INSIDE TRACKISSUE ONESUMMER 2012

in this issue-------------------------------

The voice of the M&A industry brought to you by Benchmark international.

Why selling your business when you want may affect your sale value.

Why 2012 may be the year to sell your company

Facebook’s Instagram deal

M&A Roundup – Q1

ARE YOU DEAL READY?

INSIDE TRACK ------- ISSUE ONE

Why selling your business when you want may affect your sale value.

ARE YOU DEAL READY?

WHY 2012 MAY BE THE YEAR TO SELL YOUR COMPANY

Sellers do not control when optimum value will be realizedfor business owners, selling their company is likely to be the single most important financial event in their lives and the timing of this event is probably the most critical factor with regards to realizing maximum value.

Many factors may be at play when they eventually decide to cash in and sell their company, however, unfortunately for the exiting party, it is the market which will more often than not decide it’s ultimate value.

Procrastinating when it comes to selling their business often leads to business owners obtaining reduced levels of value upon sale. It is highly important that business owners consider market and buying conditions. In short, they need to be ‘Deal Ready’.

MARKET TIMING

Market timing is critical when evaluating the right time to exit you business. The economic climate, interest rates and the tax and regulatory environment all impact upon market timing.At present, interest rates are currently at their lowest levels for some considerable time. This has reduced the rates of return on investment (ROI) for optimal acquirers of companies. With lower ROI, this allows optimal acquirers to pay higher sums for companies than they ever have done previously.

With CGT remaining at it’s lowest ever level, business owners considring a full sale of their company, partial exit or seeking investement in order to provide capital growth, can explore the options in the confidence that they are doing so in a tax efficient manner.

BUYER TIMING

Revenue growth and earnings expectations are of extremely high importance on Wall Street and increasing levels of pressure are placed upon public companies and their strategic acquisition departments to meet these expectations.

High-level executives therefore actively monitor acquisition opportunities in order to quickly address limitations and enhance the levels growth of their own organizations.Acquisitions can benefit companies by more rapidly and efficiently allowing

companies to increase market share, expand geographically, acquire new products and gain competitive advantage.

Benchmark international understands the importance of market and buyer timing. The Benchmark team has decades of collective experience selling private companies and are experts at evaluating and understanding timing, including both market timing and buyer timing issues. We can show you how to use both the timing of strategic buyers and market timing to your advantage.

THE BENCHMARK TEAM HAS DECADES OF COLLECTIVE EXPERIENCE SELLING PRIVATE COMPANIES

Now could be the time to sell and realise maximum value

The following reasons demonstrate why acquirers are getting motivated to acquire companies and why now could be the time to take advantage:

> INFLUX OF INTERNATIONAL /OVERSEAS ACQUIRERS

> AND CROSS BORDER TRANSACTIONS

> BUSH TAX CUTS SET TO EXPIRE

> BUYERS LOOKING TO DIVERSIFY

> 2011 – A GOOD YEAR FOR MID MARKET COMPANIES

> BUYERS ARE OUT THERE

> STRATEGIC ACQUIRERS

> HIGH TRANSACTION MULTIPLES BEING REACHED

> THE MARKET MAY SOON BE FLOODED

> DEAL SCARCITY

2012THE YEAR TO SELL YOUR BUSINESS

THE REAL LESSON TO BE LEARNT FROM FACEBOOK’S INSTAGRAM DEAL

GREG JACKSON: GLOBAL CEO, BENCHMARK INTERNATIONAL

After thousands of articles and hours of news broadcast, the hysteria revolving Facebook’s $1B acquisition of Instagram seems to have now died down slightly.

There is no doubt that a $1B acquisition of a company with 12 employees and no revenue is truly amazing, yet away from this there is an important factor behold.

The factor which triggered Facebook’s, ‘buy at any price’ bid, was the news of a secret offer from Twitter. News of Twitter’s interest in Instagram caused a huge knee-jerk reaction from Facebook, which subsequently saw them offer that unprecedented amount.

Away from the many issues that have been endlessly discussed relating to the acquisition, what this deal highlights, in a very high profile manner, is the importance of competition in creating value for the exiting party.

Without Twitter’s interest, it is fair to say that Facebook would not have paid anything close to $1B for Instagram. Competition created value for Instagram’s shareholders.

On the topic, Benchmark International’s Global CEO, Greg Jackson, commented:

“ Creating a competitiveatmosphere surrounding deals is something we pay a huge level of attention to here at Benchmark International. We realize, just as was evident in the deal for Instagram, competitive tension within the bidding process is of huge importance in creating the highest level of value for the exiting party.”

CREATING A COMPETITIVE ATMOSPHERE SURROUNDING DEALS IS SOMETHING WE PAY A HUGE LEVEL OF ATTENTION TO HERE AT BENCHMARK INTERNATIONAL.

INSTAGRAM:THE ACQUISITION> INSTAGRAM WILL BE THE LARGEST ACQUISITION OF A

VENTURE CAPITAL-BACKED CONSUMER WEB COMPANY

SINCE ZAPPOS WAS BOUGHT BY AMAZON FOR $1.22B IN

2009 (VENTURESOURCE).

> ONLY 37 VENTURE-BACKED COMPANIES WORLDWIDE

HAVE BEEN PURCHASED FOR $1B OR MORE SINCE 1992

(VENTURESOURCE).

> INSTAGRAM ONLY HAS 12 EMPLOYEES. 13 EMPLOYEES

CREATED A BILLION DOLLAR APP. YOUTUBE (12 WORKERS)

WAS THE LAST VENTURE CAPITAL-BACKED COMPANY WITH

AS FEW EMPLOYEES AS INSTAGRAM TO BE ACQUIRED FOR

$1B (VENTURESOURCE).

SUMMER 2012

BASIC MATERIALS

ENERGY

FINANCIAL

INDUSTRIAL

CONSUMER, NON-CYCLICAL

CONSUMER, CYCLICAL

COMMUNICATIONS

TECHNOLOGY

UTILITIES

DIVERSIFIED

NORTH AMERICA

WESTERN EUROPE

ASIA PACIFIC

SOUTH / CENTRAL AMERICA

EASTERN EUROPE

MIDDLE EAST / AFRICA

1%

20%

39%

30%

23%

4%

15%

13% 13%

12%

9%

7%

5%5%

2% 2%

1%

20%

39%

30%

23%

4%

15%

13% 13%

12%

9%

7%

5%5%

2% 2%

M&A ROUNDUP – Q1

INSIDE TRACK ------- ISSUE ONE SUMMER 2012

KEY POINTS

> Over 97% of M&A transactions occurred in the mid-market range.

> Cross-border activity accounted for over 51% of M&A volume.

> Cash continued to be dominant for of payment.

> Swiss firms deal activity at highest point in a decade.

> Acquisitions in India reached a 5year high.

INDUSTRY SECTOR DEAL ACTIvITY

> The most actively targeted industries in terms of deal value were Diversified Minerals, Oil Exploration & Production, and Transport Services. With a total combined volume of over $95 billion, representing over 21% of all global volume.

> The Basic Materials and Technology sectors both experienced transaction value growth in excess of 60%.

LET US SHOW YOU HOW WE CONNECT

vOLUME BY INDUSTRY

vOLUME BY REGION

The RSS news feed continuously provides coverage regarding completed deals, and current M&A activity. By proactively monitoring our communication channels, our creative campaigns are forefront within our sector.

Our @benchmarkgroup account leads the industry in terms of followers, more than any of our rivals. Private Equity and Venture Capital Groups comprise over 70% of our followers. Let’s tweet.

The company Linkedin account, “Companies For Sale – Benchmark”, generates hundreds of connections seen directly amongst discussion and interest in our acquisition opportunities. Your best link to M&A deals.

Our social networking campaigns combined with our global databases allow us to be in touch with your special acquirer. We are your #1 broadcast for acquisitions.

The Loop is a weekly mergers and acquisitions video brought to you by Benchmark International detailing the latest industry news. Tune in every week for our contemporary testimonials.

TO FIND OUT YOUR COMPANIES vALUE & SALEABILITY:CALL US TODAY FOR A FREE, WITHOUT COSTOR OBLIGATION APPRAISAL ON 813 898 2350