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MID MARKET INVESTMENT BANK OF THE Lincoln International Powered By Docstoc
Lincoln International LLC
While Others Shrunk,                                                                              SNAPSHOT:
                                                                                                   Firm: Lincoln International

Lincoln International Grew                                                                         Headquarters: Chicago, Ill.
                                                                                                   Number of M&A and Advisory Transactions
                                                                                                   in 2008: 59
   The three-year history of Lincoln Interna-    ready had relationships, such as China,           Disclosed Deal Value: $4.7 billion (11 transac-
tional reads like a travel brochure for a trip   India, Italy, Spain and Japan. Lincoln Inter-     tions)
around the world.                                national took a leap toward achieving that        Representative Deals: ICV Capital’s sale of Ster-
   Formed in 2006 by the combination of          this year when it opened its offices in Lon-      ling Foods; Valeo’s sale of its truck engine cooling
two mid-market investment banks—U.S.-            don, Madrid and Tokyo.
based Lincoln Partners and Germany-based           “We also have a strategic partner in
Peters Associates—Lincoln International          China, where we have Lincoln personnel
                                                                                                                  WHY THE FIRM WON
started off with offices in Chicago, Frank-      based in their Shanghai office, and a strate-
furt, New York and Paris, then added a Los       gic partnership with a firm in India,” said
Angeles office in late 2006, opened a Vienna     Lawson. The thinking behind the expansion
office in mid-2007 and established London,       was that globalization is no longer only the
Madrid and Tokyo offices in 2008.                province of the largest companies or the           Evolved from a firm of four investment bankers in
                                                                                                    Chicago in 1996 to 130 M&A professionals today.
   Two co-chairmen, Jim Lawson, formerly a       biggest deals, but that businesses in the
                                                                                                    With the 2008 opening of offices in London, Madrid
managing director at Chicago-headquar-           middle market are competing and being              and Tokyo, the firm now has five offices in Europe,
tered Lincoln Partners, and Hans Peter Pe-       marketed globally, and even mid-market             three in the United States and one in Asia.
ters, former managing director and chief         buyout shops now have offices overseas.            Predecessor firm began a concerted effort in 2003 to
executive of Frankfurt-based Peters Associ-      “This global footprint is important both for       focus on private equity clients. In 2008, nearly half
                                                                                                    its M&A deals involved private equity firms.
ates, lead the firm.                             serving the client and in hiring talent,” said
                                                                                                    Expanded in 2008 by adding 17 investment bankers
   Lawson explained that when he founded         Lawson. “For example, if we didn’t have a          in the United States, 16 in Europe and four in Asia.
Lincoln Partners in Chicago with four            London office and a very credible European
                                                                                                    In a male-dominated field, nearly one in four (23
bankers in 1996 his primary goal was to pro-     presence, we could not have hired Teresa           percent) of its bankers are female.
vide outstanding service and outcomes to         Clegg, our dedicated aerospace and defense
clients, thus earning repeat business. “At       banker in London.”                               ogy; and transportation and logistics.
that time, we were too small to have dedi-         Another of the firm’s goals has been to be-       In 2008 the firm strengthened its aero-
cated industry teams,” he said.                  come a market leader in select industries,       space and defense practice. Alyssa Morris-
   His second goal was to establish a global     defined as being one of the top three firms      roe joined the Los Angeles office as a vice
firm. In 2004, Lawson traveled to Europe         by volume of mid-market transactions.            president to spearhead M&A transactions
and met with people from mid-market in-          “Having targeted an industry, we strategi-       and advise clients on strategic initiatives.
vestment banks in the United Kingdom and         cally and tactically determine what re-          Brigadier General Bob Edmonds, USAF re-
Germany. After nearly a year of looking, he      sources are needed to become a market            tired, joined as an advisory director to
determined that Peters Associates would be       leader,” said Lawson. “We then add those re-     strengthen the firm’s knowledge and pres-
the best match. Before finalizing their          sources we lack in-house, creating an in-        ence in the industry via his background,
union, the two investment banks decided to       dustry group with a clear path to becoming       contacts and experience. And Clegg joined
get to know each other better by teaming         a global leader.” Lincoln International’s        the London office as a vice president spe-
up on 15 deals, including The Riverside Co.’s    areas of expertise include aerospace and de-     cializing in aerospace and defense. The prac-
sale of American Electronic Components to        fense; automotive and trucking; building         tice also has experts in France, Germany,
Siemens AG.                                      and construction; business services; chemi-      Spain and Japan.
   With the formation of Lincoln Interna-        cals; consumer; electronics and solar en-           The firm is focusing on aerospace and de-
tional in 2006, the goal was to expand into      ergy; financial institutions; food and           fense for several reasons, explained Eric
other parts of the world where the firm al-      beverage; industrials; packaging; technol-       Malchow, managing director. “The A&D
MID-MARKET INVESTMENT BANK OF THE YEAR                                                 Lincoln International LLC

market is forecast to continue to grow for       International closed three deals, bringing      food service and retail industries. Lincoln
many years and thus is attractive to both        the total number of transactions for the        International managed the preparatory,
strategic and financial buyers. It’s frag-       year to the second highest in firm history.     marketing, due diligence and negotiation
mented, with a lot of mid-market suppliers          One of the deals closed on the last day      phases of the transaction.
and will be consolidating for many years, re-    of 2008 was the sale of Sterling Foods,            In an example of its cross-border capabil-
sulting in many mid-market M&A assign-           Ltd., a portfolio company of ICV Capital        ities, in June Lincoln International advised
ments over time. And competitors are             Partners LLC, to TGF Management Corp.           Paris-based Valeo on the sale of its truck en-
downsizing or have issues, particularly in       and Austin Ventures. Lincoln Interna-           gine cooling division to a Swedish private
Europe, providing an opportunity to hire         tional served as the exclusive financial ad-    equity firm. Terms of the transaction were
excellent people and compete very effec-         visor to Sterling Foods and ICV Capital.        not disclosed, but the enterprise value was
tively against the market leaders.”              Terms of the transaction were not dis-          reported to be about $157.5 million. Lincoln
   Despite the expansion activity, Lincoln In-   closed, but ICV Capital said it earned a 3x     International worked with Valeo’s M&A
ternational has never lost sight of its pri-     return on the $15 million it initially in-      team to manage the transaction process,
mary goal: closing deals. In April, the firm     vested, having tripled revenue from $25         targeting potential buyers around the
closed 11 in 15 days. In August and early        million to more than $80 million during         world, producing marketing documents
September, the firm closed five in eight         its ownership and doubled EBITDA. Ster-         and coaching management on their pre-
days. And on the last day of 2008, Lincoln       ling Foods supplies baked goods to the          sentations.—N.G.

                      Reprinted from Buyouts, Yearbook 2009 • 195 Broadway, 9th Floor, New York, NY 10007 • (646) 822-3043

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