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Submit Your Q4 2014 Deals Anytime

ACG Philadelphia members with closed Q2 2014 deals can now respond to the DealWire survey anytime during the quarter.Click Here for the Q4 DealWire Survey

Please note that you can now re-enter the survey to update your responses up until Friday, Janaury 9, 2015.

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only deals LED BY YOUR LOCAL OFFICE and CLOSED DURING April 1 - June 30, 2014 are eligible for submission.

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About DealWire
ACG Philadelphia's quarterly M&A report, captures deal and transactional activities from around the region based on ACG Philadelphia members' and other dealmakers (investment bankers, private equity professionals, professional service firms and corporate executives).

Click here for Historical Featured Deal Summaries

Questions about DealWire Philadelphia should be directed to Jen Simons at jsimons@acg.org.
 
 
  
 

 

    DealWire Philadelphia, Q3 2014            Volume X, Issue III

 

2014 Remains on Pace for Strong Volume
- commentary by Pat Dolan
Delancey Street Partners & ACG Marketing Committee Member

Despite Recent Public Market Volatility, M&A and Capital Markets Volume Remains Strong

Year-to-date total transaction volume in 2014 suggests confidence is high among business owners, investors, executives and Board members.  The desire to capitalize on this environment is evidenced through a 19.2% increase in overall transaction volume through the first three Qs of 2014 relative to the first three Qs of 2013.  2014 has been marked by steady, strong activity in both M&A and capital markets activity (see charts below).  Although overall quarterly transaction value was slightly down in Q3 2014 relative to the first two quarters of the year, total transaction value of $45.6 billion in Q3 2014 remains at a healthy level relative to the quarterly total transaction value levels during the prior three years. 

For those who attended M&A East in October, the overall tone at the conference suggests it remains a favorable environment to be a seller of a business, with a distinctive scarcity premium in the market for quality companies.  For business owners, the ingredients remain in place to capitalize on a seller-friendly M&A market:  i) strategic acquiror’s need for growth; ii) healthy corporate balance sheets; iii) attractive financing markets; and iv) considerable "dry powder" available from financial sponsors.  Many strategic acquirors and financial sponsors speak of a highly competitive M&A auction environment where getting invited to a management presentation following initial indications of interest is a significant challenge.  This supply/demand imbalance is not expected to be resolved in the near term.

From an M&A deal volume perspective, activity has been generally "up and to the right" since the bottom in Q1 2009.  All industry sectors remain active, with financials and information technology the most active sectors.  Activity is strong in the middle market and the large cap market, which signals a higher level of confidence in boardrooms to get deals done.  Despite this overall positive tone, recent market volatility caused by various headlines around the globe warrants monitoring as 2014 comes to a close.

Scroll down to read more about our 25 member firms' Q3 2014 transactions as well as their new hires and promotions.

Source: S&P Capital IQ


Click Here to Read the Complete Q3 2014 Report including Regional Deal Activity and Industry Sector Analysis

Argosy Private Equity 

Argosy Private Equity (Michael Bailey, Donald Charlton, Matthew Erbe, Kirk Griswold, Steven Morgenthal, Jack Nugent, Casey O'Rourke, Keven Shanahan and Joshua Welk members) led two acquisitions and hired a business development professional in Q3. 
See list of deals and new hires

Ballard Spahr LLP 

Ballard Spahr LLP (Craig Circosta, Brian Doerner, Anuj Goswami, Amit Kakkar, Robert Krauss, Steven Miller and Matt Potalivo members) advised its clients on 9 completed transactions in Q3. 
See list of deals

Boenning & Scattergood, Inc. 

Boenning & Scattergood, Inc. (Alex Bondroff, Charles Hull and Jim McCormick members) provided sell-side and buy-side advisory to clients on 3 closed transactions and hired an additional analyst in Q3.  
See list of deals and new hires

Cozen O'Connor 

Cozen O'Connor (Sandra Bloch, Larry Laubach, Anne Madonia and Michael Zanan members) served legal counsel on 4 completed transactions in Q3. 
See list of deals

Drinker Biddle & Reath LLP 

Drinker Biddle & Reath LLP (Elizabeth Babson, Joshua Bernstein, Stephen Burdumy, William Clark, David Denious, Neil Haimm, Laura Householder, Daniel Krane, Matthew Meyers, Lauren Platko, Douglas Raymond and John Talbot members) represented its clients on 19 closed transactions in Q3.  
See list of deals

Duane Morris LLP 

Duane Morris LLP (Peter Byrne, Heather Carmody, Maria Rose Granholm, Richard Jaffe, Darrick Mix, Kathleen Shay, Richard Silfen, Thomas Spencer, Barry Steinman and David Toner members) provided legal advisory to its clients on 13 closed transactions.  The firm also added 4 new attorneys in Q3.  
See list of deals and new hires

Fairmount Partners 

Fairmount Partners (Charles Eckert, Bill Frame and Richard Wainwright members) provided M&A advisory for its clients on 2 closed deals in Q3. 
See list of deals

Fesnak, LLP 

Fesnak, LLP (Robert Fesnak, TJ Haas, Thomas Hamill, Lisa McLemore, Joseph Pellerite and Michael Verrill members) provided services to a PE firm on one completed transaction in Q3.  
See list of deals

Fox Rothschild LLP 

Fox Rothschild LLP (Terrence Kerwin and Sandra Romaszewski members) provided legal services for its clients on 4 M&A transactions in Q3. 
See list of deals

Graham Partners 

Graham Partners (Matthew Arden, Joseph Heinmiller, Joseph May, Clemente Micara-Sartori, Robert Newbold, Andrew Snyder, Liz Weiner and Joshua Wilson members) completed 5 transactions in Q3. 
See list of deals

Griffin Financial Group, LLC 

Griffin Financial Group, LLC (John Lee member) provided M&A advisory expertise on 6 completed transactions in Q3.   
See list of deals

Inverness Graham Investments 

Inverness Graham Investments (Sean Dougherty, Ken Graham, Matthew Moran and Michael Morrissey members) completed 2 acquisitions in Q3. 
See list of deals

Janney Montgomery Scott LLC 

Janney Montgomery Scott LLC (Joseph Culley, Steven Higgins, Benjamin McKean, James McNaughton, Joseph Reichert and Brian Van Der Waag members) provided M&A advisory for its clients on closed 22 transactions in Q3. 
See list of deals

Klehr Harrison Harvey Branzburg LLP 

Klehr Harrison Harvey Branzburg LLP (Patrick Murphy and Michael Rittinger member) served as legal counsel on 3 closed transactions in Q3. The firm also hired 2 corporate attorneys. 
See list of deals and new hires

Larsen MacColl Partners, LP 

Larsen MacColl Partners, LP (Chris Davis, Kristen Hubbert, Jeffrey Larsen, Tim MacColl, Todd Marsteller, Satya Ponnuru, Taylor Rooke and Mark Tyson members) finalized one transaction in Q3.  
See list of deals

LLR Partners  

LLR Partners (Christian Bullitt, Kristy DelMuto, Mitchell Hollin, Chris Mahatma, Todd Morrissey, Zachary Sigal and David Steines members) completed 3 deals in Q3 and hired an advisor for its portfolio companies. 
See list of deals and new hires

Milestone Partners 

Milestone Partners (Adam Curtin, Peter Elkes, Brooke Hayes, Daniel Johnson, John Nowaczyk, Daniel Ryan and Geoffrey Veale members) closed 2 deals and hired an analyst in Q3. 
See list of deals and new hires

NewSpring Capital  

NewSpring Capital (James Ashton, Michael DiPiano, Kara Herrick, Steven Hobman, Skip Maner, Brian Murphy, Andrew Panzo, Anne Vazquez and Adam Veverka members) completed 6 transactions and added a new hire to its Chicago office in Q3. 
See list of deals and new hires

Pine Hill Group 

Pine Hill Group (Jerry Buckley, Michael Estadt, Chuck Jacobson, Stephen Nardi, Sean O'Reilly, Keith Ruck and Barry Smith members) provided due diligence services to its clients on four closed transactions and hired new valuations and transaction advisory professionals in Q3. 
See list of deals and new hires

Quaker Chemical Corporation 

Quaker Chemical Corporation (Sean Dineen member) completed an acquisition in Q3.  
See list of deals

RLS Associates 

RLS Associates (David Bernstein and John Ralston members) served as investment banker on one closed deal in Q3.  
See list of deals

SSG Capital Advisors, LLC  

SSG Capital Advisors, LLC (Mark Chesen, Michael Goodman, Michael Gorman, Matthew Karlson, Terry Kohler and J. Scott Victor members) acted as investment banker on one closed transaction in Q3. 
See list of deals

SolomonEdwards  

SolomonEdwards (Robert Jaffe, Brian Markley, Brad McGowan, John Moerman and Robert Tribuiani members) welcomed an experienced business consulting professional to their firm in Q3. 
See list of new hires

Stifel 

Stifel (Lauren Harrington, John Honovich, Robert Kent, David Lazar and Bharat Ramprasad members) served as investment banker on 4 closed deals in Q3. 
See list of deals

White and Williams LLP 

White and Williams LLP (George Hartnett, Michael Mentzel and Ryan Udell members) served as legal counselor on 4 completed transactions in Q3. 
See list of deals

  
Q3 2014 Featured Deal

For a listing of all historical featured deals please go to the LIBRARY tab.

Showcasing ACG Member Deals
 

Quarterly Featured Deal...
Dassault Systèmes buys Quintiq

 

 

Interview led by Lauren Harrington of Stifel and the ACG Marketing Committee.

Based on a dicscussion with:  Marc Lederman, General Partner at NewSpring Capital, and Howard Ross, Partner at LLR Partners.


Deal Synopsis
On September 8, 2014, Dassault Systèmes (Euronext Paris: #13065, DSY.PA), world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management solutions, completed the acquisition of Quintiq, a Radnor-based leading provider of on-premise and cloud-based supply chain and Operations Planning & Optimization software, from NewSpring Capital and LLR Partners for approximately €250 million.

Deal Sourcing is the Lifeblood of Any Private Equity Firm
While NewSpring Capital and LLR Partners maintain strong relationships with investment bankers, accountants, lawyers and other key players in the entrepreneurial ecosystem to assist in driving deal flow, both firms also invest significant time and resources into unearthing interesting companies and CEOs prior to their companies going to market for capital. In 2010, Marc Lederman, lead partner on the deal for NewSpring, noticed in a brief article in the Philadelphia Business Journal that Quintiq’s CEO, Victor Allis, had relocated to Philadelphia from the Netherlands to lead the Company’s expansion into the U.S. He invited Victor to a NewSpring CEO event, and while the Company wasn’t in need of capital at the time, Marc and his team were impressed so they stayed in touch. A year later, Victor approached Marc to discuss the possibility of a partial recapitalization.

Local Partnership
Given the size of the potential transaction ($40-$60mm equity check), NewSpring reached out to a trusted partner to syndicate the financing. Howard Ross of LLR Partners, with whom Marc has successfully co-invested in the past, joined the discussion and worked with Marc to seal a fruitful partnership with Victor and his team. In June 2011, NewSpring and LLR led a minority recap in Quintiq.

Management Team Delivers
Led by an extremely talented management team, Quintiq has since produced significant organic growth, in excess of 30% per year, and has been winning Fortune 1000 clients around the world. Their success was noticed by the industry and over the past year resulted in unsolicited offers. While both management and the investors anticipated a longer holding period, the quality of the offers, combined with market dynamics at the time (including historically high revenue multiples for software companies) made for a compelling case to rethink exit timing.

French Come Out on Top
The Company engaged Jefferies to run a process focused on a handful of strategic buyers, most of whom were global players. Culturally, Dassault was a perfect fit for Quintiq, likely due in part to the European roots shared by each organization. Victor and his management team also believed in Dassault’s vision for the combined companies and saw how Quintiq would play a critical role in the 3DEXPERIENCE that Dassualt was rolling out to its customers. In addition, Dassualt would keep the Quintiq team intact and run the Company as a separate subsidiary, a major selling point for the founders.

Lessons Learned
Good counsel with deep international M&A experience is imperative. In this case, NewSpring and LLR relied heavily upon David Gerson, Partner, at Morgan Lewis. David represented NewSpring and LLR on their initial investment in Quintiq and was asked to be lead counsel on the sale. On a lighter note, closing a transaction with an international buyer does not guarantee your foreign language skills will improve. Stick to Rosetta Stone.

Team
NewSpring Capital: Marc Lederman, Eric Jensen, Matt Plevelich, Michael Donahue LLR Partners: Howard Ross, Greg Case, Justin Reger, Mike Pantilione, Paul Winn
 
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