April 2017 – 1st Quarter - Constant Contactfiles.constantcontact.com/cb15173a001/fa71249b-4852-4c07...Government Revenue Solutions St. Petersburg, FL 1/25/2017 Halcon Resources Corp

April 2017 – 1st Quarter

M&A Market Update andTexas Acquisitions Report

BV Capital Advisors, LLC

9 Greenway Plaza, Suite 1700-A

Houston, TX 77046

www.bvcapitaladvisors.com

Sid Shaver Walker FrenchManaging Director Assistant Director

713-353-4697 [email protected] [email protected]

data provided by GF Data and Mergr.com

April 2017 BV Capital Advisors 2

http://www.statesmanbiz.com/

mailto:[email protected]

mailto:[email protected]

M&A Market Update


4Q 2016 M&A Market Overview

Note: overall market data represents data collected by GF Data through December 31, 2016.

Transaction activity picked up in 2016. Overall, valuations for the year averaged 6.9X Trailing Twelve Months (TTM) Adjusted EBITDA, a record high. The previous record high multiple was set in 2003.


Quality Premium – Buyouts Only


The average premium paid to a company with ‘above average’ financial performance in 2016 was 19 percent. This is a slight decrease from 2015 at 24 percent. The 9 year historical average of this financial premium is 7 percent.


Debt Multiples by Year


Overall debt utilization remains even at a 3.9X EBITDA multiple. A slight increase in Sr. Debt/EBITDA fits the continued trend of this preference.


Texas Acquisitions By Region1Q 2017


data provided by Mergr.com BV Capital Advisors April 2017 Texas Acquisitions Report

Date TargetTarget Location Sector Investor/Acquirer

Investor/Acquirer Location

Houston

3/15/2017 HealthHelp LLC Houston Healthcare Services WNS (Holdings) Ltd. Mumbai, India

2/27/2017 MTEC Mechanical Testing Services HoustonTest/Measurement Equipment Element Materials Technology BV Amsterdam, Netherlands

2/24/2017 Trident Marine Managers, Inc. Houston Insurance Ryan Specialty Group, LLC Chicago, IL

2/22/2017Covestro LLC - Spray Polyurethane Foam Spring Chemicals Accella Performance Materials, Inc. Maryland, MO

2/17/2017 The Fawcett Group, Inc. Houston Insurance Insgroup, Inc. Houston

2/16/2017 Patrician Window Coverings, Inc. Webster Consumer Products Springs Window Fashions LLC Middleton, WI

2/6/2017 Maneri-Agraz Enterprises Ltd. Houston Business Services OSRAM GmbH Munich, Germany

1/31/2017 The Common Source HoustonInformation Technology Aureus Group LLC Omaha, NE

1/26/2017Broussard Partners & Associates, Inc. Houston Business Services Government Revenue Solutions St. Petersburg, FL

1/25/2017Halcon Resources Corp. - East Texas Assets Houston

Energy Services and Equipment Hawkwood Energy LLC Denver, CO

1/24/2017Mid-South Rental & Completion Services Houston Business Services

Gibson Applied Technology and Engineering LLC (dba GATE) Houston

1/10/2017 Vital Link, Inc. Sealy Machinery Atec, Inc. Stafford

1/9/2017Hamilton Vein, Inc. (Hamilton Vein Center) Sugar Land Life Science Nobilis Health Corp. Houston

1/9/2017 Cooper Valves LLC Stafford Machinery Forum Energy Technologies, Inc. Houston

1/6/2017The Technologies Alliance, Inc. (dba OilPatch Technologies) Houston

Energy Services and Equipment Dril-Quip, Inc. Houston




Houston

1/6/2017 Partners Surgical Corp. Houston Healthcare Services Silversmith Capital Partners Boston, MA

1/4/2017 Seal Industries, Inc. Spring Business Services PSC Environmental Services LLC Houston

1/3/2017 Cache, Inc. (dba Kerr Consulting)The Woodlands

Information Technology Proviso Capital New York, NY




Dallas - Ft. Worth

3/15/2017 Azure Midstream Partners LP DallasEnergy Services and Equipment Enterprise Products Partners LP Houston

3/14/2017 VicNRG LLC Southlake Distribution Conestoga Energy Holdings LLC Liberal, KS

3/13/2017 LHP Hospital Group, Inc. Plano Healthcare ServicesAHS Medical Holdings LLC (dba Ardent Health Services) Nashville, TN

3/9/2017 Tealstone Construction Garland Construction Sterling Construction Co., Inc. The Woodlands

3/3/2017Tri-Star Insurance Professionals, Inc. Plano Insurance HUB International Ltd. Chicago, IL

3/3/2017 McKinney Family Healthcare McKinney Healthcare Services Healthcare Associates of Texas (HCAT) Irving

3/3/2017 Dallas Dermatology LLC Dallas Healthcare Services Epiphany Dermatology PA Waco

3/1/2017Total E&S, Inc. (dba Total Equipment And Service, Inc.) Granbury

Energy Services and Equipment Propell Granbury

2/21/2017 Fonality, Inc. PlanoInternet Software and Services NetFortris, Inc. San Francisco, CA

2/19/2017 LifePointe Hospice Dallas Healthcare Services Traditions Health Care College Station

2/15/2017 Xtera Communications, Inc. Allen Technology Hardware HIG Capital Miami, FL

2/14/2017 NextGen Dealer Solutions LLC IrvingInformation Technology Smart Server, Inc. (RumbleON) Lincoln, CA

2/9/2017 Pharmacy Concepts Ltd. Arlington Healthcare Services Guardian Pharmacy LLC Atlanta, GA

2/8/2017 Sigma Payment Solutions, Inc. Fort WorthInternet Software and Services Realtime Electronic Payments, Inc. Atlanta, GA




Dallas - Ft. Worth

2/6/2017Argon Medical Devices, Inc. - Critical Care business Plano Healthcare Services Merit Medical Systems, Inc. South Jordan, UT

2/6/2017 Texoma Dermatology Clinic Sherman Healthcare ServicesOliver Street Dermatology Holdings LLC (dba Dermatology Associates) Dallas

2/1/2017Baker Brothers Plumbing & Air Conditioning Mesquite Business Services The Wrench Group Houston

2/1/2017 Escalation Studios LLC Dallas Digital Media Bethesda Softworks LLC Rockville, MD

1/31/2017 APC Brands, Inc. McKinney Consumer Products PlayCore, Inc. Chatanooga, TN

1/30/2017 Worlds of Wow, Inc. Denton Consumer Products PlayCore, Inc. Chatanooga, TN

1/27/2017 MoneyGram International, Inc. Dallas Financial Services Ant Financial Services Group Hangzhou, China

1/27/2017 Limo Anywhere LLC Irving Software Marcou Transportation Group LLC Waltham, MA

1/24/2017 Axiometrics, Inc. DallasInternet Software and Services RealPage, Inc. Carrollton

1/23/2017 Just Brakes Dallas Automotive Pep Boys - Manny, Moe & Jack Philadelphia, PA

1/23/2017 First Texas BHC, Inc. Fort Worth Financial Services Simmons First National Corp. Pine Bluff, AZ

1/19/2017 Unified Connexions, Inc. DallasInformation Technology Sphere 3D Corp. Ontario, Canada

1/19/2017 HVE ConneXions LLC DallasInformation Technology Sphere 3D Corp. Ontario, Canada

1/17/2017 M&S Technologies, Inc. DallasInformation Technology Kudelski SA

Cheseaux-sur-Lausanne, Switzerland

1/5/2017 Pinnacle Corp. - ERP Assets Arlington Software Professional Datasolutions, Inc. Temple




Dallas - Ft. Worth

1/3/2017 Alon USA Energy, Inc. Dallas Oil/Gas Exploration Delek US Holdings, Inc. Brentwood, TN




Austin - San Antonio

3/9/2017 VERDE Workspaces AustinInformation Technology NComputing Co. Ltd. San Mateo, CA

3/9/2017 Aquafly Austin Business Services FlyDive, Inc. San Diego, CA

3/8/2017 Pelican Therapeutics, Inc. Austin Life Science Heat Biologics, Inc. Durham, NC

3/2/2017 ADS Media Group San Antonio Marketing Fusion92 Co. Chicago, IL

2/9/2017Happy Hen Egg Farms, Inc. - Egg Production Assets Junction Agriculture Cal-Maine Foods, Inc. Jackson, MI

2/9/2017 Axeon Marketing LLC San Antonio Marketing Associated Asphalt, Inc. Roanoke, VA

2/1/2017 Distinct Software Solutions LLC Austin Software EZLinks Golf Holdings LLC Chicago, IL

2/1/2017 SureTec Financial Corp. Austin Insurance Markel Corp. Glen Allen, VA

2/1/2017Michael Angelo's Gourmet Foods, Inc. Austin Food Sovos Brands Intermediate, Inc. Wilmington, PA

2/1/2017 Parklane West Healthcare Center San Antonio Healthcare Services The Ensign Group, Inc. Mission Viejo, CA

1/27/2017 Frontier Associates LLC Austin Business Services Gas Technology Institute Des Plaines, IL

1/25/2017 Austin DermCare Austin Healthcare ServicesOliver Street Dermatology Holdings LLC (dba Dermatology Associates) Dallas

1/17/20177X Energy, Inc. - 3.0 GW Solar Portfolio Austin Renewable Energy Longroad Energy Holdings LLC Boston, MA

1/17/2017 CynergisTek, Inc. AustinInformation Technology Auxilio, Inc. Mission Viejo, CA

1/16/2017 Azaya Therapeutics, Inc. San Antonio Life Science Cytori Therapeutics, Inc. San Diego, CA




Austin - San Antonio

1/13/2017Coursen-Koehler Engineering & Associates San Antonio Engineering Westwood Professional Services, Inc. Mineappolis, MN




Other Texas Markets

3/9/2017 Admiral Permian Resources LLC MidlandEnergy Services and Equipment

Riverstone Holdings LLC|Pine Brook Partners New York, NY

2/13/2017 Brix Software Sydney Software Hyphen Solutions Ltd. Addison

2/13/2017 Advantage Pipeline LLC MidlandEnergy Services and Equipment

Plains All American Pipeline LP|Noble Midstream Partners LP Houston

2/7/2017 iaCONSULTING Lubbock Insurance Marsh & McLennan Agency LLC White Plains, NY

2/6/2017 Time Manufacturing Co. Inc. Waco Machinery Sterling Group LP Houston

2/1/2017 Century Industrial Coatings Jacksonville Chemicals Axalta Coating Systems Ltd. Philadelphia, PA

1/19/2017 Exclusive Energy Services LLC Orange GroveEnergy Services and Equipment Greenwell Energy Solutions LLC Houston

1/16/2017 Clayton Williams Energy, Inc. Midland Oil/Gas Exploration Noble Energy, Inc. Houston

1/5/2017 InterviewStream, Inc. WacoInternet Software and Services RIVS, Inc. Chicago, IL

1/4/2017 Time-It Lube Corp. Tyler Retail Valvoline LLC Lexington, KY

Documents

April 2017 – 1st Quarter - Constant Contactfiles.constantcontact.com/cb15173a001/fa71249b-4852-4c07...Government Revenue Solutions St. Petersburg, FL 1/25/2017 Halcon Resources Corp