February 2012 

 In This Issue:
  1. PE Funds Making Major Changes to Raise Funds
  2. M&A: Running on ENERGY
  3. Good News for Middle-Market Intermediaries
  4. People on the Move: D. Bagley and M. Hodges
  5. E&Y Predicts a "2012 Private Equity 'Restart'"
  6. An Astounding Amount of PE Dry Powder Exists
  7. Middle-Market M&A Fees Hit $16.2 Billion in 2011
  8. Important Upcoming MMIBA & NACVA Events

Upcoming MMIBA Events and Training

MMIBA Board of Directors:

Dennis Roberts CPA, CVA, ABV, CMAP

Andrew Sherman, ESQ., CMAP

Parnell Black, MBA, CPA, CVA

Richard Jackim, JD, MBA, CEPA

Andy Smith, CPA/ABV, ASA, CVA, CMA

Scott D. Miller, CPA/ABV, CVA, CMAP

Editor: Joe DiPietro

PE Funds Slash Fees to Raise New Funds
SEI Report Shows Firms Are Opening Their Books and Cutting Fees
“Whatever it Takes to Raise Buyout Capital in this Environment”

Collectively, of the more than 400 institutional investors, consultants, and fund managers surveyed in this study, about 59% of the managers questioned confessed that they had "increased transparency to retain/attract new capital since the 2008 market decline." At the same time, nearly 37% stated that they had lowered fees associated with their investment services, this according to SEI's and Greenwich Associates' jointly released report.

Read the entire report here. No registration required.

M&A: Running on ENERGY
Oil and Gas Companies Fueling Recent US M&A Activity

Total M&A activity may be off to a slow start this year, but there's plenty of energy in the market for certain deals - the kind of energy that heats homes and powers cars. The activity is a result of energy companies' increasing interest in unconventional resources, like shale gas and oil sands, according to a survey released this week by BDO USA. One-quarter of energy-related CFOs said new resource plays - like shale - were the most important factor driving industry growth, up from 14% last year. This favorable shift will boost M&A activity in the industry this year.

Read the entire article here.

PE Firms Changing Focus to Midsize Deals
Good News for Middle-Market Intermediaries
A Special Report from the Wall Street Journal

Running a private equity business is a lot less glamorous, much harder, and less lucrative than it once was. Large deals are mostly history, ROI has plummeted, buyout financing is a fraction of what it once was, exit timelines have doubled, and LPs now have the upper hand. But PE managers never quit: They evolve. And are now piling into the middle- and lower-middle market in a historically aggressive way.

You can read the entire article here. No registration required.


People on the Move:
MorrisAnderson Promotes Dave Bagley to Principal
Baird Capital Partners Hires Mark Hodges as an Operating Partner

Before you can sell a distressed company, it needs turned around; a specialty of MorrisAnderson, who just promoted Dave Bagley. Bagley will coordinate MA's national business development strategy. Bagley has more than 20 years of experience assisting financially distressed companies and often assumes the interim role of CEO and CFO. Bagley's extensive portfolio includes several awards and distinctions from the Turnaround Management Association.

Read more about partnering on dealflow with Dave Bagley here.

Mark Hodges, who will be based in Houston, has been hired by Baird Capital Partners to source, evaluate and drive value in the Business Process Outsourcing and Professional Services sectors. Hodges joins BCP with more than 20 years of experience in the BPO industry. He is the founder of Hodges Advisory, a firm that advises the founders of services companies on driving high growth and then establishing liquidity.

Read more about Hodges and the dealflow he would like see here.

"M&A Will Pick Up After a Slow 4th Quarter"
E&Y's Transaction-Advisory Services Group Predicts a "Private Equity 'Restart'"

With fourth-quarter U.S. buyout volume down 44% compared with the full quarterly level of 2010, the dealmaking community is obviously hoping for a better year in 2012, and Ernst & Young’s detailed new report provides that hope.

You can read the report here. No registration required.
An Astounding New Report:
50% of PE Funding, Since 1969, Was Raised in Just Four Years
And Much of it is Still Sitting Waiting to Be Invested

Of the $3.9 trillion committed to private equity since 1969, an astounding amount: nearly half, or $1.8 trillion, was raised in the years between 2005 and 2008, with much of it unused, sitting as dry powder, and waiting for deployment…

Read the Triago report here. No registration required.
Thomson Reuters Has Released its
2011 Year-End Middle Market M&A Financial Review

Just a couple of the highlights:
  • Worldwide announced Mid-Market M&A deals valued up to $500 million totaled $740.7 billion in 2011 - a 3.9% increase over 2010.
  • Estimated global fees generated from completed Mid-Market M&A activity reached $16.2 billion for the year.
  • The Americas region led the market, with $279.1 billion of announced deal activity.
  • Energy & Power and Materials each represented 12.3% of the total market.
  • Houlihan Lokey topped the US Mid-Market rankings with 84 deals.

Click here for the entire and extensive Mid-Market Report.

Important Upcoming MMIBA and CTI Events

Upcoming Live Training
Merger and Acquisition Workshops
Chicago, IL - March 19-24, 2012
Washington, DC - August 20-25, 2012
San Diego, CA - October 1-6, 2012
Ft. Lauderdale, FL - November 26-December 1, 2012

Certified Exit Planning Advisor Workshops

Chicago, IL - May 7-11, 2012
Chicago, IL - November 5-9, 2012

Upcoming Webinars
Introduction to Mergers & Acquisitions, Monday, February 27, 2012
Developing an M&A Practice - Winning the Engagement "The First Sale,"
Tuesday, February 28, 2012
Current Trends and Best Practices in Due Diligence,
Wednesday, February 29, 2012
Key Legal and Strategic Issues for Middle-Market Buyers and Sellers,
Thursday, March 1, 2012
Management Buyouts, Friday, March 2, 2012


7900 Westpark Drive, Suite A320
McLean, VA 22102
Phone: (800) 677-2009 Fax: (801) 486-7500