2. Financial Crisis Panel Effects and Changes in Mergers & Acquisitions World Services Group Costa Rica November 12, 2009 2:00-3:15 pm Ed Dawson Capital Alliance Corporation Dallas, Texas, USA

3. Something is definitely going on. Were back to eating dog food. Source: The New Yorker

4. Financial Crisis Effects Risk reduction Risk reduction Fear Fear Conservative, less risky actions Conservative, less risky actions Build reserves Build reserves Reduce costs/assets employed Reduce costs/assets employed Merger and acquisition impact Merger and acquisition impact 4Q08 marketplace virtually frozen 4Q08 marketplace virtually frozen Gradual monthly improvements in 09 Gradual monthly improvements in 09

5. Financial Crisis Changes Dramatic reduction in lending Dramatic reduction in lending Many private equity firms can not get financing Many private equity firms can not get financing Staff reductions throughout the industry Staff reductions throughout the industry

6. Global M&A Activity in Recent Years Cyclical and Ever Changing

7. US and Global M&A Activity

8. Monthly Average Source: Federal Reserve Release Date: September 2009 New Security Issues US Corporations

9. Total U.S. Private Equity Deal Flow Source: PitchBook

10. U.S. Private Equity Fundraising Activity Source: PitchBook The number of funds raised year to date declined 57% compared to 143 funds closed through 3Q 2008.

11. What Have Bankers Been Doing? And, while theres no reason yet to panic, I think it only prudent that we make preparations to panic.

12. Source: Federal Reserve US Depository Institutions Monthly Total Reserves

13. Source: Federal Reserve US – Net Lending Average per Quarter

14. Opportunities Many strategic firms have excess cash Many strategic firms have excess cash Strategic fits driving many transactions Strategic fits driving many transactions Private equity cash is available Private equity cash is available Many global opportunities – Far East Many global opportunities – Far East

15. Changes Lower prices Lower prices Fewer transactions Fewer transactions Difficult financing Difficult financing More government involvement More government involvement More regulations More regulations The new normal is conservative behavior The new normal is conservative behavior

16. We Have Seen This Movie Before Credit Suisse Global Risk Appetite