Vol. 7, No. 10, November 2009

FOCUS CELEBRATES SOLID 2009 PERFORMANCE

The article below, “Delivering Results During Difficult Times—FOCUS Closes 10 Deals in 2009,” observes that the firm’s robust record reflects a unique FOCUS brand of client service and middle market expertise that delivers solid results in spite of some of the worst economic challenges in recent memory.

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Active FOCUS Deals

Operating nationally and internationally, FOCUS currently is working with buy- and sell-side corporate clients, private equity groups, holding companies and late stage venture capital firms in the following areas:

Advertising & Marketing
Building Materials
Business Consulting Services
Business Process Outsourcing
Call Center Services
Distribution
Education and Human Capital
Electronics
Energy
Engineering
Financial Services
Government, Aerospace & Defense
Healthcare & Life Sciences
Information Technology
Internet & Digital Information
Manufacturing
Media
Parking Services
Retail Franchising
Semiconductor Equipment
Telemarketing
Warehouse Distribution

We have executed transactions in a range of market segments, but the same fundamentals apply across all of them. Our on-going transaction process provides us with up-to-the-minute market knowledge in these sectors that may be of corporate development interest to you.

Inquiries should be addressed via e-mail to info@focusbankers.com, by telephone to 202-470-1973 or by fax to 202-785-9413.

Noble Systems Has Acquired Certain Assets of TouchStar Software

FOCUS LLC initiated this transaction, assisted in the negotiations, and acted as financial advisor to TouchStar Software Corporation, a global leader in contact center technology solutions. Noble Systems Corporation, a global leader in contact center technology solutions, has acquired TouchStar assets, including the TouchStar brand and all intellectual property. The acquisition further improves Noble’s small and medium business offering to complement its large enterprise offering. According to John Bradshaw, Partner at FOCUS, “TouchStar has built a brand that is well known within the teleservice industry and this acquisition allows Noble Systems to further consolidate these markets.” For more information, go to: Read more...

FOCUS Secures Debt Financing for Nextek

FOCUS LLC initiated this transaction, assisted in the negotiations, and acted as financial advisor to Nextek, Inc., a leading manufacturing specialty company offering advanced design, analytical, and manufacturing services to Original Equipment Manufacturers (OEMs) in the electronics industry. Nextek has entered into a $6,419,000 senior term and working capital loan facility to replace its previous banking and subordinated debt arrangements. Cole Taylor Bank of Chicago was the lender. “This refinancing was a win-win for Nextek,” said Manan K. Shah, Partner at FOCUS. “The banking services provided by Cole Taylor Bank will support Nextek’s future growth, and will save a significant amount of operating expense by taking advantage of more favorable financing terms.” For more information, go to: Read more...

Delivering Results During Difficult Times—FOCUS Closes 10 Deals in 2009

Despite extremely challenging economic conditions, FOCUS’ middle market merger, acquisition, and divestiture business was surprisingly robust during 2009. In part, the continuing success of FOCUS, as demonstrated by a growing assignment list and ten closed deals so far this year, reflects a special FOCUS brand of client service that delivers results even during difficult economic times.

A few trends are worth noting. For example, a number of large buyers are displaying interest in mid-market technology companies, particularly in IT infrastructure and consulting services. Also, many companies are facing the need for financial alternatives, arising from tightened lending standards and reduced credit availability in the banking industry and from the ongoing needs of businesses to fund growth or business transitions such as family buyouts.

In this difficult market, success in arranging a transaction may hinge on the ability of a company to demonstrate to a lender that its actual business outlook provides a basis for future growth and continued positive performance. FOCUS is uniquely qualified to assist companies in presenting their business and financial results to highlight a strong track record--even in a difficult recessionary environment.

In the recent recapitalization of Nextek, Inc., Jim Trummer, Co-Founder, President, and CEO of Nextek said, “In today’s extremely difficult lending environment, FOCUS’ assistance was critical in closing this loan.”

Signs of Improvement Continue

Signs of improvement continue as we approach 2010. We expect to see increasing middle market merger, acquisition, and corporate sale activity, driven by acquirers utilizing M&A strategies both for growth and strategic capability/customer acquisition. We also are seeing deals driven by lenders who are forcing borrowers to reduce the level of leverage on their balance sheets.

According to Doug Rodgers, FOCUS Chief Executive Officer and Managing Partner, “FOCUS’ performance in 2009 illustrates that good deals can still be completed, despite a difficult economic environment. We believe strategic buyers, both public and private, will be the buyers in the majority of 2010 transactions.”

Jim Stratigos Joins FOCUS’ Atlanta Office as a Senior Advisor

Brings Experience in Telecommunications, Wireless, Semiconductor, and Energy

Jim Stratigos has joined FOCUS as a Senior Advisor in its Atlanta, GA office. According to Jonathan Wilfong, Regional Managing Partner of FOCUS, “Jim has more than 35 years of experience as a successful technology entrepreneur and industry leader. He has advised private companies and venture capital firms and will bring this knowledge and experience to our client base.”

About Jim Stratigos

Mr. Stratigos is President of Broadband Strategies and is an active angel investor, mentor, and advisor. Most recently, he was CEO of Jacket Micro Devices, and also was an advisor and fellow at Georgia Tech’s Venture Lab, the longest running and most successful university technology incubator in the country. In 1995, Stratigos founded Media4, a pioneer in the development of Internet over satellite technology.
Read more...

FOCUS Corporate Valuations Expert Jeff Hooke Speaks to Russian CFA Association in Moscow

On October 5th, Jeff Hooke, FOCUS Managing Director, and head of FOCUS Corporate Valuation Services, made a presentation on the current issues of the capital markets: “2008 Asset Boom and Bust: Its Effect on Security Analysis.” Questions from the large audience focused on likely changes to the US dollar as well as the related effects on emerging market M&A activity.

The CFA Association Russia is a non-profit organization representing the interests of CFA Charterholders and CFA candidates. The society is committed to leading the development of the investment industry through the promotion of the highest ethical standards .The Chartered Financial Analyst® (CFA®) charter is the gold standard of professional credentials within the global investment community.

Mr. Hooke, an experienced investment banker, private equity executive and valuation professional, has worked at Lehman Brothers, Schroder Wertheim, the World Bank, and Emerging Markets Partnership, a $5 billion private equity fund. A veteran of over 100 corporate transactions, Mr. Hooke, a nationally recognized valuation expert, has authored four books on M&A, valuation, and finance.

FOCUS Web Watch
New FOCUS Internet & Digital Information Group White Paper on Strategic Partnerships

FOCUS’ Internet & Digital Information Group provides four highly-tailored investment banking services to middle-market firms: Sellside Engagements, Buyside Engagements, Capital Formation, and Valuation & Intangible Asset Assessment.

According to Brad Fleisher, FOCUS Managing Director and Internet & Digital Information Team Leader, “Corporate budgets continue to be under pressure as the business cycle struggles through these tough economic times.”

The new white paper, “Strategic Partnerships: In Tough Economic Times, Good Opportunities for Small Companies,” is the first of a three-part series that explores various issues and strategies related to developing mutually beneficial, long term relationships. This paper discusses the identification, assessment, and search for strategic partnership prospects, including:

R&D Budgets, the Retrenchment Period
Assets, Don’t Assume Your Value
Performance Risks Undergo Diligence
Your Search Efforts Can Be Strategic, Too

Click here to download a copy of the FOCUS Strategic Partnerships White Paper, Part I.

FOCUS Industry Practice Groups

► Education & Human Capital -- www.focusbankers.com/education

► Energy -- www.focusbankers.com/energy

► General Middle Market Businesses

► Government, Aerospace & Defense - www.focusbankers.com/gad

► Healthcare & Life Sciences

► Information Technology -- www.focusbankers.com/technology

► Internet & Digital Information Group -- www.focusbankers.com/idi<