Trident M&A Advisors Quarterly Newsletter

Lower Middle Market (LMM) Platform

Trident M&A Advisors is a relationship centered investment banking firm serving lower middle-market (LMM).  We lever experience and expertise to provide turn-key buy/sell guidance and consultative services to our clients in various industries. Trident is founded on transparency and honesty, where we invest in the value of our clients and their businesses. Our commitment to exemplary services, advice, and support at a competitive price. We assemble a collaborative team of subject matter experts with emphasis on the holistic business solution rather an individual transaction. 

Industry Focus: Fashion/Apparel

Trident sees a strong market for "GenZ" apparel deal making. Currently, we are working with recognizable streetwear and activewear brands, targeting the 15–26 year-old consumer. With solid top line sales growth, forward thinking fashion companies are poised for additional expansion internationally and new product lines as key drivers for 2023 and 2024. Strategic and PE buyers/investors have shown particular interest in this market sector and are eager to participate. Valuations are strengthening and deal structure is favorable to the seller. If you own a fashion/apparel company with $2m or more in EBITDA, it would be beneficial to schedule an introductory visit with the Trident team. We have developed proprietary, tech-enabled tools to determine valuation ranges quickly, accurately, and incorporate buy-side market economics.

Contact Henry Ennis today @ (972) 567-5597 or [email protected] for a complimentary assessment of your business. 

Economic Outlook

M&A activity remained steady in Q2 2022. Strategic buyers and private equity firms continued their growth capital and acquisition activities in the private markets at an annualized pace consistent with high levels of activity seen in recent periods.

Deals for middle market companies continued to average 7.4x TEV/EBITDA (lower middle market companies have continued to transact at normal levels), consistent with previous quarters. Throughout 1H 2022 declined in some industries such as Technology, but increased in others, such as in Food & Beverage. Investors are nevertheless active to identify, attract, and place capital in quality companies with above-average growth and margins.

Within Technology the public markets are demanding a lot from SaaS companies right now. They want both strong growth and strong cash flow. To be trading anywhere close to 10x ARR you need roughly 50% ARR growth and ~15% FCF margin. This is a far cry from yesteryears where SaaS was regarded as “sweetheart” deals because of the recurring nature of their revenues and higher margins.

Contact Vishal Shivdasani today @ (678) 770-6216 or [email protected] for an industry review.

 Business Development

Trident M&A Advisors continues to experience substantial growth helping LMM firms and founders reach their objectives. In mid-2021, responding to this growth, Trident expanded its southwestern regional presence to become a nationwide firm. To help fuel this national expansion, Trident engaged a national marketing firm to aid lead generation by identifying companies and founders operating in light manufacturing, value-added distribution, and business service industries. New Trident offices were opened in Detroit and Atlanta; and in 2022 Greg Renwick was hired to fulfill the newly created position of Director, Business Development. This multi pronged marketing effort proved to be an excellent source of leads, identifying companies and their owners’ seeking to fully or partially exit.

While the company continues to grow its geographic footprint and client base, Trident still prides itself in maintaining its specialized, personalized, and traditional buy-side/sell-side investment banking services.

Trident also continues to grow its relationship with investors and buyers. The Company has a growing database of Private Equity, Family Offices, and Strategic Buyers that are interested in acquiring represented sellers. A significant part of Trident’s effort is expended in growing its buy-side database of investors to help our sell-side clients secure the most favorable deals.

Team Spotlight: Director, Business Development - Greg Renwick

Mr. Renwick recently joined Trident M&A Advisors as Director, Business Development. A seasoned global petroleum executive, he brings over 35 years of technical, financial, and managerial experience. Mr. Renwick commenced his upstream oil and gas career with Mobil Oil, where he worked in several positions of increasing responsibility including Exploration Manager in Indonesia, Business Development Manager for the Former Soviet Union, and General Manager in Turkmenistan. He held leadership positions in business development at Kuwait Foreign Petroleum, Centurion International, and Dana Gas PJSC. After his expat stint, Mr. Renwick became President and CEO of East West Petroleum, a publicly held Canadian company.  He also held non-executive board positions with North American Oil and Gas (U.S.) and Transatlantic Petroleum (U.S.).

Mr. Renwick’s career also included several financial roles, including Manager, Financial Analysis at Mobil's E&P Division and Investment Representative at Edward Jones in Garland, Texas.

He holds a MSc. in Geology from Dalhousie University and a BSc. in Chemistry from the University of Western Ontario. 

Contact Greg Renwick at (972) 955-7251 or [email protected] to engage with Trident.

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