, 2015 9:15 10:15 a.m. Gerry Smith Managing Director, Western Region. PRESENTER

More information

KKR Real Estate Finance Trust Inc.

KKR Real Estate Finance Trust Inc. KKR Real Estate Finance Trust Inc. 1 st Quarter 2018 Supplemental Information May 9, 2018 Legal Disclosures This presentation has been prepared for KKR Real Estate Finance Trust Inc. (NYSE: KREF) for the

More information

Goldman Sachs BDC, Inc.

Goldman Sachs BDC, Inc. Goldman Sachs BDC, Inc. Investor Presentation www.goldmansachsbdc.com Disclaimer and Forward-Looking Statement The information contained in this presentation should be viewed in conjunction with the earnings

More information

CIT Restructuring Plan Management Presentation. October 2009

CIT Restructuring Plan Management Presentation. October 2009 CIT Restructuring Plan Management Presentation October 2009 Important Notices This presentation contains forward-looking statements within the meaning of applicable federal securities laws that are based

More information

Presentation to Public Lenders

Presentation to Public Lenders $2,510,000,000 Senior Secured First Lien Credit Facility Refinancing Presentation to Public Lenders February 8, 2013 Forward Looking Statements This presentation contains forward looking statements within

More information

Alan Taylor. Partner Bowling Green, KY BKD, LLP.

Alan Taylor. Partner Bowling Green, KY BKD, LLP. ESOPs: Creating a Legacy June 28, 2012 Alan Taylor Partner Bowling Green, KY BKD, LLP ataylor@bkd.com To Receive CPE Credit Participate in entire webinar Answer polls when they are provided If you are

More information

MIDDLE MARKET PANEL DISCUSSION LSTA S 18 TH ANNUAL CONFERENCE. Ioana Barza Director of Analytics

MIDDLE MARKET PANEL DISCUSSION LSTA S 18 TH ANNUAL CONFERENCE. Ioana Barza Director of Analytics MIDDLE MARKET PANEL DISCUSSION LSTA S 18 TH ANNUAL CONFERENCE Ioana Barza Director of Analytics ioana.barza@thomsonreuters.com 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

More information

The Accidental Distressed Investor

The Accidental Distressed Investor Private Equity The Accidental Distressed Investor Effecting a Positive Outcome in a Challenging Economic Environment Private Equity Practice Contents Management Summary... 1 De-levering Your Investment

More information

Blackstone Mortgage Trust Reports Full Year and Fourth Quarter 2014 Results

Blackstone Mortgage Trust Reports Full Year and Fourth Quarter 2014 Results Blackstone Mortgage Trust, Inc. 345 Park Avenue New York, New York 10154 T 212 655 0220 Blackstone Mortgage Trust Reports Full Year and Fourth Quarter 2014 Results New York, February 17, 2015: Blackstone

More information

DIVERSIFICATION AND THE PRIVATELY HELD BUSINESS

DIVERSIFICATION AND THE PRIVATELY HELD BUSINESS DIVERSIFICATION AND THE PRIVATELY HELD BUSINESS STRATEGIC CONSIDERATIONS FOR A HIGHLY CONCENTRATED ASSET CLASS For many of the world s most successful entrepreneurs, the creation of significant wealth

More information

M E K E T A I N V E S T M E N T G R O U P DIRECT LENDING. Timothy Atkinson

M E K E T A I N V E S T M E N T G R O U P DIRECT LENDING. Timothy Atkinson M E K E T A I N V E S T M E N T G R O U P BOSTON MA CHICAGO IL MIAMI FL PORTLAND OR SAN DIEGO CA LONDON UK Timothy Atkinson MEKETA INVESTMENT GROUP 100 Lowder Brook Drive, Suite 1100 Westwood, MA 02090

More information

Transition Planning For Closely Held Businesses: Incorporating The Practical Realities

Transition Planning For Closely Held Businesses: Incorporating The Practical Realities Transition Planning For Closely Held Businesses: Incorporating The Practical Realities Mary Ann Spangler Sisco Senior Vice President Director of PFS Client Solutions ms289@ntrs.com 312-444-7768 Daniel

More information

Investment Considerations

Investment Considerations Investment Considerations Schools Specialty s unique attributes provide significant earnings stability and predictability Clear market leader in attractive, fragmented industry Largest product offering

More information

Overview of Goldman Sachs. October 2014

Overview of Goldman Sachs. October 2014 Overview of Goldman Sachs October 2014 Cautionary Note on Forward Looking Statements Today s presentation may include forward-looking statements. These statements are not historical facts, but instead

More information

Q Investors Presentation

Q Investors Presentation Q2 2017 Investors Presentation Forward Looking Statements and Non-GAAP Measures This presentation contains information about management's view of the Company's future expectations, plans and prospects

More information

MATH FOR CREDIT. Purdue University, Feb 6 th, SHIKHAR RANJAN Credit Products Group, Morgan Stanley

MATH FOR CREDIT. Purdue University, Feb 6 th, SHIKHAR RANJAN Credit Products Group, Morgan Stanley MATH FOR CREDIT Purdue University, Feb 6 th, 2004 SHIKHAR RANJAN Credit Products Group, Morgan Stanley Outline The space of credit products Key drivers of value Mathematical models Pricing Trading strategies

More information

Neiman Marcus Credit Primer

Neiman Marcus Credit Primer Neiman Marcus Credit Primer BI Department Stores, North America Dashboard Noel Hebert BI Senior Credit Analyst 1. BI Credit Primer: Neiman Marcus (Bloomberg Intelligence) -- Store traffic at Neiman Marcus

More information

JPMorgan Insurance Trust

JPMorgan Insurance Trust Prospectus JPMorgan Insurance Trust Class 1 Shares May 1, 2017 JPMorgan Insurance Trust Small Cap Core Portfolio* * The Portfolio does not have an exchange ticker symbol. The Securities and Exchange Commission

More information

Repurchase Obligations Valuation and Financing Issues September 14, 2016

Repurchase Obligations Valuation and Financing Issues September 14, 2016 Repurchase Obligations Valuation and Financing Issues September 14, 2016 September 14, 2016 Isaiah Aguilar Director Stout Risius Ross Eric S. Zaiman Executive Director J.P. Morgan Joe Marx Vice President-Consulting

More information

Investor Presentation. Third Quarter 2018

Investor Presentation. Third Quarter 2018 Investor Presentation Third Quarter 2018 Information Related to Forward-Looking Statements Statements concerning interest rates, portfolio allocation, financing costs, portfolio hedging, prepayments, dividends,

More information

FINANCIAL OVERVIEW AL MISTYSYN SENIOR VICE PRESIDENT, FINANCE & CHIEF FINANCIAL OFFICER FINANCIAL COMMUNITY PRESENTATION OCTOBER 3, 2017

FINANCIAL OVERVIEW AL MISTYSYN SENIOR VICE PRESIDENT, FINANCE & CHIEF FINANCIAL OFFICER FINANCIAL COMMUNITY PRESENTATION OCTOBER 3, 2017 FINANCIAL OVERVIEW AL MISTYSYN SENIOR VICE PRESIDENT, FINANCE & CHIEF FINANCIAL OFFICER FINANCIAL COMMUNITY PRESENTATION OCTOBER 3, 2017 Forward Looking Statement The presentations today will contain certain

More information

FS Investment Corporation

FS Investment Corporation FS Investment Corporation INVESTOR PRESENTATION MARCH 17, 2016 Franklin Square Capital Partners is not affiliated with Franklin Resources/Franklin Templeton Investments or the Franklin Funds. 1 Important

More information

State of the Middle Market M&A Private Equity Financing

State of the Middle Market M&A Private Equity Financing State of the Middle Market M&A Private Equity Financing January 2012 DEBT ADVISORY GROUP The Capital Markets Desk for the Middle Market Results From Lincoln s 2012 Financing Market Survey Do you believe

More information

Handout for Unit 4 for Applied Corporate Finance

Handout for Unit 4 for Applied Corporate Finance Handout for Unit 4 for Applied Corporate Finance Unit 4 Capital Structure Contents 1. Types of Financing 2. Financing Choices 3. How much debt is good? 4. Debt Benefits vs Costs 5. Approaches to arriving

More information

BUILDING STRONGER PORTFOLIOS WITH MULTI-ASSET SOLUTIONS

BUILDING STRONGER PORTFOLIOS WITH MULTI-ASSET SOLUTIONS NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE BUILDING STRONGER PORTFOLIOS WITH MULTI-ASSET SOLUTIONS Leveraging the best ideas of J.P. Morgan Stronger portfolios for better client results It takes

More information

NLSN 4Q and FY 2011 Investor Presentation

NLSN 4Q and FY 2011 Investor Presentation NLSN 4Q and FY 2011 Investor Presentation Forward Looking Statements The following discussion contains forward-looking statements, including those about Nielsen s outlook and prospects, in the meaning

More information

4Q16 Quarterly Supplement

4Q16 Quarterly Supplement 4Q16 Quarterly Supplement January 13, 2017 2017 Wells Fargo & Company. All rights reserved. Table of contents 4Q16 Results Year-over-year results Page 2 Retail Banking sales practices 3-6 4Q16 Highlights

More information

Overall M&A Market Commentary

Overall M&A Market Commentary Overall M&A Market Commentary At 115 months and counting, the current U.S. economic expansion is in record territory. After eight years of fed policy induced stock market tranquility, stock market volatility

More information

INTERACTIVE DATA REPORTS FIRST-QUARTER 2014 RESULTS

INTERACTIVE DATA REPORTS FIRST-QUARTER 2014 RESULTS Press Release INTERACTIVE DATA REPORTS FIRST-QUARTER 2014 RESULTS New York May 8, 2014 Interactive Data Corporation today reported its financial results for the first quarter ended 2014. Interactive Data

More information

Goldman Sachs BDC, Inc.

Goldman Sachs BDC, Inc. Goldman Sachs BDC, Inc. Investor Presentation www.goldmansachsbdc.com Disclaimer and Forward-Looking Statement The information contained in this presentation should be viewed in conjunction with the earnings

More information

MINTO APARTMENT REAL ESTATE INVESTMENT TRUST

MINTO APARTMENT REAL ESTATE INVESTMENT TRUST Condensed Consolidated Interim Financial Statements of MINTO APARTMENT REAL ESTATE INVESTMENT TRUST For the three months ended and the period from April 24, 2018 (date of formation) to Condensed Consolidated

More information

First Quarter 2018 May 3, 2018

First Quarter 2018 May 3, 2018 First Quarter 2018 May 3, 2018 Safe Harbor Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements.

More information

Capital Understanding It and Building It

Capital Understanding It and Building It Capital Understanding It and Building It ICBA Community Banking LIVE March 1-5, 2015 Orlando, Florida Robert N. Flowers Hunton & Williams LLP 1445 Ross Avenue, #3700 Dallas, Texas 75202 (214) 468-3324

More information

PROVIDING SOLUTIONS TO SOME OF THE MOST COMPLEX BUSINESS CHALLENGES IMAGINABLE

PROVIDING SOLUTIONS TO SOME OF THE MOST COMPLEX BUSINESS CHALLENGES IMAGINABLE PROVIDING SOLUTIONS TO SOME OF THE MOST COMPLEX BUSINESS CHALLENGES IMAGINABLE OUR WILL. YOUR WIN. LOS ANGELES WASHINGTON DC MIAMI LAS VEGAS WHO WE ARE Province is a nationally recognized financial advisory

More information

Issues Associated with Second-Stage ESOP Transactions

Issues Associated with Second-Stage ESOP Transactions The ESOP Association California Western States 2017 Annual Conference October 11 13, 2017 Paradise Point, San Diego Issues Associated with Second-Stage ESOP Transactions Michael Harden Senior Managing

More information

June Dear Fellow Takeda Shareholder,

June Dear Fellow Takeda Shareholder, June 2018 Dear Fellow Takeda Shareholder, Since joining Takeda in April 2014, my mission has been to continue the transformation of Takeda in order to ensure that Takeda will be a successful company in

More information

Yankee Loans. A half day course. This course can be presented in-house for you on a date of your choosing

Yankee Loans. A half day course. This course can be presented in-house for you on a date of your choosing Yankee Loans A half day course This course can be presented in-house for you on a date of your choosing The Banking and Corporate Finance Training Specialist Course Overview Yankee loans (or TLBs as they

More information

Paragon Capital Management, Ltd th Street, Suite 1401 Denver, CO

Paragon Capital Management, Ltd th Street, Suite 1401 Denver, CO Paragon Capital Management, Ltd. 999 18 th Street, Suite 1401 Denver, CO 80202 303-293-3680 www.pcm-net.com August 30, 2017 This Firm brochure is Part 2A of Form ADV a regulatory filing required by the

More information

Fourth Quarter and Full Year Earnings Call March 1, 2019

Fourth Quarter and Full Year Earnings Call March 1, 2019 Fourth Quarter and Full Year Earnings Call March 1, 2019 Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this news release and the schedules hereto that are not purely historical

More information

Not created equal: Surveying investments in non-investment grade U.S. corporate debt

Not created equal: Surveying investments in non-investment grade U.S. corporate debt Winter 2016 Not created equal: Surveying investments in non-investment grade U.S. corporate debt Institutional investors seeking yield and current income opportunities have increased their allocations

More information

Communicating Valuation: Tools, Tips & Examples

Communicating Valuation: Tools, Tips & Examples Communicating Valuation: Presented by: Tim Jamison Prairie Capital Advisors 312 S. 4 th Street Suite 700 Louisville, KY 40202 502.644.0777 tjamison@prairiecap.com Tools, Tips & Examples Agenda What is

More information

AFL-CIO HOUSING INVESTMENT TRUST PROSPECTUS

AFL-CIO HOUSING INVESTMENT TRUST PROSPECTUS AFL-CIO HOUSING INVESTMENT TRUST PROSPECTUS The investment objective of the American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust ( HIT ) is to generate competitive

More information

Third Quarter 2017 Investor Presentation

Third Quarter 2017 Investor Presentation Third Quarter 2017 Investor Presentation Financing the Growth of Commercial Real Estate Note: This program does not own the properties pictured. The properties serve as the underlying collateral for loans

More information

36 th Annual J.P. Morgan Healthcare Conference. January 10, 2018

36 th Annual J.P. Morgan Healthcare Conference. January 10, 2018 36 th Annual J.P. Morgan Healthcare Conference January 10, 2018 Forward-Looking Statements and Non-GAAP Financial Measures This presentation includes information that may constitute forward-looking statements,

More information

KKR Real Estate Finance Trust Inc.

KKR Real Estate Finance Trust Inc. KKR Real Estate Finance Trust Inc. 4 th Quarter 2018 Supplemental Information February 20, 2019 NOTE: The accompanying presentation updates the presentation previously issued by the company on February

More information