Globalscope Newsletter 2017 H2f - orion-cp.com & Co. MelCap Partners ... Sweden Jarl Securi+es Switzerland IFBC InternaonalScope Ltd. ... ($5-150m enterprise value transac+ons)

2017H2

GlobalscopeNewsle-errepor+ngonglobalM&Aac+vityandthelatestsemi-annualconference

“Thestar*ngpointforbusinessvalua*onacrossallsectorsinanyregionintheglobalmarketplace”

Perth2017H2

1 Issue7PublishedNovember2017

AboutGlobalscope

WhatwedoOur focus isonmergersandacquisi+ons (M&A).ThisoIenincludesrepresen+ngclientswhowishtodivestoracquireacompanyandadvisingourclientsontherelatedfinedetailsincluding, for example, restructuring, interna+onal jointventuresandlicensingini+a+ves.

Weworkwiththeseniormanagementofprivateandpubliccompaniesaswellasprivateequityfirms.

WhoweareGlobalscopewasfoundedin1987whenasmallgroupofentrepreneurialcorporatefinanceandbusinessadviserscametogethertosupportclientsincross-bordertransac+ons.Wenowhave54memberfirms,withmorethan600professionalsonthegroundacross45countries:

AFRICAKenya FieldstoneAfricaSouthAfrica FieldstoneAfricaAMERICASArgenDna FicusCapitalS.A.Brazil PactorFinançasCorpora+vasCanada OspreyCapitalPartnersInc.Mexico AllegianceCapitalCorpora+onUnitedStates AllegianceCapitalCorpora+on

BrooksHoughtonGreif&Co.MelCapPartnersParamaxCorpora+on

Panama InsigniaFinancialAdvisorsUruguay FicusCapitalS.A.ASIAPACAustralia TerrainCapital

TomkinsTurnerChina BeijingHRSConsul+ngIndia MAPEAdvisoryGroupPvtLtd

RCSAdvisors(India)Pvt.Ltd.Indonesia NaXeliPartnersJapan KaedeFinancialAdvisoryInc. Singapore S+rlingColemanSouthKorea H-PartnersKoreaUzbekistan RBPartnersVietnam NexusGroup

EUROPEArmenia EVConsul+ngBelarus CapitalTimesBelgium CommonGroundCorporateFinanceBulgaria FirstSoutheastInvestmentPartnersCroaDa Grubišić&PartnersCzechRepublic VentureInvestorsCorporateFinanceDenmark DanskMerchantCapitalA/SFinland SummaCapitalFrance AtoutCapital

CMWCorporateFinanceGeorgia AllianceGroupCapitalGermany CatCap

CCIManagementTransferPartnersGroup

Greece FirstAthensCorporateFinanceSAHungary HealPartnersIsrael PortofinoInvestmentsItaly Benedeg&Associates

PalladioCorporateFinanceLuxembourg TenzingPartnersSANetherlands DEXinterna+onalM&A

StratégiqueNorway ImpelloManagementASPoland AugeoVentures

Aven+sCapitalPortugal BluemintCapitalRussia RBPartnersSpain NextCorporateSweden JarlSecuri+esSwitzerland IFBC

Interna+onalScopeLtd.Turkey OrionCapitalPartnersUkraine CapitalTimesUnitedKingdom CorbekKeeling

SilverpeakInvestmentBank

Producedandeditedby:MakDixon,CorbekKeelingGlobalMarke+ngDirector

WhywedoitWith20–25%ofallM&Atransac+onsbeingcross-border(definedinthisreportasinvolvingbuyersfromadifferentcountry to the target company), it is essen+al for ourmemberfirms’clients,whether theybebuyers, sellersortargets, to have access to an interna+onal network ofcorporatefinanceadvisors.

2

Contents

GlobalscopeConferenceHighlightsofdiscussionsfromthelatestGlobalscopeconferenceheldinPerth,Australia

Newdevelopments 5

Conferencereport 6

GlobalM&Amarketlandscape 7

Lower-midmarketsectorhighlights 8($5-150menterprisevaluetransac+ons)

RegionalValua+onSta+s+csCountrybycountryandregionbyregionanalysisofbusinessvalua*onsta*s*cs

Transac+ondatabyregion 11

Listedcompaniesdatabyregion 13

Thestar*ngpointforbusinessvalua*onacrossallsectorsinanyregionintheglobalmarketplace

Sector-SpecificAnalysisAcloserlookattheunderlyingsector-specificstructuraldrivers,newdevelopments,recentM&Aandprojec*ons

Consumer 17

FinancialServices 19

LifeSciences 21

Industrials 23

Services 25

Technology,Media&Telecoms(TMT) 27

3Dataanalysedby:Datasuppliedby:

Defini+onsandnotes

DefiniDonsTEV-“TotalEnterpriseValue”TEVisaneconomicmeasurereflec+ngthemarketvalueofawholebusinessindependentofabusiness’capitalstructure.TheanalysisinthisdocumentcalculatesTEVasfollows:•  For transac+on data, by reference to the target company of each transac+on, from the transac+on considera+on, share of equity

acquired,andotherdiscloseddetailssuchasthetarget’snetdebt,asatthetransac+ondate,•  Forlistedcompanydata,fromthelistedsharepriceofeachcompany,togetherwithknowndetailsofitscapitalstructureincludingissued

sharesandnetdebt,asatthestateddate.EBITDA-“EarningsBeforeInterest,Tax,Deprecia*onandAmor*sa*on”EBITDAisabusiness’netincomewithinterest,taxes,deprecia+onandamor+sa+onaddedbackwhichisoIentakenasaproxyforthecashgenera+onrateofabusiness.TheanalysisinthisdocumentcalculatesEBITDAasfollows:•  Fortransac+ondata,byreferencetothetargetcompanyofeachtransac+on,fromthemostrecentknownhistoric12months’reported

valueasatthetransac+ondate,•  Forlistedcompanydata,fromthemostrecentknownhistoric12months’reportedvalueasatthestateddate.TEV/EBITDA-“TEV/EBITDAMul*ple”TheTEV/EBITDAMul+ple iscalculated foreachtransac+onwheremorethan40%of thetarget’sequity issoldor foreach listedcompanywheretherequireddataisdisclosed.Whereappropriate,theanalysisinthisdocumentusesweightedaveragescalculatedasfollows:•  Fortransac+ondataanalysis,selectedtransac+onTEV/EBITDAMul+ples,withinagivensixmonthperiod,areweightedbyreferenceto

eachtransac+on’sreportedconsidera+onor“transac+onvalue”,•  Forlistedcompanydataanalysis,selectedlistedcompanyTEV/EBITDAMul+ples,onthestateddate,areweightedbyreferencetoeach

listedcompany’sTEV,•  Anomalousoutlyingdatapointsareexcluded.SizeThesizeclassifica+onsusedinthisdocumentareGlobalscopedefinedlimitswithrespecttothevalueoftheincludedtransac+onsorlistedcompaniesasfollows:•  Fortransac+ondata,transac+onsareincludedwheretheTEVofthetargetisdisclosedandiden+fiedbyCapitalIQasbeinggreaterthan

or equal to $5m (All Market Transac+ons), or greater than or equal to $5m and lower than or equal to $150m (Lower-MidMarketTransac+ons).

•  For listedcompanydata,companiesare includedwherethereisastockmarket lis+ng,andaTEVofthecompanythat isdisclosedandiden+fiedbyCapitalIQasbeinggreaterthanorequalto$5m(AllMarketListedCompanies),orgreaterthanorequalto$5mandlowerthanorequalto$150m(Lower-MidMarketListedCompanies).

SectorsThe sector classifica+ons used in this document are Globalscope defined aggrega+ons of similar business ac+vi+es based on sub-sectorsdefinedbyreferencetotheprimaryCapitalIQindustryclassifica+onasfollows:•  Fortransac+ondata,thetargetcompanyofeachtransac+on,•  Forlistedcompanydata,eachlistedcompany.RegionsTheregionalclassifica+onsusedinthisdocumentaredefinedbyreferencetotheCapitalIQregionalclassifica+onasfollows:•  Fortransac+ondata,thetargetcompanyofeachtransac+on,•  Forlistedcompanydata,eachlistedcompany.NoteonusingmulDplesforbusinessvaluaDon:It is important to note that TEV/EBITDAMul+ples calculated as set out above and applied to the EBITDA of a typical lower-midmarketbusinesswould,inthemajorityofcases,beexpectedtooverstatethevalueofthebusiness.Thiscaninpartbeduetothenetimpactofacombina+onofthefollowingfactors:•  Adiscountmaybeappliedduetoreducedliquidityofsharesinalower-midmarketbusiness,•  Apremiummaybeappliedduetotheaddi+onalvalueofowningacontrollingequityshare,•  A(perceived)lackoftransparencywithrespecttoalower-midmarketbusiness’affairs,•  “TEV”isbasedonforecastprofits(whichusuallyassumegrowth)whereasthesemul+plesarebasedonhistoricprofits.

4

GlobalscopeConferenceHighlightsofdiscussionsfromthelatestGlobalscopeconferenceheldinPerth,Australia

Newdevelopments 5

Conferencereport 6

GlobalM&Amarketlandscape 7

Lower-midmarketsectorhighlights 8($5-150menterprisevaluetransac+ons)

5

Newdevelopments

ValuaDonmulDplespeak2017H2

SynopsisInthesixmonthstoJune2017theglobalaverageLower-MidMarketTransac+onsTEV/EBITDAMul+plehasrisento9.4,itshighestvalueinthelasttwoyears.Thislatestbusinessvalua+onindicatorisbasedonananalysisof18,553transac+onsintheperiod,ofwhich25%werecategorisedascross-border.

TheFinancialServicessectorcompaniescommandedthehighestvalua+ons,withLower-MidMarketTransac+onsTEV/EBITDAMul+plesaveraging11.5.ThisisincontrasttotheIndustrialssectorwheretheaveragewas7.7;IndustrialsandServicesweretheonlytwosectorstofallovertheperiod.

SynopsisAttherecentsemi-annualconferenceinPerth,GlobalscopepresidentRussellD’AlbaannouncedGlobalscope’snewestmember:TurkishfirmOrionCapitalPartners.

DenizKartalofOrionCapitalPartnerscommented:

President’sComment“No beOer place than Perth to bond withouroverseascolleagues.Perthisafantas*ccity, has world class facili*es as weexperienced at the Crown Towers, and somuch natural beauty. This event sawrepresenta*on from 20 countries and it isour great pleasure to welcome OrionCapitalfromTurkeyasanewmember.Wecelebratedthelargestdeal inthenetwork,the most ac*ve firm, and flagship cross-bordertransac*ons.”-RussellD’Alba

“We are honored to be welcomed into such anes teemed group o f corporate financeprofessionalsandsuchapres*giousnetwork.Webelieve that the extensive and deep connec*onsthat Globalscope network provides around theglobewillenableustobeOerserveourclients inthe Turkish market whether it be in securingstrategicpartnersforfurthergrowthorinfindingsolid investment opportuni*es abroad. We lookforward to comple*ng many successfulinterna*onal deals under the Globalscopeumbrella.”

DenizKartalOrionCapitalPartners NewMemberFirm

NetworkexpansionLeadingTurkishM&AfirmjoinsGlobalscope

Newmember…

ConferencereportSynopsisThe two day conference programme, hosted byGlobalscope’smember firm in Perth, Tompkins Turner,wasakendedby30delegatesfromGlobalscope’smemberfirms.The semi-annual conference included best prac+cepresenta+ons given by CatCap, and a presenta+on oninterac+ng with PE by Corbek Keeling. In addi+on, guestspeakers Tony Chong, Partner at Lavan Legal, and IanThubron,founderofAsiaStrategiesandformerExecu+veVPatTBWAAsiaPacific,gavetalksonM&AinAsia.

Comment“We were honored to host theGlobalscope conference in Perth todevelop deeper member collabora*on,sharemore techniques learned throughbest prac*ces and generate the meansto increase the volume of partnershipdeals.Wealsofoundat leastthreenewpoten*alglobalbuyersforabusinesswearecurrentlymarke*ng.”

ToddGroverTompkinsTurner

HostmemberfirmTompkins Turner, an Australianadvisory firm based in Perthoffers mergers and acquisi+onsadvicetomid-marketcompanies.

Headlines

NextThenextGlobalscopeconferencewillbeheldinPanamaCityinApril2018.

GreatestnumberoftransacDons:CatCap(Germany)reported6dealscompletedinthelast6months.LargesttransacDon:SummaCapital (Finland) fortheirtransac+onwithYITandLemminkäinen.Intra-Globalscopedeal:Stratégique(Netherlands)andAtoutCapital(France)whichrespec+vely advised The Surgical Group, a Dutchmedicalproductscompany,onitsacquisi+onofamajoritystakeinAxessVision,aFrenchmedicaldevicescompany

Globalscope’s M&Atrackrecordcon+nuesto gain momentumwith the followingheadlines in the lastsixmonths:

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2012 2013 2014 2015 2016 2017

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GlobalM&AmarketlandscapeThousands of M&A transac+ons all across the globe areclosedinanygivensixmonthperiod.Transac+on data, such as the latest published EBITDA andtheTEV(seedefini+onsonpage3)atthe+meofsaleofthetarget company, are some+mes published. These data canbe used to calculate average transac+on TEV/EBITDAMul+ples i.e. the average TEV/EBITDA Mul+ple across alltransac+ons forwhichdata is disclosed for each sixmonthperiod.Acrossalargeenoughsampleoftransac+ons,theseaverageTEV/EBITDAMul+ples are a useful tool for assessing globalvalua+ontrends,assetoutinthefirstchartbelow.

AllMarketTransacDonsDot-dash lines show average data from all disclosedtransac+ons where the transac+on value was at least $5m.The resul+ng All Market Transac+ons TEV/EBITDAMul+ple,whichcanbeusedasaproxyfortheM&Amarketasawhole,showsafurtherrisetoanhistoricpeak.

Lower-MidMarketTransacDonsSolid linesshowaveragedatafromalldisclosedtransac+onswherethetransac+onvaluewasatleast$5mbutnogreaterthan $150m. The resul+ng Lower-Mid Market Transac+onsTEV/EBITDA Mul+ple shows a slight increase maintaining arela+velysteadyhistoricaverage.

TEV/EB

ITDA

Vo

lume

Lower-MidMarketTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasrisento9.4from8.9in2016H2

AllMarketTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasrisenfurtherto14.1fromthelowof11.3in2015H1

‘000s

ThiscomparestothecurrentAllMarketListedCompaniesTEV/EBITDAMul+pleof12.8

ThiscomparestothecurrentLower-MidMarketListedCompaniesTEV/EBITDAMul+pleof11.6

Comment Context

AllTransacDonsVolumeTransac+onvolumeshavedecreased,andarenowbelowthe5yearaverage

Cross-BorderTransacDonsVolumeremainingataconsistent22%-25%ofthetotal

ListedCompaniesmade3,641strategicacquisiDonsinthelast6months,thisisbelowtheaverageof3,952strategicacquisi+onspersixmonthperiodoverthelastthreeyears

Lower-MidMarketListedCompaniesmade561strategicacquisiDonsinthelastsixmonths,thisisabovetheaverageof529strategicacquisi+onspersixmonthperiodoverthelastthreeyears

Datasuppliedby:

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Lower-midmarketsectorhighlights

TEV/EBITDAVolum

e

Generally thesedataare significantlymorevola+le than theglobal averageas they arebasedon fewer transac+ons andglobaleventsmayaffecteachsectordifferently.

The following charts show global Lower-Mid MarketTransac+on TEV/EBITDA Mul+ple trends of six underlyingsectorsasiden+fiedandtrackedbyGlobalscope.

Each of these average TEV/EBITDA Mul+ple data pointsrepresent transac+ons involving target companies opera+ngin broadly the same sectors, wherever they were locatedacross the globe, where the target company’s enterprisevaluewasatleast$5mbutnogreaterthan$150m.

2012 2013 2014 2015 2016 2017 Comment Context

LimiteddataforFinancialServicessectorin2012H1and2017H1sointerpolatedvaluesused.

AllTransacDonsVolumebysectorin2017H1therewere:

Consumer: 3,119FinancialServices:1,430LifeSciences: 1,335Industrials: 4,151Services: 4,839TMT: 3,679

Lower-MidMarketTransacDonsTEV/EBITDAMulDples(Valuesinrange$5m-$150m)bysectorin2017H1were:

FinancialServices: 11.5LifeSciences: 11.1Consumer: 10.8TMT: 10.5Services: 7.8Industrials: 7.7

Analysisperformedby:Datasuppliedby:

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ListedCompaniesineachofthesesectorsmadethefollowingstrategicacquisiDonsinthesixmonthstomidAugust2017:

Consumer: 577FinancialServices:151LifeSciences: 322Industrials: 1,337Services: 443TMT: 811

Lower-MidMarketListedCompaniesineachofthesesectorshadthefollowingaverageTEV/EBITDAMul+plesasatmidAugust2017:

FinancialServices: 10.7LifeSciences: 15.1Consumer: 11.8TMT: 12.6Services: 12.5Industrials: 10.4

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RegionalValuaDonStaDsDcsCountrybycountryandregionbyregionanalysisofbusinessvalua*onsta*s*cs

Transac+ondatabyregion 11

Listedcompaniesdatabyregion 13

11

Transac+onsdatabyregion

Europe

2012 2013 2014 2015 2016 2017 Comment Context

Lower-MidMarketEuropeanTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasfallento8.6from9.9in2014H2

AllMarketEuropeanTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasfallenslightlyto14.8from14.9in2016H2

ThiscomparestothecurrentAllMarketEuropeanListedCompaniesTEV/EBITDAMul+pleof11.4

ThiscomparestothecurrentLower-MidMarketEuropeanListedCompaniesTEV/EBITDAMul+pleof12.3

UnitedStates&Can

ada

Lower-MidMarketUS&CanadaTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasrisento11.0from8.6in2016H2

AllMarketUS&CanadaTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasrisento14.6from12.4in2016H2

ThiscomparestothecurrentAllMarketUS&CanadaListedCompaniesTEV/EBITDAMul+pleof13.4

ThiscomparestothecurrentLower-MidMarketUS&CanadaListedCompaniesTEV/EBITDAMul+pleof11.8

Asia&Pacific

AllMarketAsianTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasfallento10.6from11.0in2016H2

ThiscomparestothecurrentAllMarketAsianListedCompaniesTEV/EBITDAMul+pleof13.4

Lower-MidMarketAsianTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasfallento8.0from8.6in2016H2

ThiscomparestothecurrentLower-MidMarketAsianListedCompaniesTEV/EBITDAMul+pleof11.6

Datasuppliedby: Dataanalysedby:

Lower-MidMarketTransacDons(solidlines)

ThesolidlineshowsaverageTEV/EBITDAMul+pledatafromalldisclosedtransac+onswherethetransac+onvaluewasatleast$5mbutnogreaterthan$150mandthetargetloca+onwasrecordedinoneofthefiveglobalregions.

Mul+ples for Africa & Middle East and La+n America havebothrisensharply.Mul+plesinUnitedStates&Canadahavealsoincreasedovertheperiod.

AllMarketTransacDons(dot-dashlines)

Dot-dashlinesshowaverageTEV/EBITDAMul+pledatafromalldisclosedtransac+onswherethetransac+onvaluewasatleast$5mandthetargetloca+onwasrecordedinoneofthefiveglobalregions.

Mul+plesforAfrica&MiddleEasthaverisenovertheperiod.BothEuropeandAsia&Pacific,bycontrast,havefallen.

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Africa&M

iddleEastLaHnAm

erica

Comment Context

AllMarketAfricanTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasrisento13.9from8.5in2016H1

ThiscomparestothecurrentAllMarketAfricanListedCompaniesTEV/EBITDAMul+pleof11.1

Lower-MidMarketAfricanTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasrisento9.1from6.4in2016H2

ThiscomparestothecurrentLower-MidMarketAfricanListedCompaniesTEV/EBITDAMul+pleof10.8

AllMarketLaDnAmericaTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasrisento10.3from9.9in2016H2

ThiscomparestothecurrentAllMarketLa+nAmericaListedCompaniesTEV/EBITDAMul+pleof10.1

Lower-MidMarketLaDnAmericaTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasrisento11.0from3.8in2016H2

ThiscomparestothecurrentLower-MidMarketLa+nAmericaListedCompaniesTEV/EBITDAMul+pleof12.1

Volume

AllTransacDonVolumesbyregionin2017H1were:

Europe: 6,835US&Canada: 7,319Asia&Pacific: 3,307Africa&ME: 569LaDnAmerica: 523

Africa&MiddleEastandLa+nAmericalower-midmarkettransac+ondataaremorescarcethanthosefortheotherregions.Assuch these average transac+onmul+ples are significantly more vola+le and are included for completeness as much as forprovidingaguidetovalua+ontrendsintheseregions.

Datasuppliedby:

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Dataanalysedby:

ListedCompaniesineachoftheseregionsmadethefollowingstrategicacquisiDonsinthesixmonthstomidAugust2017:

Europe: 996US&Canada: 1,016Asia&Pacific: 1,509Africa&ME: 75LaDnAmerica: 45

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Europe Asia&Pacific

Africa&ME

US&Canada

LaDnAmerica

Listedcompanies’TEVsarecalculatedfromeachcompany’scurrentshareprice(whichreflectsthemarket’sexpecta+onoffutureEBITDAperformance).The EBITDA figures used to calculate the Listed CompanyTEV/EBITDAMul+plesshownhereare the reportedEBITDAvaluesofeachcompanyforthelast12months(LTM)–thisgives TEV/EBITDA Mul+ples more directly comparable toTransac+on TEV/EBITDA Mul+ples than if forecast (NTM)EBITDA isused.Adiscountshouldbeapplied ifusing thesefigures for a valua+on of a growing business, whichwouldnormallyuseforecastperformancedata.

13

ListedcompaniesdatabyregionAllMarketListedCompanies(light)

ThelightbluebarsshowaveragedatafromlistedcompanieswithTEVofat least$5m.TheresultscanbeusedasproxiesofTEV/EBITDAMul+plesforthecurrentmarketasawhole.Lower-MidMarketListedCompanies(dark)

Thedarkbluebarsshowaveragedatafromlistedcompanieswith TEV of at least $5m but no greater than $150m. Theresults can be used as proxies of TEV/EBITDAMul+ples forthecurrentlower-midmarketasawhole.

Lower-MidMarketListedCompaniesVolume(Valuesinrange$5m-$150m)isagainpar+cularlylowinLa+nAmericaat112

AllMarketListedCompaniesVolume(Valuesover$5m)issignificantlyhigherinAsia&Pacificthananywhereelseat13,308

TheglobaltotalnumberofAllMarketListedCompaniesis21,849

TheglobaltotalnumberofLower-MidMarketListedCompaniesis7,962

Comment Context

Lower-MidMarketListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)ishighestinEuropeat12.3,15%higherthanthelowestinAfrica&MEof10.8

AllMarketListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)ishighestinAsia&Pacificat13.4,33%higherthanthelowestinLa+nAmericaof10.1

ThiscomparestotheglobaltotalAllMarketListedCompaniesTEV/EBITDAMul+pleof12.8

ThiscomparestotheglobaltotalLower-MidMarketListedCompaniesTEV/EBITDAMul+pleof11.6

Volume

TEV/EB

ITDA

Acqu

isi*o

ns

‘000s

Asat:midAugust2017

Datasuppliedby:

AllMarketListedCompanies(Valuesover$5m)Acquisi+onsinlastsixmonthsishighestinAsia&Pacificinabsolutetermsat1,509acquisi+ons,buthighestisUnitedStatesonanacquisi+onsperListedCompanybasisat32%,comparedtoAfrica&ME’s6%

Intotaltherewere3,641strategicacquisi+onsbyAllMarketListedCompaniesinthesixmonthstomidAugust2017.ThesecomparetoAllMarketTransac+onVolumesin2017H1byregionof(in‘000s):

Europe:6.8Asia&Pacific:3.3Africa&ME:0.6US&Canada:7.3La+nAmerica:0.5

‘000s

Dataanalysedby:

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Thefollowingdataarecompiledforeachsub-regionwithaGlobalscopememberpresenceforwhichsta+s+csareavailable.

AllMarketListedCompanies

(Valuesover$5m)

Lower-MidMarketListedCompanies

(Valuesinrange$5m-$150m)

Datasuppliedby: Dataanalysedby:

Asat:midAugust2017

Numberlisted

TEV/EBITDAMulDples

Numberlisted

TEV/EBITDAMulDples

Bri+shIsles 2 648 11.6 135 11.8

EastEurope 8 504 8.8 330 11.0

NorthEurope 5 763 10.6 255 12.8

SouthEurope 6 438 10.6 144 13.1

WestEurope 17 1,131 11.8 304 13.1

TotalEurope 38 3,484 10.9 1,168 12.3

IndianOcean 6 1,960 16.2 1,177 12.5

North&EastAsia 6 8,650 13.3 3,034 11.2

Pacific 2 2,698 12.5 1,374 11.8

TotalAsia/Pacific 14 13,308 13.6 5,585 11.6

Africa 2 554 10.6 261 9.7

MiddleEast 1 754 11.4 289 11.5

TotalAfrica/MiddleEast 3 1,308 11.1 550 10.7

Brazil 1 190 9.9 33 15.8

Uruguay 1 - - - -

Others 3 358 10.3 79 10.0

LaDnAmerica 5 548 10.1 112 12.1

GlobalscopeOffices

Europe

USA

&Can

ada

Asia&Pacific

Africa&

MiddleEa

st

LaHn

America

Canada 5 543 12.8 181 11.0

UnitedStates 9 2,507 13.4 252 11.9

Others 1 151 12.1 114 13.1

UnitedStatesandCanada 15 3,201 13.4 547 11.8

15

16

Sector-SpecificAnalysisAcloserlookattheunderlyingsector-specificstructuraldrivers,newdevelopments,recentM&Aandprojec*ons

Consumer 17

FinancialServices 19

LifeSciences 21

Industrials 23

Services 25

Technology,Media&Telecoms(TMT) 27

[email protected]+31613085245

MarDjnPetersConsumerCo-Lead

Consumer

17

ThesectorM&AlandscapeDuring the Perth 2017 Globalscope conference, the network’s global Consumer sector team met to discuss recenttransac+onsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akeythemeisthegrowthofsocialmediaanditsincreasinginfluenceoverconsumerspendinghabits.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.

Lower-midmarketobservaDons

Sectorcontacts

NotablerecenttransacDons

Sectorthemes

PolarisedConsumerSpendingCustomerswithinthefoodandbeveragesectorhavetendedto favour the extremi+es of the market, as trends such asaffordable indulgence and healthier ea+ng have grownalongside staples sold in budget supermarkets such as AldiandLidl.OverseasBuyersEnDcedbyDevaluedPound

The devalua+on of sterling meant UK assets wereexcep+onallygoodvalueandinterna+onalbuyersseizedtheopportunitytoinvest.

AmazonGobblesupWholeFoodsAmazon.com Inc. will acquire Whole Foods Market Inc. for$13.7bn, crea+ng a launchpad for the e-commercecompany’s grocery sales. This acquisi+on follows Amazon’s+e-upwithUKsupermarketchainMorrison'sinlate2016.SycamorePartnersAcquiresStaples

Theprivateequityfirmhasputtogethera$6.9bnturnaroundplan that includes reducing the retail footprint of the officesuppliescompany.LVMHTakesFullControlofChrisDanDiorFrench billionaire and LVMH chairman Bernard Arnaultmoved to consolidate control over Chris+an Dior forapproximately$14.1bn.

OnlineShopping’sConDnuedRiseinImportanceThevolumeofproductsboughtonlinecon+nues togrowatanexcep+onalrate,withpar+cularfocusonpurchasesfrommobile devices. The increased necessity for sufficientcybersecurity has added another layer of sophis+ca+on tothepla�orms.“Midorexia”anditsAssociatedSpend

Thestockcoinedphrase‘mid-lifecrisis’hasasubdivisionforthose customers who are ac+ng, and therefore spending,younger than their years might suggest. The phenomenoncan bewitnessed in the fashion industry, as well as fitnessrelatedtechandapparel.


PankajRungtaConsumerCo-Lead

PersonalisedProductsFromholidays tohoodies,consumerscon+nuetosearch for(seemingly) en+rely tailorable products. Offering a widerange of services should help retailers build a strongeremo+onalakachmenttotheircustomers.Itisnowexpectedthatallservicespossesssomeelementofadaptability.SocialMediaInfluencerMarkeDng

The use of Instagram influencers by big brands has grownexponen+ally,althoughitisnowexpec+ngacrackdownfromconsumerprotec+onbodiesintheUKandUS.

18

Durables&Apparel

ConsumerServices

Retailing FoodStaples

FoodLuxuries

Europe Asia&Pacific

Africa&ME

US&Canada

LaDnAmerica

M&Atrends&marketanalysisThe followingdataarecompiledspecifically for theConsumersector,withvalua+ontrendsover+me in thefirstchartbasedon semi-annually averaged transac+onal data and regional and sub-sector comparisons in the second and thirdchartsbasedonlistedcompaniesdataasatmidAugust2017.

2012 2013 2014 2015 2016 2017

Lower-MidMarketConsumerTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasrisenfurtherto10.8from9.3in2016H1

AllMarketConsumerTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasfallento13.2from15.5in2016H2

Thiscomparestothecurrentcross-sectorAllMarketTransac+onsTEV/EBITDAMul+pleof14.1

Thiscomparestothecurrentcross-sectorLower-MidMarketTransac+onsTEV/EBITDAMul+pleof9.4

Comment Context

Lower-MidMarketConsumerListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)bysubsectorishighestinFoodStaplesat12.9,14%higherthanthelowestinFoodLuxuriesof11.3

AllMarketConsumerListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)bysubsectorishighestinRetailingat17.9,72%higherthanthelowestinFoodStaplesof10.4

RegionalTEV/EBITDASub-sectorTEV/EBITDA

SectorTEV/EBITDA

Lower-MidMarketConsumerListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)byregionishighestinLa+nAmericaat14.0,28%higherthanthelowestinUS&Canadaof11.0

AllMarketConsumerListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)byregionishighestinAsia&Pacificat15.7,15%higherthanthelowestinAfrica&MEof13.6

ThiscomparestotheAllMarketConsumerListedCompaniesTEV/EBITDAMul+pleof15.0

ThiscomparestotheLower-MidMarketConsumerListedCompaniesTEV/EBITDAMul+pleof11.8


6789

10111213141516

ThiscomparestotheAllMarketConsumerListedCompaniesTEV/EBITDAMul+pleof15.0

ThiscomparestotheLower-MidMarketConsumerListedCompaniesTEV/EBITDAMul+pleof11.8

14.315.7

13.615.3

13.7

11.5 11.8 12.011.0

14.0

02468

101214161820

14.0 14.3

17.9

10.4

15.2

12.0 11.8 11.612.9

11.3

02468

101214161820

FinancialServices

19

ThesectorM&AlandscapeDuringthePerth2017Globalscopeconference,thenetwork’sglobalFinancialServicessectorteammettodiscussrecenttransac+onsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akeythemeistheincreasingrelianceonbothdigitalpaymentsandcryptocurrencyaroundtheworld.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.

JørgenBeuchertFinancialServicesLead



JoshParkFinancialServicesCo-Lead

LargestRussianInsDtuDonUnderWatchRussia’s Central Bank announced the launch of a financialrehabilita+on program for Otkri+e Group, the country’slargest private financial ins+tu+on. According to Russianmonetary authority, Otkri+e requires a significant capitalincrease and extensive measures to improve its financialhealth.Asaresultoftheprocess,Russia’sCentralBankmaytakeupto75%equityposi+oninthegroup.BlockchaininFocus,butUncertaintyLingers

Centralbanksandgovernmentscon+nuetovoicetheirviewsonBitcoinandothercryptocurrencies,whichhasresulted inpricesbecomingevenmorevola+lethanusual.Oneexampleis the recent ban imposed by Chinese authori+es on ini+alcoinofferingsinthecountry,whichledtoadrama+cdropinBitcoin prices and put a ques+on mark on the future of aChineseblockchain-basedeconomy.

CanaccordGenuityAcquiresHargreaveHaleCanadian wealth manager Canaccord Genuity has acquiredUK-based wealth manager Hargreave Hale for circa £80m.TheHargreaveHalebusinesswillbemergedwithCanaccord’sexis+ngUKwealthmanagementbusiness.Canada’sCIBCAcquires$5bnPrivateBancorp

Canadian Imperial Bank of Commerce has completed the$5bnacquisi+onofChicago-basedPrivateBancorp.Accordingto CIBC CEO Victor Dodig, the deal has been almost threeyearsinthemaking.MacquarieAcquiresGreenInvestmentBankMacquarie Group, along with support from Universi+esSuperannua+on Scheme, acquired the UK Government’sGreen Investment Bank for £2.3bn. The Green InvestmentBank provides banking and lending services to eco-friendlyprojects.

DigitalPaymentsProvidersUnderPressureMoun+ng consumer pressure for faster, seamless, cheaperand more secure digital payments will press companies tocollaborate andmove quickly in order to keep up. Thiswillalso fuel consolida+on in the industry. The latestdevelopmentistheglobalfundHellman&Friedman,whichisfron+ng an investor group, bidding to acquire the Nordicpayment system provider NETS for $5.1bn. Hellman &Friedman wants to use the NETS pla�orm for Europeanconsolida+on of the payment service industry andsubsequentexpansionintoe-commerce.

BanksConDnuetoEmbraceCloud&AITechBanks are exploring opportuni+es for IT to increase theirrange of services and value proposi+on. In Russia, forexample, these efforts are largely led by Sberbank whichrecentlyannouncedthelaunchofacloudserviceforSME/e-commerce companies. There are plans, too, to develop alegal chat-bot and other ini+a+ves in the high-tech area.M&Aopportuni+esmay arise for smaller IT companies thatdevelopFinTechsolu+onsthatcanbe“plugged in”to largercorporates.


Sectorcontacts


Sectorthemes


KonstanDnDzhimbinovFinancialServicesCo-Lead

Europe Asia&Pacific

Africa&ME

US&Canada

LaDnAmerica

20

M&Atrends&marketanalysisThefollowingdataarecompiledspecificallyfortheFinancialServicessector,withvalua+ontrendsover+meinthefirstchartbasedon semi-annually averaged transac+onaldataand regional and sub-sector comparisons in the secondandthirdchartsbasedonlistedcompaniesdataasatmidAugust2017.

2012 2013 2014 2015 2016 2017

AllMarketFinancialServicesTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasfallento13.2from15.3in2016H2

Lower-MidMarketFinancialServicesTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasrisento11.5from9.1in2016H1

Comment Context

Lower-MidMarketFinancialServicesListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)bysubsectorishighestinBanksat13.4,41%higherthanthelowestinInsuranceof9.5

AllMarketFinancialServicesListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)bysubsectorishighestinRealEstateat15.8,31%higherthanthelowestinInsuranceof12.1

Lower-MidMarketFinancialServicesListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)byregionishighestinAsia&Pacificat11.7,80%higherthanthelowestinLa+nAmericaof6.5

AllMarketFinancialServicesListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)byregionishighestinAsia&Pacificat15.6,81%higherthanthelowestinLa+nAmericaof8.6


Banks Diversified

Insurance RealEstate

4

6

8

10

12

14

16

18

ThiscomparestotheAllMarketFinancialServicesListedCompaniesTEV/EBITDAMul+pleof12.9

ThiscomparestotheLower-MidMarketFinancialServicesListedCompaniesTEV/EBITDAMul+pleof10.7


SectorTEV/EBITDA

ThiscomparestotheAllMarketFinancialServicesListedCompaniesTEV/EBITDAMul+pleof12.9

ThiscomparestotheLower-MidMarketFinancialServicesListedCompaniesTEV/EBITDAMul+pleof10.7



10.2

15.6

12.9 12.8

8.610.0

11.710.4 9.7

6.5

02468

101214161820

13.0 13.512.1

15.8

13.411.5

9.5

12.0

02468

101214161820

LifeSciences

21

ThesectorM&AlandscapeDuring the Perth 2017 Globalscope conference, the network’s global Life Sciences sector teammet to discuss recenttransac+onsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akeythemeisthecon+nued+ghteningofregula+on,inspiteofsomepolicyuncertainty.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.



JacobMa-hewPharmaLead

CasparGrafStauffenbergLifeSciencesLead


Dr.ManfredDraxLifeSciencesCo-Lead

MDR–MedicalDeviceRegulaDonforCEmarkingInMay2017theMDRwaspublishedandwillbemandatoryfromMay 2020 onwards. Slowly, more and more poten+alimpacts are coming to light. For instance, several products,and even some soIware, that had previously not beenclassified as a medical product will be classified as such.Extensive clinical data will be required, not only for newproducts,butalsoforthere-cer+fica+onofprovenproducts.Overall, quality management and regulatory affair (QM/RA)costswill no+ceably increase resul+ng inahigherbarrier toentryinfavourofestablishedoligopolists.ShoroallinQM/RACapaciDesExpectedDue to the MDR, no+fied bodies themselves need torecer+fy. Smaller ins+tu+ons might not be able to comply.Therefore,weexpectaconsolida+onwaveinthesector.Overthenext fewyears,bothcorporatesandno+fiedbodieswillneed more QM/RA capaci+es leading to a shortage in thatarea.

Johnson&JohnsonacquiredActelionJ&Jhasclosedtheacquisi+onofSwisscompanyActelionfor$29.4bn.Actelionhas spunoff itsdrugdiscoveryopera+onsand early-stage clinical development assets into a newlycreatedSwissbiopharmaceu+calcompany,IdorsiaLtd.BectonDickinsontoAcquireBard

The $24bn deal adds Bard’s devices to Becton Dickinson’spor�oliointhehigh-growthsectorsofoncologyandsurgery.The deal is the latest in a string of deals in the MedTechsector.GileadtoAcquireKitePharmaKiteisaleaderintheemergingfieldofcelltherapyinwhichapa+ent’simmunecellsareac+vatedtofightcancer.Thedealis expected to be worth $11.9bn. Gilead’s focus previouslyhas been on infec+ous diseases, and this deal is seen as amovetodiversifyitspor�olio.

Cybera-acksSomeoftheindustry’smostestablishedcompanies,includingMerck, Beiersdorf and the Bri+shNHS,were subject to theWannaCryransomwareakackthissummer.Manyhealthcareins+tu+ons have taken to implemen+ng some moresophis+cated IT systems, as well as adhering to morestringent digital housekeeping. At the end of August 2017,theFDAannouncedthatapproximately500,000implantablecardiac pacemakers require a firmware update to addresscybersecurity vulnerabili+es. One lesson learned is thathealthcareproductswithdigital components require specialquality management aken+on in general and even postmarketintroduc+ontoremainsecure.

USBigDealmakingDeclinesCompanies have been shying away from large takeoversfollowing President Donald Trump’s failure to move aheadwithoverhaulingtheAmericantaxcode.ThisiscoupledwithEuropean uncertainty around Britain’s extrac+on from theEuropeanUnion.MedicalServicesAcDvityUp

Low interest rates, higher deal leverage mul+ples, cash onprivate equity and strategic balance sheets allowed forcon+nued consolida+on in the medical services sub-sector.Thishasbeenfurtherdrivenbygreaterdemandfor,amongstotherthings,non-invasivesurgeries.


Sectorcontacts


Sectorthemes

Europe Asia&Pacific

Africa&ME

US&Canada

LaDnAmerica

22

M&Atrends&marketanalysisThefollowingdataarecompiledspecificallyfortheLifeSciencessector,withvalua+ontrendsover+meinthefirstchartbasedon semi-annually averaged transac+onal data and regional and sub-sector comparisons in the second and thirdchartsbasedonlistedcompaniesdataasatmidAugust2017.

2012 2013 2014 2015 2016 2017

Lower-MidMarketLifeSciencesTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasrisenfurtherto11.1from9.7in2016H1

AllMarketLifeSciencesTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasrisento16.5from15.3in2016H2

Comment Context

Lower-MidMarketLifeSciencesListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)bysubsectorishighestinBioTechat18.3,31%higherthanthelowestinProviders&Servicesof14.0

AllMarketLifeSciencesListedCompanies-TEV/EBITDAMulDple(Valuesover$5m)bysubsectorishighestinMedTechat21.9,75%higherthanthelowestinProviders&Servicesof12.5

Lower-MidMarketLifeSciencesListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)byregionishighestinLa+nAmericanat16.8,62%higherthanthelowestinAfrica&MEof10.4

AllMarketLifeSciencesListedCompanies-TEV/EBITDAMulDple(Valuesover$5m)byregionishighestinAsia&Pacificat18.6,41%higherthanthelowestinEuropeof13.2


4

6

8

10

12

14

16

18

Equipment&Supplies

Providers&Services

MedTech BioTech Pharma

ThiscomparestotheAllMarketLifeSciencesListedCompaniesTEV/EBITDAMul+pleof14.7

ThiscomparestotheLower-MidMarketLifeSciencesListedCompaniesTEV/EBITDAMul+pleof15.1


SectorTEV/EBITDA

ThiscomparestotheAllMarketLifeSciencesListedCompaniesTEV/EBITDAMul+pleof14.7

ThiscomparestotheLower-MidMarketLifeSciencesListedCompaniesTEV/EBITDAMul+pleof15.1



13.2

18.616.6

14.215.215.1 15.5

10.4

14.6

16.8

02468

10121416182022

17.6

12.5

21.9

15.014.0

16.114.0 14.5

18.3

14.0

02468

1012141618202224

ThesectorM&Alandscape

Industrials

During the Perth 2017 Globalscope conference, the network’s global Industrials sector team met to discuss recenttransac+onsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.AkeythemeistheemergenceoftechnologyandInternetofThingsasafacetofmanufacturing.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.

23

UDliDesCompaniesEmpowerConsumerSchemesarebeingtrialledthatallowconsumerstoowngrid-+ed solarpanels. Thesepanels, andenergy storage thereof,areprovidedbyau+litycompanyandallowtheconsumertobea“self-consumer”ofpower.ManufacturingnowMulDfaceted

Modern-daymanufacturing has now become amul+-sectorproblem. With the rise of connected factories, and in-builtlogis+cs systems, companies viewmanufacturing as an areaforsector-by-sectorimprovement.UseofDataAnalyDcsShapingMaintenance‘Condi+on-based maintenance’ is altering the way thatservicecontractsandwarran+esareprovidedbycompanies.Constant monitoring of equipment allows companies tomonitorwear,usagepakernsandservice+melines.

SNC-LavelinacquiresWSAtkinsDiversifiedindustrialscompanySNC-LavelinhasacquiredWSAtkinsina$2.7bntransforma+onaldeal.WSAtkinsprovidesconsultancy services in design, engineering and projectmanagement.RockwellCollinsacquiresB/EAerospace

AircraIinteriormanufacturerRockwellCollinshascompletedthe $8.6bn acquisi+on of B/E Aerospace, amanufacturer ofaircraI interiors and accessories, including ligh+ng, lavatorysystemsandconnec+vitysolu+ons.BridgepointAcquiresMillerHomesBritain’slargestprivatelyownedhousebuilder,MillerHomes,hasbeenacquiredbyprivateequitygroupBridgepointCapitalin a deal worth $850m. Miller reported a 31% increase inopera+ngprofitbetween2015and2016.

NewEraofPersonalTransportaDonConnected cars are making in-roads in the automo+veindustry; soIware designers are nowmore in demand thanmechanicalengineers.Thiscoupledwiththeelectrifica+onofvehicles will lead tomanufacturers adjus+ng their strategy.According to PWC’s global automo+ve M&A report, largeauto-techdealsquintupledinH12017comparedtoH12016.DigitalisaDonintheChemicalsSectorChemicals companies are seeking to improve customerexperience by u+lising the latest digital technology. Oneexample of this is to track usage pakerns of chemicals andproductsandproac+velyaddressingcustomerneeds.

EmergingEconomiesTakingMarketShareEngineering and contrac+ng firms in rapidly growingeconomieshavebeguntoadoptanoutward-facingapproach.Previously, thesefirms focusedon their respec+vedomes+cmarkets,butarenowcompe+ngontheworldstage.LowCostCarriersDisrupDngAirlineIndustryTheairlineindustrywasonceclear-cutinitsdefini+onoflow-cost carriers and full-service carriers. These dis+nc+onscon+nuetobeblurredasultralow-costcarrierstakemarketshare from the once dominant full-service carriers. Overall,the industry con+nues to thrive as global passenger trafficgrew7.9%inH12017overH12016accordingtoIATA.


Sectorcontacts


Sectorthemes

PankajBhuwaniaIndustrialsCo-Lead


AlMelchiorreIndustrialsLead


Energy Materials

CapitalGoods

Auto-mobiles

UDliDes

M&Atrends&marketanalysisThefollowingdataarecompiledspecifically for the Industrialssector,withvalua+ontrendsover+me inthefirstchartbasedon semi-annuallyaveraged transac+onaldata,and regionaland sub-sector comparisons in the secondand thirdchartsbasedonlistedcompaniesdataasatmidAugust2017.

2012 2013 2014 2015 2016 2017

Lower-MidMarketIndustrialsTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasremainedflatat7.7,itsprevioushighof8.6wasin2015H2

AllMarketIndustrialsTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasrisento14.6from10.4in2016H2

Comment Context

Lower-MidMarketIndustrialsListedCompaniesTEV/EBITDAMulDples(Valuesinrange$5m-$150m)bysubsectorishighestinCapitalGoodsat11.2,28%higherthanthelowestinEnergyof8.7

AllMarketIndustrialsListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)bysubsectorishighestinCapitalGoodsat13.9,51%higherthanthelowestinAutomobilesof9.2

Lower-MidMarketIndustrialsListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)byregionishighestinEuropeat11.2,11%higherthanthelowestinUS&Canadaat10.1

AllMarketIndustrialsListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)byregionishighestinUS&Canadaat12.4,46%higherthanthelowestinLa+nAmericaof8.5

Dataanalysedby:Datasuppliedby:

24

ThiscomparestotheAllMarketIndustrialsListedCompaniesTEV/EBITDAMul+pleof11.3

ThiscomparestotheLower-MidMarketIndustrialsListedCompaniesTEV/EBITDAMul+pleof10.4


SectorTEV/EBITDA

ThiscomparestotheAllMarketIndustrialsListedCompaniesTEV/EBITDAMul+pleof11.3

ThiscomparestotheLower-MidMarketIndustrialsListedCompaniesTEV/EBITDAMul+pleof10.4

4

6

8

10

12

14

16

Europe Asia&Pacific

Africa&ME

US&Canada

LaDnAmerica



9.3

12.010.5

12.4

8.5

11.210.2 10.3 10.1 10.6

02468

101214161820

9.611.2

13.9

9.210.7

8.79.8

11.29.5 9.8

02468

101214161820

25

Services

ThesectorM&AlandscapeDuring the Perth 2017 Globalscope conference, the network’s global Services sector team met to discuss recenttransac+onsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Keythemesareacquirersundergoingunprecedenteddiversifica+on,andhowanunderstandingofthetrendsindigitaldisrup+oniscri+caltodeterminingthebestpoten+alacquirersofservicesbusinesses.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.


JimKeelingServicesCo-Lead


DominicMarinelliServicesLead


MarDjnPetersServicesCo-Lead


Sectorcontacts


Sectorthemes

SmallFirmsCarvingOutStrongholdsWhilsttheconsul+ngsectoriss+lltradi+onallydominatedbythelargefirms,inclusiveoftheBig4,smallerchallengersaregainingmomentumbyfocusingsolelyonanicheandofferingahighlyspecialisedservice.ConsolidaDonAcrosstheConsulDngMarket

Moremature,mid-size,companiesarebeingsnappedupbymajorplayers inabidtoprovideafullsuiteofservices.Thisis, inturn,makingitdifficultformid-sizeplayerstocompeteinamarketwherescalebenefitsmaker.

FreelanceEmployeesCausingDisrupDonFreelancers and network-based employees are disrup+ngtradi+onal professional service subsectors by offering moretailored knowledge of buyers and providing a more ‘high-touch’service.PoliDcalHeadwindsSubsiding

2016wastheyearofpoli+calupsets.Trumpisnowwellintohis presidency, and whilst Brexit is s+ll fraught withuncertainty,itislargely‘businessasusual’forUKcompaniesopera+ngwithintheEU.Somebelieve,though,thatBritain'sEUextrac+onmaytakefiveormoreyears.

GartnerAcquiresCEBInforma+on technology research and advisory companyGartner, Inc. has acquired US best prac+ce and talentmanagementcompanyCEBforapproximately$2.6bn.GoGoVanand58SuyunMerge

ThemergerbetweenGoGoVanand58Suyunhascreatedthelargest online intra-city logis+cs pla�orm in Asia. Thecombined company isworth in excess of $1bn. 58 Suyun isthelogis+csbusinessofonlineclassifiedsgiant58Home.GeneralElectricCompletesPenskeEquitySaleGEhas sold its final 15.5% stake in Penske Truck Leasing tothe former partners of the business for around $674m.Penske manages a fleet of around 250,000 trucks acrossAmerica.

RoboDcsShapingtheFutureofLogisDcsUPS, DHL and FedEx are all experimen+ng with robo+cloadingandunloadingofirregularparcels.Improvedmappingtechnologies will allow robots to evaluate packets moreaccurately, as well as increasing efficient use of space inshippingcontainersandlorries.DigitalDrivingNewBusinessModels

Managementconsultanciesare lookingtoreducetheirover-relianceonseniorconsultantsbyapplyingmorequan+ta+veanalysis and using automa+on to decrease lead +mes andincreaseefficiency.

2012 2013 2014 2015 2016 2017

Europe Asia&Pacific

Africa&ME

US&Canada

LaDnAmerica

26

ProfessionalServices

HRandEmploy-ment

RealEstateMgmt

Research/ConsulDng

Transport-aDon

M&Atrends&marketanalysisThefollowingdataarecompiledspecificallyfortheServicessector,withvalua+ontrendsover+meinthefirstchartbasedonsemi-annuallyaveragedtransac+onaldata,andregionalandsub-sectorcomparisonsinthesecondandthirdchartsbasedonlistedcompaniesdataasatmidAugust2017.

Lower-MidMarketServicesTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasfallenfurtherto7.8from10.0in2015H2

AllMarketServicesTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasrisenfurtherto13.9from10.5in2016H1

Comment Context

Lower-MidMarketServicesListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)bysubsectorishighestinHR&Employmentat15.2,31%higherthanthelowestinTransporta+onof11.6

AllMarketServicesListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)bysubsectorishighestinResearch/Consul+ngat16.0,70%higherthanthelowestinTransporta+onof9.4

Lower-MidMarketServicesListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)byregionishighestinUS&Canadaat16.5,54%higherthanthelowestinAfrica&MEof10.7

AllMarketServicesListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)byregionishighestinAsia&Pacificat14.4,33%higherthanthelowestinLa+nAmericaof10.8

Dataanalysedby:Datasuppliedby:

4

6

8

10

12

14

16

ThiscomparestotheAllMarketServicesListedCompaniesTEV/EBITDAMul+pleof13.5

ThiscomparestotheLower-MidMarketServicesListedCompaniesTEV/EBITDAMul+pleof12.5

ThiscomparestotheAllMarketServicesListedCompaniesTEV/EBITDAMul+pleof13.5

ThiscomparestotheLower-MidMarketServicesListedCompaniesTEV/EBITDAMul+pleof12.5


SectorTEV/EBITDA



13.414.4

12.5 11.810.8

12.5 12.510.7

16.5

13.8

02468

101214161820

13.712.8

15.216.0

9.4

11.9

15.214.3

12.411.6

02468

101214161820

Technology,Media&Telecoms(TMT)

27

ThesectorM&AlandscapeDuringthePerth2017Globalscopeconference,thenetwork’sglobalTechnology,Media&Telecoms(TMT)sectorteammettodiscussrecenttransac+onsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akey theme is theestablishmentofventurecapitalarmsby largerfirms inorder tonurturenovel technologies.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.



PaddyMccGwireSosware&TechLead

MarkMillerDigital&InternetCo-Lead

Sectorcontacts

Lower-midmarketobservaDonsNotablerecenttransacDons

Sectorthemes

RejuvenatedFundingMarketforDeepTechInvestments in IP-based technology companies havesignificantly increased in volume, across tradi+onal sectorssuchassemiconductors(e.g.Graphcore,Kalray,UltraSoC),aswellasmorevisionaryareassuchasflyingcars (e.g.Lilium),microsatellites (e.g. ICEYE) and simulated worlds (e.g.Improbable). This environment seems likely to producesignificant M&A targets in the near future, that would beexpectedtocommandhighstrategicprices.CorporatesSeektoRaiseVisibilityOverTargets

It is becoming increasingly common for trade buyers toestablishventurecapitalarms,asameansofenhancingtheirvisibilityandunderstandingofthe innova+ontakingplace intheiropera+ngmarkets,aswellastodeepentheirpipelineofM&A targets. A nominal co-investment can oIen prove acheapwayofobtainingop+onalityoverwhethertoacquireapoten+altarget.

AmazonAcquiresOnlineRetailerSouq.comAmazon has sought to strengthen its e-commerce footprintwith expansion into theMiddle Easternmarket through theacquisi+on of Souq.com for $580m in cash. The deal givesAmazonastrongfoo+nginarela+velyuntappedmarket.HPEAcquiresHyper-ConvergedPlayerNimble

HPE has agreed to acquire flash-op+mised storage vendorNimble Storage for circa $1bn in cash. Nimble had neverturnedaprofit since its incep+on in 2008 and theprice tagreflectsthevaluetoHPEofbroadeningtheirflashpor�olio.EventbriteProfitsfromPandoraMisfireEventbrite has acquired leading +cke+ng pla�orm Ticke�lyfromPandorafor$200m.Thisdealcomesonly2yearsaIerPandora acquired Ticke�ly for $450m, in a deal that washailedasalandmarktransac+onlinkingmusicstreamingdatawith+cketsales.

PEBuyersareSetngtheToneintheMarketBetween direct and bolt-on acquisi+ons, private equitybuyersareforecasttopurchasec.900technologycompaniesin 2017. Private equity remains a favoured asset class forins+tu+onal investorsandtherecyclingofdistribu+onsfromsuccessful exits into new capital has led to a fundraisingsurge,genera+ngsubstan+aldrypowder.CloudTransformaDonFuelsAcDvityinSosware

Astheenterprisemarketcon+nuestoslowlytransi+ontothecloud, the requirement to support hybrid IT environmentswilldriveM&Aac+vityaslargerplayersseektobroadenanddeepentheirproduct/servicepor�olios.

ChineseBuyersConDnuetoMakePresenceFeltAspartofthecountry’sOneBelt,OneRoad ini+a+ve,Chinacon+nues to support and modernise its tradi+onalmanufacturing industriesthroughtheacquisi+onofWesterntechnology companies. This aggressive strategy has seenseveral deals fall foul of na+onal regulators, such as thedecisiontoblockthe€780msaleofGermanchipequipmentmakerAixtrontoaconsor+umofChineseinvestors.AutomoDveM&AExpectedtoAccelerateThe automo+ve sector has rapidly emerged as a keytechnology bakleground, that has seen established playersacquiringcompetenceatallstagesofthevaluechain.

6

7

8

9

10

11

12

13

14

Media Sosware

Hardware Semi-conductors

Telecoms

28

M&Atrends&marketanalysisThefollowingdataarecompiledspecificallyfortheTMTsector,withvalua+ontrendsover+meinthefirstchartbasedonsemi-annuallyaveragedtransac+onaldataandregionalandsub-sectorcomparisonsinthesecondandthirdchartsbasedonlistedcompaniesdataasatmidAugust2017.

Comment Context

Lower-MidMarketTMTListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)bysubsectorishighestinSoIwareat14.2,41%higherthanthelowestinTelecomsof10.1

AllMarketTMTListedCompaniesTEV/EBITDAMulDple(Valuesover$5m)bysubsectorishighestinSoIwareat17.5,140%higherthanthelowestinTelecomsof7.3

Lower-MidMarketTMTListedCompaniesTEV/EBITDAMulDple(Valuesinrange$5m-$150m)byregionishighestinEuropeat14.3,89%higherthanthelowestinLa+nAmericaof7.6

AllMarketTMTListedCompanies-TEV/EBITDAMulDple(Valuesover$5m)byregionishighestinUS&Canadaat13.1,63%higherthanthelowestinLa+nAmericaof8.1


ThiscomparestotheAllMarketTMTListedCompaniesTEV/EBITDAMul+pleof12.4

ThiscomparestotheLower-MidMarketTMTListedCompaniesTEV/EBITDAMul+pleof12.6

ThiscomparestotheAllMarketTMTListedCompaniesTEV/EBITDAMul+pleof12.4

ThiscomparestotheLower-MidMarketTMTListedCompaniesTEV/EBITDAMul+pleof12.6


SectorTEV/EBITDA

AllMarketTMTTransacDonsTEV/EBITDAMulDple(Valuesover$5m)hasfallento10.3from12.1in2016H2

Lower-MidMarketTMTTransacDonsTEV/EBITDAMulDple(Valuesinrange$5m-$150m)hasrisento10.5from8.5in2016H2

2012 2013 2014 2015 2016 2017

Europe Asia&Pacific

Africa&ME

US&Canada

LaDnAmerica



11.5 12.1

8.1

13.1

8.1

14.312.3

10.1

13.3

7.6

02468

101214161820

11.6

17.5

13.1 12.3

7.3

12.514.2

11.6 12.3

10.1

02468

101214161820

Documents

Globalscope Newsletter 2017 H2f - orion-cp.com & Co. MelCap Partners ... Sweden Jarl Securi+es Switzerland IFBC InternaonalScope Ltd. ... ($5-150m enterprise value transac+ons)