How much money is there?

We are often asked “How much liquidity is there for acquisitions these days?”

You will be happy to know that a snapshot from the U.S. private equity market reveals there is three quarters of a trillion dollars in committed funds ready to buy your business.  And this is just one slice of the market, the private equity piece.

global private equity

Thank you to our friends at Fifth/Third Capital Markets for this insight![i]

The value of the record 50,600 of worldwide M&A deals in 2017 was $3.5 trillion according to the IMAA Institute[ii]:

m&A worldwide

 

And in North America, the 2,500 M&A deals were valued at $1.5 trillion

number m&A

What does this mean for you?

There is abundant liquidity in the markets.  Capital allocators are seeking candidates in record numbers to add to their portfolios.  When you get the call from Vertical Capital Advisors, listen!  This is the call you wanted the day you started your business, every entrepreneur’s dream!

 

 

* * *

ABOUT VERTICAL

Vertical Capital Advisors is an Atlanta-area boutique investment banking firm built on creating tangible value for our clients, serving clients in just about every industry.  Our clients are both capital growers and capital allocators.  How can Vertical help your firm maximize value?

 

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108
678-591-0273


[i]
http://images.payments.53bank.com/Web/FifthThirdBank/%7B9603ed24-84b5-4d89-adef-bafbe70713dd%7D_Fifth_Third_Capital_Markets_Market_Update_2018_01_23.pdf

[ii] https://imaa-institute.org/mergers-and-acquisitions-statistics/

One Secret

top secret

In a previous life I was a wealth manager – a really good one.  I rose to the top of my profession, managing about 125 people and over $6 billion in aggregate balances at the Private Bank at Bank of America.  During that time, I advised many business owners to consider selling their businesses or at least a part of them because in the 2000 to 2007 timeframe, multiples were at the peak and the markets were red hot.  Today the markets are white hot and multiples are even higher.So here’s my One Secret: Sell when the markets are high.

Sure, you can grow to $100 million or $1 billion with enough time and enough cash.  Projections are always linear.  It is very difficult to model exogenous events like financial market corrections.  Getting the timing right is even more problematic and therein lies the challenge: we don’t get to pick the timing of exogenous events.  Business owners who did not follow the counsel they had paid to receive had to endure nearly a decade of struggle to get back to pre-recession levels in most cases.  Many less fortunate businesses failed.  A few slipped through unscathed but still could not monetize because there were simply very few buyers in the market for healthy, thriving companies.  The financial community binged on the carcasses of failed and failing businesses, paying deeply distressed prices.

So I will grant you that my secret isn’t a very good one.  In fact mostpeople wouldn’t technically consider it a secret.  Sometimes the best answers aren’t derived from an artificial intelligence drive algorithm.  Sometimes they come in the form of an email or a phone call from an associate at Vertical Capital Advisors asking, “Have you considered…?”  We have run the algorithms to find your company, we have done our research and there is a reason we are reaching out.

 

 

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At Vertical Capital Advisors, we are most often engaged by industry leaders to be the bridge to the capital they need to fuel growth.  We start with great leaders at great companies that have compelling, profitable business plans where the only missing ingredient is capital.

ABOUT VERTICAL

Vertical Capital Advisors is an Atlanta-area business advisory firm built on creating tangible value for our clients, serving clients in just about every industry.  Our clients are both capital growers and capital allocators.  How can Vertical help your firm maximize value?

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108
678-591-0273

ACG CapConn – You had To Be There Live

Yesterday was the final day of the annual pilgrimage to Atlanta for over a thousand finance professionals from across the country, all converging for the pinnacle event for professionals focused on helping businesses grow and thrive – the Association for Corporate Growth Capital Connection or ACG CapConn.

#ACGATL
#CapConn2017
https://www.facebook.com/atlantaacg

atl

With over 200 exhibitors plus over 500 other capital providers in attendance, all hungry for equity, mezz and debt deals, David Esmie and I were in heaven for the past three days, starting with the private gatherings on Tuesday followed by two days of intensive networking and working sessions on Wednesday and Thursday.  Here’s a picture of me with long-time friend Gibby Thrift after he won a major award at the Chatham Capital soiree on Tuesday night at Ventana’s:

 

CapComm

 

Our feet were exhausted after three days of non-stop networking but the investment of time and energy was richly rewarded with numerous new relationships with new funding partners eager to see the client projects we are currently working on.

 

 

ABOUT VERTICAL

Vertical Capital Advisors is an Atlanta-area business advisory firm built on creating tangible value for our clients, serving clients in just about every industry.  Our clients are both capital growers and capital allocators.  How can Vertical help your firm maximize value?

 

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108

 

 

 

Mark Your Calendar: The United States of COW coming soon!

Yes California #Calexit

Mark your calendar for July 25.  If 585,407 or more Californians sign the Yes California petition by July 27, there will be a statewide vote in November which would establish an independence plebiscite on March 5, 2019.

How far behind can Oregon and Washington possibly be?  And why not form a new

United States of COW – California, Oregon and Washington?

The Yes California organization has enumerated their reasons for independence on their website: http://www.yescalifornia.org/.  Their points are quite compelling:

  1. PEACE AND SECURITY
  2. ELECTIONS AND GOVERNMENT
  3. TRADE AND REGULATION
  4. DEBT AND TAXES
  5. IMMIGRATION
  6. NATURAL RESOURCES
  7. THE ENVIRONMENT
  8. HEALTH AND MEDICINE
  9. EDUCATION

They state: Yes California is the nonviolent campaign to establish the country of California using any and all legal and constitutional means to do so. We advocate for peaceful secession from the United States by use of an independence referendum to establish a mandate, followed by a nationwide campaign to advocate in support of a constitutional exit from the Union.

As a management consulting firm, if California were to hire us to advise them on this endeavor, this would be the simplest engagement ever.  We are based in Atlanta.  Sherman did some pretty horrible things that leave an open scar to this day.  The census of 1860 put the US population at 31 million.  About 620,000 soldiers died in the Civil War.  Census.gov/popclock says we have 324,456,571 people as of this writing.  If an equivalent number of soldiers perish in the Second Civil War triggered by a Calexit, that translates to 6,397,641 lives.  Though you may wish a non-violent exit, guess what, that book is written and you will not like the ending.

Our advice: work within the system California, heed the words of our last president: “If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business – you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.  The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together.”

 

 

ABOUT VERTICAL

Vertical Capital Advisors is an Atlanta-area business advisory firm built on creating tangible value for our clients, serving clients in just about every industry.  Our clients are both capital growers and capital allocators.  How can Vertical help your firm maximize value?

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108

Church Pastors Only, Please! Lender Liquidation Auction – Church Sanctuary

Alpharetta, GA 10/7/2016 –  This email title grabbed my heart this morning:

Lender Liquidation Auction – Church Sanctuary, Gym, Parsonage.

I checked it out.  This is a beautiful church.  It must have been the spiritual epicenter for hundreds of well to do families to have been so beautiful, inviting, spacious, pastoral.    Check it out:

churches

And yet it will be auctioned to the highest bidder next Wednesday.

Pastors, stop what you are doing right now.  Before this fate is visited upon your congregation, please call us.    We have helped other churches restructure.  It doesn’t matter what state you are in, financially or geographically.  There is a solution.  Your lender does not want to end up auctioning your sanctuary.  It is the worst outcome for all parties.  Let us help you, guide you through the process.  We can’t guarantee the right outcome but we know who can!

ABOUT VERTICAL

Vertical Capital Advisors is a firm built on creating tangible value for our clients.  We work with clients in just about every industry.  And we work with both capital consumers and capital providers.

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108

 

Have you ever wondered if you should call a professional to help your business restructure its debt?

hand-grabbing-for-rope

You see reports in the financial press and mainstream media about companies that have spectacular missteps and flame-outs but for every story you see, there are perhaps hundreds or even thousands that you don’t.  In fact, there were 12,764 business bankruptcies filed in the first six months of this year, that’s over 2,000 per month on average:

us-bankruptcies-2016

Source: http://www.uscourts.gov/report-name/bankruptcy-filings
Chart © Vertical Capital Advisors LLC 2016

Every one of these cases is a tragedy involving the loss of up to hundreds of millions of dollars and countless jobs.  The human toll, the distress caused in the lives of thousands of people, is incalculable.

So have you ever wondered if you should call a professional to help your business restructure its debt?  If the answer is yes, you have wondered, then the next step is to make a call.

You see, if the right financial professional is involved early enough in the process, many more options are open to the leaders of the business.  The right plan can shed unproductive assets, invest resources in revenue and profitability drivers and create a leaner, more focused, more agile enterprise that can once again compete effectively in the marketplace.  It is always a tough process but guess what, it is much easier than bankruptcy.  We know.  We often get the call from creditors who have had enough and are ready to pull the plug.  We have liquidated many businesses and the shock and tears and disbelief sadden the soul.

In most cases, your creditors and investors are delighted to see you take affirmative action to resolve a crisis.  They much prefer you call us to craft a solution over them calling us to liquidate your business.  They almost always give us another length of runway to develop and implement a recovery plan (that they approve) and sometimes they even provide additional funds to make it happen!

If you have the right team, a credible plan and the resources to implement it, save some modest amount of capital to prime the pump (modest being defined by the size of the enterprise – ranging from tens of thousands to hundreds of millions of dollars), your business can be reinvented so it can once again thrive.

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108

Repeat Business & Referrals – The Ultimate Compliments

percentageIn the depths of the recession we helped scores of businesses restructure their financing so the company involved could live to fight another day.  We helped each company get lean and profitable by focusing on the core revenue and profitability drivers, especially strategic client relationships.

Now that the economy has recovered we are seeing many business owners seeking a new round of permanent financing.  Most gratifying of all is the client who we helped survive the recession now flourishing and needing graphsgrowth capital.

In August we helped a wholesaler obtain new $1,500,000 financing at a fixed rate of 5%.  It may not seem like much but the new rate is over 20% lower than the previous rate that was over 6%.  This savings, on top of the $500,000 discount we negotiated five years ago, has transformed the company into a very profitable enterprise.

This is a small example however this client is connected to over $10 million in other capital we have placed for other clients.  And for this particular, it means literally everything.

We love the trust that we earn by securing sound financial futures and we love even more the repeat business and referral opportunities it generates.

To all of our clients, thank you from the Vertical Capital Advisors team!