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2017YEAR IN REVIEWMiddle Market Advisory Update
“Advice is not one-size fits-all; we combine sector insight, judgment and global
relationships to provide ideas and solutions tailored to our clients’ needs.”
DAVID J. SOLOMONCEO, Lazard Middle Market
Dear Friends,
As we look back on 2017, we express our appreciation to our clients for the opportunity to be your trusted advisor. We are proud of what we have accomplished together and treasure these relationships.
A RECORD YEARLazard’s middle market advisory practice celebrated an outstanding record year in 2017. The firm completed 224 middle market¹ transactions worldwide, of which 105 had at least one counter-party in North America. These global middle market transactions had an aggregate value of more than $51 billion in disclosed value.
TRANSACTION MIXMergers and acquisitions comprised 174 of our middle market transactions, including 120 sell-side, 49 buy-side, and 5 strategic advisory assignments. Corporate finance advisory completed 39 transactions, representing a growing segment of our middle market practice. Our restructuring team was involved in 11 assignments.
CROSS-BORDER POWERHOUSELazard’s global presence is unmatched. With 43 offices in 27 countries, we access corporate decision makers directly through Lazard’s global team. In 2017, 46 percent of our global sell-side transactions were cross-border and 24 percent of our clients located in North America were sold to foreign buyers.
DEEP SECTOR EXPERTISE COMBINED WITH TAILORED SOLUTIONSOur teams bring extraordinary domain knowledge, and our differentiated access to buyer executives delivers insight into their growth strategies. We believe in highly-customized transactions that fit client circumstances and goals, instead of rigid M&A auctions.
CORPORATE FINANCE ADVISORYOur growing corporate finance team, led by Michael Schwartz, advises on debt and equity placements to finance acquisitions, dividend recaps, debt maturities, and improved capital structure. We maintain independence by not using our own balance sheet, and we use a competitive process to find the best combination of leverage, rates, and terms to solve specific client needs.
RESTRUCTURINGOur well-known middle market restructuring team, led by Jason Cohen and Andrew Torgove, helps companies negotiate amendments and reduce leverage through negotiation or bond exchange offers, in order to avoid bankruptcy and minimize equity loss. While bankruptcy is a last resort, we manage the process to minimize loss of corporate value and to reduce business disruption as the capital structure is realigned.
PROMOTIONSWe are pleased to announce the following promotions, reflecting our commitment to developing exceptional professionals:• Andrew Torgove, Head of our Restructuring Group in New York since 2007, was promoted to
Chief Operating Officer of Lazard Middle Market and will remain Co-Head of Restructuring and an active dealmaker.
• Jason Cohen, Managing Director in our Restructuring Group in New York since 2013, was promoted to Co-Head of the group.
• Dermott O’Flanagan was promoted to Managing Director in our Restructuring Group in New York.• Stephen Golmont was promoted to Vice President in our Restructuring Group in New York.
Best wishes to you for a successful 2018. We look forward to working with you this year.
Sincerely,
0 10 20 30 40 50
43%
16%15%
12%
8%6%
Industrials
Healthcare
Other
Food & Consumer Retail
Telecom, Media & Technology
Business Services & Education
Mergers &Acquisitions
Corporate Finance
Restructuring
78%
17% 5%
$51 billiondisclosed value globally
Lazard completed
transactions in the middle market¹
Mergers & Acquisitions is our core focus.
Corporate Finance represents a growing
segment of our practice. Our Restructuringgroup brings world-
leading expertise to themiddle market.
StrategicFinancial 56%44%
A higher percentage of our clients are sold to strategic buyers
Lazard’s middle market advisory practice is tailored to serving the unique needs of mid-sized companies, while delivering the sophisticated services, global perspective,and broad resourcesof Lazard.
Lazard is consistently ranked one of the top advisors for deals under $1 billion in value based on number of transactions
2017Middle Market Global Ranking
Leading Middle Market Advisor
Middle Market Deals by Sector
224Worldwide
105North American
2017 Highlights Global Expertise
THOMSON
Buyer Nations
24%
46%Cross-border
sell-side advisory transactions
of All Sell-Sides
of North American Sell-Sides
2017 Select Middle Market Transactions
39 11174Corporate Finance
RestructuringMergers & Acquisitions
Leading global middle market advisor offering a wide array of financial advisory services to
mid-sized clients around the world
Food & AgricultureDavid Iverson, Group Head+1 612 371 [email protected] Wieden+1 612 371 [email protected]
Deep Sector Expertise
Europe MiddleMarket AdvisoryCharles Andrez²+33 1 44 13 08 69 (France)[email protected] Corner²+44 20 7187 2010 (United Kingdom)[email protected] del Valle-Iturriaga²+34 91 781 8491 (Spain)[email protected] Marocchino²+39 02 7231 2263 (Italy)[email protected] Soendermann²+49 69 1700 73221 (Germany)[email protected]
Robert Frost, Group HeadChemicalsIndustrial Products & Services+1 612 371 [email protected]
Michael BasilEngineered Industrials+1 312 928 [email protected]
John BresnahanOilfield Products & Services +1 713 423 [email protected]
Jeff ChenChemicalsPackaging & Plastics+1 612 371 [email protected]
Jim ConniffEngineered IndustrialsIndustrial Products & Services+1 312 928 [email protected]
Matt DaltonIndustrial Products & Services+1 612 371 [email protected]
Ryan FoleyEngineered Industrials+1 312 928 [email protected]
Alex GrimstadIndustrial Products & ServicesTransportation, Logistics & Distribution+1 612 371 [email protected]
Dave HallettTransportation, Logistics & DistributionPackaging & Plastics+1 612 371 [email protected]
Jim ReillyIndustrial Products & Services+1 612 371 [email protected]
Doug Fordyce²Oilfield Products & Services+1 713 236 [email protected]
Andrew Chang²Oilfield Products & Services+1 713 236 [email protected]
Michael Richter, Group Head²Aerospace & Defense+1 310 601 [email protected]
Stephen Henry²Aerospace & Defense+1 310 601 [email protected]
IndustrialsBusinessServices & EducationEd King, Group Co-HeadTech-Enabled Services & BPOEducation Services+1 312 928 [email protected] Lonnquist, Group Co-HeadTech-Enabled Services & BPOFacilities ManagementHuman Capital Management+1 612 371 [email protected] BourlasEducation Services+1 312 928 [email protected] ConteFacilities ManagementMarketing & Media Services+1 212 418 [email protected] NoelTech-Enabled Services & BPOInformation & IT Services+1 612 371 [email protected] ShahEducation ServicesHuman Capital Management+1 312 928 [email protected] SimmonsFacilities ManagementInformation & IT Services+1 612 371 [email protected]
Healthcare
Michael Wiggins, Group HeadPharma Distribution & Outsourcing+1 212 418 [email protected] BhullarHealthcare Service Providers +1 212 418 [email protected] FarrisPharma Distribution & Outsourcing +1 212 418 [email protected] SaxtonManaged Care Services +1 704 719 [email protected]
Restructuring
Jason Cohen, Group Co-Head +1 212 418 [email protected]
Andrew Torgove, Group Co-Head+1 212 418 [email protected]
Stephen Golmont +1 212 418 [email protected]
Dermott O’Flanagan +1 212 418 [email protected]
FinancialSponsors
David SantoniNorth America Coverage+1 612 371 [email protected] TiplerNorth America Coverage +1 612 371 [email protected] Villa²Europe Coverage+44 20 7187 [email protected]
Consumer RetailEric Roth, Group HeadConsumer Retail+1 212 418 [email protected] DaughertyConsumer Products+1 312 928 [email protected] HaysRetail & Direct Marketing+1 212 418 [email protected] SolomonConsumer Retail+1 312 928 [email protected] TenanRetail & Direct Marketing+1 212 418 [email protected]
Telecom, Media& TechnologyGarrett Baker, Group HeadTelecom & Digital Media+1 212 418 [email protected]
Marshall PhelpsSports/Entertainment Media & Services+1 212 418 [email protected]
Mark Dolins²Software +1 617 342 [email protected]
John Gnuse²Software+1 415 623 [email protected]
Patrick Mastan²Software+1 617 342 [email protected]
Michael Murray²Hardware+1 617 342 [email protected]
Jason Tavano²Hardware+1 415 623 [email protected]
CorporateFinance
Michael Schwartz, Group Head+1 212 418 [email protected]
William Scheuerer+1 212 418 [email protected]
Deep Sector ExpertiseOur senior bankers are national leaders in their specific industry segments, bringing knowledge of sector dynamics and key participants.
Global Access to Decision MakersLazard’s long-term relationships with CEOs, board members, and sponsors on a worldwide basis provide unparalleled buyer access and strategic insight for our middle market clients.
Transaction Craftsmanship, Trusted AdviceOur sophisticated professionals combine the highest level of transaction leadership with astute judgment to provide customized, analytically-robust solutions.
43global offices
27countries
Our Differentiated Strategy
¹ The middle market is defined as transactions less than $1 billion.² Employees of Lazard Frères & Co. (United States), Lazard & Co., Limited (United Kingdom), Lazard Asesores Financieros S.A. (Spain), Lazard S.r.l. (Italy), or Lazard Frères SAS (France). Other bankers named are employees of Lazard Middle Market LLC. References to “Lazard” include entities named above and other subsidiaries of Lazard Ltd.
Global Reach and Strategic Access
MINNEAPOLISLazard Middle Market LLC80 South Eighth StreetSuite 2700Minneapolis, MN 55402+1 612 339 0500
CHICAGOLazard Middle Market LLC300 North LaSalle StreetSuite 2300Chicago, IL 60654+1 312 928 0760
HOUSTONLazard Middle Market LLCJPMorgan Chase Tower600 Travis StreetSuite 3300Houston, TX 77002+1 713 423 8600
NEW YORKLazard Middle Market LLC600 Fifth AvenueSuite 800New York, NY 10020+1 212 758 8575
CHARLOTTELazard Middle Market LLC227 West Trade StreetSuite 1900Charlotte, NC 28202+1 704 208 5820
FRANKFURTLazard & Co., GmbHNeue Mainzer Strasse 69-75Frankfurt 60311+49 69 170073 0
LONDONLazard & Co., Limited50 Stratton StreetLondon W1J8LL+44 20 7187 2000
MADRIDLazard Asesores Financieros S.A.Edificio FortunyRafael Calvo 39 AMadrid 28010+34 91 781 8480
MILANLazard S.r.l.Via Dell’Orso 2Milan 20121+39 02 723121
PARISLazard Frères SAS121, Boulevard HaussmannParis Cedex 08Paris 75382+33 1 44 13 01 11
Middle Market Advisory Offices