Page 3 - TACC 2023 Program

SPONSORED CONTENT

20TH ANNUAL ACG CAPITAL CONNECTION

CHAIRMAN’S LETTER COMMITTEE

For two decades, Texas ACG Capital Connection “TACC” has TACC CHAIRS ACG LEADERSHIP
been the most significant private equity and debt capital event
in Texas and the Southwest. The Texas market is increasing and SPONSORSHIP ACG DFW
not slowing down, so it’s fitting that as one of the largest and Paul Gautier Jennifer Cuello
most prestigious ACG Capital Connections in the country, TACC Cary Street Partners Chapter President
EisnerAmper
welcomes more than 100 private equity and mezzanine firms, Doug Janowski Brittany Timmerman
Lazear Capital
over 50 investment banking firms, and 80 plus lending Executive Director
organizations to the Lone Star State, representing more than INVESTMENT BANK Tommie Hollingsworth
SPONSORS
$100 billion of capital available in one room. Ross Mesquita Events Manager
CHAIR ZRG Partners Erika McLeod
We are thrilled to celebrate 20 scheduling tool than years Tony Banks PRIVATE EQUITY Membership and
Marketing Manager
years of Texas being the go-to past. We also have solidified RSM US LLP EXHIBITORS
state for deal flow, networking, the event as two days, so every John Romney ACG AUSTIN / SAN ANTONIO
and business development. individual can maximize their Romney Capital, LLC Rachael Wyatt
Chapter President
As our 20th Anniversary, we time spent in Texas. KICKOFF LUNCHEON Venturi Private Wealth
are honored to celebrate each See you in Dallas! Gemma Descoteaux Sara Singer
and every attendee, and look SheppardMullin Executive Director
forward to helping with growth FACILITIES ACG HOUSTON
of your business. Scott Simmons Jessica Seff
Chapter President
We are continuing to grow Tony Banks CO-CHAIR BOK Financial Statesman Business Advisors
and evolve as the business Dan Vermeire TREASURER Morgan Stone
climate does, and in doing so, Corporate Finance Matt Klauser Executive Director
Associates
FORVIS
we have a better ACG Access Jacy Luedde
Chapter Manager

Data Analytics - Do A Better Deal

f you have been What roadblocks have you experienced during a changes from commodity costs vs. changes from
involved in M&A potential M&A transaction? Perhaps as a buyer product category mix.
Itransactions, even you have struggled to confi rm your investment
on the periphery, thesis or understand how or where the seller Given the data challenges, we obtained the bill
you have likely makes money. Or as a seller, you received of materials by SKU and annual raw materials
heard the term requests that seemed cumbersome due to fi le cost to develop material costs by SKU from
data analytics. Or sizes, system limitations, or even requests that scratch. This was then applied to the invoicing
perhaps you have you would like to fulfi ll but had to tell the buyer register, allowing us to quantify the impact of
heard discussion “we cannot get you that data”. Data analytics movements in material margin from commodity
regarding a data is designed to help solve these problems, and costs vs. product category mix (at the SKU level).
cube. But unless along the way results in outputs that buyers and Ultimately, the buyer was able to use this analysis
you are a data sellers can use to help facilitate a transaction, to evaluate the business under various potential
MATHEW junkie (admittedly, including: price/volume analysis, employee
KLAUSER I work with several utilization, customer churn and retention/ARR, commodity cost scenarios.
Partner, FORVIS of those!), you may project estimating accuracy, payor reimbursement In summary, data analytics assists buyers and
not have explored trends, commodity pricing, and margins by sellers by minimizing surprises and identifying
these further or product/customer. and synthesizing issues early, leading to
taken the time to increased buyer confi dence and seller credibility.
understand exactly what was meant by these So, what does this look like in the real world? It allows for an objective analysis of the business,
terms. In this article, we discuss the background On a recent transaction in the plastic products which may lead to an acceleration of transaction
of data analytics and a case study of the value it manufacturing industry, the target experienced timeline. Finally, data analytics may assist
provides. commodity cost changes that were not passed sellers with increased awareness of critical deal
through to customers, creating fl uctuations in
Data analytics utilizes client and publicly available material margins. The target was able to provide components and decision points. If you have
datasets to create analysis-ready databases standard gross margin by SKU, but not material struggled articulating your business to buyers (or
or stand-alone analytics/outputs that facilitate margin. The target had been experiencing a understanding the fi nancials of a seller beyond a
quicker and more supported decision making. A shift in product mix category, with its primary basic income statement or balance sheet), data
variety of processing tools are used to achieve category having the highest material margin. As analytics may be the key to providing deeper
these objectives, including Alteryx, Tableau, and a result, changes in material margins present in insights and bridging the gap between buyer and
SQL databases. the fi nancial statements could not be isolated to seller expectations.