We are happy to highlight some of our notable achievements during the first six months of 2017 and share with you a few updates at Carter Morse & Mathias.
General Market Overview
We continue to see strong activity and valuations in the middle market, driven by dynamic private equity markets, readily available credit markets, ample cash from strategic buyers and a surging public stock market. It continues to be a ‘sellers’ market’ with robust valuations and more flexible terms. Although we don’t see any immediate material risks to this frothy market, we are confident that it cannot last much longer. If you are contemplating a transaction in the next few years, we encourage you to consider it sooner rather than later.
Highlighted Transactions:
We have been active this year and are pleased to announce two of our successful closings:
SavATree, a leading provider of tree, shrub and lawn care services headquartered in Bedford Hills, New York, sold a majority interest to the New York-based private equity firm, CI Capital Partners. Carter Morse & Mathias served as the exclusive financial advisor to SavATree.
etouches, a global provider of cloud event management software and venue sourcing headquartered in Norwalk, Connecticut, sold a majority interest to the private equity firm HGGC, headquartered in Palo Alto, California. Carter Morse & Mathias served as the financial advisor to the management team of etouches.
Active Engagements:
In addition to these closings, we continue to advise a number of companies, families and boards as they consider both strategic transactions and capital formation initiatives. Currently, we have a number of active engagements, including:
– Specialty Chemicals: Exclusive advisor to a 200 year old industrial conglomerate to divest an operating division focused on commodity and specialty chemical manufacturing with nearly $50 million in revenue. (In market 3Q17)
– Pharmacy: Exclusive advisor to a family held pharmacy with both retail and closed door operations serving long term care facilities and clinics with nearly $100 million in revenue. (In market 3Q17)
– Wire Manufacturer: Exclusive advisor to a privately held manufacturer of specialized wire and related fasteners to various industrial, aerospace, military and government markets with approximately $50 million in revenue. (In market 4Q17)
– Manufacturing Company: Exclusive financial advisor to the management team of a closely held, publicly traded manufacturing company that is exploring long term strategic options including potentially taking the company private.
There are a plethora of other exciting mandates with high quality, privately held, middle market companies within our pipeline. These firms fall into our core industry verticals ranging from manufacturing, consumer, technology and business service. We look forward to sharing more about these great companies when they become available.
New Offering from CMM
We recently launched a new ‘Maximizing Shareholder Value’ service offering business owners actionable recommendations and ongoing guidance to increase the value of their businesses. For 30 years, CMM has helped hundreds of business owners maximize value, but typically only at the time of a sale. Now, we are delivering this same expertise to companies that are not yet for sale. The new service includes both a quantitative analysis and real-world qualitative assessment of value and how value can be maximized in a potential transaction. Please feel free to contact us if we can help you or your client design a more successful future exit.
Recent Awards
CMM has won Corporate/Strategic International Deal of the Year ($50 million to $100 million) for our work with ComNet in its sale to ACRE, a portfolio company of LLR Partners. The 9th Annual International M&A Awards Gala honored the leading deal teams, firms and professionals whose activities set the standard for international M&A transactions. Over 260 companies, representing every major market in the world, were announced as finalists for the awards. CMM is proud to have won this prestigious international recognition again this year.
CMM was also a finalist for the 7th Annual ACG Champions Award for Manufacturing/Industrials – Deal of the Year and the Technology – Deal of the Year ($50 million to $75 million). We are honored to be considered for these great awards again this year, having won it several times in recent years.
International Expansion:
CMM’s international network, Alliance of International Corporate Advisors, (“AICA”) has added three new affiliates, further expanding CMM’s reach across the globe. These new firms include:
– Capnua Corporate Finance based in Dublin, Ireland
– MCM Partners based in Hong Kong
– CVM Capital Value Management based in Dortmund, Germany
AICA now consists of more than 250 transaction professionals in 41 M&A firms in 39 countries across six continents. CMM is a charter member of AICA and Michael Carter attended the annual AICA global board meeting in Oslo, Norway in May.
New CMM Team Members
Andrew Bangser: Andy joined the CMM team as a Managing Director in January. Prior to joining CMM, he was head of finance, technology and business strategy for Really Good Stuff, an educational products company that CMM represented in its sale to a strategic buyer backed by a private equity firm. Prior to that, Mr. Bangser provided financial, operating and technology leadership to early stage and growing companies, including Foundation Source and Home Financial Networks, following a 15-year career with GE as Senior Vice President of GE Venture Capital in Boston and the corporate finance group in NY. Mr. Bangser is a graduate of Brown University and the Wharton School of the University of Pennsylvania.
Andrew Nemnich: Andrew joined the CMM team as an Associate in July. He is a recent graduate of Elon University where he earned a dual major in Finance and Entrepreneurship. We were compelled to hire Andrew given his experience, communication skills, work ethic and curiosity for our business. He is a native of Southern California.
About Carter Morse & Mathias:
Founded in 1987, Carter Morse & Mathias is a boutique investment bank specializing in advising privately held middle market companies. CMM provides a full range of investment banking services: business sales and divestitures, equity and debt capital raises, acquisition services, and pre-transaction and strategic advisory services. Time and time again, our strategic guidance and seamless transaction execution has proven crucial for clients, many of whom we represent in their once-in-a-lifetime transaction. For nearly 30 years, CMM’s combination of hands-on Managing Director involvement and extensive network of domestic and international resources has enabled us to help hundreds of business owners plan, execute, and close transactions that maximize shareholder value.
CMM’s Broker/Dealer affiliate, Carter Capital Corporation, is a FINRA member firm registered with the SEC and SIPC.