Recent Work in Acquisitions and Valuations

Evaluation of the investment attractiveness of three major publicly traded companies in support of a large U.S. investment company: Hamilton's work was aimed at getting beyond what analysts were saying about these companies, and learning through primary research with ex-executives, distributors and customers what the market and competitive outlook really were for each company.

A large telecommunications client: The investigation turned around whether this company really had a well defined strategy, or was simply a collection of loosely related businesses. A second element was whether the company could really increase its share, given two powerful competitors.

A large soft drink company: This investigation focused on what was truly the outlook for the soft drink industry and whether it was realistic to project that major cost cutting could be achieved in this business.

A major diversified company with a software business: Hamilton focused on whether the software, used in a vertical industry, was as exciting a product as the company was touting publicly. Research with present and potential customers found that the product was not perceived favorably.

Evaluation of several public companies in a telecom industry sector for an investment company: Hamilton investigated part of the voice messaging industry and five of the major equipment providers in that segment for a company seeking to make investment decisions in the sector. The study clarified the growth outlook for the industry as a whole and served to identify which players had the best growth prospects. Confidential interviews were conducted with executives of the major companies, major telecom customers and industry experts. The investment company subsequently invested in two of the companies with good result.

Evaluation of distribution industries for a diversified company: A major midwest company, with a strong division in wholesaling, sought to acquire one or more other chains of distribution companies. Hamilton's principal investigated 10 distribution industries, ranging from ball bearings and fluid power products to dental equipment, electronics, and electrical supplies. The upshot of the engagement was the successful acquisition of a Texas-based distributor of pipes, valves and fittings and electrical supplies with revenues of $175,000,000.

Investigation of stock growth drivers for a major diversified company: Hamilton analyzed historical financial data for a large number of diversified companies to determine the main drivers for stock growth in the long-run. The team used regression analysis to identify the main performance measurements that drive stock growth. Hamilton also conducted a qualitative analysis of a select group of companies that substantially outperformed the market.

"Due diligence" market investigation of a shoe company for an investment company focused on acquiring private companies: Over a 45-day period Hamilton carried out over 100 interviews with customers, competitors, suppliers and industry experts to determine the outlook for the market and the company being acquired. Hamilton determined that the company was outrunning its competition substantially, and that the market outlook was solid. The company was subsequently acquired, and has outperformed initial projections.

Marketing due diligence for an investment company: In a five-week period, Hamilton evaluated two private companies that one investment firm sought to buy from another. The companies were in two disparate industries (artificial flowers and gaming equipment) but the Hamilton team was able to deliver recommendations on both companies based on extensive field interviews with major customers. The acquisitions went forward partially on the basis of the due diligence report.

Help in the acquisition of a plastics company: For a midwestern company manufacturing metal parts for the automotive industry, a Hamilton pricipal evaluated a small maker of thermoset plastic products-- gear shift handles and other piece parts for automobiles. The team discovered that this "backwater operation" was without major competitors, and would be able to maintain or even raise its high margins. The acquisition went forward and was a financial success.

Identification of acquisition candidates for a major diversified publisher: A Hamilton principal performed a broad scan of potential acquisition candidates in targeted industry segments. He prioritized opportunities and performed in-depth, on-site assessments of market trends and competitive environments, candidates' businesses, and management personnel. He also calculated valuations and recommended deals.

Help in leveraged buyout in publishing industry: Prior to joining Hamilton, a Hamilton principal led a leveraged buyout attempt for a closely-held publishing company. He identified and analyzed the opportunity, successfully raised $20 million in financing from institutional sources, and developed an innovative deal structure designed to provide maximum after-tax benefit to the seller.

Assistance in the sale of a venture-capital-backed software firm: A Hamilton principal assisted a venture-capital firm in successfully cashing out their early-stage investment in a software firm with disappointing financial results. Efforts included identifying and prioritizing acquisition candidates, developing an individual "game plan" for each candidate, assisting in developing a prospectus, and assisting in sales efforts and buyer's due diligence.

Market "due diligence" for the acquisition of a company providing software to the cellular industry: For a major non-U.S. investment firm, Hamilton evaluated the market acceptance of the company. The team interviewed cellular and PCS carriers, switch manufacturers, and other industry experts, and determined that the candidate's software and management had excellent reputations. Later, Hamilton was engaged directly by the company to evaluate potential for its suite of software products. Hamilton staff conducted telephone interviews in North America, Europe, Asia, and Latin America to help support the revenue forecast of the company.

Acquisition search for a large diversified manufacturer: Consultants performed a "search and screen" effort to identify potential acquisition candidates in truck and auto parts manufacturing for the automotive division of this large company. Independent companies as well as divisions of large companies were studied. The consulting team narrowed the search to seven companies and divisions which met a strict set of criteria. The client reviewed all seven, and eventually pursued discussions with two of the candidates.

Due diligence market assessment for private equity investment in an electronic imaging software company: Hamilton assessed the market opportunities and revenue forecasts of a company producing software for paper to electronic conversion and for the processing of highly compressed, high resolution images. The team interviewed current customers of the company and current and potential investors, as well as conducting extensive secondary research into market opportunities. Based on Hamilton's analysis, the firm made the investment, but at a lower valuation.