Curtis
Financial Group Announces
2005 Plastics Industry Private Equity Firm Survey
Philadelphia,
PA - May 15, 2005 -- Curtis Financial Group is pleased to announce
the results of 2005 Private Equity Firms Survey of the Plastics
Industry. Howard M. Snyder, Vice President and Leader of Curtis'
plastics industry group, explained the basis for the survey "We
found that many private business owners have little understanding
of the dynamics of a private equity investments including how they
operate and how they make their investment decisions. We contacted
over 120 Private Equity Investment firms that have, or have recently
had, investments in plastics processing companies to learn about
their current perception of the Plastics Industry with the objective
of providing insight to business owners."
The Survey addressed
overall knowledge of the industry and the various types of processors,
leading industry risks, and the most effective growth strategies
used by their portfolio companies. Respondents also provided opinions
on their minimum platform company revenue size, target margin criteria
and current M&A valuations. Selected results from the survey
are provided below:
Platform Company
Threshold - 59% of respondents indicated that the minimum revenue
they would consider for a platform company was $30 - $50 million.
Knowledge Levels
Vary by Segment - Respondents are the most knowledgeable about injection
molding followed by film & sheet extrusion and the least knowledge
about expanded polystyrene and foam.
Private Equity
Firms invest in what they know - Injection molding and rotational
molding were listed as the most attractive segments followed by
film & sheet extrusion and thermoforming.
Size Matters
in Valuations - In today's market, our respondents would value an
'average' $25 million molder at 4.26x to 4.91x EBITDA while an 'average'
$100 million molder would receive a valuation of 4.79x to 6.06x
EBITDA representing a premium of 12-23%. Results were also compiled
based on 'below average' and 'above average' performing processors.
About Curtis
Financial Group, LLC
Curtis Financial Group, LLC is an investment banking firm based
in Philadelphia, PA that advises middle market companies on mergers,
acquisitions, divestitures, raising capital, and provides fairness
opinions, business valuations, and related corporate finance advisory
services. Our professionals have completed merger and acquisitions
with over $1.5 billion in transaction value, financing transactions
of over $1 billion, and over 100 fairness opinions and 1,000 valuations.
General Contact:
Kevin J. Rudd, President, 215-972-2351
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