Overview

Highland Capital Advisors concentrates exclusively on buy-side middle market mergers and acquisitions (M&A) advisory services. Our expertise is in representing private equity firms and corporations that want proprietary, qualified deal flow, and/or assistance in analyzing acquisition opportunities. By "proprietary" we mean companies that are not on the market, but that may be willing to consider an equity transaction with the appropriate party.

We look to represent investment groups and companies that have clearly defined search criteria, as well as the commitment and resources to complete the transaction process. In order to stay focused on our core competence, and to avoid potential conflicts of interest, we do not represent sellers.

Scope of Services

• Market research to evaluate industry characteristics
• Identifying companies that meet targeted criteria
• Executing a comprehensive approach methodology
• Qualifying and introducing receptive companies
• Financial modeling and business valuation
• Letter of Intent / Term Sheet formulation
• Negotiation facilitation

Clients / Industries / Markets Served

Highland Capital Advisors' principals have represented private equity firms, as well as private and public corporations in a wide variety of buy-side industry assignments. We are not particular about the industry or market a prospective client wishes to target. This is because we believe the ability to generate quality acquisition opportunities rests more with the advisor's skills and methodology than with developing specialized industry knowledge. Indeed, our core competence is the manner in which we constructively engage companies to discuss a possible liquidity event, regardless of the target market.

Due to the time intensive nature of most engagements, we limit the number of clients that we represent at a given time. All sourcing and evaluation assignments are personally handled by the firm's executives. We do not delegate approach activities to administrative staff.

For those buyers that primarily source transactions internally, we may be able to supplement your deal flow on an opportunistic basis. When one of our retained clients formally declines an attractive company because it is not quite the right fit, it is in our interests to match the company with another suitor. We encourage interested private equity firms and corporations to inform us of your desired transaction criteria (see Registration) so that we may contact you with appropriate opportunities.

Geographic Scope

We limit our acquisition target sourcing and evaluation activities to three countries: the United States, Canada and China.

Transaction Size & Type

We provide buy-side M&A services surrounding the investment in (or acquisition of) privately held middle market companies. Target companies for our clients may have revenues as low as $5 million for add-on acquisitions/investments and as high as $500 million for platform acquisitions/investments. Past clients have considered transactions that run the gamut from minority shareholder buyouts, recapitalizations and growth equity investments to corporate spin-offs, management buyouts and complete acquisitions.

Reporting

Accurate, detailed and timely reporting is important - both to our clients and us. We are conscientious about promptly communicating in writing the information a client needs to evaluate an opportunity. When we present a client with a prospective acquisition or investment lead, it is more than an introduction. We gather a comprehensive set of data on the company, its owner(s) and the type of transaction(s) they may consider. When clients have specific information that they would like us to collect, we will incorporate their preferences into our research and evaluation process. We also provide summary reports of project activity on a monthly basis.

Fee Structure

Highland Capital Advisors charges a "success fee" in line with industry standards for completed investment transactions. This aligns our interests with our clients' interests. However, we ultimately do not control a transaction's execution and for this reason we require a nominal fixed fee to perform search-oriented activities. The fixed fee covers our expenses and provides a minimal return for our effort in the event a client elects to abandon the acquisition process or pursues an opportunity sourced elsewhere. For non-transactional services, such as financial modeling and valuation, we quote fees on a customized project basis, taking into account the particular requirements of the client.

Our Fee Agreement will be provided to prospective clients at the appropriate stage of the service proposal process.