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QUARTERLY UPDATE • Q3 2016
INSIDE THIS ISSUE: The First Word: Will the Election Affect Company Owners’ Perspective on M&A?
By now, I’m sure that you are tired of following the ebb and flow of this Presidential election. Iknow I am! I get asked all the time by company owners how the outcome of the election mayimpact their decision-making regarding selling their businesses. While this is a loadedquestion with lots of possible answers, I am going to offer an overly simplistic view byaddressing these three questions:
1) How will this election impact the US economic cycle?2) How will this election impact tax rates for company owners selling businesses?3) What would the timing of such tax changes be?
The overall economic cycle is clearly a driver of business performance and also buyerdemand/pricing. Both factors have been in favor of sellers since 2011 and, as a result, we haveseen a steady increase in middle market M&A volume and valuations. Middle market M&Avolume and pricing has steadied out in 2016 but continues to be very attractive for owners.Regardless of who wins the election we do not see this outlook changing substantially in 2017,although we have less clarity into 2018 and beyond. This cycle, depending on who you ask,has been going for 6-7 years already and thus the traditional view is that a down-cycle is likelyin the next 12-36 months.
In terms of possible tax changes, the answers may be quite different depending on who winsthe election and who controls Congress. A Clinton presidency with a Democrat-controlledCongress will almost certainly result in increases to ordinary and capital gains tax rates.Clinton has proposed implementing a tiered long-term capital gains tax structure with a toprate of 43.4%, nearly double the existing rate of 23.8%. While increased ordinary incometaxes and estate taxes are very important, the capital gains rate is the key issue affecting howowners are taxed in a sale. So, if Clinton’s tax proposal is passed by Congress it wouldcertainly mean higher, and possibly much higher, tax rates on owners selling. Trump proposesto keep capital gains tax rates the same and possibly lower corporate tax rates.
Lastly, if Clinton wins and her tax package gets adopted resulting in substantially highercapital gains taxes when would that go into effect? The “smart” money would say the earliestthat such a measure would be adopted would be 2018, but it is possible that legislation couldpass in 2017.
So, what does this all mean for company owners? It appears that 2017, regardless of theoutcome of this election, will be a positive environment for company owners to sell theirbusinesses. Based on what we know today, 2018 and forward is a riskier proposition based oncycle timing and possible adverse tax changes. Therefore, if you are operating a cyclicalbusiness and do not want to go through another down-cycle, you may consider planning for atransaction now to maximize the outcome.
At CHILDS, we had an excellent Q3 and are working hard to get several transactions closed byyear-end. We are honored to have been selected as a finalist for 2016 Boutique InvestmentBank of the Year by The M&A Advisor. We are also excited to announce that CHILDSConnect,our annual conference, is to be held May 16, 2017 at the St. Regis in Atlanta. Please save thedate and visit our conference website at www.childsadvisorypartners.com/childsconnect.
I hope each of you has a prosperous end to 2016!
Jim Childs
The First Word 1
Market Update 2
Recent CHILDS Transactions 3
Sector Updates 4
About CHILDS 10
CHILDS NEWS AND EVENTS
10/25/16 – 10/28/16CHILDS attends ISSA/Interclean conference in Chicago & ASA Staffing World conference in San Diego
10/13/16 – 10/14/16CHILDS attends Staffing Industry Executive Forum conference in London
10/4/16 – 10/7/16CHILDS attends HR Tech conference in Chicago & dreamforce conference in San Francisco
9/30/16CHILDS advises Falcon Consulting in its sale to Avaap (New MainStream Capital)
9/26/16 – 9/30/16CHILDS attends Cold Chain Global Forum conference in Boston
9/18/16 – 9/22/16CHILDS attends Oracle OpenWorld in San Francisco & Collaboration in the Gig Economy in Las Vegas
9/15/16CHILDS advises Collaborative Solutions in its sale to WestView Capital Partners
9/12/16 – 9/15/16CHILDS attends ASIS International conference in Orlando
8/15/16CHILDS advises Datavail in its acquisition of Art of BI Software
8/1/16CHILDS advises 24 Seven in its recapitalization by Morgan Stanley Private Equity
CHILDS ADVISORY PARTNERS
3438 PEACHTREE ROAD NEPHIPPS TOWER, SUITE 1400ATLANTA, GA 30326PHONE: 404.751.3000WWW.CHILDSADVISORYPARTNERS.COM
2
LOWER MIDDLE MARKET M&A UPDATE
CHILDS Quarterly Update: Q3 2016
LOWER MIDDLE MARKET U.S. PRIVATE EQUITY DEAL FLOW
Sources: Capital IQ, Dealogic, Pitchbook*Denotes deal flow through Q3 2016
1,340 1,408 1,446 1,716
1,852
1,146
720 876 745
920 906
604
723
839848
1049 928
542
2,783
3,123 3,039
3,685 3,686
2,292
(200)
300
800
1,300
1,800
2,300
2,800
3,300
3,800
2011 2012 2013 2014 2015 2016*
Nu
mb
er o
f T
ran
sact
ion
s
Under $25M $25M - $100M $100M - $500M
924 987 980
761 853
942 885 848
651 550
439 482 470
773
560 593 704 749
827 714 732
598
175
215 204
166
156
198
154 210
158
148
201 200 190
225
226 218
159
198
243
222 181
208
1,147
1,238 1,218
961
1,039
1,185
1,075 1,116
843
735 690
729 696
1,047
841 854
898
990
1,124
986 949
839
-
200
400
600
800
1,000
1,200
1,400
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2012 2013 2014 2015 2016
Nu
mb
er o
f T
ran
sact
ion
s
<$100M $100M - $499M
3
RECENT CHILDS TRANSACTIONS
CHILDS Quarterly Update: Q3 2016
Note: CHILDS represented company listed on top half of tombstone
July 2015
has been acquired by
July 2015
has been acquired by
May 2015
has been recapitalized by
May 2015
has acquired
August 2015
has been acquired by
September 2015
has been recapitalized by
Highlands Ventures Holdings, LLC
August 2015
has been recapitalized by
September 2015
has been acquired by
September 2015
has been acquired by
September 2015
has been acquired by
October 2015
has been acquired by
October 2015
has been acquired by
October 2015
has acquired
October 2015
has acquired
November 2015
has been acquired by
December 2015
has been recapitalized by
December 2015
has been acquired by
December 2015
has been acquired by
December 2015
has been acquired by
A Portfolio Company of MidOcean Partners
January 2016
has acquired
February 2016
has been acquired by
March 2016
has been recapitalized by
A Portfolio Company of Snow Phipps
March 2016
has been recapitalized by
April 2016
has been recapitalized by
March 2015
has been recapitalized by
July 2016
has been recapitalized
September 2016
has been acquired by
September 2016
has been recapitalized by
August 2016
has acquired
August 2016
has been recapitalized by
A portfolio company of New MainStream Capital
Global Private Equity
4
PUBLIC COMPANY ANALYSIS
Last Twelve Months Indexed Stock Price Performance
INDUSTRIAL SERVICES SECTOR UPDATE
CHILDS Quarterly Update: 3Q 2016
In this update, we focus on the facility services sector where publiccompanies and private equity firms are investing heavily and atpremium valuations. Driven by customers’ focus on cost savings andvendor consolidation, facility services providers are actively seeking tobroaden their service offerings and capture more wallet share throughacquisitions. The highly fragmented competitive landscape provides avast number of tuck-in and platform targets, and is spurringconsolidation among facility services providers.
The ~$13 billion fire and life safety (“FLS”) services subsector is aprime example of the broader trends in facility services. FLS is a highlyfragmented market growing at 5%+ annually with recent M&A activityfrom strategic and private equity investors attracted to the mission-critical outsourced service provider model. The recent investments inthe space have been focused on assets with comprehensive serviceofferings that generate strong recurring revenue streams and have anattractive footprint in high-growth areas. Trends in the FLS industryinclude:
Heightened regulatory mandates: Increased federal and stateregulation pertaining to building and fire codes is driving demandfor FLS services. Commercial and institutional buildings arerequired to undergo fire and safety inspection at least once a year,creating a recurring service requirement. The heightened andcomplex regulatory environment has led to an increase in riskmanagement outsourcing whereby companies try to reduce theirliability exposure and remain compliant to strict safety codestandards.
Buoyed construction spending: A positive economic backdropbolstered by declining unemployment and rising wages has led to arebound in U.S. non-residential construction spending. Commercialconstruction has recovered significantly following a sharp declineduring the “Great Recession” and is projected to reach $273 billionin 2018, growing more than 60% since 2010. The increasedspending related to both new construction and improvements isdriving demand for the installation and maintenance of fire and lifesafety protection systems.
Increased technological utilization: Companies providing fireand life safety services are utilizing more technology therebyenhancing protection capabilities, driving installation efficiencies,and reducing costs. New fire protection and safety solutions enablebuilding owners to be more abreast of fire and safety codes andmaintain compliance.
These trends will continue to drive demand for FLS services. Weexpect to see robust M&A activity as providers attempt to bolsterservice capabilities and consolidate the fragmented landscape.
Valuation Multiples
Note: Public company data as of October 14, 2016
Date Closed Buyer Target Target Description
8/31/16 Equistone Partners Europe Roth Group Offers fire protection and insulation services
6/10/16 Carousel Capital Partners Pye Barker Fire & Safety Engages in the sale and servicing of fire protection products
4/6/16 FirstService Corporation Century Fire Protection Designs, installs, and maintains fire protection systems
4/5/16 JENSEN HUGHES Aon Fire Protection Engineering Provides fire protection engineering services
7.5x8.3x
9.1x
10.9x11.6x
0.0x
3.0x
6.0x
9.0x
12.0x
Industrial /Infrastructure
EnvironmentalServices
Rental /Route-Based
Distribution &Logistics
Facility Services
Forward Year EV/EBITDA
70
80
90
100
110
120
130
Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16
Facility Services Rental / Route-BasedEnvironmental Services Distribution & LogisticsIndustrial / Infrastructure S&P 500 Index
RECENT M&A TRANSACTIONS
5
PUBLIC COMPANY ANALYSIS
HUMAN CAPITAL MANAGEMENT SECTOR UPDATE
CHILDS Quarterly Update: 3Q 2016
The M&A market for HCM companies remained healthy in Q3 albeitbelow recent highs in 2015. In the staffing sector, M&A volumecontinues to be led by professional skill sets. Staffing stocks havecontinued to lag the broader S&P 500 hinting at cycle concerns frominvestors. Most public staffing companies are trading below stockhighs 12 months ago. Additionally, several acquisitions occurred in Q3with non U.S.-based companies investing in to the U.S. market. A trendwe expect to continue as the U.S. economy continues to show safetyand growth versus other countries.
CHILDS has sponsored and attended several industry conferencessince our last quarterly update including Staffing Industry ExecutiveForum Europe, ASA Staffing World, and Collaboration in the GigEconomy. We have heard from many staffing company owners thatsentiment is generally positive for a strong 2017, despite uncertaintyabout the upcoming election. Owners spoke of a “tougher thanexpected” 2016, reporting mixed results. However, they are seeingstrong client demand for their services putting at ease cycle concernsfor the near term.
Another notable topic of discussion has been the evolution of theworkforce ecosystem. Traditional separation of service offerings suchas staffing, compliance, consulting, talent acquisition technology, andprocess outsourcing are becoming more integrated. For example,several of the large global competitors have made acquisitions toexpand across these verticals as they build-out “workforce solutions”offerings. Most notably Randstad has completed the acquisitions ofMonster (job board), Risesmart (outplacement), Twago (onlinestaffing), and Pymetrics (HR services).
This trend is likely to continue as buyers of HR services want flexibilityfrom their service providers on how to engage, how to get the besttalent, and how to streamline operations and efficiency. The rapidimprovements in technology combined with evolving demographictrends and workforce demands, likely mean those companies that aremost adaptable to change will flourish.
Valuation Multiples
Note: Public company data as of October 14, 2016
U.S. HCM M&A Transactions by Quarter
11.2x
13.3x
6.3x
10.6x
9.2x
14.1x
5.7x
10.2x
8.9x
14.6x
6.2x
11.0x
8.3x
14.5x
6.6x
11.5x
–
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
Staffing HR Services Education & Training S&P 500 Index
Q4-2015 Q1-2016 Q2-2016 Q3-2016
Date Closed Buyer Target Target Description
Announced Thomas H. Lee Partners System One Holdings Staffing and technical support services
10/28/16 Randstad North America Monster Worldwide Provides online and mobile employment and recruitment solutions
10/17/16 AHS Staffing BelHealth Investment Partners Provides healthcare staffing services
8/1/16 Morgan Stanley Private Equity 24 Seven Provides creative staffing services
7/28/16 ANOTECH ENERGY France Clover Global Solutions Provides staffing and recruitment services to the oil & gas industry
RECENT M&A TRANSACTIONS
0
50
100
150
200
250
300
350
400
450
500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2014 2015 2016
60
70
80
90
100
110
120
Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16Staffing HR Services Index Education & Training S&P 500 Index
Last Twelve Months Indexed Stock Price Performance
6
PUBLIC COMPANY ANALYSIS
Date Closed Buyer Target Target Description
Announced EQT Partners Press Ganey Provider of patient satisfaction surveys and performance analytics
9/30/16 WellMed Medical Management USMD HoldingsIntegrated health system including hospitals, cancer centers, andprimary and specialty clinics
8/02/16 Sharecare Healthways SCProvider of chronic care and population health managementsolutions
7/27/16 Leonard Green & Partners ExamWorksProvider of independent medical examinations, peer reviews, andMedicare compliance services
7/05/16 MedData Cardon OutreachProvider of revenue cycle management services and solutions tohealthcare facilities
HEALTHCARE SERVICES SECTOR UPDATE
CHILDS Quarterly Update: Q3 2016
Valuation Multiples
Last Twelve Months Indexed Stock Price Performance
Healthcare services merger and acquisition activity showed notableweakness in terms of deal volume compared to both the record-breaking 3rd quarter of 2015 and the robust 2nd quarter of 2016. Totaldeal value for the period did, however, rise considerably - albeitskewed by both EQT Partners’ $2.4 billion acquisition of Press Ganeyand Leonard Green’s $2.0 billion acquisition of ExamWorks, bothpublic-to-private deals.
The well documented “just around the corner” shift to a value-basedcare model in the United States continues to dominate conferencechatter, strategic deal-making, and investor focus. The three majorelements of this new paradigm include:
Scale: From large acute care hospitals to physician practicemanagement companies to specialty clinics - where nicheexcellence could once provide comfortable growth andprofitability, scale is rapidly becoming the sine qua non ofcompetitive survival. The ability to leverage costs, navigateevolving regulatory complexities, and even reach the negotiatingtable with payors will prove all but impossible for smaller players.
Care Coordination: Size does matter, but providers must be ableto exert control over patient care/protocol across disparatelocations and caregivers or scale is all for naught. The ability toadequately direct and document the full care continuum istherefore critical, and thus both technology and service modelstargeting this element are increasingly receiving investor attention.
Data Analytics: Similar to scale-without care coordination,capturing the data in and of itself does not move the needle in avalue-based world. Providers must ultimately be able to extract,measure, and benchmark all the data produced, not just to cut costsor improve the quality of care, but to demonstrate the true valueprovided in payor negotiations. Technology and service models inthis arena still have significant runway space.
Accordingly, these three themes should drive investment andacquisition activity in the coming year.
7.7x
10.5x 10.7x 10.8x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
Hospitals Outsourced Services Alternate SiteProviders
Home Healthcare
Forward Year EV/EBITDA
60
70
80
90
100
110
120
Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16
Outsourced Services HospitalsAlternate Site Providers S&P 500 IndexHome Healthcare
Note: Public company data as of October 14, 2016
RECENT M&A TRANSACTIONS
7
PUBLIC COMPANY ANALYSIS
0
10
20
30
40
50
60
70
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2014 2015 2016
60
70
80
90
100
110
120
130
140
Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16
Medical Records Administrative Revenue Mgmt. S&P 500 Index
Last Twelve Months Indexed Stock Price Performance
HEALTHCARE TECHNOLOGY SECTOR UPDATE
CHILDS Quarterly Update: 3Q 2016
M&A volume in Q3 for healthcare technology companies in the U.S.suffered from a similar volume decline as the overall market in theface of new economic and political uncertainties.
Public healthcare technology companies continued their steadyperformance, especially in the administrative sector whichoutperformed S&P 500 and achieved premium valuations at 16.9x2017 EBITDA.
Several notable M&A transactions occurred in Q3 including acombination of strategic and financial buyers (see below).
We continue to see a strong outlook for M&A activity and aninvestment focus in the space, especially for solutions which helpmedical professionals manage core areas such as:
Quality of Care / Care Coordination
Efficient use of Patient Data
Coding, Billing, and Finance
Patient Engagement
Clinical Data Capture
Valuation Multiples
Note: Public company data as of October 14, 2016
U.S. Healthcare Tech M&A Transactions by Quarter
15.8x16.9x
12.7x
0.0x
3.0x
6.0x
9.0x
12.0x
15.0x
18.0x
Medical Records Administrative Revenue Mgmt.
Forward Year EV/EBITDA
Date Closed Buyer Target Target Description
Announced Atos SE Anthelio Healthcare SolutionsProvides healthcare technology solutions to hospitals, physicianpractice groups, and other healthcare providers. Transaction valueof $275 million.
9/16/16 Thoma Bravo ImprivataProvides information technology security and identity solutions tothe healthcare industry globally. Transaction value of $544 million.
8/15/16 MediSolution ArtemisDevelops, markets, and implements electronic health records andmobile patient engagement solutions for physician practices
7/26/16Huron Consulting Group
(NasdaqGS: HURN)Healthcare Services Management
Offers healthcare information technology and project managementconsulting services to healthcare areas
7/20/16 Koninklijke Philips WellcentiveProvides cloud-based population health management and dataanalytics solutions for physicians and their organizations
RECENT M&A TRANSACTIONS
8
PUBLIC COMPANY ANALYSIS
Last Twelve Months Indexed Stock Price Performance
IT & PROFESSIONAL SERVICES SECTOR UPDATE
CHILDS Quarterly Update: Q3 2016
The IT & professional services sector continues to see healthy M&Aactivity, with 222 M&A transactions either announced or closed in thequarter. This number is slightly down quarter over quarter and yearover year, but still shows a nice pace of activity. Despite the slight slowdown in volume, valuations continue to climb, with PitchBook notingthat average EV/EBITDA multiples are at the highest level since 2010.Private equity firms remain acquisitive in several key areas of thesector, as do strategic buyers.
Buyer interest in cloud technology and cloud services continues todrive IT & professional services M&A activity at all size spectrums ofthe market. This quarter, we are going to highlight some of the trendsand deal activity we are seeing in this space.
One of the main drivers of interest in the space is the increasedconfidence that consumers and organizations have in utilizing cloudtechnology for production applications. Improved affordability andfunctionality is also helping activity. Analysts estimate that the Hostingand infrastructure-as-a-service market will grow from $60 billion in2015 to $70 billion by the end of 2016, and double by 2019 to over$140 billion. Demand for this service model is driving M&A activity forboth the cloud technology providers and the service providers in theecosystem.
On the larger end of the market, we saw enterprise technology firmsmake moves to help their positioning in the cloud space. HewlettPackard Enterprise spun off and merged its non-core software assetswith Micro Focus, enabling HPE to focus on its IT infrastructure andcloud strategy, with additional capital. Additionally, Oracle paidapproximately $9.1 billion to acquire the cloud-computing firm,NetSuite.
In the middle market, we saw activity focused on services businesses,with several key players trading, as highlighted below:
Recent Cloud Services M&A Transactions
WestView invests in Collaborative Solutions (Workday partner)
Accenture announces DayNine acquisition (Workday partner)
Liquid Web announces Rackspace Cloud Sites acquisition
CompuCom Systems announces Extensys acquisition
Valuation Multiples
70
80
90
100
110
120
130
140
Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16
Consulting Services Managed Services/HostingFederal IT Services Systems Integrators / VARsS&P 500 Index
7.5x
9.5x 9.4x 9.5x
10.8x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
SystemsIntegrators/VARs
Federal IT Services BPO ConsultingServices
ManagedServices/Hosting
Forward Year EV/EBITDA
Note: Public company data as of October 14, 2016
Date Closed Buyer Target Target Description
Announced Tech Data CorpAvnet, Inc. (Technology SolutionsBusiness)
Data center and business solutions
Announced Accenture Kurt Salmon U.S. Management consulting services in the U.S. and internationally
10/4/16 Avaap (New MainStream Capital) Falcon Consulting GroupProvides management and technical consulting services to largehealthcare providers, with a focus on Epic software
9/22/16 WestView Capital Partners Collaborative SolutionsLeading full‐service finance and HR consulting firm focused ondeploying cloud‐based solutions, with a focus on Workday
8/16/16 Leidos HoldingsLockheed Martin InformationSystems & Global Solutions
Lockheed’s government IT services business
8/9/16 The Blackstone Group Mphasis LimitedProvides application development and maintenance, infrastructureoutsourcing, and business and knowledge process outsourcing
7/25/16 Datavail Corporation Art of BI SoftwareEnterprise software development and systems integrationtechnology
RECENT M&A TRANSACTIONS
9
Date Closed Buyer Target Target Description
Announced Oracle Netsuite Omni-channel commerce software
Announced Micro Focus HP’s Enterprise Software Business Assets including app delivery management, data, and security
Announced Alphabet (Google) Apigee Software platform enabling API digital strategies
Announced Genesys Interactive Intelligence Cloud software for call centers
Announced KKR Calabrio Contact center workforce optimization software solutions
Announced Randstad North America Monster Worldwide Online and mobile employment and recruitment solutions
9/1/16 KKR Epicor Industry specific enterprise software
Note: Public company data as of October 14, 2016
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
Enterprise Software SaaS HR Tech
Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
0
50
100
150
200
250
300
350
400
450
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2014 2015 2016
SOFTWARE SECTOR UPDATE
CHILDS Quarterly Update: Q3 2016
M&A transaction volume for software companies in Q3 hit a three-year quarterly low with 280 closed deals in the face of new economic(Brexit) and political (U.S. elections) uncertainty. This decrease represented a 20.9% decline from Q2 2016.
Valuations for publicly traded software companies continued their steady rise after the Q1 correction. At the end of Q3, human resourcetechnology and SaaS companies traded at significant market premiums of 7.0x and 7.3x LTM revenue, respectively, with slower growth ERPcompanies at 4.3x.
Our indices for enterprise software and HR tech outperformed the S&P 500 in Q3 while SaaS and marketing tech underperformed. All indicesare still at or near all time highs.
We continue to see strong demand from both strategics and financial sponsors to invest in software companies. In September 2016, CHILDScompleted another HR technology transaction with the successful minority recapitalization of Collaborative Solutions (Workday ecosystem).
has been recapitalized by
September 2016
50
60
70
80
90
100
110
120
130
Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16
Enterprise Software SaaS
HR Technology S&P 500 Index
Sales/Marketing Technology
RECENT M&A TRANSACTIONS
Public Valuation MultiplesU.S. Software M&A Transactions by Quarter
Last Twelve Months Indexed Stock Price Performance CHILDS Deal Case Study: Collaborative Solutions
Collaborative was recapitalized in aminority transaction by WestView
Collaborative is a leading provider of cloud-based SaaS implementation, training, andchange management services
The company primarily serves the Workdayecosystem, as one of its earliest servicespartners; additionally Collaborative is aCornerstone and Tidemark services partner
This transaction helps Collaborative expandits solution offerings, hire additional talentand pursue strategic acquisitions
CHILDS Advisory Partners served as theexclusive financial advisor to Collaborativereceiving multiple indications of interestand letters of intent as part of the process
10
CONTACT INFORMATION
SECTOR FOCUS
OUR SERVICES
ABOUT CHILDS ADVISORY PARTNERS
CHILDS Advisory Partners provides exceptional investment banking services to high‐performing business services, healthcare and technologymiddle market companies. Our unique combination of sector expertise, process excellence, and a deep, experienced team allows us to achievesuccessful outcomes for our clients. Collectively, our senior bankers have executed over 450 transactions. CHILDS is a member of FINRA and SIPCand is a registered broker‐dealer.
Sales and Recapitalizations – CHILDS works with management teams, financial sponsors, and special committees to provide crucial insights into the intricacies and nuances of sale processes
Strategic Acquisitions – Our disciplined methodology coupled with our industry relationships makes CHILDS an ideal buy‐side partner
INDUSTRIAL
SERVICESTECHNOLOGY
HUMAN CAPITAL
MANAGEMENT
IT & PROFESSIONAL
SERVICES
BUSINESS SERVICES
SERVICES SOFTWARE
Jim ChildsCEO
(404) [email protected]
Ross DeDeynManaging Director
Healthcare(404) 751-3018
Tom DonahueManaging Director
Technology(617) 290-5433
Don HolbrookManaging Director
Technology(949) 276-8715
Cooper MillsManaging DirectorBusiness Services(404) 751-3003
Scott RhodesManaging Director
Technology(404) 751-3021
Jason WallaceManaging DirectorBusiness Services(404) 751-3020
Alan BuglerDirector
Business Services(404) 751-3004
Dave PhillipsDirector
Business Services(904) 292-9305
MERGERS & ACQUISITIONS
CAPITAL
RAISES
FINANCIAL & STRATEGIC ADVISORY
Our proprietary knowledge database consists of active debt and equity investors including senior and mezzanine debt and growth equity
CHILDS is continuously in the market assisting its clients to raise capital for a multitude of purposes including organic growth, acquisitions, and one‐time owner dividends
HEALTHCARE TECHNOLOGY
CHILDS can act as a strategic consultant to help leadership teams develop their strategic road map in order to create and enhance shareholder value
We can undertake a detailed analysis of a company’s tangible and intangible valuation drivers as a separate undertaking or as a precursor to an M&A assignment
CHILDS Quarterly Update: Q3 2016