Piper Sandler News Releases


News Releases  |  In the News

CHICAGO, Feb 18, 2004 /PRNewswire-FirstCall via COMTEX/ -- Piper Jaffray & Co. today released its latest report on the packaging industry: Mergers and Acquisitions Value Drivers for Companies in the Packaging Industry, written by Doug Lawson, vice president in Piper Jaffray's Middle Market Mergers and Acquisitions (M&A) group.

In the report, Lawson examines characteristics of packaging companies that drive high value in M&A transactions. He has categorized these characteristics, also known as value drivers, into two groups: fundamental value drivers and exceptional value drivers. These value drivers influence the ability of acquirers to continue their growth and enhance their profitability.

"The presence of fundamental value drivers has the potential to drive strong interest and strong valuations; however, without some combination of the exceptional value drivers, they alone will generally not result in exceptional valuations," said Lawson. "The absence of these value drivers is likely to result in low interest and low valuations."

According to Lawson, valuations among M&A transactions in the packaging industry can vary significantly, but generally fall between five to seven times enterprise value/earnings-before-interest-taxes-depreciation and amortization (EBITDA).

The report is the latest in a series of reports by Piper Jaffray's Middle Market M&A group that explore M&A in the packaging industry. Other recent reports published by Doug Lawson include:

     -- Packaging Industry Valuation Considerations: Capital Expenditures
        (December, 2003)
     -- Caps and Closures: A Mergers and Acquisitions Review (August, 2003)
     -- Valuations in the Packaging Industry (May, 2003).
     -- Packaging Industry Public Acquirers - Earnings per Share
        Accretion/Dilution Considerations (March, 2003).
     -- Mergers and Acquisitions Activity in the Packaging Industry - 2002
        Year in Review (February, 2003).
In addition, Piper Jaffray publishes a monthly packaging M&A newsletter.

To subscribe to the newsletter or to request a copy of Mergers and Acquisitions Value Drivers for Companies in the Packaging Industry, or any of the aforementioned reports, please contact Doug Lawson at or 312-920-2139.

Headquartered in Minneapolis, Piper Jaffray & Co., a subsidiary of Piper Jaffray Companies (NYSE: PJC), is a focused securities firm dedicated to delivering superior financial advice, investment products and transaction execution within selected sectors of the financial services marketplace. The company operates through two primary revenue-generating segments -- Capital Markets and Private Client Services. Investment Research, an independent group reporting to the CEO, supports clients of both segments. The firm serves corporations, government and non-profit entities, and institutional investors on a national basis and serves the financial advisory needs of private individuals predominantly across the western half of the United States. The firm has over 2900 employees in 123 offices in 23 states across the country and also maintains an office in London, England through its affiliate, Piper Jaffray Ltd. For more information about Piper Jaffray, visit us online at .

    Since 1895. Member SPIC and NYSE.

SOURCE Piper Jaffray & Co.

Dana H. Wade, Public Affairs and Media Relations of Piper
Jaffray & Co., +1-415-277-1556