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We sat down with Joe Statter, President and Managing Director of Evergreen Advisors Capital (EAC) to ask a few questions about M&A activity in the private sector and what 2016 is shaping up to look like so far.
1. How has the year 2015 been for you and EAC in terms of middle market activity?
2015 was a great year. We closed 6 deals and we are currently executing 14 client engagements – 9 M&A assignments and 5 capital raise assignments. Of the 9 active M&A engagements, 2 are now under letter of intent.
2. What are the biggest factors driving M&A, and therefore, causing companies to reach out to Evergreen Advisors Capital?
There are three macro drivers making this a great time to be a seller:
One: The overall economy is only growing at a 2% pace, forcing companies to pursue an inorganic or growth-by-acquisition strategy. Slow growth has been pulling more strategic acquirers into the market.
Two: There is a lot of debt and equity capital available. Cheap debt and equity make acquisitions less dilutive to the buyer. Middle market buyout funds are sitting on over $360 billion of dry powder and S&P 500 companies control over $2.2 trillion of cash.
Three: Drivers one and two above are driving purchase multiples higher – business owners who are considering a sale know that we are in a very favorable part of the cycle, giving them confidence to go enter the market. [Read more…]
Greg Huff, Managing Principal, Evergreen Advisors
The fifteenth anniversary of Evergreen Advisors got me thinking about some of the events which have occurred since 2000 and their impact on the business valuation profession.
Remember Y2K? By the beginning of the millennium, programmers had overcome the “Y2K problem,” but the country was quickly confronted with overheated IPO and technology sectors, followed by the collapse of the telecom industry in 2001.
9/11 – the Terrorist Attack on America – This event fueled extraordinary growth in national security spending and infrastructure. The availability of vast amounts of our personal and confidential data on the internet also created opportunities for theft and disruption. Cyber security became one of the fastest growing sectors in the economy, funded by government and private sources, and continues to be an economic driver in the Greater Baltimore Washington area.
Tysons Corner, VA – Evergreen Advisors Capital (EAC), a leading middle-market investment banking and corporate advisory firm, is pleased to announce that it served as the exclusive financial advisor to TLK Group, LLC (TLK) in connection with its recapitalization with One Equity Partners (OEP) and simultaneous merger with The Results Companies (Results).
OEP is a private equity firm that invests in multiple industries including technology, media, telecom, business services, healthcare, consumer products, chemicals, and manufacturing.
Evergreen Advisors, proud sponsor of the 2015 CyberMaryland Conference’s Cyber Shark Tank, is pleased to announce the 2015 Shark Tank Winners. Secure Mentem came out on top, and Rippleshot and LarkSpear, Inc. rounded out the top three. Other Shark Tank participants included Point3, WutsGood, Rippleshot, LarkSpear, Bolo Network, and Fractal Security.
Evergreen Advisors is proud to announce that we are a sponsor for the CyberMaryland 2015 Cyber Security Hall of Fame. Five individuals will be recognized for their key role in the creation of the Cyber Security Industry. Nominees belong to the categories of Technology, Policy, Public Awareness, Education, or Business. CEO of LifeJourney, and one of our very own clients, Rick Geritz, is on the organizing committee for this event on October 29, 2015. This year’s keynote speaker is Alex Stamos, Chief Security Officer at Facebook. He is an expert in global scale infrastructure, designing trustworthy systems, and mobile security. The CyberMaryland Conference 2015 is going to be a great event, concluded with the Hall of Fame Dinner, and Evergreen is honored to be a part of it. For more information about the CyberMarland Conference, please visit the links below.
CyberMaryland 2015 https://www.fbcinc.com/e/cybermdconference/default.aspx
National Cyber Security Hall of Fame https://www.fbcinc.com/e/cybermdconference/hof.aspx
“We’re Open for Business” – An Interview with Secretary of DBED, Mike Gill, and CEO of Evergreen Advisors, Rick Kohr
We have had some incredibly successful, local people as part of our quarterly newsletter in recent years, ranging from Bill Miller of Legg Mason, Brian Rogers, CEO of T. Rowe Price, John Schuerholz of the Atlanta Braves, Congressman Dutch Ruppersberger, Dr. Ben Carson, Kevin Plank, founder of Under Armour… Today we can celebrate one of Evergreen’s key players. It has been over six months since my partner Mike Gill started a new chapter as the Secretary of Business & Economic Development. I have known Mike for close to 25 years, going back to when my wife Holly went to work for Mike in an early stage venture, AMERICOM. Mike and I have stayed connected, but Mike didn’t become a partner in Evergreen until we “closed” the deal on his back porch on a hot afternoon over an iced tea in 2007. His energy, network and incredible business success is what attracted me to Mike and sell him on joining our firm. I wanted to check in with him to see what he has learned in his new position; what has surprised him; his goals for DBED; and why someone with his success would take a job in a state that, more recently, is viewed as anti-business. It is an interesting read…
CEO Evergreen Advisors
The ETC (Emerging Technologies Center) is Baltimore’s award winning incubator and aims to close the gap between innovative ideas and the ability to get to market. The ETC offers three programs for entrepreneurs: Beehive Baltimore, a co-working space; Incubation, the perfect environment to get serious about a big idea with support and networking from the ETC; and AccelerateBaltimore, a 13-week program for 6 startups to get to market more quickly.
The biggest weakness we see in entrepreneurial businesses is a lack of access to high-level financial guidance when and where it’s needed. At the end of the month, quarter, or year, it’s all about the numbers; Revenues, costs, and cash flow – these are all issues that keep an entrepreneur up at night. In any high growth business, a solid finance function is an early key to success. Yet the cost for a full time CFO may be out of reach for many early stage companies. For many businesses an outsourced CFO can be that key to success.
Join Evergreen Advisors at the 5th Annual CyberMaryland Conference 2015 scheduled for October 28th and 29th at the Baltimore Convention Center. The Conference includes thought leaders from Maryland’s Cyber Security sector and also features nationally recognized speakers and panelists on cyber and technology innovations. Sessions cover the most up-to-date information from thought leaders covering all facets of the cyber ecosystem. For example, previous sessions have allowed telecommunications businesses to learn about the benefits of managed security services. New this year are two sessions on securing venture funding for startup and late stage cyber security companies. The sessions will provide an opportunity for startups to connect directly with experienced cyber investors and will include two activities – the Cyber Shark Tank and the Cyber Investor Connection.
During the Cyber Shark Tank up to ten qualified early-stage companies will pitch before cyber investor “sharks” for cash prizes. Selected companies will present and receive feedback for 10-15 minutes from investors during a two-hour session on October 29th. To participate, companies must be in the seed or early stage, have an innovative cyber technology and a scalable business model. Judges will consist of venture capital and angel investors, bankers and serial entrepreneurs.
XPX Maryland is a local chapter of XPX Global, a community of professional advisors who work collaboratively to help owners build valuable businesses and prepare them for successful transition. Founded in 2006, each XPX Chapter is a locally-controlled non-profit organized by local leaders in the private company market.
XPX members include accountants, management consultants, attorneys, marketing and top-line business strategies, business coaches, insurance executives, mergers and acquisitions specialists, valuation and wealth management professionals and more – all working together to foster better understanding of the many disciplines that contribute to the health and profitability of private enterprises.
Evergreen Advisors Capital, a middle-market investment bank, is pleased to announce that it was the exclusive financial advisor to IMPAQ International of Columbia, MD, a research, evaluation, and technical assistance firm, in connection with its acquisition of the assets of Educational Services, Inc. (ESI).
IMPAQ provides research and consulting services through the use of impact evaluation studies, applied research, policy analysis, quantitative and qualitative data analysis, and technical assistance. With the firm’s recent acquisition of ESI, they have expanded their service offerings to add information dissemination, conference management, training, and eLearning services to the company’s solutions portfolio. ESI will become IMPAQ’s Communications Solutions business unit. IMPAQ is headquartered in Columbia, MD, with additional offices in Washington, DC, Oakland, CA, Boston, MA, and Sarajevo, BA.
“Evergreen has been a partner with us through the process of negotiation and due diligence,” says Steve Coy, Managing Director, Corporate Development, at IMPAQ International. “Their expertise and guidance has been invaluable as we implement our external growth strategy.”
Terms of the transaction were not disclosed.
Evergreen Advisors Capital, a middle-market investment bank, is pleased to announce that it was the exclusive financial adviser to The ROI Companies of Timonium, MD, a full service revenue management firm specializing in the healthcare industry, in connection with its recapitalization. Chicago-based, Edgewater Funds provided the equity financing.
ROI provides critical services to hospitals and physician groups including insurance billing and follow-up, self-pay billing, coding, eligibility, consulting, cash acceleration and collections. The Company is headquartered near Baltimore, MD with offices in the Boston, Cleveland, Philadelphia and Washington, DC markets.
Chris Wunder, President of the ROI Companies commented, “We are thrilled with the support we got from Evergreen every step of the process. Their counsel was invaluable allowing us to make the best possible deal.”
Evergreen Advisors is a prominent middle market investment bank and corporate advisory firm focused on guiding companies in the areas of corporate finance, growth and exit strategies, business valuations and CFO advisory services. The firm is pleased to announce that they have received regulatory approval for Evergreen Advisors Capital, a wholly-owned subsidiary, to operate as a licensed Broker/Dealer, Member FINRA/SIPC.
“The firm has grown substantially over the past five years. The establishment of our own Broker/Dealer was a critical next step in the maturation of the company. Along with our emerging growth CFO Advisory Practice and Valuation Services, we are now a single-source provider of services for business consulting and transaction advisory. This makes our offering unique in this region. Our expertise, deep knowledge of the capital markets, and market insight provides our clients pertinent and uniquely tailored advice to maximize their value. ” stated Rick Kohr, Chief Executive Officer of Evergreen.
Evergreen Advisors is pleased to announce the addition of Eric Clarke to the team since the start of 2015 as well as share in their excitement about the growth of the firm.
Eric Clarke was welcomed in March of 2015 as Vice President in the CFO Advisory Practice. He is responsible for helping expand the outsourced CFO Advisory Practice, which serves early stage and growing businesses that need quality financial management, strategic guidance, and development of infrastructure. He has been an incredible asset to the firm thus far.
Join Evergreen Advisors’ Rick Kohr and thousands of other industry professionals at the RSA Conference, in San Francisco, California. It is the premier information security event of 2015 and you don’t want to miss it!
Conference attendees will learn about IT security’s most important issues through first-hand interactions with peers, luminaries and emerging and established companies, and will therefore stay connected and educated as the IT security field continues to grow.
Taking place from April 20 – 24 at the Moscone Center in San Francisco, California.
For more information on pricing, location, speakers, and other details please visit: www.rsaconference.com
Evergreen Advisors is pleased to announce the addition of Eric Clarke and Jessica Stoehr to their team.
Eric Clarke joined Evergreen Advisors in March of 2015 as Vice President in the CFO Advisory Practice, and will be responsible for helping to build the CFO Advisory Practice here at Evergreen. Our CFO Advisory Practice serves early stage and growing businesses that need quality financial management, strategic guidance, and development of infrastructure.
Mark Gretz, another Vice President in our CFO Advisory Practice, stated, “We are thrilled to have Eric joining our CFO Advisory Team. This is an exciting time for our growth, and Eric will be a key part in helping us to serve our expanding list of clients.”
Evergreen Advisors is attending the ACG National Capital 21st Mid-Atlantic Growth Conference on March 9th and 10th. The upcoming 21st Mid-Atlantic Growth Conference, Washington Technology Showcase and DealSource will feature the first ever Washington Technology Showcase, which aims to highlight some of the Washington area’s most promising technology companies. The two-day event will also feature keynote presentations from David Falk founder of F.A.M.E. and Michael Chasen, SocialRadar CEO and former Blackboard Co-Founder and CEO.
Join us on Thursday February 19th as Joe Statter, managing director at Evergreen Advisors Capital speaks at XPX DC Metro on Financial Recapitalizations: Getting Liquidity While Preserving Future Upside.
Joe Statter will provide an overview of recapitalizations, and discuss the structure and the benefits to business owners of this strategy. Joe will present a case study of a recent transaction which provided the business owner with current liquidity and future upside as the business continues to grow.
In this Entrepreneur Spotlight we focus on LifeJourney. LifeJourney is a technology company in the education market that enables students to test-drive their future by living a day in the life of America’s STEM leaders. Schools use LifeJourney in their classroom to inspire students to pursue STEM careers. LifeJourney’s customers include middle and high schools, Community Colleges, Colleges and Fortune 500 companies. Some of their partners include General Dynamics, Intel, Lockheed Martin, COPT, Kaspersky, Cyberpoint, BAE, and Symantec. We interviewed Rick Gertiz, CEO of LifeJourney, on how he got started in the business of STEM Education and how his background has helped him to succeed.
Where did the idea for LifeJourney come from?
I had often participated in mentoring of students and concluded that mentorship does not scale. Less than 1% of all students in America ever experience a mentor or participate in an internship. We needed a way to bring the nation’s leading STEM companies together to mentor a nation. LifeJourney enables a single mentor to guide 1 million students with fewer than 15 minutes of time commitment a month. LifeJourney is a platform to share your journey with the next generation.
What do you think is the biggest challenge facing STEM education? Awareness. Ask a student in school the age-old question: “What do you want to be when you grow up?” And you will still hear doctor, lawyer and athlete. Just in Maryland alone there are over 20,000 open and unfulfilled jobs in technology driven fields. Still we do not hear “data scientist” or “forensic analyst.” This occurs because students cannot connect their classroom experience to the STEM jobs in their future. They need to understand the path. They need to understand the journey and they need someone to guide them toward that. Parents struggle with guiding their students, as technology is the new alphabet and modern days skills are essential to compete in this new digital economy.
Evergreen Advisors is pleased to announce that today Gov – elect Larry Hogan announced that he has appointed Mike Gill, Secretary of the Maryland Department of Business and Economic Development (DBED), the state’s chief economic development agency.
Mike is Chairman and a Principal of Evergreen Advisors, LLC, a Mid-Atlantic investment bank with strong capabilities in Mergers and Acquisition, Corporate Finance, Valuation and CFO Advisory Services.
Rick Kohr, CEO of Evergreen Advisors, commented on the announcement, “I am excited for the people of the State of Maryland and, in particular, the business community of the state. Mike has a passion for creating a great ecosystem for the business world – this creates jobs, tax base and a stronger community. His high energy, business acumen and positive outlook will be an important ingredient for improving this ecosystem in Maryland.”
“I’ve been a pretty vocal advocate out there talking about the need for a renewed focus on economic development and a need to grow the private sector,” Hogan said at a press conference Thursday announcing the appointment. “I believe Mike is the right man.”
In a recent article titled Accounting’s Big Data Problem, published on CFO.com by David M. Katz, the author dives into the world of Big Data and how its use is slow to be adopted in the accounting profession. His underlying belief is that generally,
we as accountants, are behind the curve in utilizing Big Data, most specifically unstructured data. While the jury is still out on its impact in the financial reporting and audit functions, the use of unstructured data in Financial Planning and Analysis (FP&A) is critical.
As many experts will tell you a financial model is only as good as the inputs. True as that might be, it is the process of identifying the inputs through review and analysis of unstructured data which can identify the strategic correlation between the drivers and KPIs.
Key stakeholders from operations, sales & marketing, R&D, etc. should be viewed as important resources during the process, not only to provide easily identifiable data such as customer churn rate, but equally as important insight into unstructured data such as the customer onboarding process. Through this process an organization might identify a strong correlation between certain aspects of the onboarding process of a customer and their churn rate. Below are a few examples of structured data which has an equally important unstructured data component.
Please Join us for: Digital Health
Opportunities Enabled by the Affordable Care Act
The Affordable Care Act is enabling a new generation of companies to leverage information and technology to transform our healthcare ecosystem. There are many new products coming forward to help alleviate the pressure on the healthcare system, especially during the COVID-19 pandemic. Companies like Butterfly Network are making remote healthcare much easier, with portable and small ultraounds that analyse lung and cardiac health connecting to phones to present in a video chat with a qualified healthcare professional. Advancements like these are alleviating pressure on the healthcare industry, as well as reducing the costs that mount on them everyday. Areas such as electronic health records, care coordination, wellness, remote monitoring and data analytics are changing the healthcare system while helping traditional participants comply with the requirements of the ACA – an entrepreneurial perfect storm. Panelists will address the innovations that are arising to enable payers, providers, patients and pharma to reduce costs and improve outcomes.
Following the panel, several innovative growth-stage digital health companies will provide a three-minute overview and will be available for private meetings.
What is my Company worth today as I go to market? The easy answer is a multiple of revenue or earnings. It is desire to take an art and make it science. We love the scoreboard in sports and the business world.
But for me, it is clearly more than that. How does an investor look at this? Often times it is implicit but maybe not ….. you can really look at this more analytically then one might think. Looking at this objectively — as an investor or buyer might – can be very helpful in looking at valuations ranges more precisely (dangerous word but we will use it anyway today).
Joe Statter, Managing Director and head of the Washington / Northern Virginia office of Evergreen Advisors recently took part in roundtable focused on special purpose acquisition companies, or SPACS. Prior to Evergreen, Joe an investment professional and acting CFO to Capitol Acquisition Corp, a $262m SPAC, which launched in 2007 and merged with Two Harbors Investment Corp to create a REIT. He now advises clients on a range of corporate finance transactions, including SPACs.
The article discussed how while SPACs have become an increasingly common means of raising capital for private companies over the past decade, many PE houses have been eyeing these structures as a possible exit route or a means of raising capital for single deals. The Private Equity Findings Journal showcases new PE and VC related research from leading international academic thinkers, discussed and challenged by senior academics and practitioners.
A copy of this article can be found in Issue 9.
As the year comes to a close, we are starting to think about 2014 and the resolutions we want to set for the new year. Every year, the top New Year’s Resolution is too eat healthy and exercise regularly.
In the spirit of the New Year we have selected RightSize Health and Nutrition as our entrepreneurial spotlight for this newsletter.
RightSize has been in the health and wellness business for over 10 years and is focused on delicious weight loss meal replacements. For the spotlight, we recently sat down with the management team at Rightsize to learn more about weight loss trends, the impact they have on their business, and branding.
Tell us about the company’s signature product, the RightSize Smoothie?
RightSize Smoothies are delicious, satisfying weight loss beverages packed with protein, fiber, and over 20 essential vitamins and minerals that keep your body nourished. They conveniently replace breakfast and lunch and stave off hunger with a unique combination of protein, fiber and a low glycemic index–keeping you full for hours!
The only certain means of success is to render more and better service than is expected of you no matter what your task may be.
“Make the Best, Someone will buy it”
A conversation with Alan Wilson,
Chairman and CEO of McCormick & Company
It’s probably appropriate that you are reading my interview with Alan Wilson, Chairman and CEO of McCormick, between Thanksgiving and Christmas, two pretty important holidays to the McCormick Company. Recently, Shelley Lombardo, our Vice President of Marketing at Evergreen, and I visited Alan at McCormick’s headquarters in Sparks, Maryland. When you grow up in Baltimore there are certain things that matter to all Baltimoreans: The Orioles, the Chesapeake Bay and McCormick Spice- they define us.
My first up close and personal familiarity with McCormick was in the late 70’s when I was with IBM and had account management responsibility for McCormick. I was in awe of their leadership (Wells, Wilson, Thomas, Yates, Shelhoss, and Nordhoff), the way they treated their people, and their innovative approach to management development (inspired by C.P. McCormick).
And now it’s 2013, almost 2014 and the foundation whose first cornerstone was laid 124 years ago, gets stronger each year. The greatest spice company in the world.
Alan is in his 20th year with McCormick and completing his 6th year as the leader of this great company.
Thank you, Alan, for sharing your time with us. You carry the torch of responsibility and stewardship well.
Evergreen Advisors, LLC
Print the Full Interview Here – EA Interview Alan Wilson
Recently, Susan Kim covered the Investment Maryland Challenge in the Business Monthly. The InvestMaryland Challenge is a national seed and early-stage business competition hosted by the Maryland Department of Business and Economic Development in partnership with Inc. Magazine. The Challenge will award $400,000 in grants and a host of business services to companies in the life sciences and high tech industries. Grants are provided by the Department’s Maryland Venture Fund and the BioMaryland Center.
She reached out to Rick Kohr of Evergreen Advisors, a second year judge, to provide thoughts on the program. “This is leading-edge program that promotes the entrepreneurial energy in the state,” he said. “This, in conjunction with the $84 million investment dollars generated last year for the Maryland Venture Fund and numerous other venture funds with a presence in this state, creates a new level of much-needed support for new businesses and ideas. There had been a dearth of monies and commitment before these efforts.” [Read more…]
Wall Street Journal – September 26, 2013 – Of course, traditional metrics still matter to investors. Startups need a competitive advantage, profitable business model and high-quality entrepreneurs to attract funding. But social media is playing an increasingly important role, investors say—especially as more people in their 20s and 30s rise to positions where they can back new companies. “Ten years from now, social media will be the starting point of any investment,”says Ted Leonsis, a partner at venture-capital firm Revolution LLC and chairman of the board at daily-deals site Groupon Inc.
Read more here and see top 8 tips for how to look good for investors on social media – http://online.wsj.com/article/SB10001424127887324659404578499702279196058.html
You are cordially invited…
Space is limited, so register today.
Third Annual Liquidity and Capital Raising National Forum which takes place on Tuesday, October 8, 2013 at the Four Seasons Hotel, Baltimore.
We will be joined by a panel of seasoned M&A and capital markets experts who will share their insights, advice, and experiences. This year’s forum is being moderated by Bloomberg, the national leader in global business and financial information. Bloomberg television and radio personality Carol Massar will bring her own unique style and perspective to the forum.
CohnReznick’s Third Annual Liquidity and Capital Raising National Forum offers a discussion of the latest trends and success stories for liquidity events and capital raises. It is designed for the key decision makers in companies — CEOs, CFOs, and Presidents — and will provide an ideal networking venue for attendees to connect, exchange ideas, and further develop beneficial relationships.
Loyola University Alumni – On Friday, Sept. 20, meet Meet Rick Kohr, ’81, MBA ’86, the founding member and CEO of Evergreen Advisors LLC. Rick will provide a look at the cyber landscape here in Maryland and the ecosystem including education, incubators, commercial, and government. Rick has more than 25 years experience in advising early stage growth and middle market companies, growth financing, business evaluations, executing exit strategies, and CFO advisory services. The Company works with cyber companies on financing alternatives and exit strategies including raising capital, recapitalization, merger, sale and ESOP’s.
Rick is also managing member of the Chesapeake Emerging Opportunities Club, an early stage venture capital fund. He holds his License in Series 65 and 7, the 63 Uniform Securities License and 79 General Securities Agent License.
Rick serves on the Board of Directors for Meta Source, Healthcare Interactive, Pathsensors Inc., Emerging Technology Council, Economic Alliance of Greater Baltimore, Howard County Economic Development authority, and ICAT Logistics, Inc. He has held past board of directors positions and has also served on the Howard County Cyber Commission.