Background on Local Insight Media :
Background on Local Insight Media Founded in March 2006 as a roll-up vehicle in the yellow pages/local search space
A portfolio company of Welsh, Carson, Anderson & Stowe
Since formation, Local Insight Media has consummated 6 acquisitions totaling $2.13 billion
Local Insight is now the 5th largest yellow pages/local search firm in the country
2008 revenues of $700 million
1,500 employees; operations in 42 states, Puerto Rico and the Dominican Republic
Deals were primarily debt-financed, consisting of:
Senior secured bank debt
“Whole business securitization” debt
Senior subordinated notes (registered with the SEC)
Unsecured mezzanine debt
In-house legal group consisting of two attorneys and two legal assistants
Today’s M&A Environment :
Today’s M&A Environment The M&A environment has changed dramatically over the past 18 months
Local Insight Media’s last acquisition closed in April 2008. Since then:
Credit has dried up (or vanished)
Buyers face severe obstacles with financing certainty
Financing sources are scaling back on commitment levels
Valuation multiples have tumbled
Sellers’ price expectations may not have caught up with the new reality
Buyers and financing sources have become much more diligent and process-oriented
Sellers are seeking greater assurances that announced deals will close
In the new environment, Local Insight Media is:
Looking at smaller deals focused on technology niches
Considering partnership and investment opportunities as well as outright acquisitions
Leveraging the capabilities of its private equity sponsor
Working Effectively With Outside Counsel :
Working Effectively With Outside Counsel Our approach
Participate actively in all aspects of the transaction (legal and business)
Seek the right balance of in-house and outside involvement
Establish strong relationships with outside counsel
Select the right outside firm to work on the deal
In evaluating outside counsel, we look for:
The appropriate mix of skills for the specific deal
Responsiveness
A practical approach that understands the broader needs of the business
Companies have greater negotiating power than ever before over legal and other professional fees
Our experience includes:
Significant fee reductions
Fixed fee arrangements for some work
Questions? :
Questions?