A significant portion of the transactions NAS closes are represented on the sellside by investment bankers, business brokers or other M&A intermediaries. We feel very fortunate that so many sellside advisors view NAS as a conduit to the private equity investor, able to discreetly identify and introduce highly viable and experienced buyers for their engagements. As a result of NAS’s many years of close contact with middle-market private equity firms, we feel our knowledge of their respective investment parameters, portfolio holdings, and current emphasis and initiatives for new investments is unequaled. Consequently, we strongly encourage sellside advisors to keep us abreast of their new engagements as we are often able to introduce very high caliber buyers, both true financial and hybrid strategic, which may, otherwise, go unnoticed.
What is the best way for me to work with NAS?
We suggest contacting NAS as early in your process as possible, as we feel our buyers are of such high caliber that occasionally they can be preemptive. Generally, the sellside advisor, either verbally or via a written blind profile, gives NAS a top-level overview of the investment opportunity. NAS then responds with its best ideas as to potentially good buyer matches. It will always remain at the discretion of the sellside advisor whether these buyers should be approached, as we are quite sensitive to the fact that certain buyers may present conflicts for a host of reasons. Provided a green light has been received, NAS will quickly and confidentially approach its buyer client to ascertain its interest level. Once interest has been confirmed, the process progresses as normal with confidentiality agreements executed, conference calls, site visits, and so forth.
What type of target companies does NAS introduce to its buyer clients?
Generally, NAS introduces healthy, not distressed companies. Considered in aggregate, NAS is able to present viable buyers for almost any industry space, although we aren’t particularly strong in sourcing earlier stage opportunities. Almost all the targets we introduce are located in North America. In terms of size, most new portfolio companies will have revenues between $10 and $100 million. For add-on acquisition opportunities to existing portfolio companies the size can be quite small if the strategic fit is strong.
How is NAS paid?
NAS is always compensated through its buyer clients.
What if I know of a situation that might be of interest to NAS’s buyers, but I am unable to be compensated by the seller?
NAS is happy to share its buyside success fee with deal sources that are able to introduce an opportunity that results in a completed deal. We do ask that the introducing party have direct contact with the target company as opposed to working through a third party.
Can you share some of the buyers that NAS has closed deals with?
NAS has been fortunate to have initiated and completed deals with the following buyers: American Securities, Andlinger & Company, Arbor Investments, Evolution Capital Partners, Cortec Group, Danaher Corporation, Goense & Company, Hammond, Kennedy, Whitney & Company, H.I.G. Capital, KRG Capital, Odyssey Investment Partners, Peppertree Capital, Pfingsten Partners, The Riverside Company, Summit Partners, Waste Management, and Waud Capital Partners.
What are some of the acquisition searches that NAS presently has in progress?
The best way to stay abreast of specific current searches is to be added to our email distribution list, which is used to broadcast updated searches every month or two.
Who should I talk to?
Matthew Lerner is the President of NAS and can be reached at (410) 423-4848 and via email at mlerner@nas1.com.