MID-MARKET INVESTMENT BANK OF THE YEAR
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