Intro to Headwaters
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Denver • Boise • Boston • Burlington • Chicago • New York • Irvine CA • West Palm
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Transcript of Intro to Headwaters
Denver • Boise • Boston • Burlington • Chicago • New York • Irvine CA • West Palm
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Founded in 2001, independently owned, headquartered in Denver, Colorado
45+ professionals with national footprint in the United States- Boston, Burlington, Chicago, New York, Irvine CA, Boise and Denver
Over $5 billion of middle market deals and over $55 billion of deal experience
Significant international experience; global reach - 30% of revenue has been generated from cross border transactions- Winner of “Cross Border Deal of the Year”
Extraordinary buyer access and history of process excellence
Established reputation as quality service provider
Broad industry coverage
Multiple time award winner
OVERVIEW
DEAL OF THE YEAR
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D INDUSTRY COVERAGE
-Construction & Construction Services
-Professional Services-Training Services- IT Services-General Business Services
-Technology and Telecom - Industrial Technologies-Clean Technologies -Wireless-Financial Services Technology
-Biotechnology -Medical Devices -Technology and Services
-Natural & Organic-Packaged Goods- Ingredients-Specialty Chemicals-Private Label- Ice Cream-Food Manufacturing
-Community Banks and Thrifts
-Finance Companies-Mortgage Companies- Investment Management Companies
-Specialty Finance
-Supply Chain-Logistics and Maintenance-Freight
-Scrap Metal Recovery-Waste to Energy-Resource Management-Waste Disposal/Management-E-cycling-Landfills-Waste Collection
-Ports-Cargo
-Action Sports-Toys & Crafts
-Renewable-Power Generation -Refining and Marketing-Midstream and Downstream Utility Services
-Advertising-E-commerce-Online Gaming-Mobile-Social Media-Software-Video (Online & Digital)
Business Services
Consumer Products
EnergyDigital Media
Life Sciences
Financial Services
Mining & Minerals
Maritime
TechnologyWaste Management
Supply Chain / Logistics
Food & Beverage
-Gold-Copper-Coal-Minerals
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D FULL SERVICE INVESTMENT BANKING
Sell-side advisoryBuy-side advisoryManagement buyouts
Senior debt $25mm+Mezzanine debt $10mm+Private equity $20mm+
Fairness opinionsStrategic alternatives reviewValuations
M&
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Capit
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Financi
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Ad
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Speci
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Pro
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s Bank debt placementPartnering & licensingEarly stage / ventureMerchant bankingPublic market co-manager
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Principles- Respect and control
confidential information- Custom process design- Look across markets
M&A Process Statistics- “Broad” process average over
100 contacts- “Book to bid” ratio on targeted
processes of over 30%- Final bids increase over
original indications by up to 32%
- Over 30% of transactions with cross border participant
- Equal weighting across buyer types
THE HEADWATERS DIFFERENCE
Hybrid
Financial
Strategic
Category breakdownfor Headwaters M&A transactions
HYBRID 30%STRATEGIC 30%
FINANCIAL 40%
Buyer Mix- Headwaters has worked with 941 PE
firms in conjunction with recent transactions.
- Headwaters has contacted 957 strategic buyers in conjunction with recent transactions.
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D GLOBAL REACH
Headwaters has a partnership of 18 firms spanning 42 offices in 26 countries
Partners employ 240 banking professionals organized around industry focus groups
In 2009, partners completed 53 transactions with a value of over €2bn
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Industry Client Client Country Buyer Buyer Country Transaction Value
ArchitectureNightingale Associates IBI Group £13MM
Plumbing Product Manufacturer
Vanguard Piping Systems Viega $78MM
Bath Screens and Shower Enclosures
Aqualux Product Holdings
AFG Arbonia-Forster £23MM
Low and medium voltage cable manufacturer Ravin Cables
Prysmian Cables & Systems
NA
Spectrophotometers, Color Management Software X-Rite (buy side) Amazys $280MM
Stairlift Manufacturer Minivator Handicare AS NA
Branded Snacks Red Mill Snacks Tayto £22MM
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D GLOBAL REACH – RECENT TRANSACTIONS
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Headwaters works in tandem with referral program executives as well as individual wealth management groups to source transactions
Headwaters senior relationships with these affiliates provides access to public market execution and other transaction support in special situations
AFFILIATIONS
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Company Lead Investor
First fund
Fully invested and performing well
Launched in 2010
$150mm fund dedicated to control transactions with lower middle market companies in “capital constrained” situations
- Pending maturities- Overleveraged capital structures- Other urgent liquidity needs
An independent Investment Committee make final investment decisions to avoid any potential conflict-of-interest issues
MB STANDS FOR MERCHANT BANKING
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D MANAGEMENT TEAM
Roberta LarawayDirector of [email protected]
Oversees all finance and administrative matters.
Former Finance Operations Manger for Oxford Financial Group and CPA with E&Y.
Joined Headwaters in 2004.
Brendan BurkeDirector of Business [email protected]
Coordinates business development activities with channel partners and Mergers Alliance. Leads marketing, branding and all communication efforts.
Joined Headwaters in 2004.
Phil SeefriedCo-Founder + [email protected]
Oversees all investment banking and strategy at Headwaters.
Former COO of Global Credit Group and Co-Head of Leveraged Finance over 15 year career at Credit Suisse.
Founded Headwaters in 2001.
Paul JansonPresident + [email protected]
Primary contact for all channel partners. Deep knowledge of deal market and banker capabilities.
Former CEO of Camiant and Worldbridge Broadband Services. 20 years of executive management experience.
Joined Headwaters in 2005.
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27 outside shareholders include bulge bracket investment banking executives, leading private equity investors, Fortune 100 corporate executives and various members of the deal community nationally
INVESTORS
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D STRATEGY: BUILT FOR RESULTS
Assumptions: let’s agree on a few things
- Information flows in the middle market are broken
- Asymmetric information leads to marketplace inefficiency (see chart on the right)
- The deal team with the greatest access to information and key relationships will routinely outperform
Headwaters is designed specifically to address the unique challenges of this market
- We harness the knowledge and insight of small sector teams and the distribution power of a large network unlike subscale boutiques.
- We accomplish this without the distractions and conflicts inherent to larger service providers with a capital markets business to support
Our network-centric approach guarantees a market result and maximizes the likelihood of an outlier result
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Valu
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Traded Markets Middle Market / Public Companies / Private Companies
OUTLIER RESULTS
