This page contains a Flash digital edition of a book.
98•


ACQUISITIONS Realize the premium price you deserve (Continued from page 94.)


is not a win-win situation. In reality, it is actually much closer to a win- lose situation. This type of Ib recog- nizes that negotiations are a psychological war between disparate interests that have conflicting goals. The seller wants the maximum attain- able premium price, while the much larger, sophisticated acquirer expects a discounted price, as they normally get their own way in middle market acquisitions. There is no way these diametrically opposite interests will not result in a psychological battle where the better prepared, more de- termined party will prevail. • An investment banker with com- passion and concern for their clients that understands most acquirers will try to steal a seller’s company. The right Ib for you will be steadfast and resolute, concerned only with pro- tecting and maximizing your realistic interests. If an acquirer won’t opti- mize your interests, the right Ib will not consummate a deal under lesser terms. •An Ib that has the aggressiveness,


determination, toughness and force of personality, combined with the mar- ket and financial knowledge, to force their will on large corporate acquirers or sophisticated private equity firms. If those traits are not present in the in- vestment banker, you can be assured


that a premium price will not be yours. •An investment banker that has the


executive and business skills, tran- scending the financial skills that any Ib should have, to fully understand your company, its strengths, market niche and potential. They also must


confidence to wait, if necessary, to obtain a premium-priced, all cash deal. In certain situations, they must be willing to allow the power of their knowledge and personality traits to have the time necessary to wear down the acquirer to agree to the deal and terms that are essential to the


for their clients that understands most acquirers will try to steal a seller’s company. The right IB for you will be steadfast and resolute, concerned only with protecting and maximizing your realistic interests.


have the ability to present and articu- late these facts clearly and persua- sively to an acquirer. The investment banker has to understand your com- pany better than the acquirer and un- derstand your industry at least as well, if they are to prevail. This knowledge when combined with the personality traits and attitude previ- ously described will intimidate an ac- quirer and convince them that they can’t steal your company; they can only buy it at a realistic premium price. There is no other way to win the psychological war of negotia- tions. • An Ib that has the patience and


LENOX mfg plant earns prestigious OSHA ‘Star’


eAsT LonGMeADow, MAss.— LenoX®


has been recertified for an


additional five years in the presti- gious “star” Voluntary Protection Program of the U.s. Labor Depart-


reevaluations to remain in the program. “At LenoX, we take just as much


ment’s occupational safety and Health Administration. LenoX has maintained this elite health and safety certification for more than 10 years. osHA’s verification for the star cer-


tification includes an application re- view and a rigorous onsite evaluation by a team of osHA safety and health experts. LenoX originally earned this honor in 1997. since then, LenoX earned recertification in 2000, 2005 and again in 2010. sites that make the grade must submit annual self-evalua- tions and undergo periodic onsite


pride in the environment in which our products are produced as we do in the quality of our products,” said Mike Avery, director of safety and security. “This prestigious certification recog- nizes the outstanding efforts of all LenoX employees. because of the teamwork of each and every person here, we have been able to maintain the highest levels of osHA certifica- tion for more than 10 years.” The LenoX plant, which employs


720 workers, manufactures power tool accessories and blades including band saw blades, hack saws, hole saws, utility knives and reciprocating saw blades at the east Longmeadow location. This most recent star recer- tification allows LenoX to remain a part of an elite corps of just over 2,200 workplaces nationwide that


• Be sure to visit www.thewholesaler.com for web exclusive articles and videos! •


maximization of your interests. This is the only type of deal you want.


Summary Although the 18-month period end-


ing 6/30/07 was the most lucrative time to sell a middle market company in over 50 years, the latter part of 2011 and 2012 should present a great opportunity to sell a middle market company at a premium price. This is true for the myriad of economic, tax, financial and market reasons that were defined in this article. If you are to realize the premium


price you deserve, your investment banker must have the commitment to


have earned VPP recognition. The VPP promotes effective work-


site-based safety and health by hav- ing management, labor and osHA establish cooperative relationships at workplaces. Approval into VPP is osHA’s official recognition of the outstanding efforts of employers and employees who have achieved exem- plary occupational safety and health. requirements for application to


An investment banker with compassion and concern


protect and maximize your interests and the determination, toughness and strength of will to force an acquirer to price your company on its ex- pected future ebITDA and the qual- ity of its business foundation. If, and only if, they have these traits and abilities will you be able to obtain the premium price that should be avail- able to middle market sellers during the latter part of 2011 and 2012. n


George Spilka is president of


George Spilka and Associates, a na- tional investment banking firm based in Pittsburgh that specializes in mid- dle market, closely-held corpora- tions. They have a broad-based service that advises clients through the entire acquisition process, and also in preparing a company for sale. Their client base has included a di- verse group of distributors, including many plumbing, waterworks, PVF and HVAC distributors, and manu- facturers. They have been advising middle market companies in the sale of their firms since 1978. You can learn more about the firm at their website www.georgespilka.com. He can also be reached by telephone at 412-486-8189, by email at spilka@georgespilka.com, by fax at 412-486-3697, or by writing him at Suite 301, 4284 Route 8, Allison Park, PA 15101.


VPP include a high degree of man- agement support and employee in- volvement, a high-quality worksite hazard analysis, prevention and con- trol programs and comprehensive safety and health training for all em- ployees. each of these elements must be effective, in place and in operation for at least one year before a com- pany can apply to join the program. Visit www.lenoxtools.com.


Camfil Farr offers free seminars


Jonesboro, Ark. — Camfil Farr Air Pollution Control introduced a new technical seminar program focusing on how to understand and maintain dust collection systems for optimum performance. Free programs will be offered throughout the year at the company’s Jonesboro, Ark. head- quarters and its new regional offices in Los Angeles, Calif., Lincoln, neb., Charlotte, n.C., Dayton, ohio, Dallas, Texas and Gurabo, Puerto rico. each full-day seminar begins with


classroom training on dust collection and industrial ventilation basics, dust testing, and nFPA, ePA and osHA regulations that impact dust collec- tion. The second half of the program features “hands-on” lab training that includes trouble-shooting an actual dust collector and reviewing system effects on performance of a fan and duct system operating in the lab. For information on how to register


for a free seminar, contact Camfil Farr APC at 866/ 669-6750 or visit www.farrapc.com/offices.


•THE WHOLESALER® — MARCH 2011


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186  |  Page 187  |  Page 188  |  Page 189  |  Page 190  |  Page 191  |  Page 192  |  Page 193  |  Page 194  |  Page 195  |  Page 196  |  Page 197  |  Page 198  |  Page 199  |  Page 200