asa presentation 2012

Capital for Entrepreneurs since 1956

Legal Notice

• This is not an offer to sell or a solicitation of an offer to buy securities.

• Securities are offered through Corporate Finance Securities, Inc.

• Corporate Finance Securities, Inc. is a member firm of FINRA and SIPC.

Current Market Conditions

• Improving deal activity• Premium for larger deals• No premium for quality• More debt, less equity• Lower interest rates• Higher taxes

Deal ActivityDeals per Year

Source: GF Data Resources

2007 2008 2009 2010 20110

50

100

150

200

250

Buyout Multiples by Industry

Source: GF Data Resources

EBITDA Multiples by Industry

2007 2008 2009 2010 20115.0

5.5

6.0

6.5

7.0

7.5

Health Care Services Business ServicesManufacturing Distribution

Buyout Multiples by Deal SizeEBITDA Multiples

Source: GF Data Resources

2007 2008 2009 2010 20114.0

5.0

6.0

7.0

8.0

10-25 mil 25-50 mil 50-100 mil 100-250 mil

Premium for Larger DealsBuyout Multiples by Deal Size

Source: GF Data Resources

1 2 3 4 55

5.5

6

6.5

7

7.5

8

10-50 mil 50-250 mil

Premium for Quality DealsBuyout Multiples by Deal Quality

1 2 3 4 55

5.5

6

6.5

7

Above Average OtherSource: GF Data Resources

More Debt

Source: GF Data Resources

2007 2008 2009 2010 20110.0x

1.0x

2.0x

3.0x

4.0x

2.8x2.3x

1.7x2.3x 2.4x

0.8x0.9x

0.8x0.7x 0.9x

Sub Debt/EBITDA Sr Debt/EBITDA

Debt Multiples

Less Equity

Source: GF Data Resources LLC

2007 2008 2009 2010 2011

42.7% 47.3% 52.8% 51.0% 48.2%

13.7% 15.8%17.9% 12.1% 14.5%

43.6% 36.8% 29.3% 36.9% 37.4%

Senior DebtSub DebtEquity

Equity and Debt Contributions

Lower Interest

Source: GF Data Resources

Senior Debt

2007 Q1 Q2 Q3 Q4

2008 Q1 Q2 Q3 Q4

2009 Q1 Q2 Q3 Q4

2010 Q1 Q2 Q3 Q4

2011 Q1 Q2 Q3 Q4

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

90-Day LIBOR Spread

Higher Taxes

2010 2011 2012 20130.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Partner IncomeS Corp IncomeC Corp IncomeCapital Gains

Top Federal Tax Rates

Recent Transactions

Corporate Finance Associates

www.cfaw-houston.com

One of America’s oldest and largestmid-market M & A advisory firms