FOCUS Advanced Manufacturing & Automation Team Helps Business Owners

Posted on December 5, 2017

Washington, DC (November 28, 2017) – The world is experiencing a period of unprecedented change as digital connectivity and automation pervade the physical universe of people and things. FOCUS Investment  Banking LLC formed the Advanced  Manufacturing  & AutomationTeam to provide merger, acquisition and capital raising services to businesses affected by this transformation and to support firms supplying the specific tools and technologies driving the innovations.

The FOCUS Advanced Manufacturing & Automation Team currently is pursuing transactions in industries ranging from robotics and industrial automation to autonomous commercial vehicles; from advanced photonics and optics to electronic component manufacturing; from machining and metal engineering to Ag Tech.

The FOCUS team is composed of 15 professionals, including investment bankers, senior advisors, and research analysts. Team members were selected for their deep vertical expertise as both C-Level executives and dealmakers in fields driving — and impacted by — automation. These areas include manufacturing, process automation, software systems, aerospace, defense, logistics, and medical devices and instrumentation. International transaction support is provided by FOCUS’ global partner firms in M&A Worldwide.

For more information, contact John Slater, FOCUS Partner and Team Leader, FOCUS Advanced Manufacturing & Automation Team, at 901-684-1274 or John.slater@focusbankers.com.

About FOCUS Investment Banking LLC  

With more than three decades  of experience,  FOCUS Investment Banking is a trusted name in M&A advisory services worldwide.  FOCUS works to understand each client’s strategic and financial objectives, craft the best plan to achieve these goals, and deliver success. Whether helping to sell, buy, or raise capital, FOCUS strives to maximize the value of every transaction to the benefit of its clients. Securities transactions  conducted  by FOCUS Securities LLC, an affiliated company, registered Broker Dealer member FINRA/SIPC. For more information on FOCUS, visit www.focusbankers.com/automation.

Share Buttonread the rest

The Work World Is Changing and Society Needs To Change As Well

Posted on November 5, 2017

Written by John Slater

co-authored by Steven Hansen

We live in a time of great paradox. Technologies such as low cost renewable energy and automated
production tools promise a world of abundance in which global poverty is abolished and human
drudgery is eliminated. Yet even a casual glance at the daily news confronts us with a sense of
dread that, far from Utopia, we are instead headed toward a dystopian future in which the benefits of
technological advance will be reserved for a privileged few.

The disquieting consequence is that the bulk of humanity is relegated to scraping out a meager
existence in a mean-spirited world where jobs (and the prosperity they bring) are reserved for a
global elite trained to read the sacred texts of a new religion of technology.

Is the social contract of Western civilization, promising fair treatment and opportunity for all, which
took root in 18th century England and France and flowered in the post WWII democracies, destined
to fail? Just how will the world adapt to the current wave of technological advance which threatens
the jobs of today’s middle class much as Mr. McCormick’s reaper drove earlier generations from the
farms and into the factories of a prior era?

Econintersect has asked two contributors, John Slater and Steven Hansen, to discuss some aspects
of this conundrum concerning how and where automation and robotics will impact the new economy
and how social institutions, specifically education, can address these challenges.


John Slater is a Partner of FOCUS Investment Banking and Team Leader of the firm’s Advanced
Manufacturing and Automation practice, providing merger and acquisition and capital raising
services primarily for private middle market companies. He is a Chartered Financial Analyst and
holds an AB in economics from Princeton and a JD from the University of Virginia.

Steven Hansen, co-founder and Publisher … read the rest

Made in America: The 33 Cent Chinese Arkansas T-Shirt

Posted on October 3, 2017

Recently my colleague Marco Chan shared an extraordinary story that puts a new slant on the public discussion about robotics, China, outsourcing and the future of jobs.  According to this Bloomberg Business Week story,  a Chinese manufacturer, Tianyuan Garments Co., is investing $20 million to open a plant in Little Rock that will utilize robots developed by a Georgia company, Software Automation, to manufacture T-Shirts at a cost of 33 cents per shirt.  Each SEWBOT™ workline is capable of spitting out a T-Shirt every 26 seconds.  Human workers don’t stand a chance against such competition, no matter how low a wage rate they are willing to accept.

We’re in a period of profound change as digital technologies promise to transform virtually every industry globally.  In manufacturing this rapidly accelerating transformation will impact employers and employees alike.  PWC recently estimated that 38% of U.S. jobs could be taken by robots by 2030.  Futurists like Martin Ford and even well-known industrialists like Elon Musk have begun to argue that we need to consider adoption of a Universal Basic Income to address a world in which machines and artificial intelligence have replaced human beings in a large part of the economy.

For those that fear the consequences of automation, the connection has been broken between technological advance and the creation of new higher skilled jobs categories to replace the old lower skilled jobs.  I have more confidence that a dynamic economy will continue to provide opportunities for our citizens, creating currently unimaginable job categories for those willing and able to adapt.  Lifetime learning has become a survival skill in our society, opening up new business opportunities in education and training and likely creating hundreds of thousands of jobs in the process.

At the FOCUS Investment Banking Advanced Manufacturing & Automation Team we spend our time addressing … read the rest

Is Industry 4.0 the New DotCom Boom?

Posted on April 3, 2017

Fear stalks the land.  The Robot Apocalypse is nigh, destined to steal our jobs and our future.  Worse yet the machines are made elsewhere (Germany, Japan, even China) and America is being left behind in the race for manufacturing prowess.

We’ve heard this story before.  In the late 1980s, the U. S. computer memory industry had been decimated by Japanese and Korean competition.  To the Cassandras, this meant that the U.S. had forever lost the global economic race and was destined to become a second-rate power.

Nothing could have been further from the truth.  The prerequisites for U.S. global dominance of the technology world were already in place.  Within a few years, U.S. prowess in personal computers, microprocessors, and digital networking would lead to a capital investment boom and a stock market bubble not experienced since the 1920s.  Stock market fluctuations notwithstanding, the global growth of the Internet has not abated since.

For all its impact, the Internet has touched only a relatively small portion of human existence, focused primarily on media, entertainment, telecom and more recently retailing and finance.  The larger world in which we live, the world of things and physical interactions has, until now, been only lightly touched.  But that is going to change – and change in a huge way.

Imagine Amazon on Steroids

The world of digital automation is at the same stage as the internet in 1993, when the Mosaic browser was introduced and we first discovered the wonders of the World Wide Web.  The technologies are in place for a boom that will transform the global economy and, in the process, create new opportunities for better jobs and better lives.  And once again the U.S. is asserting its leadership role in developing the critical technologies.

Today Amazon utilizes highly advanced predictive analytics and automation tools that plan … read the rest

Money Matters But Your Heart Health Matters More

Posted on February 9, 2015

Transformation encompasses not only the use of digital technology, but also incorporation of new systems and advancing scientific knowledge to solve seemingly insuperable problems. If we are going to transform the U. S. healthcare system, there is one overwhelming problem that must be solved: prevention of the chronic illnesses, the treatment of which consumes the vast majority of our healthcare dollars. Prevent or reverse arterial disease, diabetes and stroke and you have solved the Medicare financial crisis.

The FOCUS Healthcare and Life Sciences Team recently published its Winter 2015 Healthcare and Life Sciences Report, which includes an article below outlining my personal journey into the world of chronic disease prevention. I’m republishing the article on Capital Matters at the beginning of Heart Month because a high percentage of our readers (Type A business owners, investment bankers, lawyers, et. al.) are at a risk for heart disease, America’s number one killer. I’ve had my wake up call; hopefully, by sharing my experience, I will help a friend or two avoid the damage of these preventable and perhaps reversible conditions.

Prevent the Event: Make Lifestyle Changes for Lifetime Cardiac Health


As an investment banker to middle-market business owners, I spend lots of time with people who’ve reached a point in their lives the marketers refer to as “mature.” They’ve worked hard all their lives, experienced their fair share of stressful events, and may have picked up “a few pounds” since they were high school sports stars. A cardiac “event” can be a life altering experience. It may even precipitate an unplanned decision to sell a business.

Heart disease is the number one killer of men and women in the United States. According to the Centers for Disease Control (CDC), almost 600,000 Americans died of heart disease in 2010. That’s 28.5% of American deaths attributable to … read the rest

Categories: Healthcare

Tags:

Permalink | | Comments Off on Money Matters But Your Heart Health Matters More

Transformation: The Onrushing Digital Age Will Change Everything

Posted on December 15, 2014

The modern era has witnessed two great periods of transformation that radically changed the global economy and the very nature of human existence.  The Industrial Revolution of the 18th and 19th centuries and the shift to a postindustrial economy over the past fifty years are old news.  Today, the Global Economy is undergoing a third period of transformation into a new Digital Age that promises to be even more dramatic in its impact.  In this article, we will address some of the forces driving this change and provide our predictions as to which industries and economic sectors will be affected first.  For a video discussion of the topics covered in this email click here.

Manufacturing dominated the American economy for almost 100 years commencing in the late 1860s, but, beginning in the 1960s, manufacturing was rapidly eclipsed by a new services and trade based economy.  A quick look at the chart below demonstrates how overwhelming that trend has been. From 1850 to 2010, primary and secondary manufacturing in the United States dropped from approximately 80% of the US economic output to its current level closer to 20%. Tertiary industries, Clark’s name for what we would today call services, finance, retail, and distribution grew from approximately 17% of the economy in 1852, to 70% today, with the most important portion of this transition occurring since the 1960s.  While the Industrial Revolution took almost 150 years to fully play out, the shift to a services and trade based economy happened in less than half that time.

 Source: Wikipedia

We have now entered a new era that will impact most sectors of the global economy.  This new transition promises even more radical change.  We are only in the early innings, but this game will play out far more rapidly than its predecessors.  Driving this … read the rest

Categories: Banking, Business Survival, Financial Services, Healthcare, Industries, Technology

Tags:

Permalink | | Comments Off on Transformation: The Onrushing Digital Age Will Change Everything

INTERVIEW WITH AXIAL CEO PETER LEHRMAN

Posted on November 10, 2014

We recently interviewed Peter Lehrman, CEO of Axial, one of the most energetic and innovative companies providing advanced technology solutions to M&A and corporate finance professionals operating in the middle market. Speaking from the “Roosevelt Room” in Axial’s headquarters in the Flatiron District, Peter covers a good deal of ground and I highly recommend you listen.

We began with a discussion of the current M&A market and Peter shared with us some highlights of Axial’s recent Concord event in New York: a packed crowd listened to various Axial members and panelist experts on the middle market, but for some of them the main event took place outside the lecture hall.

Highlighting this heightened market activity, Peter shared some of Axial’s internal data showing a rapid rise in new deal submissions. In September over 1000 new deals were submitted to the Axial site, compared with a recent average of 750 submissions a month.  Just-released data shows that October submissions grew again to more than 1200.  No word yet on whether this will bridge the imbalance between buyers and sellers.

Axial recently completed an $11 million capital round with Comcast Ventures. Peter envisions this capital helping Axial become the go-to meeting place for all participants in middle market M&A.  Their target community includes private and public companies as well as the professionals who advise them with regard to strategic relationships and transactions.

Although Peter was reluctant to share too much about his new product pipeline, he did share Axial’s vision for the role of technology in our industry.  He firmly rejected the idea that robots and intelligent systems will replace smart and creative deal professionals in the M&A industry.  Instead, he believes new systems and apps will make M&A professionals more effective by eliminating many of the more burdensome administrative tasks we now endure. My

read the rest

Will a Robot Close Your Next Deal?

Posted on September 23, 2014

In the next ten years, technology will transform virtually every industry in the world.  There will be big winners and big losers. In order to stay competitive, middle market business owners must preempt these changes to their competitive positions and sustainability with smart timely action.  Just look at the newspaper publishing industry to see how dramatic the impact can be.

Is the middle market M&A industry exempt from the winds of change?  My partners would answer that this is a people business: nothing happens until someone makes a sale.  That’s clearly right.  Bringing the sale of entrepreneurial business to a successful close involves far more than numbers; human emotions often overrule financial logic.  An understanding of psychology is as essential to the success of an intermediary as auctioneering and financial analysis.

The role of the deal professional will not disappear.  Nevertheless, the way he or she applies professional skills to reach the ultimate goal of the transaction will be dramatically shaped by the technological revolution now underway in our industry.  The successful investment banking firm of the next decade should have access to resources unimaginable to today’s practitioners.  In addition to great people skills and financial knowledge, investment bankers will need to be adept at using numerous advanced technologies that will eliminate a great deal of drudgery and  that will also accelerate the speed of transaction processes.  In that hypercharged environment, the race may well go to the swiftest practitioners with access to the best of data and toolsets.

When I started my investment banking firm in 1985, the most advanced technology was my Compaq luggable (38 pound) computer and a magical program that enabled me to produce both written documents and spreadsheets from a single device.  Over time we added desktop computers, a Microsoft network and access to quarterly CD-ROMs with data about … read the rest

Categories: Adley Bowden, Banking, Financial Services, Investment Banking, M&A, Mergers and Acquisitions, Middle Market, Private Equity, SaaS, Uncategorized

Tags:

Permalink | | Comments Off on Will a Robot Close Your Next Deal?

A Whiff of Inflation – M&A Valuations Lead the Way

Posted on July 17, 2014

(Originally Published on Axial Forum)

Since the 1970s, many of us have feared the threat of inflation looming just around the corner. Within the past year, economists and central bankers have led us to believe the inflation dragon has been permanently relegated to a dark hole, never to rain fire on the kingdom of men. We’re told that deflation is the real threat and that governments can continually run large deficits without reawakening the dragon. Recently, reality has intervened, however, to remind us that economists and central bankers aren’t infallible. U. S. Core CPI and global consumer prices have taken a sharp turn upward.

While this rate of price increase will have profound implications for business owners if it continues, that’s a story for another day.

Our story here affects these entrepreneurs more directly. Inflation comes as no surprise to those of us in the M&A business. We have watched for some time as the M&A market reheated and deal valuations reached levels not seen since 2007 – the peak of the financial bubble. We now have strong confirmation that this trend is not reserved solely for the megadeals on CNBC.

 

For larger deals that confirmation comes from Pitchbook which reported last week that, for the first half of 2014, average deal valuations reached an all time high of 11.5 times EBITDA.

 

 Median EBITDA Multiples for Buyouts (H1 2014)
For smaller buyouts, the story is the same. Andy Greenberg, CEO of GF DATA®, is in a unique position to understand middle market M&A pricing trends. His company maintains a very comprehensive database of actual transaction values in the sub $250 million marketplace. In our recent interview, Andy shared his perspective confirming our belief that lower middle market M&A purchase multiples have reached historically high levels over the past 12 to 18
read the rest

Investing In An Age Of Transient Competitive Advantages

Posted on August 24, 2013

John Mason – Originally Published at Seeking Alpha – Reprinted with Authors Permission

In this article I will review the book “The End of Competitive Advantage,” by Rita Gunther McGrath, published by the Harvard Business Review Press in 2013.

I like to think of myself as a “value investor.” That is, I believe that I invest in quality companies that are underpriced. In terms of the quality of the organizations I like to invest in, I look for firms that have established a competitive advantage in their industries and are earning at least a 15% return on equity, after taxes. To judge the quality of management and its staying power, I look for those organizations that have a sustainable competitive advantage, defined as earning a 15% return on equity, after taxes, for a period of five to eight years. And, to capture the fact that a stock may be underpriced, I look for a low price/earnings ratio.

Other factors that have been important in my analysis are the industry share the company achieves and protects and the stability of this share over time. Of course, these are the quantitative factors and must be supplemented by other factors, such as an examination of management, industry make-up, and governmental factors that might contribute to firm performance.

Well, starting right here, Dr. McGrath starts to eat away at this picture. For one, she argues that industry boundaries are no longer that important. She argues that “arenas” are more crucial in the modern environment. The important thing in today’s world is that there are connections between “the outcomes that particular customers want (the jobs to be done)” and “the alternative ways those outcomes might be met” (page 10). Industry lines are not the determinants of what products one should be producing and what markets they should be sold … read the rest

Next Page »