M&A INSIGHTS
The Role of the Management Presentation How the Management Presentation Usually Leads to an Outlier Result for the Seller
By Len LaPorta
Managing Director, Wiley Bros.-Aintree Capital, LLC Len LaPorta is a managing director of Investment Banking at Wiley Bros.-Aintree Capital, LLC – a 75-year-old firm, located in Nashville, TN, focused on investment brokerage and underwriting municipal bonds for utility districts in the state of Tennessee. Len brings to the Firm experience in crossborder M&A transactions between USA and Europe, advises business owners on sell-side and buy-side transactions, capital advisory, and valuations. Len is a graduate of the U.S. Naval Academy with MBA from Boston College and a veteran of the U.S. Navy. He is also a member of INDA’s non-woven Technical Advisory Board. llaporta@wileybros. com or (615) 782-4107.
Source: Freightos. September 10, 2023. Air freight market update, delays, cost increases, and forecast for 2023. https:// www.freightos.com/freight-resources/ shipping-delays-and-cost-increases/
Involving your management team in the Management Presentation (“MP”) Round is a critical decision facing any owner looking to sell their business. The bidders need to hear from the team.
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competitive Sell-Side process requires a significant time commitment of the management team over a nine-month timeframe. The owner of the firm should ensure their direct reports understand their role in building confidence in the overall business model. The lack of senior management participation will most likely lead to a lower valuation. Too many times, a business owner thinks that going down the path of “trusting” only their intuition will lead to a great outcome in valuation and meeting the personal goals of the selling family or shareholder. That assumption generally is not correct. For the Management Presentation, one suggestion is to involve key members of functional departments: operations, production, finance, supply chain and quality control. In addition, some owners prefer to have a family member or significant other attend the meetings and dinners with the various bidders. Owners and direct reports might have anxiety meeting with potential buyers, therefore, a friendly participant might help settle nerves. During the Management Presentation, arrange the direct reports in order of speaking assignment to match presentation. Remember, many of your team leaders are not public speakers, therefore, keep each page simple and pertinent to their department. Highlevel bullet points, pictures and product samples are excellent content in presentations.
Another presentation strategy to consider for a firm producing a product is to arrange the presentation and speakers to align with the actual production cycle. In this example, start with the sales department and explain how the firm obtained the business. Next, have the operations manager explain how they source the material and then how they work with the production manager to create the schedule. In this example, the direct reports can easily represent the process, to the bidders, without a formal PowerPoint presentation. Achieving an “outlier” valuation bid has a direct correlation to the Management Presentation. Your investment banker will work with you and the management team to prepare for optimal outstanding delivery. The M&A market continues to be bullish and there should continue to opportunities to sell your business in 2024.
Air Freight Market Update, Delays, Cost Increases, and Forecast for 2023 The seasonal lull combined with overall low demand is pushing volumes below pre-pandemic levels at some of Europe’s major hubs, though some in the industry are hopeful that electronics product launches set to begin soon could drive some peak season rebound in the coming months nonetheless. Freightos Air Index data shows ex-Asia and transatlantic rates remain more than 40% lower than a year ago though China – N. America rates have increased more than 25% since a month ago. Air rates – Freightos Air index • China – N. America weekly prices increased 14% to $4.59/kg • China – N. Europe weekly prices increased 5% to $3.05/kg. • N. Europe – N. America weekly prices increased 2% to $1.70/kg.
This article has been prepared solely for informational purpose. This article does not constitute an offer, or the solicitation of an offer, to buy or sell any securities or other financial product, to participate in any transaction or to provide any investment banking or other services, and should not be deemed to be a commitment or undertaking of any kind on the part of Wiley Bros. –Aintree Capital &Partners, LLC (“WBAC”) or any of its affiliates to underwrite, place or purchase securities or to provide any debt or equity financing or to participate in any transaction, or a recommendation to buy or sell any securities, to make any investment or to participate in any transaction or trading strategy. Any views presented in this article are solely those of the author and do not necessarily represent those of WBAC. While the information contained in this commentary is believed to be reliable, no representation or warranty, whether expressed or implied, is made by WBAC, and no liability or responsibility is accepted by WBAC or its affiliates as to the accuracy of the article. Prior to making any investment or participating in any transaction, you should consult, to the extent necessary, your own independent legal, tax, accounting, and other professional advisors to ensure that any transaction or investment is suitable for you in the light of your financial capacity and objectives. This article has not been prepared with a view toward public disclosure under applicable securities laws or otherwise.
40 IFN ISSUE 1 2024
