August 2013

For a PDF of this release, click here:pdfCMM Mid-Year Update-2013.pdf

Southport, CT - CMM has had a active first half of 2013, and expect to become even busier as we approach the fall and look towards the end of the year.   Below, please find a few key highlights:

Industry Update:

M&A volume continues its slide, with activity down for both the second quarter and year to date.  By most measures, the market has not yet recovered to its fullest potential, but there are encouraging signals which keep us optimistic. 

Currently the market is experiencing by a large supply and demand imbalance - there simply are not enough sellers in the market to satiate the demand and spark a rebound in activity.  On the demand side, buyers have large cash positions on their balance sheets, lenders are actively seeking to lend again and private equity has ample capital that still needs to be put to work. There is no shortage of demand for quality deals from both strategic buyers and financial investors. On the supply side, business owners continue to be cautious about approaching the market, which has left a dearth of deal flow. As a result of this supply and demand imbalance, good companies are realizing premium valuations.

We expect that the second half of 2013 will continue see higher-than-normal multiples and it will be a good time for sellers to pursue a transaction.

Pipeline Update
Despite this overall market malaise, CMM continues to be active, with both buy-side and sell-side engagements. Below are a few of our current engagements:  

Transactions under Letter of Intent/Interest:

  • Financing for a Jet engine parts distributor
  • Acquisition of a manufacturer of electric motors
  • Sale of a home furnishings manufacturer
Transactions currently in the market:
  • Strategic sale of a shopper data and marketing company
  • Strategic sale of a expense management software company
  • Divestiture of a packaging equipment manufacturer company
Opportunities in our pipeline:
  • Point-of-purchase and retail displays company
  • Events management technology company
  • Energy management company
  • Retail display manufacturer for cosmetics
  • Physicians practice

Despite our activity, we always have time to develop new relationships, so please do not hesitate to call if we can be helpful to you or your clients . We especially enjoy having strategic option discussions with business owners well in advance of a transaction to help them consider how best to prepare for a transaction and techniques to maximize shareholder value.

Personal Updates
Each of us at CMM are committed to giving back to our local and business communities. Updates for the first half of 2013 include:
  • Gary Mathias was recently appointed Chairman of the Alliance of International Corporate Advisors, an organization of more than 30 investment banks in 22 countries around the world that CMM helped found in 2011. (www.aioca.org)
  • Michael Carter joined the Board of Directors for Network for Teaching Entrepreneurship a national program that teaches disadvantaged students the power of entrepreneurship. (www.nfte.com)
  • Ramsey Goodrich was appointed to the Global Board of the Association for Corporate Growth, a worldwide organization of nearly 15,000 middle-market deal makers (www.acg.org), and was appointed to the Connecticut Board for the Exit Planning Exchange, a group dedicated to advising business owners on preparing for a business transition. (www.exitplanningexchange.com)
  • Frank Morse continues to raise money for the Prostate Cancer Institute, an organization he founded.   This summer he can be found swimming in many Maine lakes in anticipation for his annual Swim Across the Sound event later in the year. (http://give.stvincents.org/)
  • Marty Magida recently biked 190 miles across Massachusetts from Sturbridge to Provincetown on Cape Cod in his fifth Pan Mass Challenge to raise money for cancer research at the Dana-Farber Cancer Institute. (www.pmc.org)
  • Ramsey also recently rode through the hills of Connecticut for his fourth annual Connecticut Challenge, raising money for cancer survivor programs and education.(bike.ctchallenge.org)

As we look forward to the second half of 2013, we do so with both enthusiasm and optimism.

As always, if we can be helpful in any way, please do not hesitate to call on us.