Globalscope Newsletter 2016 H1f · Global M&A market landscape 7 Lower-mid market sector highlights 8 ($5-150m enterprise value transactions) Regional Valuation Statistics Country

2016H1

GlobalscopeNewsletterreportingonglobalM&Aactivityandthelatestsemi-annualconference

“Thestartingpointforbusinessvaluationacrossallsectorsinanyregionintheglobalmarketplace”

Shanghai2016H1

inassociationwith

1 Issue4PublishedApril2016

AboutGlobalscope

WhatwedoOur focus isonmergersandacquisitions (M&A).Thisoftenincludesrepresentingclientswhowishtodivestoracquireacompanyandadvisingourclientsontherelatedfinedetailsincluding, for example, restructuring, international jointventuresandlicensinginitiatives.

Weworkwiththeseniormanagementofprivateandpubliccompaniesaswellasprivateequityfirms.

WhoweareGlobalscopewasfoundedin1987whenasmallgroupofentrepreneurialcorporatefinanceandbusinessadviserscametogethertosupportclientsincross-bordertransactions.Wenowhave45memberfirms,withmorethan500professionalsonthegroundacross37countries:

AMERICASBrazil Guarita&AssociadosCanada OspreyCapitalPartnersInc.Mexico AllegianceCapitalCorporationUnitedStates AllegianceCapitalCorporation

Greif&Co.ParamaxCorporation

Panama InsigniaFinancialAdvisorsUruguay FicusCapitalS.A.ASIAPACAustralia TerrainCapital

TomkinsTurnerChina BeijingHRSConsultingIndia MAPEAdvisoryGroupPvtLtd

RCSAdvisors(India)Pvt.Ltd.Indonesia NaxeliPartnersJapan KaedeFinancialAdvisoryInc.Singapore StirlingColemanSouthKorea H-PartnersKoreaVietnam NexusGroup

EUROPEBelarus CapitalTimesBelgium CommonGroundCorporateFinanceCzechRepublic VentureInvestorsCorporateFinanceDenmark DanskMerchantCapitalA/SFinland SummaCapitalFrance CMWCorporateFinanceGeorgia AllianceGroupCapitalGermany CCIManagement

CatCapTransferPartnersGroup

Greece FirstAthensCorporateFinanceSAHungary HealPartnersIsrael PortofinoInvestmentsItaly Benedetti&Associates

PalladioCorporateFinanceLuxembourg TenzingPartnersSANetherlands DEXinternationalM&A

StratégiqueNorway ImpelloManagementASPoland AugeoVentures

AventisCapitalPortugal BluemintCapitalRussia RBPartnersSpain NextCorporateSweden JarlSecuritiesSwitzerland InternationalScopeLtd.Ukraine CapitalTimesUnitedKingdom CobaltCorporateFinance

CorbettKeeling

Producedandeditedby:MattDixon,CorbettKeelingGlobalMarketingDirector

WhywedoitWith20–25%ofallM&Atransactionsbeingcross-border(definedinthisreportasinvolvingbuyersfromadifferentcountry to the target company), it is essential for ourmember firms’clients,whether theybebuyers, sellersortargets, to have access to an international network ofcorporatefinanceadvisors.

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Contents

GlobalscopeConferenceHighlightsofdiscussionsfromthelatestGlobalscopeconferenceheldinShanghai,China

Newdevelopments 5

Conferencereport 6

GlobalM&Amarketlandscape 7

Lower-midmarketsectorhighlights 8($5-150menterprisevaluetransactions)

RegionalValuationStatisticsCountrybycountryandregionbyregionanalysisofbusinessvaluationstatistics

Transactiondatabyregion 11

Listedcompaniesdatabyregion 13

Thestartingpointforbusinessvaluationacrossallsectorsinanyregionintheglobalmarketplace

Sector-SpecificAnalysisAcloserlookattheunderlyingsector-specificstructuraldrivers,newdevelopments,recentM&Aandprojections

Consumer 17

FinancialServices 19

LifeSciences 21

Industrials 23

Services 25

Technology,Media&Telecoms(TMT) 27

3Dataanalysedby:Datasuppliedby:

Definitionsandnotes

DefinitionsTEV-“TotalEnterpriseValue”TEVisaneconomicmeasurereflectingthemarketvalueofawholebusinessindependentofabusiness’capitalstructure.TheanalysisinthisdocumentcalculatesTEVasfollows:•  For transaction data, by reference to the target company of each transaction, from the transaction consideration, share of equity

acquired,andotherdiscloseddetailssuchasthetarget’snetdebt,asatthetransactiondate,•  Forlistedcompanydata,fromthelistedsharepriceofeachcompany,togetherwithknowndetailsofitscapitalstructureincludingissued

sharesandnetdebt,asatthestateddate.EBITDA-“EarningsBeforeInterest,Tax,DepreciationandAmortisation”EBITDAisabusiness’netincomewithinterest,taxes,depreciationandamortisationaddedbackwhichisoftentakenasaproxyforthecashgenerationrateofabusiness.TheanalysisinthisdocumentcalculatesEBITDAasfollows:•  Fortransactiondata,byreferencetothetargetcompanyofeachtransaction,fromthemostrecentknownhistoric12months’reported

valueasatthetransactiondate,•  Forlistedcompanydata,fromthemostrecentknownhistoric12months’reportedvalueasatthestateddate.TEV/EBITDA-“TEV/EBITDAMultiple”TheTEV/EBITDAMultiple iscalculated foreachtransactionwheremorethan40%of thetarget’sequity issoldor foreach listedcompanywheretherequireddataisdisclosed.Whereappropriate,theanalysisinthisdocumentusesweightedaveragescalculatedasfollows:•  Fortransactiondataanalysis,selectedtransactionTEV/EBITDAMultiples,withinagivensixmonthperiod,areweightedbyreferenceto

eachtransaction’sreportedconsiderationor“transactionvalue”,•  Forlistedcompanydataanalysis,selectedlistedcompanyTEV/EBITDAMultiples,onthestateddate,areweightedbyreferencetoeach

listedcompany’sTEV,•  Anomalousoutlyingdatapointsareexcluded.SizeThesizeclassificationsusedinthisdocumentareGlobalscopedefinedlimitswithrespecttothevalueoftheincludedtransactionsorlistedcompaniesasfollows:•  Fortransactiondata,transactionsareincludedwheretheTEVofthetargetisdisclosedandidentifiedbyCapitalIQasbeinggreaterthan

or equal to $5m (All Market Transactions), or greater than or equal to $5m and lower than or equal to $150m (Lower-MidMarketTransactions).

•  For listedcompanydata,companiesare includedwherethereisastockmarket listing,andaTEVofthecompanythat isdisclosedandidentifiedbyCapitalIQasbeinggreaterthanorequalto$5m(AllMarketListedCompanies),orgreaterthanorequalto$5mandlowerthanorequalto$150m(Lower-MidMarketListedCompanies).

SectorsThe sector classifications used in this document are Globalscope defined aggregations of similar business activities based on sub-sectorsdefinedbyreferencetotheprimaryCapitalIQindustryclassificationasfollows:•  Fortransactiondata,thetargetcompanyofeachtransaction,•  Forlistedcompanydata,eachlistedcompany.RegionsTheregionalclassificationsusedinthisdocumentaredefinedbyreferencetotheCapitalIQregionalclassificationasfollows:•  Fortransactiondata,thetargetcompanyofeachtransaction,•  Forlistedcompanydata,eachlistedcompany.Noteonusingmultiplesforbusinessvaluation:It is important to note that TEV/EBITDAMultiples calculated as set out above and applied to the EBITDA of a typical lower-midmarketbusinesswould,inthemajorityofcases,beexpectedtooverstatethevalueofthebusiness.Thiscaninpartbeduetothenetimpactofacombinationofthefollowingfactors:•  Adiscountmaybeappliedduetoreducedliquidityofsharesinalower-midmarketbusiness,•  Apremiummaybeappliedduetotheadditionalvalueofowningacontrollingequityshare,•  A(perceived)lackoftransparencywithrespecttoalower-midmarketbusiness’affairs,•  “TEV”isbasedonforecastprofits(whichusuallyassumegrowth)whereasthesemultiplesarebasedonhistoricprofits.

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GlobalscopeConferenceHighlightsofdiscussionsfromthelatestGlobalscopeconferenceheldinShanghai,China

Newdevelopments 5

Conferencereport 6

GlobalM&Amarketlandscape 7

Lower-midmarketsectorhighlights 8($5-150menterprisevaluetransactions)

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Newdevelopments

Valuationmultiplesathistoricpeak2015H2

SynopsisInthesixmonthstoDecember2015theglobalaverageLower-MidMarketTransactionsTEV/EBITDAMultiplehasrisento9.6,itshighestvalueinthelastsixyears.Thislatestbusinessvaluationindicatorisbasedonananalysisof22,038transactionsintheperiod,ofwhich23%werecategorisedascross-border.

Consumersectorcompaniescommandedthehighestvaluations,withLower-MidMarketTransactionsTEV/EBITDAMultiplesaveraging11.0.ThisisincontrasttotheIndustrialssectorwheretheaveragewas8.6;althoughthisisalsouponitspreviousvalueof8.0in2015H1.

SynopsisAt the recent semi-annual conference in Shanghai, outgoing Globalscopepresident Michael Moritz announced Globalscope’s newest member:PanamanianfirmInsigniaFinancialAdvisors.

JoséRogelioDíaz,PartnerDirectorofInsigniaFinancialAdvisorscommented:

NewPresidentMichael Moritz celebrated the end of histhree year tenure as President ofGlobalscope.HewillbereplacedbyRussellD’Alba.MichaelMoritzcommented:

“IamthankfulforthreeveryinspiringyearsaspresidentofthisgreatnetworkandIamextremelyproudofwhatwehaveachievedtogether. The quality of mid-marketboutique f irms in our network isoutstanding and I would like to thank themembersoftheGlobalscopeboardfortheirgood cooperation, in which the networknearlydoubledinsize.Wedevelopedmanyinitiatives that accelerated our marketingeffort and improved the quality ofinteraction within our network and thequalityofserviceforourclients.”

“We are very excited about joining Globalscopeandbeingpartofthesuccessfulexpansionofthenetworkglobally. Theprofessionalism, high levelof service, independence and strong executiontrajectoryofthepartnerfirmswithinGlobalscopeoffersourclientsauniquevaluepropositionthatcombines local expertise with global reach intoday’s globalized economy. For Insignia, thismarks a strong step forward in our strategicdevelopment; to cover the Central Americanregion from our base office located in Panama.Welookforwardtoaddingvaluetoourclientsbyexploring cross-border transactions as part ofGlobalscope.”

JoséRogelioDíazInsigniaFinancialAdvisors

NetworkexpansionandleadershipchangeOutgoingPresidentwelcomeslatestmember

NewPanamanianmemberfirm...

Conferencereport

SynopsisThefivedayconferenceprogramme,hostedbyGlobalscope’smember firm in Shanghai,HRSConsulting,was attendedby60delegatesfromGlobalscope’smemberfirms.Thesemi-annualconferenceincludedtwotoursofShanghai,meetingswith local businessowners, andentrepreneurs, aswell as a culturalwalking tour through the YuyuanGarden.Topics presented at the conference included: ‘Investing inChina’,‘EngagementlettersintheUS’,and‘KeyPerformanceIndicatorsinM&A’.

Comment“It is a great honour to have beenappointed President of GlobalscopePartners. I would like to thankMichaelMoritz forhis timeasPresidentandhisgreatwork indeveloping thenetwork. IwouldalsoliketothankHervéLeRoyforhis contributions to the GlobalscopeboardandwelcomeJimKeelingasnewlyappointed board member. We aredelighted towelcome Insignia FinancialAdvisorsasnewmember.”

RussellD’AlbaGlobalscopePresident

Hostmemberfirm:The conference was hosted byHRS Consult ing, a Chineseadvisory firm with offices inShanghai, Jiaxing, and Beijing.HRScoversawiderangeof

Headlines

NextThenextGlobalscopeconferencewillbeheldinDallasinSeptember2016.

Greatestnumberoftransactions:CatCap(Germany)reported7dealscompletedinthelast6months.Largesttransaction:CatCap (Germany) for their transaction with DeutscheBeteiligungsAGandTelioGroup.Intra-Globalscopedeal:VICF(CzechRepublic)andCatCap(Germany)whichadvisedMesse Düsseldorf, a German trade fair company, on thesaleof itsmajority shares inVeletrhyBrno,aCzech tradefaircompany.

Globalscope’s M&Atrackrecordcontinuesto gain momentumwith the followingheadlines in the lastsixmonths:

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industries, supporting companies in M&A cross-bordertransactions,strategy,andmarketresearch.

2010 2011 2012 2013 2014 2015

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GlobalM&AmarketlandscapeThousands of M&A transactions all across the globe areclosedinanygivensixmonthperiod.Transaction data, such as the latest published EBITDA andtheTEV(seedefinitionsonpage3)atthetimeofsaleofthetarget company, are sometimes published. These data canbe used to calculate average transaction TEV/EBITDAMultiples i.e. the average TEV/EBITDA Multiple across alltransactions forwhichdata is disclosed for each sixmonthperiod.Acrossalargeenoughsampleoftransactions,theseaverageTEV/EBITDAMultiples are a useful tool for assessing globalvaluationtrends,assetoutinthefirstchartbelow.

AllMarketTransactionsDot-dash lines show average data from all disclosedtransactions where the transaction valuewas at least $5m.The resulting All Market Transactions TEV/EBITDAMultiple,whichcanbeusedasaproxyfortheM&Amarketasawhole,shows a plateau after the recent rise in average EV/EBITDAvalues.

Lower-MidMarketTransactionsSolid linesshowaveragedatafromalldisclosedtransactionswherethetransactionvaluewasatleast$5mbutnogreaterthan $150m. The resulting Lower-Mid Market TransactionsTEV/EBITDAMultipleshowsaslight increase in linewiththemarketasawhole.

TEV/EB

ITDA

Vo

lume

Lower-MidMarketTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisento9.6followingapreviouslowin2015H1at8.9

AllMarketTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasrisento11.5fromthelowof11.3in2015H1

‘000s

ThiscomparestothecurrentAllMarketListedCompaniesTEV/EBITDAMultipleof11.9

ThiscomparestothecurrentLower-MidMarketListedCompaniesTEV/EBITDAMultipleof10.6

Comment Context

AllTransactionsVolumeTransactionvolumeshaveincreasedforthesecondyearrunning,andarenowatthehighestlevelsince2012H2

Cross-BorderTransactionsVolumeremainingataconsistent22%-24%ofthetotal

ListedCompaniesmade4,271strategicacquisitionsinthelast6months,thisisabovetheaverageof4,072strategicacquisitionspersixmonthperiodoverthelastthreeyears

Lower-MidMarketListedCompaniesmade719strategicacquisitionsinthelastsixmonths,thisisabovetheaverageof626strategicacquisitionspersixmonthperiodoverthelastthreeyears

Datasuppliedby:

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Lower-midmarketsectorhighlights

TEV/EBITDAVolum

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Generally thesedataare significantlymorevolatile than theglobal averageas they arebasedon fewer transactions andglobaleventsmayaffecteachsectordifferently.

The following charts show global Lower-Mid MarketTransaction TEV/EBITDA Multiple trends of six underlyingsectorsasidentifiedandtrackedbyGlobalscope.

Each of these average TEV/EBITDA Multiple data pointsrepresent transactions involving target companies operatingin broadly the same sectors, wherever they were locatedacross the globe, where the target company’s enterprisevaluewasatleast$5mbutnogreaterthan$150m.

2010 2011 2012 2013 2014 2015 Comment Context

LimiteddataforFinancialServicessectorin2012H1sointerpolatedvalueused.

AllTransactionsVolumebysectorin2015H2therewere:

Consumer: 3,437FinancialServices:1,549LifeSciences: 1,518Industrials: 4,494Services: 7,167TMT: 3,882

Lower-MidMarketTransactionsTEV/EBITDAMultiples(Valuesinrange$5m-$150m)bysectorin2015H1were:

Consumer: 11.0LifeSciences: 10.3Services: 10.0FinancialServices: 9.5TMT: 9.0Industrials: 8.6

Analysisperformedby:Datasuppliedby:

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ListedCompaniesineachofthesesectorsmadethefollowingstrategicacquisitionsinthesixmonthstomidFebruary2016:

Consumer: 659FinancialServices:509LifeSciences: 353Industrials: 1,264Services: 646TMT: 840

Lower-MidMarketListedCompaniesineachofthesesectorshadthefollowingaverageTEV/EBITDAMultiplesasatmidFebruary2016:

Consumer: 11.1LifeSciences: 14.0Services: 10.5FinancialServices: 11.6TMT: 11.3Industrials: 9.2

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RegionalValuationStatisticsCountrybycountryandregionbyregionanalysisofbusinessvaluationstatistics

Transactiondatabyregion 11

Listedcompaniesdatabyregion 13

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Transactionsdatabyregion

Europe

2010 2011 2012 2013 2014 2015 Comment Context

Lower-MidMarketEuropeanTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisenslightlyto9.8fromitspreviouslowof9.7in2015H1

AllMarketEuropeanTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasdroppedsharplyto10.6,fromitsprevioushighof14.1in2015H1

ThiscomparestothecurrentAllMarketEuropeanListedCompaniesTEV/EBITDAMultipleof11.1

ThiscomparestothecurrentLower-MidMarketEuropeanListedCompaniesTEV/EBITDAMultipleof11.3

UnitedStates&Can

ada

Lower-MidMarketUS&CanadaTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisenslightlyto9.0fromitspreviouslowof8.3in2014H2

AllMarketUS&CanadaTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasrisento12.4fromapreviouslowof11.8in2015H1

ThiscomparestothecurrentAllMarketUS&CanadaListedCompaniesTEV/EBITDAMultipleof12.4

ThiscomparestothecurrentLower-MidMarketUS&CanadaListedCompaniesTEV/EBITDAMultipleof10.5

Asia&Pacific

AllMarketAsianTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasrisento9.5fromitspreviouslowof8.4in2015H1

ThiscomparestothecurrentAllMarketAsianListedCompaniesTEV/EBITDAMultipleof13.6

Lower-MidMarketAsianTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisento10.0fromitspreviouslowof8.4in2015H1

ThiscomparestothecurrentLower-MidMarketAsianListedCompaniesTEV/EBITDAMultipleof11.3

Datasuppliedby: Dataanalysedby:

Lower-MidMarketTransactions(solidlines)

ThesolidlineshowsaverageTEV/EBITDAMultipledatafromalldisclosedtransactionswherethetransactionvaluewasatleast$5mbutnogreaterthan$150mandthetargetlocationwasrecordedinoneofthefiveglobalregions.

OtherthanLatinAmericaandAsia&Pacificwhichhavebothrisen, thedata showonly small variations in value from thepriorperiod.

AllMarketTransactions(dot-dashlines)

Dot-dashlinesshowaverageTEV/EBITDAMultipledatafromalldisclosedtransactionswherethetransactionvaluewasatleast$5mandthetargetlocationwasrecordedinoneofthefiveglobalregions.

The data show Europe returning to trend following a sharppeakin2015H1.

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Comment Context

AllMarketAfricanTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasrisenfurtherto12.8fromitspreviouslowof4.8in2014H2

ThiscomparestothecurrentAllMarketAfricanListedCompaniesTEV/EBITDAMultipleof12.1

Lower-MidMarketAfricanTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisento9.5fromitspreviouslowof9.3in2015H1

ThiscomparestothecurrentLower-MidMarketAfricanListedCompaniesTEV/EBITDAMultipleof11.3

AllMarketLatinAmericaTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasfallento8.4fromitsprevioushighof10.4in2014H2

ThiscomparestothecurrentAllMarketLatinAmericaListedCompaniesTEV/EBITDAMultipleof10.2

Lower-MidMarketLatinAmericaTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasfallensharplyto7.0fromitsprevioushighof10.8in2014H2

ThiscomparestothecurrentLower-MidMarketLatinAmericaListedCompaniesTEV/EBITDAMultipleof8.5

Volume

AllTransactionVolumesbyregionin2015H1were:

Europe: 7,695US&Canada: 8,834Asia&Pacific: 4,208Africa&ME: 637LatinAmerica: 664

Africa&MiddleEastandLatinAmericalower-midmarkettransactiondataaremorescarcethanthosefortheotherregions.Assuch these average transaction multiples are significantly more volatile and are included for completeness as much as forprovidingaguidetovaluationtrendsintheseregions.

Datasuppliedby:

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Dataanalysedby:

ListedCompaniesineachoftheseregionsmadethefollowingstrategicacquisitionsinthesixmonthstomidFebruary2016:

Europe: 1,052US&Canada: 1,100Asia&Pacific: 1,928Africa&ME: 134LatinAmerica: 57

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Europe Asia&Pacific

Africa&ME

US&Canada

LatinAmerica

Listedcompanies’TEVsarecalculatedfromeachcompany’scurrentshareprice(whichreflectsthemarket’sexpectationoffutureEBITDAperformance).The EBITDA figures used to calculate the Listed CompanyTEV/EBITDAMultiplesshownhereare the reportedEBITDAvaluesofeachcompanyforthelast12months(LTM)–thisgives TEV/EBITDA Multiples more directly comparable toTransaction TEV/EBITDA Multiples than if forecast (NTM)EBITDA isused.Adiscountshouldbeapplied ifusing thesefigures for a valuation of a growing business,whichwouldnormallyuseforecastperformancedata.

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ListedcompaniesdatabyregionAllMarketListedCompanies(light)

ThelightbluebarsshowaveragedatafromlistedcompanieswithTEVofat least$5m.TheresultscanbeusedasproxiesofTEV/EBITDAMultiplesforthecurrentmarketasawhole.Lower-MidMarketListedCompanies(dark)

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

Lower-MidMarketListedCompaniesVolume(Valuesinrange$5m-$150m)isagainparticularlylowinLatinAmericaat111

AllMarketListedCompaniesVolume(Valuesover$5m)issignificantlyhigherinAsia&Pacificthananywhereelseat12,465

TheglobaltotalnumberofAllMarketListedCompaniesis21,461

TheglobaltotalnumberofLower-MidMarketListedCompaniesis8,540

Comment Context

Lower-MidMarketListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)ishighestinEuropeat10.9,29%higherthanthelowestinLatinAmericaof8.5

AllMarketListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)ishighestinAsia&Pacificat12.6,27%higherthanthelowestinLatinAmericaof9.9

ThiscomparestotheglobaltotalAllMarketListedCompaniesTEV/EBITDAMultipleof11.9

ThiscomparestotheglobaltotalLower-MidMarketListedCompaniesTEV/EBITDAMultipleof10.6

Volume

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ITDA

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AllMarketListedCompanies(Valuesover$5m)AcquisitionsinlastsixmonthsishighestinAsia&Pacificinabsolutetermsat1,928acquisitions,buthighestintheUS&CanadaonanacquisitionsperListedCompanybasisat32%,comparedtoAfrica&ME’s10%

Intotaltherewere4,045strategicacquisitionsbyAllMarketListedCompaniesinthesixmonthstomidFebruary2016.ThesecomparetoAllMarketTransactionVolumesin2015H2byregionof(in‘000s):

Europe:7.7Asia&Pacific:4.2Africa&ME:0.6US&Canada:8.8LatinAmerica:0.7

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Thefollowingdataarecompiledforeachsub-regionwithaGlobalscopememberpresenceforwhichstatisticsareavailable.

AllMarketListedCompanies

(Valuesover$5m)

Lower-MidMarketListedCompanies

(Valuesinrange$5m-$150m)

Datasuppliedby: Dataanalysedby:

Asat:midFebruary20162015

Numberlisted

TEV/EBITDAMultiples

Numberlisted

TEV/EBITDAMultiples

BritishIsles 2 833 12.1 265 11.8

EastEurope 7 507 8.0 358 9.4

NorthEurope 5 714 11.3 263 11.2

SouthEurope 6 435 10.9 148 10.9

WestEurope 10 1,178 10.8 369 11.4

TotalEurope 30 3,667 10.8 1,403 10.9

IndianOcean 4 1,930 14.5 1,229 12.1

North&EastAsia 5 7,699 12.6 2,997 10.1

Pacific 5 2,836 11.8 1,523 10.5

TotalAsia/Pacific 14 12,465 12.7 5,749 10.6

Africa - 531 10.5 270 9.7

MiddleEast 1 796 10.9 324 11.7

TotalAfrica/MiddleEast 1 1,327 10.8 594 10.8

Brazil 1 201 8.9 41 7.4

Uruguay 1 - - - -

Others 1 314 10.8 69 9.1

LatinAmerica 3 515 9.9 110 8.5

GlobalscopeOffices

Europe

USA

&Can

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Asia&Pacific

Africa&

MiddleEa

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Latin

America

Canada 5 595 11.8 228 9.3

UnitedStates 6 2,705 12.0 323 10.8

Others - 187 9.5 133 10.6

UnitedStatesandCanada 11 3,487 11.9 684 10.3

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Sector-SpecificAnalysisAcloserlookattheunderlyingsector-specificstructuraldrivers,newdevelopments,recentM&Aandprojections

Consumer 17

FinancialServices 19

LifeSciences 21

Industrials 23

Services 25

Technology,Media&Telecoms(TMT) 27

[email protected]+31613085245

MartijnPetersConsumerCo-Lead

Consumer

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ThesectorM&AlandscapeDuring the Shanghai 2016Globalscope conference, the network’s global Consumer sector teammet to discuss recenttransactionsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akeythemeistheconsolidationofbusinessesinthesectorinthefaceofuncertainconsumerdemand.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.

Lower-midmarketobservations

Sectorcontacts


AndreaPagliaraConsumerLead

Notablerecenttransactions

Sectorthemes

ChangesinconsumerfooddemandChanging consumer habits have encouraged businesses toacquire a wider share of themarket. For example a higherdemand for natural goods encouraged the acquisition offirms likeDave'sKillerBreadandAlpineValleyBreadCo.bybakedgoodsgiantFlowersFoods.Privateequityfacesstiffercompetition

PrivateEquityfirmsarefacinggreatercompetitionassmallerfood companies are increasingly acquired by largercompanies in the sector, rather than seeking private equityinvestment.

Kellogg’sinternationaloutreachKellogg’s purchase of Bisco Misr and Mass Food Group inEgypt further advances Kellogg’s investments in emergingmarkets.Anheuser-BuschInBevbuysoutSABMiller

BelgianbrewerAnheuser-BuschInBevissettobuyoutitsUKcompetitorSABMillerconsolidatingitspositioninthemarket.Thecombinedcompanywillproduceapproximatelyonethirdoftheentireworld’sbeer.JBSSAAcquiresMoyParkSao Paulo-based JBS SA, theworld’s largestmeat packager,has acquired Moy Park, the European poultry unit of localrivalMarfrigGlobalFoodsSAinadealworth$1.5billion.

MovetoemergingmarketsLargeandmoredevelopedcompaniesinthefoodsectorhavemoved to invest more in developing economies, citingencouraging prospects for growth as M&A deals havecontinuedtoemerge.Chineseconsumersseekingnewgoods

DuetothegrowingdisposableincomeofChineseconsumers,the demand for premium products in China has increasedsignificantly.


PankajRungtaConsumerCo-Lead

ConsumersembracingdigitaltechniquesMore consumers thaneverbefore areusing the internet tobuyproducts,check forquality,and toannounceany issuestheymayhavewith their purchases. Thismeans companiesare having to invest more in customer relations and takegreatercarewhenrespondingtofeedback.ConsolidationakeythemeLarge food and beverage companies are looking to acquirebusinesses thathave spent timeand resourceenteringnewand expanding markets. This includes functional and high-proteinfoodsaimedatthesocialmediageneration.

[[email protected]][localtelnumber]

[LocalContact][Local]ConsumerLead

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Durables&Apparel

ConsumerServices

Retailing FoodStaples

FoodLuxuries

Europe Asia&Pacific

Africa&ME

US&Canada

LatinAmerica

M&Atrends&marketanalysisThefollowingdataarecompiledspecifically for theConsumersector,withvaluationtrendsover time in the firstchartbasedon semi-annually averaged transactional data and regional and sub-sector comparisons in the second and thirdchartsbasedonlistedcompaniesdataasatmidFebruary2016.

2010 2011 2012 2013 2014 2015

Lower-MidMarketConsumerTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisento11.0fromitspreviouslowof9.9in2015H1

AllMarketConsumerTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasfallenfurtherto10.3fromitsprevioushighof12.8in2014H1

Thiscomparestothecurrentcross-sectorAllMarketTransactionsTEV/EBITDAMultipleof11.5

Thiscomparestothecurrentcross-sectorLower-MidMarketTransactionsTEV/EBITDAMultipleof9.6

Comment Context

Lower-MidMarketConsumerListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)bysubsectorishighestinConsumerServicesat12.2,15%higherthanthelowestinFoodLuxuriesof10.6

AllMarketConsumerListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)bysubsectorishighestinRetailingat15.5,39%higherthanthelowestinFoodStaplesof11.2

RegionalTEV/EBITDASub-sectorTEV/EBITDA

SectorTEV/EBITDA

Lower-MidMarketConsumerListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)byregionishighestinAsia&Pacificat11.2,12%higherthanthelowestinLatinAmericaof10.0

AllMarketConsumerListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)byregionishighestinUS&Canadaat15.0,20%higherthanthelowestinAfrica&MEof12.5

ThiscomparestotheAllMarketConsumerListedCompaniesTEV/EBITDAMultipleof14.4

ThiscomparestotheLower-MidMarketConsumerListedCompaniesTEV/EBITDAMultipleof11.1


6

7

8

9

10

11

12

13

14

ThiscomparestotheAllMarketConsumerListedCompaniesTEV/EBITDAMultipleof14.4

ThiscomparestotheLower-MidMarketConsumerListedCompaniesTEV/EBITDAMultipleof11.1

13.8 14.312.5

15.013.2

10.9 11.2 11.2 10.5 10.0

02468

101214161820

13.3 13.815.5

11.2

15.2

10.812.2

10.9 10.9 10.6

02468

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FinancialServices

19

ThesectorM&AlandscapeDuring the Shanghai 2016Globalscope conference, thenetwork’s global Financial Services sector teammet to discussrecenttransactionsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akeythemeistheshiftingregulatoryatmosphere.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.

JørgenBeuchertFinancialServicesLead



JoshParkFinancialServicesCo-Lead

FintechopportunitiescontinuetogrowThe Fintech industry in Europe is developing rapidly, withangel investors and venture capitalists competing foropportunities,thereisavibrantfundraisingscene.Europeanbanksarelosingground

TherehasbeenarecenttrendofEuropeaninvestmentbanksattempting to decrease their overheads by removing staff,leavingtopUSbankssuchasGoldmanSachsandJPMorganinanincreasinglydominantposition.DisintermediationBecause of tighter capital requirements bankswill continueto restrict their lendingactivity, this fuels theestablishmentof numerous new lending vehicles, providing senior andjunior lending,butalso increasingactivitywithin leasingandconsumer finance, which will increase M&A and capitalraisingactivity.

BankofTokyobuysintoPhilippinesSecurityBankBank of Tokyo Mitsubishi UFJ has bought a 20% stake inPhilippines’SecurityBankfor$780million.Thisdealwouldbethe biggest equity investment by a foreign investor in thePhilippinelender.BB&TacquiresSusquehanna&BankofKentucky

TheBB&TCorporationmademovestoacquireSusquehannaand Bank of Kentucky late last year, in addition to makingmovestoobtainNationalPennBancshareslaterthisyearforanestimated$1.8billion.CITGroupacquiresOneWestBankCIT Group has acquired Pasadena-based OneWest Bank for$3.4bn. OneWest offers home loans, wealth managementandotherservices.OneWestwillretainitsbrandbutoperateundertheCITBankDivision.

NewregulationscomingintoforceAsSolvencyIIcomesintoforceforinsurancecompaniesnewcapital requirementswill be introduced impacting positivelyon M&A deals. This is particularly true in Europe whichcurrentlyhasrelativelylowcapitalrequirements.Releaseoftiedupcapital

BecauseofBaselIIIandIFRS9banksareexpectedtodivestasignificant proportion of their loan books (particularly non-coreandnon-performingloans)whichwillreleasepreviouslyconstrained capital, this is likely tobe ahugedriverof newM&Aactivity.

RiseofdisruptiveforcesNewtechnologiesarebringingnoticeablechangestoexistinginfrastructure. Peer-to-peer networks are becoming moreprominent in the banking sector, whilst the insuranceindustry is experiencing the introduction of new digitalunderwritingsolutions.HighlevelsofFinTechinterestAnother major move in the banking sector is a surginginterest in FinTech. Banks are very keen to investigate thespace and some of major banks are seeking acquisitiontargetswithinFinTechasthepressuressurroundingtheneedforfasterandcross-borderpaymentsincrease.


Sectorcontacts


Sectorthemes


KonstantinDzhimbinovFinancialServicesCo-Lead



Europe Asia&Pacific

Africa&ME

US&Canada

LatinAmerica

20

M&Atrends&marketanalysisThefollowingdataarecompiledspecificallyfortheFinancialServicessector,withvaluationtrendsovertimeinthefirstchartbasedon semi-annually averaged transactionaldataand regional and sub-sector comparisons in the secondandthirdchartsbasedonlistedcompaniesdataasatmidFebruary2016.

2010 2011 2012 2013 2014 2015

AllMarketFinancialServicesTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasrisento14.2fromitspreviouslowof10.3in2015H1

Lower-MidMarketFinancialServicesTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisento9.5fromitspreviouslowof7.5in2015H1

Comment Context

Lower-MidMarketFinancialServicesListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)bysubsectorishighestinRealEstateat13.6,48%higherthanthelowestinDiversifiedof9.2

AllMarketFinancialServicesListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)bysubsectorishighestinRealEstateat15.4,102%higherthanthelowestinBanksof7.6

Lower-MidMarketFinancialServicesListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)byregionishighestinAfrica&MEat13.3,125%higherthanthelowestinLatinAmericaof5.9

AllMarketFinancialServicesListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)byregionishighestinAsia&Pacificat13.9,53%higherthanthelowestinLatinAmericaof9.1


Banks Diversified

Insurance RealEstate

4

6

8

10

12

14

16

18

ThiscomparestotheAllMarketFinancialServicesListedCompaniesTEV/EBITDAMultipleof12.3

ThiscomparestotheLower-MidMarketFinancialServicesListedCompaniesTEV/EBITDAMultipleof11.6


SectorTEV/EBITDA

ThiscomparestotheAllMarketFinancialServicesListedCompaniesTEV/EBITDAMultipleof12.3

ThiscomparestotheLower-MidMarketFinancialServicesListedCompaniesTEV/EBITDAMultipleof11.6

11.2

13.913.0

11.2

9.1

11.9 11.2

13.3

10.0

5.9

02468

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7.6

11.9

9.8

15.4

10.39.2 9.3

13.6

02468

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LifeSciences

21

ThesectorM&AlandscapeDuringtheShanghai2016Globalscopeconference,thenetwork’sglobalLifeSciencessectorteammettodiscussrecenttransactionsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akeythemeisthecontinuingmovetowardspatient-centricviewswithinthehealthcaresector.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.



JacobMatthewPharmaLead

CasparGrafStauffenbergLifeSciencesLead


ManfredDraxLifeSciencesCo-Lead

CollaborationindevelopingeconomiesThegeneralcostofrisinghealthcareandpharmaceuticalshasencouragedanumberofbusinessesindevelopingeconomiesto collaborate to help support access to the latest medicaldevelopments.Costofspecialitydrugsincrease

Adecrease inthenumberofmainstreamdrugsenteringthemarket has supported prices, going against the trend ofpressures to reduce costs. For example, PCSK9 inhibitors, anewdrug designed to lower cholesterol levels, are enteringthemarketatapproximately$14,000ayear.

PfizermergeswithAllerganPfizer, the giant US Pharmaceutical company, announced amergerwith its IrishcounterpartAllergan inNovember.Thiswould make it the second largest M&A deal ever. Aftercompleting themergerTeva is likely toacquire theAllergangenericsbusiness.ShirefinallyacquiresBaxalta

After appealing to Baxalta’s shareholders, Shire was finallyabletoacquirethecompanylatelastyearinadealestimatedtobeworthapproximately$32billion.KaiserbuysGroupHealthCooperativeThe giant healthcare provider Kaiser Permanente hasacquiredtheGroupHealthCooperativegrantingthemaccessto over half a million new customers and opening theirbusinesstoanewregionofthecountry.

NewtechnologylinkingpatientsNew technologies, such as wearables, are enablinghealthcareprofessionalstomakegreateruseofthearrayofhealthdataavailable,andinterestisgrowingastheyaresetto begin entering the commercialisation phase, furthershiftingtheindustrytowardsmorepatient-centricmodelsofcare.

CostcontrolsdrivesearchforgrowthReforms to the medical sector in mature and developedmarkets,designedtolimitcostsandsecurevalueformoney,are expected to hit life sciences businesses the worst,requiringcompaniestoseeknewavenuesforgrowth.Patentcliffencouragingacquisition

Pharmaceuticalexecutivesareeager toacquire fastgrowingbusinesses to demonstrate growth in response to the $17billionthatwillbelostfromexpiringpatents,asestimatedbyPwC.Atthesametime,consolidationrequirescorporatestoalignandfocustheirproductportfolios.


Sectorcontacts


Sectorthemes



Europe Asia&Pacific

Africa&ME

US&Canada

LatinAmerica

22

M&Atrends&marketanalysisThefollowingdataarecompiledspecificallyfortheLifeSciencessector,withvaluationtrendsovertimeinthefirstchartbasedon semi-annually averaged transactional data and regional and sub-sector comparisons in the second and thirdchartsbasedonlistedcompaniesdataasatmidFebruary2016.

2010 2011 2012 2013 2014 2015

Lower-MidMarketLifeSciencesTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisento10.3fromitspreviouslowof9.0in2015H1

AllMarketLifeSciencesTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasfallento14.5fromitsprevioushighof15.7in2015H1

Comment Context

Lower-MidMarketLifeSciencesListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)bysubsectorishighestinBioTechat18.6,46%higherthanthelowestinProviders&Servicesof12.7

AllMarketLifeSciencesListedCompanies-TEV/EBITDAMultiple(Valuesover$5m)bysubsectorishighestinMedTechat18.1,58%higherthanthelowestinProviders&Servicesof11.4

Lower-MidMarketLifeSciencesListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)byregionishighestinUS&Canadaat14.7,48%higherthanthelowestinAfrica&MEof9.9

AllMarketLifeSciencesListedCompanies-TEV/EBITDAMultiple(Valuesover$5m)byregionishighestinAsiaandPacificat19.0,65%higherthanthelowestinLatinAmericaof11.5


4

6

8

10

12

14

16

Equipment&Supplies

Providers&Services

MedTech BioTech Pharma

ThiscomparestotheAllMarketLifeSciencesListedCompaniesTEV/EBITDAMultipleof14.3

ThiscomparestotheLower-MidMarketLifeSciencesListedCompaniesTEV/EBITDAMultipleof14.0


SectorTEV/EBITDA

ThiscomparestotheAllMarketLifeSciencesListedCompaniesTEV/EBITDAMultipleof14.3

ThiscomparestotheLower-MidMarketLifeSciencesListedCompaniesTEV/EBITDAMultipleof14.0

14.4

19.0

15.3

13.011.5

13.314.4

9.9

14.7

11.5

02468

10121416182022

15.9

11.4

18.1

12.0

15.113.2 12.7

15.5

18.6

14.5

02468

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ThesectorM&Alandscape

Industrials

During the Shanghai 2016Globalscope conference, thenetwork’s global Industrials sector teammet to discuss recenttransactionsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akeythemeisthechanginguseoffossilfuels,whichisdramaticallyalteringtheindustrialssector.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.

23GiuseppeBenedettiEnergy&RenewablesLead

PankajBhuwaniaIndustrialsCo-Lead



MarcinMajewskiIndustrialsLead


3DprintingreshapingoperationsTheemergenceof3Dprintinghasaffectedcompanieswithinthe industrial sector by reshaping their operations on thefactorylevel.Thoughtheconceptisinitsearlydays,ithasthepotentialtopresentmanyopportunitiestobusinesses.Expandingrecruitmentservices

Companies looking to groware facingdifficulties in locatingnew people as many are shunning manufacturing jobs andlooking elsewhere. Extra-investment in recruitment is beingusedtomitigatethisproblem.

ShellgainsapprovalforBGgroupacquisitionTheEUhasapprovedShell’sacquisitionoftheBGgroup,inadeal worth approximately $70 billion which will make Shelltheworld’sbiggestliquefiednaturalgastrader.BerkshireHathawaybuysPrecisionCastpartsCorp

WarrenBuffett’scompany,BerkshireHathaway,hasacquiredPrecision Castparts Corp., the aerospace and energyindustriesbusiness,inadealthatisestimatedtobevaluedat$37billion.PortCityGroupmergeswithPaceIndustries

Port City Group’s merger with Pace Industries, NorthAmerica'slargestfull-servicealuminium,zinc,andmagnesiumdie casting company, is an example of the record breakingnumberofautomobileM&Adeals.

ChangingexchangeratesTheincreasingvalueofthedollaragainsttheyenisexpectedto have a significant impact on the sector byweakeningUSmanufacturerssuchasGeneralMotors,Ford,andChryslerinfavourofJapaneserivalsToyota,Nissan,andHonda.OilPricesremainvolatile

Oilpriceshave collapsedby60per centof their value from2014, to below $40 per barrel and it seems this trend willcontinue with uninterrupted production from the gulf oilstates.

ThecontinuingdeclineofcoalIn the aftermath of the Paris agreement, countries aremoving away from using coal as a fuel source. This trendseems likely to continue and at present over 25% of theworld’s coal reserves cost more to extract than they areworth.


Sectorcontacts


Sectorthemes



Energy Materials

CapitalGoods

Auto-mobiles

Utilities

M&Atrends&marketanalysisThefollowingdataarecompiledspecifically for the Industrialssector,withvaluationtrendsovertime inthefirstchartbasedon semi-annuallyaveraged transactionaldata,and regionaland sub-sector comparisons in the secondand thirdchartsbasedonlistedcompaniesdataasatmidFebruary2016.

2010 2011 2012 2013 2014 2015

Lower-MidMarketIndustrialsTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisento8.6fromitspreviouslowof8.0in2015H1

AllMarketIndustrialsTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasrisento11.3fromitspreviouslowof9.3in2015H1

Comment Context

Lower-MidMarketIndustrialsListedCompaniesTEV/EBITDAMultiples(Valuesinrange$5m-$150m)bysubsectorishighestinCapitalGoodsat9.9,38%higherthanthelowestinEnergyof7.1

AllMarketIndustrialsListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)bysubsectorishighestinCapitalGoodsat13.7,62%higherthanthelowestinEnergyof8.5

Lower-MidMarketIndustrialsListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)byregionishighestinAfrica&MEat9.6,28%higherthanthelowestinLatinAmericaof7.5

AllMarketIndustrialsListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)byregionishighestinAsia&Pacificat11.6,35%higherthanthelowestinEuropeof8.6

Dataanalysedby:Datasuppliedby:

24

ThiscomparestotheAllMarketIndustrialsListedCompaniesTEV/EBITDAMultipleof10.5

ThiscomparestotheLower-MidMarketIndustrialsListedCompaniesTEV/EBITDAMultipleof9.2


SectorTEV/EBITDA

ThiscomparestotheAllMarketIndustrialsListedCompaniesTEV/EBITDAMultipleof10.5

ThiscomparestotheLower-MidMarketIndustrialsListedCompaniesTEV/EBITDAMultipleof9.2

4

6

8

10

12

14

Europe Asia&Pacific

Africa&ME

US&Canada

LatinAmerica

8.6

11.610.6 10.7

8.79.0 9.4 9.67.9 7.5

02468

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8.510.2

13.7

8.69.5

7.19.1 9.9

8.6 8.3

02468

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25

Services

ThesectorM&AlandscapeDuring the Shanghai 2016 Globalscope conference, the network’s global Services sector team met to discuss recenttransactionsandtheevolvingunderlyingstructuraldriversoftheglobalsectorM&Alandscape.Akeythemeistheincreaseinvariousinternalreformsdesignedtohelpbusinessescapitaliseastheglobaleconomyreturnstogrowth.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.


JimKeelingServicesLead


DominicMarinelliResourceServicesLead


MartijnPetersServicesCo-Lead


Sectorcontacts


Sectorthemes

IncreasinglycompetitivemarketThe largenumberofacquisitionsby thebig fouraccountingfirmshasallowed themtodevelop intoaone-stop-shop forconsulting services. This is placing increasing pressure onsmall firms, making the lower-mid market increasinglycompetitive.PRM&Aledbyindependentfirms

The vastmajorityofM&Adeals in thePR sectorhavebeenundertaken by independent firms that are hoping to groweithertheirgeographicalpresence,ortheirservices.

ChangingbusinessstructuresServices companies are trending towards alternativestructures, for example accountancy practices and nontraditionallawfirmsarebeginningtoofferlegalservices.Increaseinrecruitment

Asthemarketreturnstogrowth,Servicesfirmsarelookingtoexpand and increase their headcount tomeet demand andofferbetterservicestotheirclients.

SystraacquiresJMPConsultantsSystrahasmademovestoacquireJMPConsultantsLimited,amajor transport consultancy. This move aims to secure itsposition intheUKbyexpanding itsconsultancyservicesandextendingitsportfolioofclientsandpartners.CoscoandChinaShippingGroupmerge

Cosco is set tomergewithChina ShippingGroup in amovethat will create a new state regulated business, led by theexistingchairmanoftheChinaShippingGroup.FourCommunicationsacquiresConsolidatedPRFour Communications has finalised its acquisition ofConsolidatedPRLimited. FourCommunicationsGroupnowholds offices in London, Edinburgh, Abu Dhabi, and Dubaiwithturnoverof£25million.

ChangingtechnologyTechnologyisconstantlyadvancinginwaysthatradicallyalterhow the Services sector behaves. Shifting to online cloudplatforms enables programmes to do more behind thescenes,allowingadvisorstospendmoretimeasadvisorsandwithgreatersecurity.



2010 2011 2012 2013 2014 2015

Europe Asia&Pacific

Africa&ME

US&Canada

LatinAmerica

26

ProfessionalServices

HRandConsulting

RealEstateMgmt

Transport Infra-structure

M&Atrends&marketanalysisThefollowingdataarecompiledspecificallyfortheServicessector,withvaluationtrendsovertimeinthefirstchartbasedonsemi-annuallyaveragedtransactionaldata,andregionalandsub-sectorcomparisonsinthesecondandthirdchartsbasedonlistedcompaniesdataasatmidFebruary2016.

Lower-MidMarketServicesTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasrisenfurtherto10.0fromitspreviouslowof5.7in2014H2

AllMarketServicesTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasfallento10.7fromitsprevioushighof12.7in2015H1

Comment Context

Lower-MidMarketServicesListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)bysubsectorishighestinRealEstateManagementat13.3,111%higherthanthelowestinInfrastructureof6.3

AllMarketServicesListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)bysubsectorishighestinRealEstateManagementat15.8,110%higherthanthelowestinInfrastructureof7.5

Lower-MidMarketServicesListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)byregionishighestinEuropeat11.7,122%higherthanthelowestinLatinAmericaof5.3

AllMarketServicesListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)byregionishighestinAsia&Pacificat13.9,44%higherthanthelowestinLatinAmericaof9.7

Dataanalysedby:Datasuppliedby:

4

6

8

10

12

14

16

ThiscomparestotheAllMarketServicesListedCompaniesTEV/EBITDAMultipleof12.5

ThiscomparestotheLower-MidMarketServicesListedCompaniesTEV/EBITDAMultipleof10.5

ThiscomparestotheAllMarketServicesListedCompaniesTEV/EBITDAMultipleof12.5

ThiscomparestotheLower-MidMarketServicesListedCompaniesTEV/EBITDAMultipleof10.5


SectorTEV/EBITDA

11.5

13.9

11.410.2 9.7

11.710.2

11.5

9.4

5.3

02468

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11.710.2

15.814.7

7.5

10.0 10.0

13.3

10.0

6.3

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Technology,Media&Telecoms(TMT)

27

ThesectorM&AlandscapeDuring the Shanghai 2016Globalscope conference, the network’s global Technology,Media& Telecoms (TMT) sectorteam met to discuss recent transactions and the evolving underlying structural drivers of the global sector M&Alandscape.A key theme is the fundamental importance of cyber security in the pervasive Internet of Things environment.Moredetailscanbeobtainedfromteammembersorregionalheads–seecontactdetailsbelow.



PaddyMccGwireSoftware&TechLead

MarkMillerDigital&InternetCo-Lead

Sectorcontacts

Lower-midmarketobservationsNotablerecenttransactions

Sectorthemes

MidsizedfirmsseeITinvestmentsasstrategicSoftware vendors provide their customerswith the tools torealise hybrid architectures, which makes it easier,particularly for midsized companies, to implement best ofbreedsoftwareandcombinations.Touchcommercegainsfooting

Retail companies are benefiting from the development oftouch commerce enabling almost instant payment whenpurchasing products, circumventing the sometimes 80% “incart”abandonmentratethatisoftenblamedoncumbersomepaymentsystems.

DellacquiresEMCEMC, founded as a data storage company, but increasinglytransforming intoasoftwarecompany,wasacquiredbyDellinOctober2015,inoneofthelargesttechnologymergersinhistory,valuedataround$68billiondollars.Informaticadelistingtoevolve

Microsoft and Salesforce joined the $5.3 billion buyout ofInformatica. Now as a private company with a long viewmeasured inyears,notquarters, Informaticawillhavemoreflexibilityandmoretimetoevolveitsbusinessmodel.CharterandTimesWarnermergerdelayedLate in May, Charter Communications (a broadbandprovider)plannedtomergewithTimeWarnerCableinadealworth $79 billion, however the deal has been delayed asfederalregulatorsscrutinisethedecision.

Developmentof“Unicorns”The sector has witnessed the emergence of “unicorns”,private businesses valued at over $1 billion. Of the 180unicornsglobally,40arebasedinChina.Thetotalnumberisonly likely to increase as innovation and developmentcontinues.InternetofThingscontinuestogrow

AccordingtoCisco,thenumberofconnecteddevicesislikelyto increase to 50 billion by 2020 and as a result companiesthat supply and support such connections are expected toremainattheforefrontofthesector.

TMTopportunitiesforgrowthin2016Cognitive computing/AI/machine learning/robotics, big dataanalytics, cloud computing and the rapidly growing Internetof Things are transforming businesses worldwide – and areareas where significant investments are being made.Moreover, there is substantial investment in blockchaintechnology&applications,whichwillbecomeapparentin24months.



6

7

8

9

10

11

12

13

14

Media Software

Hardware Semi-conductors

Telecoms

28

M&Atrends&marketanalysisThefollowingdataarecompiledspecificallyfortheTMTsector,withvaluationtrendsovertimeinthefirstchartbasedonsemi-annuallyaveragedtransactionaldataandregionalandsub-sectorcomparisonsinthesecondandthirdchartsbasedonlistedcompaniesdataasatmidFebruary2016.

Comment Context

Lower-MidMarketTMTListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)bysubsectorishighestinSoftwareat12.7,27%higherthanthelowestinSemi-Conductorsof10.0

AllMarketTMTListedCompaniesTEV/EBITDAMultiple(Valuesover$5m)bysubsectorishighestinSoftwareat14.8,110%higherthanthelowestinTelecomsof7.1

Lower-MidMarketTMTListedCompaniesTEV/EBITDAMultiple(Valuesinrange$5m-$150m)byregionishighestinUS&Canadaat13.3,64%higherthanthelowestinLatinAmericaof8.1

AllMarketTMTListedCompanies-TEV/EBITDAMultiple(Valuesover$5m)byregionishighestinEuropeat10.9,51%higherthanthelowestinAfrica&MEof7.2


ThiscomparestotheAllMarketTMTListedCompaniesTEV/EBITDAMultipleof10.4

ThiscomparestotheLower-MidMarketTMTListedCompaniesTEV/EBITDAMultipleof11.3

ThiscomparestotheAllMarketTMTListedCompaniesTEV/EBITDAMultipleof10.4

ThiscomparestotheLower-MidMarketTMTListedCompaniesTEV/EBITDAMultipleof11.3


SectorTEV/EBITDA

AllMarketTMTTransactionsTEV/EBITDAMultiple(Valuesover$5m)hasfallento10.8fromitsprevioushighof13.3in2015H1

Lower-MidMarketTMTTransactionsTEV/EBITDAMultiple(Valuesinrange$5m-$150m)hasfallenfurtherto9.0fromitsprevioushighof10.7in2014H2

2010 2011 2012 2013 2014 2015

Europe Asia&Pacific

Africa&ME

US&Canada

LatinAmerica

10.99.8

7.2

10.8

7.5

12.310.9

9.7

13.3

8.1

02468

101214161820

11.2

14.8

9.3 10.0

7.1

11.712.7

10.7 10.0 10.4

02468

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Documents

Globalscope Newsletter 2016 H1f · Global M&A market landscape 7 Lower-mid market sector highlights 8 ($5-150m enterprise value transactions) Regional Valuation Statistics Country