2. Legal Notice
• This is not an offer to sell or a solicitation of an offer to
buy securities.
• Securities are offered through Corporate Finance
Securities, Inc.
• Corporate Finance Securities, Inc. is a member firm of
FINRA and SIPC.
3. Current Market Conditions
• Improving deal activity
• Premium for larger deals
• No premium for quality
• More debt, less equity
• Lower interest rates
• Higher taxes
4. Deal Activity
Deals per Year
250
200
150
100
50
0
2007 2008 2009 2010 2011
Source: GF Data Resources
5. Buyout Multiples by Industry
EBITDA Multiples by Industry
7.5
7.0
6.5
6.0
5.5
5.0
2007 2008 2009 2010 2011
Health Care Services Business Services Manufacturing Distribution
Source: GF Data Resources
6. Buyout Multiples by Deal Size
EBITDA Multiples
8.0
7.0
6.0
5.0
4.0
2007 2008 2009 2010 2011
10-25 mil 25-50 mil 50-100 mil 100-250 mil
Source: GF Data Resources
7. Premium for Larger Deals
Buyout Multiples by Deal Size
8
7.5
7
6.5
6
5.5
5
2007 2008 2009 2010 2011
10-50 mil 50-250 mil
Source: GF Data Resources
8. Premium for Quality Deals
Buyout Multiples by Deal Quality
7
6.5
6
5.5
5
2007 2008 2009 2010 2011
Above Average Other
Source: GF Data Resources
9. More Debt
Debt Multiples
4.0x
3.0x 0.8x
0.9x 0.9x
0.7x
2.0x 0.8x
2.8x
1.0x 2.3x 2.3x 2.4x
1.7x
0.0x
2007 2008 2009 2010 2011
Sub Debt/EBITDA Sr Debt/EBITDA
Source: GF Data Resources
10. Less Equity
Equity and Debt Contributions
36.8% 29.3% 36.9% 37.4%
43.6%
17.9% 12.1%
15.8% 14.5%
13.7%
42.7% 47.3% 52.8% 51.0% 48.2%
2007 2008 2009 2010 2011
Senior Debt
Sub Debt
Source: GF Data Resources LLC
Equity
12. Higher Taxes
Top Federal Tax Rates
45.0
40.0
35.0
30.0
Partner Income
25.0
S Corp Income
20.0
C Corp Income
15.0
Capital Gains
10.0
5.0
0.0
2010 2011 2012 2013
