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Incentives Advisory

Property Assessed Clean Energy (PACE) 

Investment Banking for Food & Beverage

Investment Banking for Healthcare & Life Sciences

Investment Banking for Consumer & Retail

Investment Banking for Manufacturing

Public Sector Advisory

Municipal Advisory

Economic Development for Local Governments

Public-Private Partnerships 

Executive Managing Director, Principal

Mergers & Acquisitions

Valuation & Corporate Finance Advisory

Capital Sourcing

Senior Managing Director

New Markets Tax Credits

As the manufacturing industry continues to experience meaningful growth opportunities, many family-owned manufacturers are beginning to consider if and when they will transition their business. In fact, half of family firms are expected to change hands in the next five years, either passing leadership on to the next generation or selling to an outside entity. Preparing for a transition can help preserve the vision of current owners while also helping set up the next generation or new owners for continued success. With any company’s decision to sell, the owners tend to have a target number in mind. The question to ask – is the target valuation accurate or is it wishful thinking? Furthermore, if it’s wishful thinking, what steps can be taken to attain the desired valuation. In a presentation by professionals from Baker Tilly Capital and Baker Tilly, we help business owners understand how their company is valued while introducing key areas that buyers look for in a potential acquisition. From there, we review factors to consider when determining if it’s the right time to sell or continue to grow the business and provide a comprehensive view on growth drivers that impact a business’ overall valuation. Key learning objectives: Understand how your business is evaluated on an enterprise value and post-tax equity value basis Identify key areas of your business to analyze from a buyer’s perspective Discover growth drivers and tactics to increase your business’ value Position your business for growth or sale Who should view the presentation? Organizations that would like to learn more about potentially selling their business Organizations looking for ways to grow and increase their business’ value Organizations with revenues between $10-500 million Download the presentation  Baker Tilly Capital, LLC disclosure
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With this presentation, manufacturers interested in growth or transition will gain understanding of how their company is valued, while learning about key areas buyers look for in a potential acquisition and growth drivers that impact a business’ overall valuation.

Private Equity & Portfolio Companies

Manufacturing & Distribution

Transaction Advisory Services

What’s your number? Understanding the value of your business and assessing growth vs. exit opportunities

When the Tax Cuts and Jobs Act (TCJA) was enacted last December, it marked the largest change to tax policy in recent decades. The new law is still being reviewed and additional IRS guidance has been provided – with more anticipated – throughout 2018. At this time, the law’s influence on the merger and acquisition (M&A) and private equity markets is expected to be positive. There are five key changes brought about by the TCJA that will significantly affect the private equity and M&A markets: Tax rates Bonus depreciation Net operating loss limitations Carried interest holding period Business interest expense limitation In the following article, we recap each of these key areas and provide our initial observations on how they impact M&A market activity, buyers, sellers and the private equity industry as a whole. Download the article >  The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments. For more information on this topic or to learn how Baker Tilly specialists can help, contact our team.

Learn how five key changes brought about by the Tax Cuts and Jobs Act impact M&A market activity, buyers, sellers and the private equity industry as a whole.

Tax reform’s impact on private equity and M&A markets

Client need American Provenance specializes in minimal ingredient, natural and organic personal care products. The company’s product line includes deodorants, lip balms, after-shaves and other grooming products. American Provenance products are sold in more than 800 retailers nationwide, as well as directly to consumers online through its website and Amazon. With his company at a key inflection point, Kyle LaFond, founder and owner of American Provenance, realized that in order to continue its rapid growth trajectory, he needed additional capital to achieve the following: Accommodate and accelerate the company’s growth to sustain momentum and acquire additional market share Establish strategic partnerships with investors for current and future needs Enhance manufacturing and distribution capabilities Baker Tilly Capital met with Kyle to learn more about the company’s current needs and future growth initiatives. Based on the company’s growth profile and potential, quality of brand and products, Kyle was determined to seek outside institutional funding. Baker Tilly Capital solution The capital sourcing specialists within Baker Tilly Capital assisted American Provenance with the capital raise process, helping to outline the roadmap for funding, identifying target investors and establishing connections for the company to pursue. The Baker Tilly Capital team acted as a Valued Business Advisor to American Provenance by providing strategic insight and assisting with the following efforts: Discussing favorable/ideal capital structures Providing insight into industry dynamics, competitors, recent comparable investments and key company specific differentiators Providing comments and insights to support the creation and enhancement of an executive summary and supporting capital raise materials Recommending potential investor types (strategic/financial versus purely financial investors and/or partners) Establishing initial introductions to potential investors and investor groups Results The capital raise resulted in American Provenance raising $500,000 of equity funding by establishing strategic partnerships with two investors – Winnebago Seed Fund and Tru Fragrance & Beauty. The funding was led by the Winnebago Seed Fund, a venture capital fund based in Neenah, Wisconsin that partners with talented entrepreneurs in Wisconsin to rapidly grow their businesses. Tru Fragrance & Beauty, which specializes in perfumes, colognes and body care products, contributed to the capital raise as well. American Provenance will utilize the funding to expand its production and warehousing capacities by opening a second facility in the third quarter of 2018 and execute an all-encompassing digital marketing campaign. Collectively, the investment will accelerate product development, generate increased inventory and establish same-day shipping capabilities. “With Baker Tilly Capital’s advisory and support, our collective efforts proved to be a success and the company is well positioned to continue driving momentum and operational excellence. The capital infusion will help us strengthen the American Provenance brand, continue growing our strategic partnerships on a national level and accelerate growth within the personal care products industry.” Kyle LaFond, Founder and Owner – American Provenance For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team. Baker Tilly Capital, LLC disclosure
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Retail

American Provenance secures equity funding from Winnebago Seed Fund and Tru Fragrance & Beauty

Client need Our client (Company) was a thinly-traded, publicly listed electronics company with three distinct operating subsidiaries. When the Company decided to sell the largest subsidiary, which was its primary line of business, to a third party, it became necessary to form an affiliated entity in order to acquire the assets of the other businesses, which would not be included as part of the sale to the third party. Before the transaction occurred, the Company’s Board of Directors wanted to establish the following: The purchase price associated with the sale of the largest subsidiary was fair The transaction consideration related to the purchase of the other two subsidiaries by existing management was fair Baker Tilly Capital solution* Baker Tilly Capital was hired as the Company’s financial advisor in connection with this complex two-step sale, which included the sale of the largest subsidiary and a going-private transaction of the Company’s remaining two subsidiaries. The team worked with a special committee of independent directors to provide fairness opinions to the Company’s Board of Directors for both parts of the sale. Results As a result of our team’s fairness opinions, the Company was able to receive board and shareholder approval, allowing it to efficiently and effectively close the two-step sale in a timely manner and take its remaining two subsidiaries private. For more information on this deal, or to learn how Baker Tilly Capital specialists can help with your fairness opinion needs, contact our team. * Services provided by Curtis Securities, LLC, which merged with Baker Tilly Capital, LLC Baker Tilly Capital, LLC disclosure
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Electronics company receives fairness opinion in connection with two-step acquisition

Client need TRI Holdings, LLC was hired to develop a new corporate headquarters facility for Duluth Trading Company in Mount Horeb, Wisconsin. The five-story, 108,000 square foot facility, developed by TRI Holdings and built by partner National Construction, will eventually become home to more than 250 employees, of which 100-150 are additional to the Village of Mount Horeb (the Village). With an expected $31 million investment in the Village, the project will contribute to the ongoing revitalization of Mount Horeb’s iconic downtown. Before construction could begin, TRI Holdings’ biggest obstacle was financing the project. Due to the project’s location and size, traditional financing would have left a large gap in the capital stack. In order for the project to work, the developers at TRI Holdings would need a financing option that would not be tied to the appraised value of the facility, and would include funds from the Village. Baker Tilly Capital solution The capital sourcing specialists within Baker Tilly Capital, LLC worked closely with the development team at TRI Holdings to deliver a comprehensive capital structure to bring the project to life. Our team assisted the developers throughout the pre-development and financing period, providing advisory and negotiation support. Our team identified a lending solution that would provide the capital needed to complete the project. In addition, the project received funds from the Village. Results The project received $3.5 million in up-front funds from the Village, along with an additional $1 million in pay-as-you-go tax increment financing. In addition, our team secured a long-term, fixed rate loan for the new facility. Our comprehensive capital structure package met the needs of all parties involved in the transaction, while reducing the amount of up-front equity TRI Holdings needed to contribute to the project, which increased the organization’s return on investment.  “We were confident in Baker Tilly Capital’s team to help source capital for us to fully finance the project. With their advisory and negotiation support, the state-of-the-art facility will become a reality and prove to be a transformational project for the Village of Mount Horeb.”Jeff Grundahl and Tom Walzer, Managers – TRI Holdings, LLC For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team. Baker Tilly Capital, LLC disclosure
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Real Estate

TRI Holdings, LLC secures financing to complete new Duluth Trading Company headquarters

The consumer and retail sectors require nimble business decisions to stay relevant and maintain growth goals in an ever-changing industry. Our investment banking team provides valued advisory services for retailers looking to expand an existing business line through an infusion of capital, acquisition or business exit.

The consumer and retail sectors battle market dynamics that influence the overall direction of the organization. Opportunities often arise that require specialized industry knowledge to take full advantage of available options. 

Our experienced investment banking team offers clients insights into the trends impacting their business. With a deep understanding of the consumer and retail industries, our team helps you navigate your options, including advising on:

Our team has extensive experience across a variety of retail sectors, including:

The founder and owner of American Provenance realized he needed additional capital in order to achieve the company's current growth trajectory and hired Baker Tilly Capital to find outside institutional funding.

When the company decided to sell its largest subsidiary to a third party and existing management needed to acquire the remaining subsidiaries, Baker Tilly Capital provided fairness opinions for both transactions of this two-step sale process.

TRI Holdings, LLC secures financing to complete new Duluth Trading Company headquarters.

Baker Tilly Capital provides specialized advisory services to the food, beverage and agriculture industries to help organizations grow or exit their business.

Baker Tilly's investment bankers leverage deep industry relationships throughout the healthcare and life sciences sectors to deliver specialized advisory services for organizations and providers that identify opportunities and result in successfully conducted business transactions.

Baker Tilly Capital provides specialized advisory services to the manufacturing and distribution industries to help organizations grow or exit their business.

Baker Tilly's investment banking team provides valued advisory services for retailers looking to expand an existing business line through an infusion of capital, acquisition or business exit.

Global trade association seeks valuation with regard to first strategic acquisition 

Helping your restaurant thrive in a dynamic and competitive marketplace is at the core of our business.

Our restaurant industry specialization and relevant client experience translates into a full suite of service solutions designed to help your restaurant drive profitability.

Compete and grow amid evolving market trends with our forward-thinking advisory, accounting and tax services.

Compete and grow amid evolving market trends with our forward-thinking advisory, accounting and tax services backed by grocery and convenience store specialization.

Kate Crowley, principal with Baker Tilly, Baker Tilly Municipal Advisors, LLP, and Baker Tilly Capital, LLC, has been with the firm since 2009. Kate leads the firm's Public Sector Advisory practice and is a member of the firm’s project finance practice, providing comprehensive project finance solutions for public-private partnerships (P3) and economic development initiatives. These services include strategic planning and economic impact analysis, tax credit and incentives analysis and negotiation, and creative financing and funding solutions.

Jed Mecham, senior vice president with Baker Tilly Capital, LLC, the wholly owned private investment banking subsidiary of Baker Tilly US, LLP, joined the firm in 2014.

Michael Milani is executive managing director and a principal with Baker Tilly and Baker Tilly Capital, LLC. 

Nate Voss, principal with Baker Tilly and senior managing director with Baker Tilly Capital, LLC, the wholly-owned private investment banking subsidiary of Baker Tilly has been with the firm since 2003. 

Middle market business owners, investors and corporations rely on our sell-side, buy-side and financing solutions to execute their growth strategy.

Middle-market business owners, investors and corporations rely on our sell-side, buy-side and financing solutions to execute their growth strategy.

Funding corporate growth requires a holistic view of the financial and operational goals of a business. Having strong relationships with capital sources can help you meet your objectives.

The ever-changing needs of middle-market businesses require a specialized team of advisors to help you identify and evaluate strategic and financial opportunities as they arise.

We take a comprehensive view of available federal, state and local tax credit and incentive programs and loan programs when developing a project’s capital stack.

Every year, federal, state and city governments across the United States invest over $170 billion of incentive funding into private businesses. Taking advantage of available incentives programs can fill financing gaps and turn planned projects into a reality. 

Government incentives programs can fill financing gaps in real estate projects.

Investment Banking for Consumer & Retail

What’s your number? Understanding the value of your business and assessing growth vs. exit opportunities

Tax reform’s impact on private equity and M&A markets

American Provenance secures equity funding from Winnebago Seed Fund and Tru Fragrance & Beauty

Electronics company receives fairness opinion in connection with two-step acquisition

TRI Holdings, LLC secures financing to complete new Duluth Trading Company headquarters

Restaurants & Franchises

Grocery & Convenience Stores

Mergers & Acquisitions

Capital Sourcing

Valuation & Corporate Finance Advisory

Project Finance

Incentives Advisory

Kate Crowley

Jed Mecham

Michael Milani

Nate Voss

Our solutions

Our team has extensive experience across a variety of retail sectors, including:

Featured insights

American Provenance secures equity funding from Winnebago Seed Fund and Tru Fragrance & Beauty

Electronics company receives fairness opinion in connection with two-step acquisition

TRI Holdings, LLC secures financing to complete new Duluth Trading Company headquarters

Other industries of focus

Investment Banking for Food & Beverage

Investment Banking for Healthcare & Life Sciences

Investment Banking for Manufacturing

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