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Sectorwatch: Consulting - FinServices May 2019

Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

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Page 1: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

Sectorwatch:Consulting - FinServicesMay 2019

Page 2: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

2

Consulting - FinServicesMay 2019

Sector Dashboard [4]

Public Basket Performance [5]

Operational Metrics [7]

Valuation Comparison [10]

Recent Deals [13]

Appendix [15]

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Page 3: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

3

Overview

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.

Dashboard• Summary metrics on the sector

• Commentary on market momentum by

comparing the most recent 12-month

performance against the last 3-year

averages.

Public Basket Performance• Summary valuation and operating metrics for

a basket of comparable public companies

Valuation Comparison• Graphical, detailed comparison of valuation

multiples for the public basket

Recent Deals• The most recently announced deals in the

sector

Page 4: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

4

Dashboard

Operating Metrics

Valuation

Revenue Growth Momentum

3.8% 1 - year revenue growth compared to revenue growth

average for last 3 years

Pricing / Gross Margin Momentum

0.6% 1 - year gross profit % compared to gross profit %

average for last 3 years

Profitability

-0.4% 1 - year EBITDA % compared to EBITDA % average for

last 3 years

Current revenue growth rate exceeds the average of the last 3 years by this

amount, indicating that market momentum is increasing

Current gross profit margin exceeds the average of the last 3 years gross profit

margin by this amount, indicating supplier pricing power

Current EBITDA margin is less than the average of the last 3 years EBITDA

margins, which may signal further consolidation

8.3%

13.2%

33.1%

0% 10% 20% 30% 40%

Median LTM Rev. Growth %

Median LTM EBITDA Margin %

Median LTM GP Margin %

1.7x

11.8x

14.6x

21.6x

0x 10x 20x 30x

Median TEV / LTM Revenue

Median TEV / LTM EBITDA

Median TEV / LTM EBIT

Median Price / LTM Earnings

Page 5: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

5

Public Basket

Company TEV $mLTM Rev

$m

Rev Growth

YoY GP %EBITDA

%TEV / Rev X

TEV / EBITDA

X # FTEsRev / FTE $k

CRA International, Inc. 450 424 11% 31% 9% 1.1 11.5 687 617

The Hackett Group, Inc. 485 261 -2% 38% 16% 1.9 11.9 1,165 224

Navigant Consulting, Inc. 887 697 9% 29% 9% 1.3 14.1 5,952 117

Huron Consulting Group Inc. 1,440 806 9% 35% 12% 1.8 15.0 3,269 247

FTI Consulting, Inc. 3,317 2,081 12% 35% 14% 1.6 11.7 4,768 437

Capgemini SE 20,495 15,110 5% 27% 13% 1.4 10.8 211,313 72

Cognizant Technology Solutions Corporation 31,588 16,323 8% 39% 20% 1.9 9.9 281,600 58

Accenture plc 107,224 40,840 8% 32% 16% 2.6 16.1 459,000 89

Average 20,736 9,568 8% 33% 14% 1.7 12.6 120,969 232

Median 2,378 1,444 8% 33% 13% 1.7 11.8 5,360 171

share price as of 10May19

Page 6: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

6

Public Basket Valuation Trends

Public EBITDA Multiples over Time

Public Revenue Multiples over Time

0.0x

0.5x

1.0x

1.5x

2.0x

Aug-1

4

Nov-1

4

Feb-1

5

May-1

5

Aug-1

5

Nov-1

5

Feb-1

6

May-1

6

Aug-1

6

Nov-1

6

Feb-1

7

May-1

7

Aug-1

7

Nov-1

7

Feb-1

8

May-1

8

Aug-1

8

Nov-1

8

Feb-1

9

May-1

9

TEV/Revenue - Median TEV/Revenue - Average

0x

5x

10x

15x

Aug-1

4

Nov-1

4

Feb-1

5

May-1

5

Aug-1

5

Nov-1

5

Feb-1

6

May-1

6

Aug-1

6

Nov-1

6

Feb-1

7

May-1

7

Aug-1

7

Nov-1

7

Feb-1

8

May-1

8

Aug-1

8

Nov-1

8

Feb-1

9

May-1

9

TEV/EBITDA - Median TEV/EBITDA - Average10.8x

1.5x

0x

2x

4x

6x

8x

10x

12x

14x

16x

Aug-1

4

Nov-1

4

Feb-1

5

May-1

5

Aug-1

5

Nov-1

5

Feb-1

6

May-1

6

Aug-1

6

Nov-1

6

Feb-1

7

May-1

7

Aug-1

7

Nov-1

7

Feb-1

8

May-1

8

Aug-1

8

Nov-1

8

Feb-1

9

May-1

9

TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

Page 7: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

7

Operational Metrics

LTM Gross Profit Margin % LTM EBITDA %

- 10% 20% 30%

Median

Navigant Consulting, Inc.

CRA International, Inc.

Huron Consulting Group

Inc.

Capgemini SE

FTI Consulting, Inc.

The Hackett Group, Inc.

Accenture plc

Cognizant Technology

Solutions Corporation

- 10% 20% 30% 40%

Median

Capgemini SE

Navigant Consulting, Inc.

CRA International, Inc.

Accenture plc

Huron Consulting Group

Inc.

FTI Consulting, Inc.

The Hackett Group, Inc.

Cognizant Technology

Solutions Corporation

Page 8: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

8

Operational Metrics

LTM Revenue Growth %LTM Revenue per

Full Time Employee x 000’s

(10%) - 10% 20%

Median

The Hackett Group, Inc.

Capgemini SE

Cognizant Technology

Solutions Corporation

Accenture plc

Navigant Consulting, Inc.

Huron Consulting Group

Inc.

CRA International, Inc.

FTI Consulting, Inc.

$- $200 $400 $600 $800

Median

Cognizant Technology

Solutions Corporation

Capgemini SE

Accenture plc

Navigant Consulting, Inc.

The Hackett Group, Inc.

Huron Consulting Group

Inc.

FTI Consulting, Inc.

CRA International, Inc.

Page 9: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

9

Operational Metrics

Accounts Receivable TurnoverAverage Days

Sales Outstanding

0x 2x 4x 6x 8x 10x

Median

Navigant Consulting, Inc.

CRA International, Inc.

FTI Consulting, Inc.

Capgemini SE

Huron Consulting Group

Inc.

Cognizant Technology

Solutions Corporation

The Hackett Group, Inc.

Accenture plc

0 30 60 90 120 150

Median

Accenture plc

The Hackett Group,

Inc.

Cognizant

Technology

Solutions…

Huron Consulting

Group Inc.

Capgemini SE

FTI Consulting, Inc.

CRA International,

Inc.

Navigant

Consulting, Inc.

Page 10: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

10

Valuation

TEV / LTM Revenue TEV / LTM EBITDA

0x 1x 2x 3x

Median

CRA International,

Inc.

Navigant

Consulting, Inc.

Capgemini SE

FTI Consulting, Inc.

Huron Consulting

Group Inc.

The Hackett Group,

Inc.

Cognizant

Technology

Solutions…

Accenture plc

0x 4x 8x 12x 16x 20x

Median

Cognizant

Technology

Solutions…

Capgemini SE

CRA International,

Inc.

FTI Consulting, Inc.

The Hackett Group,

Inc.

Navigant

Consulting, Inc.

Huron Consulting

Group Inc.

Accenture plc

Page 11: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

11

Valuation

TEV / LTM EBIT Price / LTM Earnings

0x 10x 20x 30x

Median

Cognizant

Technology

Solutions…

Capgemini SE

FTI Consulting, Inc.

The Hackett Group,

Inc.

CRA International,

Inc.

Accenture plc

Navigant

Consulting, Inc.

Huron Consulting

Group Inc.

0x 20x 40x 60x

Median

CRA International, Inc.

Cognizant Technology

Solutions Corporation

FTI Consulting, Inc.

The Hackett Group, Inc.

Capgemini SE

Accenture plc

Navigant Consulting, Inc.

Huron Consulting Group

Inc.

Page 12: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

12

Valuation

Historical Valuation Multiples versus Gross Profit

Historical Valuation Multiples versus Revenue Growth Rate

10x 11x 11x 12x 12x 14x 15x 16x

38.7%

27.1%

30.6%

34.8%

38.0%

28.7%

34.7%

31.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0x

2x

4x

6x

8x

10x

12x

14x

16x

18x

LTM

GP%

EBIT

DA(x

)

EBITDA(x) LTM GP%

10x 11x 11x 12x 12x 14x 15x 16x

7.6%

5.4%

11.2%

12.0%

(1.8%)

8.5% 9.3%

8.0%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

0x

2x

4x

6x

8x

10x

12x

14x

16x

18x

LTM

RG

R%

EBIT

DA(x

)

EBITDA(x) LTM RGR%

Page 13: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

13

Recent Transactions

Date Target Buyer / Investor

Total Transaction

Value Target

Revenue TEV /

Revenue TEV /

EBITDA

2May19 McBee Associates, Inc. Netsmart Technologies, Inc. - - - -

28Feb19 Ohridska banka AD Steiermärkische Bank und Sparkassen AG - 25.53 - -

28Feb19 Ohridska banka AD Steiermärkische Bank und Sparkassen AG - 25.53 - -

31Jan19 Joint Stock Company Bank CenterCredit - 20.53 112.62 - -

15Jan19 A.M.&C. Finance SA Banque Cramer & Cie SA; Norinvest Holding SA - - - -

29Nov18 Hana Financial Investment Co., Ltd. Hana Financial Group Inc. 443.81 2,871.7 - -

22Oct18 Cambridge Consulting Group, LLC NFP Corp. - - - -

6Nov18 Gold Finance Sp z. o o Metrohouse Franchise S.A. 0.93 - - -

10Oct18 Accordion Partners LLC FFL Partners, LLC - - - -

2Oct18 A Youngson (Turriff) Limited Bruce Stevenson Ltd - - - -

26Sep18 DoBe Group - - - - -

25Sep18 21.Finance AG Bank Frick & Co. AG, Asset Management Arm - - - -

31Aug18 Donriver, Inc. Ciena Corporation 71.78 - - -

24Jul18 ZYXR.com Zhejiang Zheshang Chanrong Holdings Co., Ltd. - - - -

24Jul18 Global Index Group, Inc. - - - - -

13Jul18 GFIT Inc. SOLXYZ Co., Ltd. - - - -

12Jun18 Finergy Solutions Pty Ltd/Avantek Pty Ltd Arthur J. Gallagher & Co. - - - -

3May18 Medius Consulting Limited Elixirr Partners LLP - - - -

17Apr18 Visual Risk Pty. Ltd. G Treasury SS, LLC - - - -

28Mar18 Da Nang Securities Company - - - - -

23Mar18 Hana Financial Investment Co., Ltd. Hana Financial Group Inc. 649.07 2,863.49 - -

22Mar18 Thomson Financial Management, Inc. Bloomfield Hills Financial, Inc. - - - -

10Jan18 Screen Group B.V. TRGRP, Inc. - - - -

29Dec17 Hengtai Securities Co., Ltd CITIC Guoan Group Co., Ltd. 1,386.24 486.05 - -

28Dec17 Ohridska banka AD Société Générale Société anonyme 8.71 - - -

Page 14: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

14

APPENDIX:

Public Basket

Constituents

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Consulting - FinServicesMay 2019

Page 15: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

15

Public Basket

CRA International, Inc.

CRA International, Inc., a consulting company, provides

economic, financial, and management consulting services in the

United States, the United Kingdom, and internationally. The

company advises clients on economic and financial matters

pertaining to litigation and regulatory proceedings; and guides

corporations through critical business strategy and performance-

related issues. The company’s consulting services include

research and analysis, expert testimony, and support in litigation

and regulatory proceedings in the areas of finance, accounting,

economics, insurance, and forensic accounting and

investigations to corporate clients and attorneys. In addition, its

management consulting services comprise strategy

development, performance enhancement, corporate strategy and

portfolio analysis, estimation of market demand, new product

pricing strategies, valuation of intellectual property and other

assets, assessment of competitors' actions, and analysis of new

sources of supply. It serves various industries, including

agriculture; banking and capital markets; chemicals;

communications and media; consumer products; energy;

entertainment; financial services; health care; insurance; life

sciences; manufacturing; metals, mining, and materials; oil and

gas; real estate; retail; sports; telecommunications;

transportation; and technology. CRA International, Inc. was

founded in 1965 and is headquartered in Boston, Massachusetts.

0.0x

0.3x

0.6x

0.9x

1.2x

1.5x

Revenue Multiples - CRA International, Inc.

TEV/Revenue Average

0x

5x

10x

15x

20x

EBITDA Multiples - CRA International, Inc.

TEV/EBITDA Average

0x

20x

40x

60x

80x

P/E Multiples - CRA International, Inc.

P/E Average

Page 16: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

16

Public Basket

The Hackett Group, Inc.

The Hackett Group, Inc. operates as a strategic advisory and

technology consulting firm primarily in North America and

European countries. Its executive advisory programs include

best practice intelligence center, an online searchable repository

of best practices, performance metrics, conference

presentations, and associated research; best practice

accelerators that provide Web based access to best practices,

customized software configuration tools, and best practice

process flows; advisor inquiry, an inquiry service used by clients

for access to fact-based advice on proven approaches and

methods; best practice research, a research that provides

insights into the proven approaches; and peer interaction

comprising member-led Webcasts, annual best practice

conferences, annual member forums, membership performance

surveys, and client-submitted content. The company’s

benchmarking services conduct studies in the areas of selling,

general and administrative, finance, human resources,

information technology, procurement, enterprise performance

management, shared service centers, and working capital

management. The company was founded in 1991 and is

headquartered in Miami, Florida.

0x

1x

2x

3x

Revenue Multiples - The Hackett Group, Inc.

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - The Hackett Group, Inc.

TEV/EBITDA Average

0x

10x

20x

30x

40x

50xP/E Multiples - The Hackett Group, Inc.

P/E Average

Page 17: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

17

Public Basket

Navigant Consulting, Inc.

Navigant Consulting, Inc. provides professional services to

corporate executives and senior management, corporate

counsel, law firms, corporate boards, special committees, and

governmental agencies worldwide. It operates through four

segments: Healthcare; Energy; Financial Services Advisory and

Compliance; and Disputes, Forensics and Legal Technology.

The Healthcare segment offers consulting and business process

management services to healthcare providers, payers, and life

sciences companies. This segment helps clients respond to

market legislative changes, such as the shift to an outcome and

value-based reimbursements model, ongoing industry

consolidation and reorganization, Medicaid expansion, the

implementation of a new electronic health records system, and

product planning and commercialization expertise. Navigant

Consulting, Inc. was founded in 1983 and is headquartered in

Chicago, Illinois.

Date Key Development Headline2/26/19 Navigant To Seek Acquisitions

8/23/18 Ankura Consulting Group, LLC completed the acquisition of

Thoreau Holdco, LLC and Navigant Consulting (Europe) Ltd. from

Navigant Consulting, Inc. (NYSE:NCI).

6/25/18 Navigant Consulting Seeks Acquisitions

6/24/18 Ankura Consulting Group, LLC entered into a definitive

agreement to acquire Thoreau Holdco, LLC and Navigant

Consulting (Europe) Ltd. from Navigant Consulting, Inc.

(NYSE:NCI) for $470 million.

0x

1x

2x

3xRevenue Multiples - Navigant Consulting,

Inc.

TEV/Revenue Average

0x

3x

6x

9x

12x

15xEBITDA Multiples - Navigant Consulting, Inc.

TEV/EBITDA Average

0x

10x

20x

30x

P/E Multiples - Navigant Consulting, Inc.

P/E Average

Page 18: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

18

Public Basket

Huron Consulting Group Inc.

Huron Consulting Group Inc., a professional services firm,

provides advisory, technology, and analytic solutions in the

United States and internationally. Its Healthcare segment

provides advisory services in the areas of strategy, care

transformation, financial and operational performance,

technology and analytics, and leadership development to

national and regional hospitals, integrated health systems,

academic medical centers, community hospitals, and medical

groups. The company’s Education segment offers management

consulting and technology solutions related to business and

technology strategy, financial management, operational and

organizational effectiveness, research administration, and

regulatory compliance for higher education institutions and

academic medical centers. Huron Consulting Group Inc. was

founded in 2002 and is headquartered in Chicago, Illinois.

0x

1x

2x

3x

4xRevenue Multiples - Huron Consulting Group

Inc.

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Huron Consulting Group

Inc.

TEV/EBITDA Average

0x

20x

40x

60x

80x

100x P/E Multiples - Huron Consulting Group Inc.

P/E Average

Page 19: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

19

Public Basket

FTI Consulting, Inc.

FTI Consulting, Inc. provides business advisory services to

manage change, mitigate risk, and resolve disputes worldwide.

The company’s Corporate Finance & Restructuring segment

provides turnaround and restructuring, business transformation,

interim management, valuation and financial advisory,

transaction, dispute advisory, and tax services, as well as

mergers and acquisitions (M&A), and M&A integration services.

Its Forensic and Litigation Consulting segment offers anti-

corruption investigations and compliance, and data and

analytics, as well as compliance, monitoring, and receivership

services; cybersecurity, forensic accounting and advisory, and

global risk and investigations practice; and construction

solutions, dispute advisory, intellectual property, trial, business

insurance claims, and health solutions. The company’s

Economic Consulting segment provides financial, economic, and

econometric consulting services; business and expert valuation,

and expert testimony services. FTI Consulting, Inc. was founded

in 1982 and is headquartered in Washington, District of

Columbia.

Date Key Development Headline11/30/18 FTI Consulting May Seek Acquisitions

9/9/18 Nuix Pty. Ltd. acquired Ringtail Solutions, Inc. from FTI

Consulting, Inc. (NYSE:FCN) for $55 million.

5/18/18 Rex Energy Initiates Sale Process

3/5/18 FTI Consulting May Look At Potential Acquisitions

0.0x

0.5x

1.0x

1.5x

2.0xRevenue Multiples - FTI Consulting, Inc.

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - FTI Consulting, Inc.

TEV/EBITDA Average

0x

15x

30x

45x

60xP/E Multiples - FTI Consulting, Inc.

P/E Average

Page 20: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

20

Public Basket

Capgemini SE

Capgemini SE provides consulting, technology, and digital

transformation services. It addresses clients’ opportunities in the

world of cloud, digital, and platforms, as well as enables

organizations to realize business ambitions through an array of

services from strategy to operations. The company’s Consulting

Services segment offers strategy and transformation consulting

services primarily in digital transformation that enhance the

performance of organizations based on intimate client

relationships, and the knowledge of client industries and

processes. Its Technology & Engineering Services segment

provides assistance and support to internal IT teams of client

companies. Capgemini SE was founded in 1967 and is based in

Paris, France.

Date Key Development Headline2/20/19 Capgemini SE (ENXTPA:CAP) completed the acquisition of

Leidos Cyber, Inc. from Leidos Intermediate Holdings, Inc. and

others.

2/14/19 Capgemini To Seek Acquisitions

6/21/18 Capgemini Seeks Acquisitions in India

6/6/18 Capgemini SE (ENXTPA:CAP) entered into an agreement to

acquire Leidos Cyber, Inc. from Leidos Intermediate Holdings,

Inc. and others.

6/4/18 SAP SE to Team with Accenture, Capgemini and Deloitte to

Accelerate Customer Adoption of SAP S/4Hana(R) Cloud in

Target Industries

0.0x

0.5x

1.0x

1.5x

2.0xRevenue Multiples - Capgemini SE

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Capgemini SE

TEV/EBITDA Average

0x

10x

20x

30xP/E Multiples - Capgemini SE

P/E Average

Page 21: Sectorwatch: Consulting - FinServices · 4 Dashboard Operating Metrics Valuation Revenue Growth Momentum 3.8% 1 - year revenue growth compared to revenue growth average for last 3

21

Public Basket

Cognizant Technology Solutions Corporation

Cognizant Technology Solutions Corporation, a professional

services company, provides consulting and technology, and

outsourcing services worldwide. The company operates through

four segments: Financial Services; Healthcare; Products and

Resources; and Communications, Media and Technology. It

offers business, process, operations, and technology consulting

services; application design and development, and systems

integration services; application testing, consulting, and

engineering services; and enterprise information management

services. The company was founded in 1994 and is

headquartered in Teaneck, New Jersey.

Date Key Development Headline5/7/19 AVEVA and Cognizant Expand R&D Partnership to Build Next-

Gen Industrial Software

5/2/19 Cognizant Technology Solutions Intends To Seek Acquisitions

3/31/19 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH)

completed the acquisition of Oy Samlink AB from Posti Group

Oyj, Aktia Bank p.l.c. (HLSE:AKTIA), Oma Säästöpankki Oyj

(HLSE:OMASP), Savings Bank Group, Svenska Handelsbanken

AB (publ), Asset Management Arm, POP Pankkiliitto osk and

other minority shareholders.

3/4/19 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH)

acquired Meritsoft from Synova Capital Fund II managed by

Synova Capital LLP, 22C Capital and others.

0x

2x

4x

6xRevenue Multiples - Cognizant Technology

Solutions Corporation

TEV/Revenue Average

0x

10x

20x

30xEBITDA Multiples - Cognizant Technology

Solutions Corporation

TEV/EBITDA Average

0x

10x

20x

30x

40x

50xP/E Multiples - Cognizant Technology

Solutions Corporation

P/E Average

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22

Public Basket

Accenture plc

Accenture plc provides consulting, technology, and outsourcing

services in Ireland and internationally. Its Communications,

Media & Technology segment provides professional services

that help clients accelerate and deliver digital transformation,

develop industry-specific solutions to seize new opportunities,

and enhance efficiencies and business results for

communications, media, high tech, software, and platform

companies. The company’s Financial Services segment offers

services that address profitability pressures, industry

consolidation, regulatory changes, and the need to continually

adapt to new digital technologies for banking, capital markets,

and insurance industries. Accenture plc was founded in 1989

and is based in Dublin, Ireland.

Date Key Development Headline5/6/19 Accenture plc and SAP SE to Co-Develop and Co-Innovate New

Industry Solutions on SAP® C/4HANA Suite

4/30/19 Accenture plc (NYSE:ACN) completed the acquisition of

Enterprise System Partners Limited.

4/29/19 Accenture plc (NYSE:ACN) entered into an agreement to acquire

Zielpuls GmbH.

4/10/19 Pitney Bowes Inc. and Accenture Team to Help Clients Take

Advantage of Intelligent, Data-Driven Solutions

3/28/19 Accenture plc (NYSE:ACN) agreed to acquire selected assets

from Caltec Scube Co., Ltd.

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CONTACT INFO7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and

private capital transactions and provide market assessments and benchmarking. As a close-knit team with a long history together and a laser

focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets.

Securities offered through 7M Securities LLC.

Leroy Davis, Partner 704.899.5962 [email protected]

Tripp Davis, Partner 704.899.5762 [email protected]

Andy Johnston, Partner 704.899.5961 [email protected]

Ben Lunka, Managing Director 704.496.2995 [email protected]

Jeff Stoecklein, Managing Director 312.796.9330 [email protected]

Mark Landry, Managing Director 561.972.0609 [email protected]

Kristina Sergueeva, Director 704.899.5149 [email protected]

Neil Churman, Director 281.742.9340 [email protected]

John Cooper, Director 704.973.3996 [email protected]

Tim Frye, Director 704.973.3994 [email protected]

Nicholas Prendergast, Financial Analyst 704.973.3995 [email protected]

Ariail Siggins, Marketing Director 704.981.2908 [email protected]

Sydney Larese, Associate 704.973.3998 [email protected]

Marty Johnson, Associate 704.973.3999 [email protected]

Rory Julyan, Associate 704.981.2520 [email protected]

Garth Martin, Associate 704.973.3997 [email protected]

Dennis Fox, Associate 704.706.9168 [email protected]

Steve Buffington, Associate 704.960.1828 [email protected]

Brynne Miller, Associate 704.960.1701 [email protected]

Emily Halstenberg, Marketing / Sales Coordinator 704.409.9912 [email protected]