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Breakfast Panel: Two Bites of the Apple Summary

Denver, CO (June 18, 2015) – The Forbes M+A Group played host to over 70 businessmen and women at a breakfast panel presentation that discussed how private equity firms invest in a company (bite #1), grow the company, then sell the company (bite #2). In addition to The Forbes M+A Group, there were four other highly respected sponsors of the event. EKS&H is a leading tax, audit and consulting firm in Denver, CO. Guaranty Bank is located in Englewood, CO and offers a variety of banking services including loans. Davis, Graham & Stubbs is a Denver-based law firm that serves businesses and corporations in multiple capacities including mediation. Shelly Ford of Morgan Stanley’s Pelican Bay group was the final sponsor. This group is a leader of wealth and strives to assist clients in attaining financial and investment goals. The panel was moderated by Bill Nack, a Managing Director with The Forbes M+A Group.

On the panel, three business owners provided expertise and answered questions based on their own experience of selling their company(ies). Bob Clark is the current CEO of 3 Bear Energy, and previously sold three other companies in the energy sector. Mr. Clark provided great insights on the essentials for deal structure. Mr. Clark made the audience aware of the fact that sellers may have a preference in terms of payment structure, but it is ultimately at the discretion of the buyer. Mr. Clark also implored business owners to strenuously examine their downside risk, not just their upside prospects.

Todd Padgett is the CFO of Novus Biologicals who recently sold the company. Mr. Padgett’s wife started this company in the 1990s, and Mr. Padgett joined the company in 2001. Novus Biological hired The Forbes M+A Group to take the company to market, after which an investment was made that subsequently tripled the revenue. Mr. Padgett discussed how they had a plan to expand the company, but were reluctant to take on all of the risk by themselves. He also noted that the process would have been much slower without a private equity firm and they had really the desire to accelerate the company’s growth.

Cody Gilliland was the owner of RMS Cranes who recently sold his company to TNT Cranes. His management team desired a liquidity event, so The Forbes M+A Group was hired to initiate and execute the process. Mr. Gilliland spoke about the implications of protecting family members and other employees after a sale. He mentioned that he originally wanted to sell the entire company, but once interactions with buyers began they found a partner whose interests aligned with their own. Mr. Gilliland also attempted to put potential sellers at ease by explaining that the horror stories that they might have heard about private equity firms’ strategies being detrimental to employees was not the case in his experience.