At first blush, a fleet owner might not think of selling off their business in the current business climate.

But investment banker Mark Dyer, managing director of the Transportation Practice for Dallas-based Allegiance Capital Corp., tells me there are actually several reasons why 2013 is a good year to make that move.

And Dyer knows whereof he speaks. He has 15 years of experience in the Mergers & Acquisitions (M&A) field and the strategic partner arena and in that time has successfully closed over 170 transactions. What’s more, as a business owner previously Dyer went through the buy/sell process himself. That’s why, he points out, he can relate to “the challenges, concerns and critical importance of making sure both parties in the transaction are the right fit.”

Dyer observes that “when big companies sell, they make headlines. Many are household names and the transactions are measured in billions of dollars. However, 90% of the businesses sold every year are valued at less than $500 million.

“Among those could be a fleet of 100 tank trucks located in West Texas or a fleet of 20 delivery trucks located in New York City,” he continues. “If you own one of these types of fleets and are asking yourself if this is a good time to sell your company, consider that you have already survived the worst economic downturn in recent U.S. history, clawed your way back, and have fought to retain existing customers and win new ones. So, why would you sell out now?”

According to Dyer, there are four excellent reasons why:

1.  The economy is growing again.

“If you work in the shipping and logistics industry, nobody has to tell you business is picking up.  Consumers are shopping again. Consumer confidence has increased. The stock market is higher than it was prior to the 2008 crash.  The housing market has rebounded and sales are increasing daily.  All economic predictions indicate that numerous sectors such as: retail, aerospace, energy and the auto industry are regaining traction and sales are climbing.

“As we all know, nothing moves in the U.S. without trucks being involved.  America’s success rides on American fleets.  If you are thinking about selling your fleet, you should sell when the market and sales are rising – not falling.  Potential buyers are interested in, and will pay more for, fleet operations that can demonstrate rising sales and cash flow.  Don’t miss the wave that is building in 2013.”

 2.  Political questions are answered. 

“Last year the U.S. faced one political crisis after another.  The election, the debt ceiling, new healthcare legislation and the fiscal cliff, all created uncertainty.  Fleet owners who were thinking about selling and potential buyers held off awaiting the answers.

“Today, most of those issues have been addressed and potential buyers are ready to move forward in acquiring new fleets and investing in new operations.”

3.  Cash is available. 

“Corporations have approximately $1.8 trillion in cash available for mergers and acquisitions.  Private equity groups alone have $430 billion.  Both corporations and equity groups want to put that cash to work and expand their companies through acquisitions that can help them become more profitable.

“After a slow 2012, they want and need to invest those funds in fleets that will provide a great return on their investment.”

4.  Foreign investors want to invest in the U.S.  

“While some areas in Europe are slowly recovering, overall the European economy is still down.  Foreign investors know the U.S. is a safe place to invest their money at the lowest risk worldwide.  The dollar is still undervalued which makes U.S. companies even more attractive.

“Foreign companies who have been looking to invest in the U.S. see 2013 as the year to acquire profitable, middle market, American companies that offer a tremendous return on their investment.

“Many of these are corporations seeking fleets to transport the products they ship to the U.S. or, others who already own production facilities in the U.S. who want to add transportation capabilities.”

Dyer stresses this is an extremely opportune time to sell a fleet business because “to command top dollar, you want to sell your business when the business is growing, the economy is expanding, political issues are minimal and cash is available.  All of these factors make 2013 a good year to take that next step.  All the factors are in the seller’s favor.”

Since selling a business is neither simple nor easy, I’ll be checking back in with Mr. Dyer in the coming weeks when he will answer some of the most common questions about selling a business, such as:

·  How do I prepare to sell my business?

·  What are the steps involved in selling a business?

·  What is my company really worth?

·  Who will pay the most for your company?

·  Why is your deal taking forever to close?

·  What will I do after the sale?

In the meantime, those seeking more immediate M&A counsel can contact Mark Dyer directly via email or by phoning him at his New York City office at  212-949-5149.

This article first appeared at FleetOwner.com, a premier online resource for the trucking industry.

]]> http://www.allcapcorp.com/2013/04/17/news-updates/ma-file-1-good-year-sell-004386.html/feed 0 http://www.allcapcorp.com/2013/04/09/news-updates/terra-contracting-powerful-principles-propel-growth-004360.html http://www.allcapcorp.com/2013/04/09/news-updates/terra-contracting-powerful-principles-propel-growth-004360.html#comments Tue, 09 Apr 2013 20:49:50 +0000 Jessica Lonsdale http://www.allcapcorp.com/?p=4360 Terra Contracting Uses Powerful Principles to Propel Growth

Terra Contracting, recently acquired by industry giant Great Lakes Dredge & Dock, uses six principles—integrity, safety, customer focus, intensity, training and teamwork—to deliver high quality projects that exceed customer expectations.

KALAMAZOO, MI – March 20, 2013 – “One of the toughest decisions I have ever made was to leave the family business and start my own company,” says Steve Taplin, President of Terra Contracting.  But Taplin cherished the business lessons his father taught him, emphasizing the importance of hard work, integrity and honesty.  These principles helped grow Terra Contracting from a small, family-owned company to the multi-million dollar corporation recently acquired by Great Lakes Dredge & Dock for $20 million.

Headquartered in Kalamazoo, MI, Terra Contracting is a leading environmental remediation firm that employs approximately 200 engineering, operations and administrative staff and serves customers in more than 30 states in the environmental, infrastructure, energy, industrial, transportation, wastewater and construction sectors. Terra’s services include the removal and remediation of contaminated sediment, soil and groundwater, superfund site clean-ups, hazardous waste removal and brownfield site restoration, facility and equipment decontamination and decommissioning, tank cleaning, hazardous materials abatement, emergency response services, and municipal utility, sewer and wastewater infrastructure maintenance, inspection and refurbishment.

Taplin remembers what his dad, Al Taplin, always told him: “Be honest!  Do every job the right way. Be passionate about what you do and take care of your customers.” Taplin also remembers learning teamwork from his parents. “While my dad did the work in the field, my mom was at home, taking phone calls from customers, keeping the books straight, and managing the home. It was definitely a team effort. They built the business together.” Even though his parents’ company, A&B Sewer Cleaning, focused on residential sewer and drain services rather than environmental services, these guiding principles bridged the generations and the industries.

Superfund – Former Paper Mill | Plainwell, Michigan

“The six principles are still the heart and soul of Terra Contracting today,” Taplin emphasizes.  “If you work at Terra, one thing you can be sure of is that you will often be reminded of them – hopefully at least once a day, if not more. These six principles by which we make all of our important decisions are no accident. They weren’t made up in some dark, smoke-filled room.  We didn’t find them in some trendy management book. We inherited these principles and we gladly accepted them because they had been tried and tested in the field to prove their worth.”

Taplin began work in the family business at the age of 13, helping his dad and brothers build septic tanks and clean out sewer and drain lines.  “It was tough, hard work, and dad set the bar really high,” explains Taplin.  “I had never worked anywhere else. I took a lot of pride in the work we did as a family.  My dad was very supportive of my decision to create Terra. He had seen it coming and he encouraged me to do what I wanted to do.”

One of the first things Taplin did at Terra Contracting was to establish the six principles he had grown up with in his father’s company.  “That was, and is, the baseline for all of our decisions,” he explains.  “It impacts every phase of our operations, from hiring team members to doing the work on site.  It all begins with integrity.  When we hire someone, we explain our dedication to the six principles during the interview process.  When you make a mistake and hire someone who does not believe in the principles, it shows up pretty fast in how they work and deal with team members and customers.”

Another trait that helped catapult Terra Contracting to success was Taplin’s “can-do” attitude.  He was never afraid to take on a big project.  “One day we were having lunch, and we got a call from Enbridge (a multi-national oil pipeline operator).  The caller wanted to know if we did spill response.  We replied ‘yes’—and then he asked us to bring everything we had to work on a large oil spill on the Kalamazoo River.  I was on the site in less than 40 minutes,” explained Taplin.  That phone call turned into a $35 million project for Terra, and Enbridge remains a Terra Contracting client today.

PCB-Contaminated Sediment Removal | Sheboygan, Wisconsin

While Terra was winning contracts and growing, it was not without challenges.  “We work in a very capital intensive industry. It costs a lot of money to purchase the equipment we need. The main barrier we faced in winning larger contracts was not our desire or capabilities, but our ability to secure the required bonding,” said Taplin. “We had proven we could do very large, complex jobs, and do them very well.  That is one reason we wanted to become part of Great Lakes Dredge & Dock.  They offered the financial and physical resources that will enable us to win those large projects that will take us to the next level.”

While much of the work Terra does involves moving or removing thousands of cubic yards of contaminated earth or thousands of gallons of contaminants, technology is still important.  “I remember working for my dad’s company, and we had financial issues and job status reporting issues.  We never really knew how we had done financially until the end of the quarter and bonuses were calculated.  I knew we couldn’t manage Terra without technology to manage the process better,” says Taplin.

“Today, at Terra we use technology to manage everything.  From the operations of our digging and pumping equipment to the exact status of every project, we use technology every day, all day. It guides our GPS-enabled equipment and tracks the status of each project.  A lot of our employees were old-school engineers. They had to adapt and learn.  That is where the ‘Training’ principle comes into play.  If I deploy new technology and fail to train my employees, we both fail.  If you do a good job training, and explaining the benefits technology will deliver, employees will use it and embrace it.”

River and Marsh Remediation | Hammond, Indiana

As Terra has grown, environmental remediation remains its focus. In 2011, the company completed 108 remediation projects, and in 2012 the work accounted for revenues of $40.0 million or 77% of company sales.  However, Terra has also expanded its services, which now include abatement services, municipal and industrial environmental services, brownfield site restoration, hydro evacuation, wetlands construction, landfill capping and maintenance, lagoon cleanups and closures as well as abandoned site cleanup and restoration.

2012 was a pivotal year for Terra Contracting.  “We were growing and everything was going well, but I knew if we wanted to reach that next level, we needed to partner with another company.  John Sloan, Vice Chairman of Allegiance Capital contacted me in late 2011.  Allegiance is the firm we hired to advise us during the sales process.  I had talked to several investment bankers, but John was different.  He fit into our six principles. I trusted him. He and his colleague, Jim Derks, were passionate about understanding our business. They trained us on the sales process and they were dedicated to us as a customer,” Taplin comments.

“Great Lakes, the buyer Allegiance brought to us, was also a great fit,” Taplin continues.  “Our philosophies were the same—get the job done right!  They have never failed to complete a marine job in 122 years, and Terra has never started a job in 23 years that we have not finished.  They are primarily a dredging contractor, with very little experience in environmental remediation. They have the equipment and the financial backing needed to win major contracts. They can take Terra to the next level, and we can help them break into markets they could not reach. It is a win-win for everyone.”

Great Lakes CEO Jon Berger stated, “The Terra acquisition fits our strategic vision to gain a stronger foothold in the environmental remediation market. Terra will broaden our demolition segment with additional services and expertise as well as expand our footprint in the Midwest. Terra reinforces our efforts to develop relationships with larger industrial and governmental clients. Additionally, our rivers and lakes operations can leverage Terra’s environmental remediation focus to accelerate its participation in the environmental dredging market.”

The sale to Great Lakes Dredge & Dock has not dampened Taplin’s enthusiasm for building the business.  “With the decommissioning of coal fired power plants and new environmental cleanup sites being identified almost daily, I see a very bright future for Terra.  We expect to generate approximately $65 million in revenue this year and add even more projects to the backlog. This is a great opportunity for the team and the new company we have created together!”

PCB-Contaminated Sediment Removal | Sheboygan, Wisconsin

The only challenge Taplin cited about selling Terra Contracting was personally letting go.  “One day, after the sale, my son and I were driving through Kalamazoo. He saw some equipment and asked if it was mine. It was only then that I realized it was no longer mine,” Taplin recalls.  “Equipment is almost personal.  You own it.  However, if you want to move on to the next level you have to let go.  We have a great team at Terra!  We could never have achieved the success we achieved without the team we developed. You have to realize that it is best for the company and for everyone if you put personal feelings aside and take that next step. ”

Selling a business can present challenges.  “As you go through the process, you have to disconnect from it personally and realize it is a business transaction. It is not personal.  You have to look at it objectively, and put yourself in the position of the buyer to understand why they are asking some of the questions. Allegiance Capital did a good job of preparing us for the questions and assisting us in the process. That made it all easier.”

What advice would Taplin give to anyone starting a business today?  “You need to be passionate about what you choose to do and remember something my dad told me. He said, ‘You always give first and take last.’  You have to set your sights beyond tomorrow and what is in it for you.  You have to be prepared to make sacrifices.  You have to be the first one to take a pay cut and the last one to be repaid.  I never ever cut my worker’s pay.  I had to cut the pay of salaried workers a few times, but I always made it up to them as soon as possible and I was always the last to be paid.”

If you drive by a Terra Contracting job site a few years after the work is completed, you probably won’t see anything out of the ordinary: a field full of beautiful wild flowers, a river flowing with clear cool water, or possibly a new commercial development.   That is exactly the way Al Taplin would have wanted it.  As Steve explains, “Every time my dad finished pouring a septic tank, he would place his initials on the wet concrete.  He knew the tank would be buried, and that nobody would ever see his work. But he taught us that we should be proud enough of your work to put your name on it—even if you are the only one who sees it. I think my dad would be very proud of what Terra does today.”

About Great Lakes Dredge & Dock Corporation
Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States and the only U.S. dredging company with significant international operations. The Company is also one of the largest U.S. providers of commercial and industrial demolition services primarily in the Northeast. The Company owns a 50% interest in a marine sand mining operation in New Jersey that supplies sand and aggregate for road and building construction and a 50% interest in an environmental service operation with the ability to remediate soil and dredged sediment treatment. Great Lakes employs over 150 degreed engineers, most specializing in civil and mechanical engineering, which contributes to its 122-year history of never failing to complete a marine project. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. Great Lakes also owns and operates the largest and most diverse fleet in the industry, comprised of over 200 specialized vessels.

About Terra Contracting, LLC
Headquartered in Kalamazoo, MI, Terra employs approximately 200 engineering, operations and administrative staff and serves customers in more than 30 states in the environmental, infrastructure, energy, industrial, transportation, wastewater and construction sectors. Terra’s services include the removal and remediation of contaminated sediment, soil and groundwater, superfund site clean-ups, hazardous waste removal and brownfield site restoration, facility and equipment decontamination and decommissioning, tank cleaning, hazardous materials abatement, emergency response services, and municipal utility, sewer and wastewater infrastructure maintenance, inspection and refurbishment. For more information go to: www.terracontracting.net.

About Allegiance Capital Corporation
Allegiance Capital Corporation is an investment bank specializing in financing and selling businesses in the lower middle market. Allegiance Capital Corporation was recently named to American City Business Journal’s distinguished list of Who’s Who in Energy 2012, in addition to being named third on the list of 2011 Largest Investment Banking Firms in North Texas (Dallas Business Journal). Allegiance Capital Corporation has won multiple awards recognizing the value it delivers to clients. Examples include: 2009 Dealmaker of the Year (Dallas Business Journal), 2008 Boutique Investment Bank of the Year (M&A Advisor), and 2006 Investment Bank of the Year (Dallas Business Journal). Subscribe to the Capital Ideas blog by visiting: www.allcapcorp.com/blog. Follow Allegiance Capital Corporation on LinkedIn and Twitter: @ALLCAP.

Media Contact:
Bruce R. Condit
Vice President – Director, Public Relations
Allegiance Capital Corporation
214-217-7746
bcondit@allcapcorp.com

Alternate Contact:
John R. Sloan
Vice Chairman
Allegiance Capital Corporation
214-217-7753
jsloan@allcapcorp.com

I have known many business owners who planned to sell their company and retire only to have their plans ruined by a sudden economic downturn.  The Great Recession is the fourth time I’ve seen poor economic performance ruin the best laid plans of a friend and/or client.  A couple of years after each downturn, the same conversation will start to resurface: “I’m waiting for the market to come back before I sell my company . . . Jeff, when is it going to be back?”

The reason I bring this up now is: 1. this conversation is occurring with great frequency,  and 2. The Dow Jones Industrial Average (DJIA) is over 14,000. The last time the DJIA close above 14,000 was October of 2007.  It was above 14,000 for only a few months and its peak was 14,164.53.

14,000 is just a valuation.  It is based on the earning and multiples applied to a broad group of industrial companies.  If the Dow Jones is equal to an all-time high, it means that the cash flow of a broad section of companies, times the multiples that investors are paying for that cash flow, is at an all-time high.

To summarize, now is as good of a time to look at selling your company as a short period of time five years ago.  That is it.  There has never been a better time.

The market is back!

Mr. Bezos should know a thing or two about building a brand, especially since Amazon was named the most respected firm in the US last week. But what exactly are the hard things? And how do you do them well?

David Mahmood, Founder and Chairman of Allegiance Capital Corporation, also knows a thing or two about branding. Allegiance, a boutique investment bank headquartered in Texas, has a respected brand among both clients and institutional peers. Mahmood, an entrepreneur himself, walked us through the key pillars of building and maintaining his quality brand:

Guarantee Client Satisfaction through Exceptional Service

According to Mahmood, the first step to building a strong brand is to go above and beyond. “If you are going to succeed and be credible selling a service, branding begins with your clients,” explains Mahmood. “You need clients who are extremely satisfied with your service and who are willing to attest to your success. That establishes and builds your credibility and your brand.”

One of the ways Allegiance ensures outstanding service is by making sure clients fully understand — and are comfortable with — the process on which they are embarking. “We recognize that most business owners understand their business, their channel of distribution, their competitive environment, etc., but have little appreciation for the M&A process,” explained Mahmood. “We work hard to ensure they understand the process, their options and how we work.”

Even more importantly, Allegiance goes above and beyond by working with clients to ensure success after the completion of the sale. Mahmood explained, “We negotiate the non-compete agreements; we introduce our clients to competent legal and financial firms; we introduce them to respected wealth management firms.”

Foster Client Trust through Relatability

Trust is the second key tenet to a great brand — clients need to trust that the process went appropriately, trust that their interests were placed first, and trust that they received the best possible result. For Mahmood and Allegiance, this type of trust is fostered through relatability.

When Mahmood was on the other side of the table, selling his companies, he was disappointed with the relatability of the intermediaries. “Many of the bankers I worked with when I was an entrepreneur were smart, but did not understand my perspective.” He continued, “To market to this niche successfully, you need to understand who you are selling to, why you are selling to them, and what’s in it for them. Most businesses fail within the first three years, and every entrepreneur has the scars to prove it. If you don’t appreciate that sacrifice — if you only relate to his balance sheet and income sheet — you won’t build interpersonal relationships.”

Mahmood believes the relatability issue applies to the M&A industry as a whole. “The inability to relate to clients is not restricted to bankers. There are many PE groups that are so focused on IRR that they cannot connect with the owner-operator. If you view the company simply as a roll-up or possible means to boost IRR, you will struggle to build a strong relationship and your brand will suffer.”

Ensure Depth of Your Brand by Hiring the Right People

Once the foundation of a good brand is established, it is critical to ensure its longevity and maintenance by hiring people who will abide by its tenets and rules. “We employ experienced, senior people who are knowledgeable and can relate to our clients,” explained Mahmood. “Our clients are generally older, they are experienced, and they know their business. They deserve to have mature, financially astute, smart representation that understands them and can relate to them.”

He continued, “We are selective in who we bring in because we want the fit to be right. If the chemistry isn’t right, we change them out. Doing this has helped us build a strong, focused brand.”

While Allegiance sets a high bar for both the investment banking and business development teams, Mahmood understands that there is always room for growth and further development. “I invest a lot in training our team. During our annual meeting, we bring in experts to teach a variety of social skills, social styles, non-verbal communications, and negotiation tactics.”

Spread your Brand Far and Wide

With a strong team and a reliable reputation, the key to develop a good brand into a great brand is marketing. Mahmood explained, “Once you have established a foundation, built upon great service, you need to employ a multiplier factor. We continually market through a variety of channels that include conferences, organizations, press outreach, and social media.”

He added, “We like to reach out to clients and prospects in a variety of ways. Whether it is a letter, phone call, email, or a combination of the above, we are constantly putting our name out there.”

This proactive outreach and marketing is crucial to the solidification and consolidation of your brand. By sharing the principles, standards, and success associated with your brand, you are able to help others understand it. “You need to take your successes and market them,” explains Mahmood. “If you don’t broadcast your successes far and wide, how will people know about them? How will they know about your brand?”

Continuously Re-Evaluate Your Brand

Even after you have established a strong brand — and have the policies to propagate it — it is crucial to continuously re-evaluate. “We live in a very dynamic world and the only constant is change. To accommodate this change, you have to be able to target your message and constantly re-evaluate it,” explains Mahmood. “If you went into business 15-20 years ago, and have done nothing to adjust, the market will pass you by. My market is continually evolving and continually changing, so my outreach to them must continually change as well.”

Allegiance Capital Corporation, a Dallas-based private M&A investment bank specializing in the lower middle market, announced today that it has facilitated the acquisition of its client Longhorn Health Solutions by Satori Capital.  Allegiance Capital Corporation acted as the exclusive financial advisor to Longhorn Health Solutions.

Headquartered in Austin, TX, Longhorn Health Solutions is a provider of home health medical supplies including products for diabetics, enteral nutrition, urologic, mobility and incontinence.  They are primarily focused on Medicaid but are also a Dallas-Fort Worth Medicare winning bidder.

“Britt Peterson and his management team exhibit an inspirational form of entrepreneurial spirit – they actually care about their clients. From our first meeting, we were impressed with their fundamental approach to business. They treat every patient client as if they were their own grandparents. Longhorn’s integrity is remarkable,” said Brent Earles, Senior Vice President at Allegiance Capital Corporation.

“Longhorn Health Solutions is a great American success story of how two best friends built a business with ingenuity and unflagging dedication to high quality service,” said Fred McCallister, Senior Vice President at Allegiance Capital. “It is a privilege to be associated with such an inspiring group of young entrepreneurs, as well as the quality investment firm Satori Capital, whose commitment to conscious capitalism makes these two special Texas companies a perfect match.”

Longhorn Health Solutions has experienced year over year rapid growth, becoming the State of Texas Star+Plus Medicaid leader in every major market across the state. The company provides a unique white-glove delivery service, strongly supporting Medicaid HMO service coordinators while offering fine quality medical supplies and outstanding healthcare cost management.

The transaction involved a number of Dallas-based firms, including Munsch Hardt Kopf & Harr Law Firm, which represented Longhorn Health, Patton Boggs, which represented Satori Capital (also based in Dallas), and Allegiance Capital.

Fred McCallister and Brent Earles manage the Healthcare M&A practice at Allegiance Capital Corporation. Allegiance Capital Corporation is currently involved in several engagements with other healthcare companies; to view a list of current engagements, visit http://www.AllCapCorp.com.  For information on how to sell a business, call 214-217-7750.

About Longhorn Health Solutions Headquartered in Austin, Texas, Longhorn Health Solutions is a provider of home health medical supplies including products for diabetics, enteral nutrition, urologic, mobility and incontinence, primarily focused on Medicaid, but also a Dallas-Fort Worth Medicare winning bidder. For more information go to http://www.longhornhealth.com.

About Satori Capital Satori Capital is a middlemarket growth capital and buyout firm based in Dallas, Texas. Satori partners with management teams that are building significant long-term value through a sustainable approach. These businesses deliver strong returns by operating with a long-term perspective, committing to their mission or purpose, and focusing on creating value for all stakeholders including investors, customers, suppliers, employees, and the community. The investment team has a long and successful track record as private equity investors and as founders and chief executive officers of sustainably run businesses. For additional information regarding Satori’s investment criteria and philosophy, please visit http://www.satoricapital.com.

About Allegiance Capital Corporation Allegiance Capital Corporation is an investment bank specializing in financing and selling businesses in the lower middle market. Allegiance Capital Corporation was recently named to American City Business Journal’s distinguished list of Who’s Who in Energy 2012, in addition to being named third on the list of 2011 Largest Investment Banking Firms in North Texas by the Dallas Business Journal. Allegiance Capital Corporation has won multiple awards recognizing the value it delivers to clients, including 2009 Dealmaker of the Year (Dallas Business Journal), 2008 Boutique Investment Bank of the Year (M&A Advisor), and 2006 Investment Bank of the Year (Dallas Business Journal). Subscribe to the Capital Ideas blog by visiting http://www.allcapcorp.com/blog. Follow Allegiance Capital Corporation on LinkedIn and Twitter: @ALLCAP.

Media Contact: Bruce Condit Vice President Public Relations Allegiance Capital Corporation 214.217.7746 bcondit(at)allcapcorp(dot)com

Alternate Contact: Brent Earles Senior Vice President Allegiance Capital Corporation 214-217-7713 bearles(at)allcapcorp.com

Allegiance Capital Corporation announced today that it has facilitated two add-on acquisitions: Select Communications (based in Plymouth, MN) and The Wireless Center (based in Cleveland, OH) for its clients, premium Verizon retailer, Z Wireless, and middle market private equity group, Atlantic Street Capital. These acquisitions will enable the retailer to continue to grow its operations.

Headquartered in Sioux Falls, SD, Z Wireless markets and sells a full suite of Verizon Wireless products and services from over 100 stores in 9 Midwestern states.  It is the largest operator of exclusive Verizon Wireless Premium Retailer stores in that region. In addition to wireless services, the company also sells a comprehensive mix of wireless devices, including smartphones, voice phones, tablets, and a broad range of accessories to be used with these devices. Z Wireless has grown from 85 locations to over 230 locations in the past year.

“Telecommunications continues to exhibit a degree of evolution and competition that few industries ever experience. The speed of change, the evolution of devices, the sophistication of the network and its tools constantly drive this ever-challenging industry, as consumers demand more convenience and perfect service,” said Brent Earles, Senior Vice President at Allegiance Capital Corporation and former telecom executive and consultant. “The network is the central nervous system of telecom performance, where long-term evolution is quickly becoming an immediate requirement of success. Z Wireless and Atlantic Street Capital continue to demonstrate remarkable leadership as part of the Verizon network of premium retailers.”

Andy Wilkins, the Partner at Atlantic Street who oversees wireless telecommunications, expressed his enthusiasm for the transaction: “Working with Allegiance Capital is always a pleasure.  The team at Allegiance does a superb job working with financial sponsors and entrepreneurs to facilitate successful transactions.  Brent Earles and Fred McCallister understand the telecommunications industry extraordinarily well, which allows for smoother due diligence and a comfortable closing process.  We look forward to continuing to grow this business with Allegiance in the coming months.”

Terms of the private transaction were not disclosed.

Brent Earles and Fred McCallister manage the Telecommunications M&A practice at Allegiance Capital Corporation. Allegiance Capital Corporation is currently involved in several engagements with other telecommunications and wireless retailers, and continues to develop ongoing relationships with leading wireless retailers nationwide.  To view a list of Current Engagements, visit www.AllCapCorp.com.  For information on how to sell a business, call: 214-217-7750.

About Z Wireless

Z Wireless is a retail sales and service company operating Verizon Premium Wireless Retail stores throughout the Midwest. Founded in 2000, Z Wireless has experienced exponential growth and expansion. 2006 marked a distinct change in philosophy as the company began its transformation from a local Verizon Authorized Wireless Retailer in Sioux Falls, SD to a regional Verizon Premium Wireless Retailer in the greater Midwest. With stores in 9 states, Z Wireless has grown from 85 locations to over 230 locations in the past year.

About Atlantic Street Capital

Atlantic Street Capital is a private equity firm that invests in middle market companies with between $25 and $150 million in revenue. The firm invests in fundamentally sound companies that will benefit from capital investment and value-adding strategic and operational initiatives. Atlantic Street Capital’s partners are hands-on investors who work closely with management to unlock their business’ underlying value and help them succeed. The firm is currently investing from Atlantic Street Capital Partners, L.P. II.  For more information, visit www.atlanticstreetcapital.com.

About Allegiance Capital Corporation

Allegiance Capital Corporation is an investment bank specializing in financing and selling businesses in the lower middle market. Allegiance Capital Corporation was recently named to American City Business Journal’s distinguished list of Who’s Who in Energy 2012, in addition to being named third on the list of 2011 Largest Investment Banking Firms in North Texas (Dallas Business Journal). Allegiance Capital Corporation has won multiple awards recognizing the value it delivers to clients. Examples include: 2009 Dealmaker of the Year (Dallas Business Journal), 2008 Boutique Investment Bank of the Year (M&A Advisor), and 2006 Investment Bank of the Year (Dallas Business Journal). Subscribe to the Capital Ideas blog by visiting: www.allcapcorp.com/blog. Follow Allegiance Capital Corporation on LinkedIn and Twitter: @ALLCAP.

Media Contact:
Bruce R. Condit
Vice President – Director, Public Relations
Allegiance Capital Corporation
214-217-7746
bcondit@allcapcorp.com

Industry Contact:
Brent D. Earles
Senior Vice President
Allegiance Capital Corporation
212-217-7713
bearles@allcapcorp.com

Allegiance Capital Corporation, a Dallas-based private M&A investment bank specializing in the lower middle market, announced today that it has facilitated the acquisition of its client Terra Contracting, LLC, by Great Lakes Dredge & Dock Corporation. Allegiance Capital Corporation acted as the exclusive financial advisor to Terra Contracting, LLC.

Headquartered in Kalamazoo, MI, Terra Contracting, LLC is a premier environmental contracting company that provides exceptional environmental services to clients throughout the United States. Terra offers a wide range of services that include soil, water and sediment remediation; 24-hour environmental response; industrial cleaning; municipal services; abatement services; hazardous waste removal; and other related services. Terra has developed particular expertise in the area of sediment removal and remediation on major river projects.

“Allegiance Capital was pleased to represent Terra Contracting, LLC in this transaction. There are powerful synergies in combining these two fine companies and we see these as a winning strategy for everyone,” commented John R. Sloan, Vice Chairman at Allegiance Capital Corporation.

In the press release announcing the acquisition, Great Lakes CEO Jon Berger stated, “The Terra acquisition fits our strategic vision to gain a stronger foothold in the environmental remediation market. Terra will broaden our demolition segment with additional services and expertise as well as expand our footprint in the Midwest. Terra reinforces our efforts to develop relationships with larger industrial and governmental clients. Additionally, our rivers & lakes operations can leverage Terra’s environmental remediation focus to accelerate its participation in the environmental dredging market.”

Terra is expected to generate approximately $45 million of service revenue with 15% EBITDA margins in 2013, while also generating approximately $20 million of pass through transportation and disposal revenue. Terra will add approximately $20 million to Great Lakes’ year-end 2012 backlog excluding project option opportunities.

Allegiance Capital Corporation is currently involved in several engagements with other oil field services, environmental and wastewater companies. To view a list of Current Engagements, visit www.AllCapCorp.com. For information on selling a business, call 214.217.7750.

About Terra Contracting, LLC
Headquartered in Kalamazoo, MI, Terra employs approximately 200 engineering, operations and administrative staff and serves customers in more than thirty states in the environmental, infrastructure, energy, industrial, transportation, waste water and construction sectors. Terra’s services include the removal and remediation of contaminated sediment, soil and groundwater, superfund site clean-ups, hazardous waste removal and brownfield site restoration, facility and equipment decontamination and decommissioning, tank cleaning, hazardous materials abatement, emergency response services, and municipal utility, sewer and wastewater infrastructure maintenance, inspection and refurbishment. For more information go to: www.terracontracting.net.

About Great Lakes Dredge & Dock Corporation
Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States and the only U.S. dredging company with significant international operations. The Company is also one of the largest U.S. providers of commercial and industrial demolition services primarily in the Northeast. The Company owns a 50% interest in a marine sand mining operation in New Jersey that supplies sand and aggregate for road and building construction and a 50% interest in an environmental service operation with the ability to remediate soil and dredged sediment treatment. Great Lakes owns and operates the largest and most diverse fleet in the U.S. industry, comprised of over 200 specialized vessels.

About Allegiance Capital Corporation
Allegiance Capital Corporation is an investment bank specializing in financing and selling businesses in the lower middle market. Allegiance Capital Corporation was recently named to American City Business Journal’s distinguished list of Who’s Who in Energy 2012, in addition to being named third on the list of 2011 Largest Investment Banking Firms in North Texas (Dallas Business Journal). Allegiance Capital Corporation has won multiple awards recognizing the value it delivers to clients. Examples include: 2009 Dealmaker of the Year (Dallas Business Journal), 2008 Boutique Investment Bank of the Year (M&A Advisor), and 2006 Investment Bank of the Year (Dallas Business Journal). Subscribe to the Capital Ideas blog by visiting: www.allcapcorp.com/blog. Follow Allegiance Capital Corporation on LinkedIn and Twitter: @ALLCAP.

Media Contact:
Bruce Condit
Vice President – Director Public Relations
Allegiance Capital Corporation
214.217.7746
bcondit@allcapcorp.com

Alternate Contact:
John R. Sloan
Vice Chairman
Allegiance Capital Corporation
214-217-7753
jsloan@allcapcorp.com

The overall economy continues to improve, and the transportation industry can be a good place to be.  According to IBISWorld, combined long distance and local freight revenues are expected to climb 3% in 2013, to $189.9 billion, with profits in the 5% range.

As the industry becomes more complex, transportation companies are increasingly turning to mergers and acquisitions to help them meet customer needs and drive growth.  These transactions can be extremely profitable: in 2012, companies in the transportation industry sold for an average of between 4 and 7 times earnings.

Customers have an abundance of choices when it comes to their transportation needs, and they’re making more and more demands of the vendors they choose.  With so many options available, today’s customer wants a transportation vendor who serves multiple markets, provides nationwide service, offers storage and distribution options, and affords them the operational flexibility they need to meet an ever changing marketplace.

Transportation companies face internal challenges as they try to respond to these customer demands.  Securing, training and maintaining a high-performance driver pool is costly: IBISWorld reports that driver compensation is still the largest industry cost, taking 31.2% of revenues in 2012.  The rising cost of fuel, materials and supplies also impacts the bottom line and the company’s ability to compete in the marketplace.  (According to the American Trucking Association, trucks use about 48.2 billion gallons of fuel per year, with long distance haulers accounting for 70% of that.)

These challenges are particularly problematic for small or mid-size transportation companies, which often do not have the market clout to command the lowest prices for equipment or services.  Increasingly, these company owners are turning to the mergers and acquisitions process to drive growth, increase profitability, and take their transportation company to the next level.  Selling part ownership of the company to a financial investor provides an influx of growth capital that allows the company to compete effectively in a more complex transportation industry.  Alternatively, merging with a larger competitor or a complementary business can help both parties expand by capitalizing on each others’ strengths.

If you have considered selling your company, you may have many concerns:

• How do I find the right buyer?
• Can I maintain confidentiality during this process?
• What are the legal and tax issues?
• What is a fair valuation for my company?

Even when a sale or merger is the best strategic move, some company owners hesitate to start the process because they are unfamiliar with the terrain.  How do you approach a potential buyer, who may be a larger competitor?  Do you inform your management team?  How do you protect the proprietary information you need to disclose during due diligence?  How do you sell your company and not risk losing customers?

Accountants and lawyers can provide valuable services and play a vital role. However, they may have little or no experience in negotiations or pricing tactics.  Business brokers usually attempt to sell a business by offering it to a large audience of buyers, but they often have very limited knowledge of the transportation industry, and may require extra time to learn the industry and to identify the best opportunity.

That’s where an investment banker comes in.  Investment bankers are experienced with all M&A strategies and can guide you through the sales process to find motivated, qualified buyers and successfully close a profitable transaction.

Mergers and acquisitions activity in the transportation industry is on the increase as companies seek the most efficient, cost effective and profitable way to serve customers. Significant capital is available and successful transactions are being closed.  If you are considering selling your business or expanding through M&A activity, please contact:

Mark Dyer
Managing Director, Transportation Practice, Allegiance Capital Corporation
212-949-5149
mdyer@allcapcorp.com

The so-called “middle market” has driven U.S. mergers and acquisitions activity for the past several years, with over 90% of transactions taking place in companies valued at less than $500 million.  But deal flow in 2012 was low, surprising just about everyone. Here’s what happened and 4 reasons why 2013 will be a good year to sell your company…

Read the full article on Inc. Magazine online: http://www.inc.com/david-lonsdale/four-reasons-it-will-be-a-good-year-to-sell-your-company.html

Click here to read the full report: http://www.allcapcorp.com/news/ma-market-reports.