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Forbes m+a business services report q1 2021

  1. 1. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Industry Report – Q1 2021 C O N F I D E N T I A L Business Services
  2. 2. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t ClicktoeditMastertitlestyle B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Contents V Appendix IV The Forbes M+A Group Overview II Sector Spotlight I Business Services Overview 1 III Current M&A Environment
  3. 3. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 2 I. Business Services Overview
  4. 4. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 3 BUSINESS SERVICES OVERVIEW Business ServicesQ1 2021 KeyHighlights  M&A Business Services transactions continue to rebound strongly in Q1 2021 with three straight quarters of growth. YoY transactions are up 16.2% and up 102.6% from Q2 2020 when the pandemic initiated – Technology Services lead the way with 195 M&A transactions closing in Q1 – Education and Training saw the largest increase from Q4 2020 growing at 51.6% to 47 transactions  Private equity sponsored Business Services M&A transactions remained consistent with 2020 and began 2021 with an average EV/EBITDA multiple of 7.0x  Multiples paid by private equity firms for Tech-enabled and Technology Services companies remained elevated above the broader Business Services sector at 8.3x EV/EBITDA  Technology Services stocks continue to climb in aggregate market cap, rising 4.8% YTD through Q1 2021 – Spending on IT Services decreased overall by 3.2% in 2020, but is expected to increase to throughout 2021 to $3.9 trillion, an increase of 6.2%  Public companies within Payment Processing are valued the highest with a 22.4x EV/EBITDA multiple – Stripe, provider of payment processing software, is gearing up to possibly be the largest IPO in history. Stripe is currently valued at $95 billion  Despite a 26.1% decline in aggregate stock prices from January to March 2020, publicly traded Business Services stocks have grown 57.6% since the end of Q1 2020  Publicly traded Business Services companies have an average EV/EBITDA multiple of 14.2x across all verticals AdTech & Advertising Payment Processing Business Process Outsourcing Technology Services Consulting Facility Maintenance Education and Training Human Resources Business Services Verticals Note(s): Publicly traded company vertical groups and additional market data can be found starting on slide 31; Source(s): Gartner, GF Data
  5. 5. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 4 Source(s): CapitalIQ BUSINESS SERVICES OVERVIEW PrivateM&A TransactionsContinue Positive Trend in Q1 2021 99 120 143 195 Q2 Q3 Q4 Q1 2020 2021 2 4 6 7 Q2 Q3 Q4 Q1 2020 2021 28 29 43 47 Q2 Q3 Q4 Q1 2020 2021 7 15 22 10 Q2 Q3 Q4 Q1 2020 2021 13 28 31 47 Q2 Q3 Q4 Q1 2020 2021 58 79 119 116 Q2 Q3 Q4 Q1 2020 2021 17 22 32 35 Q2 Q3 Q4 Q1 2020 2021 49 62 64 96 Q2 Q3 Q4 Q1 2020 2021 Adtech & Advertising Business Process Outsourcing Consulting Total Transactions: 271 Total Transactions: 106 Total Transactions: 372 Payment Processing Technology Services Total Transactions: 19 Total Transactions: 557 Education and Training Facility Maintenance and Services Human Resources and Staffing Total Transactions: 119 Total Transactions: 147 Total Transactions: 54
  6. 6. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Consulting Acquired By EV: NA EV/EBITDA: NA Business Process Outsourcing Acquired By EV: NA EV/EBITDA: NA Adtech & Advertising Acquired By EV: $13.0mm EV/EBITDA: NA Human Resources & Staffing Acquired By EV: NA EV/EBITDA: NA 5 BUSINESS SERVICES OVERVIEW Select Q1 2021 Business ServicesTransactions Education and Training Acquired By EV: $25.0mm EV/EBITDA: NA Technology Services Acquired By EV: $75.0mm EV/EBITDA: NA Payment Processing Acquired By EV: $57.6mm EV/Revenue: 2.8x Facility & Maintenance Acquired By EV: NA EV/EBITDA: NA Note(s): The transactions above were not advised on by Forbes M+A; Source(s): CapitalIQ
  7. 7. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 5.5x 6.1x 5.4x 5.8x 5.9x 6.8x 6.2x 6.6x 7.1x 7.0x 8.0x 8.4x 8.8x 8.2x 7.7x 9.8x 9.2x 9.5x 10.5x 9.2x 2016 2017 2018 2019 2020 / 2021 YTD $10 - $25mm $25 - $50mm $50 - $100mm $100 - $250mm 6 Source(s): GF Data BUSINESS SERVICES OVERVIEW PrivateEquity M&A Transactions 7.0x 2020 / 2021 YTD Average EV/EBITDA Enterprise Value
  8. 8. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 45.9% 33.9% 39.7% 35.7% 9.7% 7.7% 8.6% 32.2% 42.8% 39.6% 40.6% 21.9% 13.5% 13.1% 15.1% $10-$25mm $25-$50mm $50-$100mm $100-$250mm Senior Debt Sub Debt Equity Rollover Equity 3.7x 2.9x 3.1x 3.3x 3.7x 0.8x 0.9x 0.7x 0.5x 0.2x 4.5x 3.8x 3.8x 3.8x 3.9x 2017 2018 2019 2020 2021 YTD Senior Debt / EBITDA Sub Debt / EBITDA 7 Source(s): GF Data BUSINESS SERVICES OVERVIEW PrivateEquity LeverageMultiples and Contributions Business Services Debt Multiples Debt and Equity Contribution
  9. 9. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t $14,217 $4,336 $2,013 $1,743 $4,148 $3,061 $11,578 $5,277 9.5x 14.2x 14.7x 10.4x 15.8x 13.5x 22.4x 14.5x 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 Adtech and Marketing Business Process Outsourcing Consulting Education and Training Facility Maintenance and Services Human Resources and Staffing Payment Processing Technology Services Median EV Median LTM EV / EBIDTA Multiple 8 Source(s): CapitalIQ BUSINESS SERVICES OVERVIEW Public Company EnterpriseValue Snapshot ($ in millions)
  10. 10. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t -27% -14% 0% 14% 27% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 9 Source(s): CapitalIQ BUSINESS SERVICES OVERVIEW Publicly Traded Business ServicesAgainst the S&P 500 (1/2) Adtech & Advertising Payment Processing Business Process Outsourcing Technology S&P 500 The Business Services sector is continuing its strong recovery into 2021 with most sub-sectors outperforming the S&P 500. (Aggregate MoM Market Capitalization Growth Rate by Business Services Segment) +54.0% +65.7% Annual % Change +66.0% +72.9% +56.4%
  11. 11. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t -20% -10% 0% 10% 20% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 10 Source(s): CapitalIQ BUSINESS SERVICES OVERVIEW Publicly Traded Business ServicesAgainst the S&P 500 (2/2) S&P 500 Consulting Facility Maintenance Education and Training Human Resources +58.2% +43.9% +58.8% +60.6% +56.4% Annual % Change (Aggregate MoM Market Capitalization Growth Rate by Business Services Segment)
  12. 12. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 11 II. Sector Spotlight – Technology Services
  13. 13. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 12 Source(s): Forbes, Mansueto Ventures, CompTIA, Gartner SECTOR SPOTLIGHT – TECHNOLOGY SERVICES TechnologyServicesTrends to Watch (1/2) As COVID-19 changed how businesses operate around the world, Technology Services have become even more of a necessity as companies continue trying to navigate the new business environment. -16% -17% -22% -25% -65% -67% -77% 30% 37% 43% 44% 45% 47% 59% Factors Driving Negative Growth Factors Driving Positive Growth Continued COVID-19 Effects Disruption/Competition from New Firms Labor Costs/Skill Availability Trade Turmoil/Tariffs Shrinking Margins/Profitability Customers Postponing Purchases Unexpected Shock Pick-up in Existing Customer Business Positive Government Action Return to Normal Commerce Patterns Improving Sales/Marketing Selling New Business Lines/ Products Improving Internal Operations Successfully Reaching New Customer Segments Collaboration Tools Video Conferencing IT Spending Cybersecurity Datacenter Infrastructure Expansion Collaboration tools are going to continue to be highly present in 2021 and beyond as companies are looking to enable teams to interact, collaborate, and increase communication with remote working. Similar to collaboration tools, videoconferencing will continue to grow in users and importance with remote working and less travel. Users may be looking for more customizable options in 2021. Challenges to operations for companies caused by the pandemic will remain a driver for increased spending on IT. Supporting and providing proper security for the remote workforce is likely to be a top priority. With cybercrime reaching an estimated $6 trillion globally in 2021, companies will look to safeguard their data and employees through increased spending to protect their cloud services and remote workforce. Development projects were put on hold in 2020 as spending was put on hold. With cloud-based services becoming increasingly important, look for projects to resume and expand in 2021. Technology Services Trends Factors that Could Impact 2021 Growth for IT Services
  14. 14. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 13 Source(s): TrustRadius, Gartner SECTOR SPOTLIGHT – TECHNOLOGY SERVICES 14% 23% 41% 52% 57% 67% Web Conferencing Software Time Tracking Tools Collaboration Tools Remote Desktop Tools Security Software Learning Management Software TechnologyServicesTrends to Watch (2/2) $208.3 $459.3 $616.3 $992.1 $1,332.8 $219.1 $492.4 $640.7 $1,032.9 $1,369.7 Data Center Systems Enterprise Software Devices IT Services Communication Services 2020 2021 ($ in millions) +5.2% +7.2% +4.0% +4.1% +2.8% Worldwide IT Spending Forecasts Business Software Spending Increases Amid COVID-19
  15. 15. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 7.2x 7.5x 7.7x 8.3x 8.3x 2016 2017 2018 2019 2020/2021 6.0x 7.8x 8.2x $10 - $25mm $25 - $50mm $50 - $250mm 14 Source(s): GF Data SECTOR SPOTLIGHT – TECHNOLOGY SERVICES PrivateEquity TechnologyServicesTransactions Enterprise Value 7.8x Average EV/EBITDA Average EV/EBITDA Multiple by EV Bucket Average EV/EBITDA by Year
  16. 16. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 15 Notable TechnologyServicesM&A Transactions SECTOR SPOTLIGHT – TECHNOLOGY SERVICES Technology Service Select Transactions Strategic companies and private equity groups were highly acquisitive of Technology Services in Q1 2021 with 195 transactionsand $12.1billion in total disclosed deal value. The most active groups include Converge, Cognizant, and Clearlake Capital. Target Acquirer Details & Rationale Key Metrics  Vicom will be able to increase its offerings and solutions to its customers  The acquisition provides Converge additional coverage in key industries such as financial servicesm healthcare, and government Size: $25.0m EV/EBITDA: 4.9x EV/Revenue: 0.3x Date: 1/4/2021  Cognizant's acquisition of Magenic will strengthen its engineering talent and expertise  Magenic is one of many acquisitions Cognizant has made as it looks to provide more custom software solutions to its customers Size: $2,405mm EV/EBITDA: N/A EV/Revenue: 0.7x Date: 1/31/2020  Amdocs continues to invest in the cloud and with the acquisition of Sourced, Amdocs has accelerated its transition plan  Sourced will be able to utilize Amdoc’s scale to further increase customers’ cloud transformations Size: $75.0mm EV/EBITDA: N/A EV/Revenue: N/A Date: 3/15/2021 Note(s): The transactions above were not advised on by Forbes M+A Source(s): CapitalIQ
  17. 17. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Technology Services International Business Machines Corporation (NYSE:IBM) $134.54 90% $119,080 $171,866 2.3x 10.9x Accenture plc (NYSE:ACN) $278.50 95% $175,598 $170,436 3.7x 22.5x Zoom Video Communications, Inc. (NasdaqGS:ZM) $315.24 54% $94,367 $90,229 NM NM Infosys Limited (NSEI:INFY) $18.89 1% $79,367 $76,610 5.6x 20.8x Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) $78.82 95% $41,452 $40,508 2.4x 13.7x CDW Corporation (NasdaqGS:CDW) $165.77 90% $23,292 $26,528 1.4x 16.1x Slack Technologies, Inc. (NYSE:WORK) $40.65 91% $23,632 $22,979 NM NM EPAM Systems, Inc. (NYSE:EPAM) $387.14 83% $22,257 $21,142 7.6x 45.6x Leidos Holdings, Inc. (NYSE:LDOS) $96.57 85% $13,609 $18,632 1.5x 14.1x Avnet, Inc. (NasdaqGS:AVT) $41.01 90% $4,128 $5,277 0.3x 14.9x Teradata Corporation (NYSE:TDC) $38.50 65% $4,221 $4,362 2.3x 14.9x Insight Enterprises, Inc. (NasdaqGS:NSIT) $95.19 91% $3,350 $4,103 0.5x 11.6x ManTech International Corporation (NasdaqGS:MANT) $86.61 85% $3,522 $3,606 1.4x 15.4x Switch, Inc. (NYSE:SWCH) $15.85 79% $2,071 $3,432 6.7x 13.8x Cincinnati Bell Inc. (NYSE:CBB) $15.35 99% $781 $2,944 1.9x 7.2x Unisys Corporation (NYSE:UIS) $25.66 92% $1,703 $1,578 0.8x NM ePlus inc. (NasdaqGS:PLUS) $99.00 92% $1,345 $1,515 1.0x 12.7x PC Connection, Inc. (NasdaqGS:CNXN) $47.21 86% $1,214 $1,132 0.5x 14.1x The Hackett Group, Inc. (NasdaqGS:HCKT) $16.20 86% $496 $452 1.9x 18.3x Mean 81.5% $32,394 $35,123 2.5x 16.7x Median 89.8% $4,221 $5,277 1.9x 14.5x 16 Source(s): CapitalIQ TechnologyServicesPublic Trading Data SECTOR SPOTLIGHT – TECHNOLOGY SERVICES
  18. 18. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t -15% -8% 0% 8% 15% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 17 Source(s): CapitalIQ TechnologyServicesOutperformed the S&P 500 SECTOR SPOTLIGHT – TECHNOLOGY SERVICES Technology S&P 500 Annual % Change +56.4% +66.0% (MoM Growth Rate of Market Capitalization)
  19. 19. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 18 III. Current M&A Environment
  20. 20. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 19 DealVolume CURRENT M&A ENVIRONMENT Note: (1) Middle market defined as transactions with values at or below $250 million; Source(s): GF Data, Capital IQ ($ in billions) Global M&A Activity Off Dipped Slightly… ($ in billions) ($ in billions) 1,098 1,050 997 1,109 1,109 1,019 559 781 940 802 263 221 221 229 252 221 78 154 263 213 103 77 100 92 128 57 27 87 125 113 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2018 2019 2020 2021 Under $100M $100M-$500M +$500M $2,121 $2,093 $2,155 $2,176 $2,287 $2,958 $3,353 $3,330 $3,538 $3,811 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2018 2019 2020 2021 S&P 500 Cash Balance …With the U.S. M&A Market Following the Global Trend Cash Reserves Rose as Corporates Slowed Spending U.S. Middle Market Deal Volume Started Strong in 1Q(1) $717 $908 $1,081 $667 $877 $548 $257 $747 $1,035 $989 11,802 11,093 10,611 10,682 11,243 10,209 6,913 9,276 11,902 11,394 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 $0 $200 $400 $600 $800 $1,000 $1,200 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2018 2019 2020 2021 Deal Value $322 $413 $501 $288 $306 $159 $60 $316 $452 $308 1,464 1,348 1,318 1,430 1,489 1,297 664 1,022 1,328 1,128 0 200 400 600 800 1,000 1,200 1,400 1,600 $0 $100 $200 $300 $400 $500 $600 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2018 2019 2020 2021 Deal Value Deal Count
  21. 21. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t  PE buyout multiples remained at high levels as IT deals are on pace to surpass 2020 levels, keeping overall multiples at a high level  Add-on deals remained strong in 1Q 2021 at 75%, continuing the trend seen in 4Q 2020  Fundraising saw 2021 begin on a promising note, raising just under $90 billion across 97 new funds, signaling a rebound from a low 2020 20 U.S. PrivateEquity M&A Environment CURRENT M&A ENVIRONMENT Note: (1) Middle market defined as transactions with values at or below $250 million; Source(s): GF Data, Capital IQ 4.7x 6.0x 6.7x 5.6x 6.6x 6.1x 6.3x 6.9x 5.9x 7.5x 4.1x 4.3x 5.9x 4.9x 6.7x 5.9x 5.9x 8.0x 7.3x 3.6x 8.7x 10.2x 12.6x 10.5x 13.3x 11.9x 12.3x 14.9x 13.2x 11.1x 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* Debt/EBITDA Equity/EBITDA PE Buyout Multiples Start Out Below 4Q 2020 PE Add-On Deals Continued to Increase as a % of Total Deals 1,614 1,543 2,027 2,120 2,238 2,465 3,023 3,128 3,050 710 1,289 1,082 1,332 1,447 1,368 1,500 1,611 1,488 1,245 242 56% 59% 60% 59% 62% 62% 65% 68% 71% 75% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* Add-On Non Add-On Add-On % PE Fundraising Began Year on a Strong Note $106 $160 $178 $159 $224 $272 $206 $322 $213 $88 218 304 399 394 420 482 413 448 289 97 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* Capital Raised Number of Funds
  22. 22. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 21 IV. The Forbes M+A Overview
  23. 23. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 22 Firm Overview THE FORBES M+A GROUP OVERVIEW The Forbes M+A Group is a market-leading boutique investment bank. We are hyper-focused on businesses that have strong growth outlooks and solid foundations of market leadership, compelling and enduring business models, and attractive sectors. We’ve built a different model to create extraordinary results for these elite companies. We work with a select few clients each year, swarm them with deep senior experience and expertise, and engineer customized processes using unconventional techniques to move quickly and deliver maximum value. Our typical clients range in size from $20-500 million in enterprise value. ADVISORY SERVICES EXPERIENCE + RESULTS LOCAL + GLOBAL REACH  Business sales  Business acquisitions  Senior debt raises  Mezzanine debt raises  Private equity raises  ESOP corporate finance  Exit Optimization™  Founded in 2004  $85 billion and 285 years of combined deal experience  100+ years of industry and entrepreneurial experience  Fierce client advocate that consistently achieves outlier results and raving fans  20+ industry awards over past 5 years  Offices in Denver, Salt Lake and Nashville provide local access and accountability  AM&AA affiliation leverages over 600 transaction advisors worldwide  Deep connectivity with 1000’s of strategic acquirers, private equity groups, and non-traditional lenders across the globe
  24. 24. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Business Services Group Head 720.785.4642 Bill@ForbesMA.com Bill Nack 23  Adtech & Advertising  Commercial and Facilities Services  Data Services  Education The Forbes Business Services group brings a robust background in business sales, acquisitions, mergers, and growth capital, to the Business Services industry. Our team understands the nuance of advising businesses that are driven by the utilization of human capital in the rapidly evolving services-based economy. If you are interested in understanding business valuation, opportunities for growth through mergers and acquisitions, opportunities to fuel growth with third party capital, or plan a sale of your Business Services company, our team provides transaction and advisory services to companies across a broad array of key subsectors, including:  Financial Services  IT Services  Professional & Technical Services  And More Business ServicesGroup THE FORBES M+A GROUP OVERVIEW Business Services Group 303.515.7146 Dan.Roth @ForbesMA.com Dan Roth
  25. 25. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t has been acquired by 24 Forbes Recent RepresentativeBusiness ServicesExperience THE FORBES M+A GROUP OVERVIEW has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has received financing from
  26. 26. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 25 ~ Tres Coors, CEO of Novelty Lights “Their industry knowledge, relationships with buyers, extensive transaction experience, and adaptive and creative deal making were essential in achieving an outcome that met our goals.” ~ Bob Roth, Partner at Kutak Rock “Forbes is like a bulldog with a rag in its mouth. If there is a deal that serves the interests of their client, those guys don’t let go until it crosses the finish line.” ~ Christine Crane, CEO of BoldLeads “They exceeded every expectation by taking the time to understand our objectives, delivering the best possible partner and terms.” “Their guidance was invaluable as we reviewed offers and negotiated a deal structure that was exactly what we needed.” ~ Doug Larson, President at Eldorado Artesian Springs “We wanted to entrust the business to an advisor with similar core values and high- quality standards.” ~ Tom Tolkacz, CEO of Swingle “PASCO selected The Forbes M+A Group amongst competing advisory firms because of their reputation for identifying excellent strategic partners.” ~ Ryan Zeiger, CEO of PASCO “From identifying the perfect buyer, to maximizing our value, and ultimately continuing our legacy, the Forbes M+A team was there from start to finish.” ~ Stephanie White, CEO of Top Gun “The Forbes M+A Group was recommended to us as a company that would truly partner with us to achieve our goals.” ~ Mike Franklin, President of TouchSource What Clients and Advisors Say THE FORBES M+A GROUP OVERVIEW
  27. 27. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t ClicktoeditMastertitlestyle B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 26 2020
  28. 28. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t 27 V. Appendix
  29. 29. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Date Target Buyer / Investor(s) Target Category Transaction Type Implied EV ($ in millions) EV / Revenue EV / EBITDA Mar-21 Aurora Systems Consulting, Inc. Plurilock Security Corp. Consulting Merger/Acquisition $1.9 0.1x na Mar-21 Certified Training Institute American Safety Council, Inc. Education and Training Merger/Acquisition na na na Mar-21 Paydayz Staffing Solutions, Inc Execupay, Inc. Human Resources and Staffing Merger/Acquisition na na na Mar-21 Pinmo Creative Technology Ltd. Requiti Capital Ltd. Adtech & Advertising Merger/Acquisition $13.0 na na Mar-21 Dunn Regulatory Associates, LLC. Acacium Group Limited Consulting Merger/Acquisition na na na Mar-21 Carson, Dunlop & Associates Ltd FAX Capital Corp. Education and Training Merger/Acquisition $15.0 na na Mar-21 Franchised operations of LINK Staffing HQ Link Corporation Human Resources and Staffing Merger/Acquisition $11.1 0.2x na Mar-21 CommPartners, LLC Symphony Technology Group, LLC Education and Training Merger/Acquisition na na na Mar-21 MediaBuyers LLC Hawke Media, LLC Adtech & Advertising Merger/Acquisition na na na Mar-21 Sourced Group Inc. Amdocs Limited Technology Services Merger/Acquisition $75.0 na na Mar-21 BINC, Inc. Robinhood Financial LLC Human Resources and Staffing Merger/Acquisition na na na Mar-21 VC3 Inc. Nautic Partners, LLC Technology Services Merger/Acquisition na na na Mar-21 DOSH Holdings, Inc. Cardlytics, Inc. Payment Processing Merger/Acquisition $260.8 na na Mar-21 Kenzie Academy, Inc. Southern New Hampshire University Education and Training Merger/Acquisition na na na Mar-21 CE Resources, Inc. TRC Healthcare Inc. Education and Training Merger/Acquisition na na na Mar-21 octoScope, Inc. Spirent Communications plc Business Process Outsourcing Merger/Acquisition $73.0 3.7x na Mar-21 Growth Digital, LLC. Zilker Partners, Inc. Adtech & Advertising Merger/Acquisition na na na Mar-21 PRGX Global, Inc. Ardian; Ardian North America Fund II LP Business Process Outsourcing Merger/Acquisition $212.4 1.3x 8.7x Mar-21 LeadMD, LLC Trendline Interactive LLC Adtech & Advertising Merger/Acquisition na na na Mar-21 Federal division of Attain, LLC MAXIMUS Federal Services, Inc. Business Process Outsourcing Merger/Acquisition $430.0 na na Mar-21 PRC Stoney Creek Corp./Penady (Stoney Creek) Ltd. PenEquity Development LP Consulting Merger/Acquisition $10.4 na na Mar-21 Certain Assets of Snelling Staffing HQ Snelling Corporation Human Resources and Staffing Merger/Acquisition $17.3 0.2x na Mar-21 ISSA, LLC Tailwind Capital Group, LLC Education and Training Merger/Acquisition na na na Mar-21 BJF Outsource LLC Alera Group, Inc. Business Process Outsourcing Merger/Acquisition na na na Feb-21 Institutional Shareholder Services Inc. Deutsche Börse AG Consulting Merger/Acquisition $2,275.0 na na Feb-21 Inverse inc. Akamai Technologies, Inc. Technology Services Merger/Acquisition $20.0 na na Feb-21 Aquila Technology Corp. Business Integra Technology Solutions, Inc. Technology Services Merger/Acquisition $1.2 na na Feb-21 Data Insight Group Inc. Trendline Interactive LLC Technology Services Merger/Acquisition na na na Feb-21 People Corporation West Street Capital Partners Human Resources and Staffing Merger/Acquisition $1,266.3 5.7x 20.2x Feb-21 Dapasoft Inc. Calian Group Ltd. Technology Services Merger/Acquisition $77.9 na na Feb-21 Babbage Mining Co. Graph Blockchain Inc. Business Process Outsourcing Merger/Acquisition $14.1 na na 28 Source(s): CapitalIQ (Representative list, does not include all transactions) APPENDIX Select Business ServicesM&A Transactions
  30. 30. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Date Target Buyer / Investor(s) Target Category Transaction Type Implied EV ($ in millions) EV / Revenue EV / EBITDA Feb-21 Babbage Mining Co. Graph Blockchain Inc. Business Process Outsourcing Merger/Acquisition $14.1 na na Feb-21 Vendorin, Inc. Corcentric, LLC Payment Processing Merger/Acquisition $100.0 na na Feb-21 ClimeCo Corporation Heritage Sustainability Investments, LLC Facility Maintenance and Services Merger/Acquisition na na na Feb-21 Accudata Systems, Inc. Converge Technology Solutions Corp. Technology Services Merger/Acquisition $18.5 0.3x na Feb-21 GVNW Consulting, Inc. Vantage Point Solutions, Inc. Consulting Merger/Acquisition na na na Feb-21 Virtusa Corporation Baring Private Equity Asia Technology Services Merger/Acquisition $2,050.3 1.7x 18.1x Feb-21 Taos Mountain, Inc. International Business Machines Corporation Technology Services Merger/Acquisition na na na Feb-21 Endurance International Group Holdings, Inc. Clearlake Capital Group, L.P. Technology Services Merger/Acquisition $3,078.3 2.8x 10.2x Feb-21 Web.com Group, Inc. Clearlake Capital Group, L.P.; Siris Capital Group, LLC Technology Services Merger/Acquisition $2,200.0 na na Feb-21 Poynt Co. GoDaddy Inc. Payment Processing Merger/Acquisition $372.1 na na Feb-21 BrightPath Education Services LLC Colibri Group Education and Training Merger/Acquisition na na na Feb-21 Applied Ecological Services, Inc. Resource Environmental Solutions, LLC Facility Maintenance and Services Merger/Acquisition na na na Feb-21 Hustle Con Media, Inc. HubSpot, Inc. Adtech & Advertising Merger/Acquisition $17.2 na na Feb-21 Substantially all of the assets of Momentum Solutionz, LLC BG Staffing, LLC Technology Services Merger/Acquisition $6.0 na na Feb-21 Datalogue, Inc. NIKE, Inc. Technology Services Merger/Acquisition na na na Feb-21 Terafina Inc. NCR Corporation Business Process Outsourcing Merger/Acquisition na na na Feb-21 ACE Environmental Holdings, LLC Meridian Waste Services, LLC Facility Maintenance and Services Merger/Acquisition na na na Feb-21 Zayo Colocation, Inc. DataBank Holdings, Ltd. Technology Services Merger/Acquisition $1,400.0 na na Feb-21 R.N.A. of Ann Arbor, Inc. Revolent Capital Solutions Facility Maintenance and Services Merger/Acquisition na na na Feb-21 Sunrise Sanitation, Inc. Meridian Waste Services, LLC Facility Maintenance and Services Merger/Acquisition na na na Feb-21 Steel Marketing, LLC Hite Digital LLC Adtech & Advertising Merger/Acquisition na na na Feb-21 Coanda Research & Development Corporation Tetra Tech, Inc. Consulting Merger/Acquisition na na na Feb-21 EnergyWyze, LLC SinglePoint Inc. Adtech & Advertising Merger/Acquisition $3.1 na na Feb-21 Stonebridge Consulting LLC Sierra Digital Inc. Consulting Merger/Acquisition na na na Feb-21 People 2.0, Inc. TPG Growth Human Resources and Staffing Merger/Acquisition na na na Feb-21 ChizComm Ltd. Genius Brands International, Inc. Adtech & Advertising Merger/Acquisition $20.0 na na Feb-21 Substantially all Assets of Business Information Systems, Inc. i3 Verticals, Inc. Business Process Outsourcing Merger/Acquisition $103.4 na na Feb-21 Remainder of multi family tenant screening business of CoreLogic, Inc. na Consulting Merger/Acquisition $51.2 na na Feb-21 Acumen Solutions, Inc. salesforce.com, inc. Technology Services Merger/Acquisition $433.0 na na Feb-21 Magenic Technologies, Inc. Cognizant Technology Solutions Corporation Technology Services Merger/Acquisition $232.0 na na Feb-21 Eleos Technologies, LLC Knight-Swift Transportation Holdings Inc. Technology Services Merger/Acquisition $52.8 na na 29 APPENDIX Select Business ServicesM&A Transactions Source(s): CapitalIQ (Representative list, does not include all transactions)
  31. 31. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Date Target Buyer / Investor(s) Target Category Transaction Type Implied EV ($ in millions) EV / Revenue EV / EBITDA Feb-21 Eleos Technologies, LLC Knight-Swift Transportation Holdings Inc. Technology Services Merger/Acquisition $52.8 na na Feb-21 Convergent Media Systems Corporation SageNet LLC Technology Services Merger/Acquisition $23.2 na na Feb-21 TSR, Inc. Qar Industries, Inc. Technology Services Merger/Acquisition $14.3 0.2x 15.9x Feb-21 Aramis Interactive, LLC Digital Media Solutions, Inc. Adtech & Advertising Merger/Acquisition na na na Jan-21 Working Not Working, Inc. Fiverr International Ltd. Human Resources and Staffing Merger/Acquisition $12.9 na na Jan-21 RLJ Talent Consulting, Inc. Recruiter.com Group, Inc. Human Resources and Staffing Merger/Acquisition $1.7 na na Jan-21 PGS Inc. Happiest Minds Technologies Limited Technology Services Merger/Acquisition $13.3 1.3x na Jan-21 Foxpayroll, Inc. Execupay, Inc. Human Resources and Staffing Merger/Acquisition na na na Jan-21 ASIC Power Company Global Care Capital Inc. Business Process Outsourcing Merger/Acquisition $12.5 na na Jan-21 Push Pay, Inc. OV Loop, Inc Payment Processing Merger/Acquisition na na na Jan-21 Carta Worldwide Inc. Mogo Inc. Payment Processing Merger/Acquisition $57.6 2.8x na Jan-21 S/P2 American Safety Council, Inc. Education and Training Merger/Acquisition na na na Jan-21 Pratt & Miller Engineering and Fabrication, Inc. Oshkosh Corporation Business Process Outsourcing Merger/Acquisition $110.6 na na Jan-21 1st Payment Systems, L.L.C. Synergy Commerce, LLC Payment Processing Merger/Acquisition na na na Jan-21 1901 Group LLC Leidos Holdings, Inc. Technology Services Merger/Acquisition $214.0 na na Jan-21 Staff Boom, LLC BHMS Investments, LP Business Process Outsourcing Merger/Acquisition na na na Jan-21 SourcePointe LLC AQ Carver Buyer, Inc. Human Resources and Staffing Merger/Acquisition na na na Jan-21 V12 Porch Group, Inc. Business Process Outsourcing Merger/Acquisition $28.0 na na Jan-21 Social Method Power Digital Marketing, Inc. Adtech & Advertising Merger/Acquisition na na na Jan-21 Burleson Consulting, Inc. Terracon Consultants, Inc. Facility Maintenance and Services Merger/Acquisition na na na Jan-21 Best Contractor Coach Association of Professional Builders Human Resources and Staffing Merger/Acquisition $0.2 na na Jan-21 Apolloversity Incorporated Pluralsight, Inc. Education and Training Merger/Acquisition $25.0 na na Jan-21 Covestic Inc. Milestone Technologies, Inc. Consulting Merger/Acquisition na na na Jan-21 CarpeDatum Consulting, Inc. Converge Technology Solutions Corp. Technology Services Merger/Acquisition $5.4 1.0x 3.6x Jan-21 Stafford Financial Consulting Group, LLC AssuredPartners Consulting Merger/Acquisition na na na Jan-21 May River Disposal Inc. Capital Waste Services LLC Facility Maintenance and Services Merger/Acquisition na na na Jan-21 Purex, Inc./Smart Repair Pro, Inc. Medigus Ltd. Adtech & Advertising Merger/Acquisition $2.5 na na Jan-21 Vicom Computer Services, Inc. Converge Technology Solutions Corp. Technology Services Merger/Acquisition $25.0 0.3x 4.9x Jan-21 Roy Strom Company Lakeshore Recycling Systems, LLC Facility Maintenance and Services Merger/Acquisition na na na Jan-21 Human Resources, Inc. Lyons HR, Inc. Human Resources and Staffing Merger/Acquisition na na na Dec-20 360 Spear Street Data Center Facility Harvest Properties, Inc. Technology Services Merger/Acquisition $164.9 na na 30 APPENDIX Select Business ServicesM&A Transactions Source(s): CapitalIQ (Representative list, does not include all transactions)
  32. 32. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Adtech and Marketing WPP plc (LSE:WPP) $12.97 130% $15,337 $19,705 1.2x NM Publicis Groupe S.A. (ENXTPA:PUB) $62.39 110% $14,992 $18,904 1.4x 8.3x Omnicom Group Inc. (NYSE:OMC) $75.48 87% $15,946 $18,368 1.4x 9.2x The Interpublic Group of Companies, Inc. (NYSE:IPG) $29.21 87% $11,408 $14,217 1.8x 9.7x Dentsu Group Inc. (TSE:4324) $32.73 1% $9,030 $10,677 1.3x 6.6x Ipsos SA (ENXTPA:IPS) $38.20 106% $1,665 $2,263 1.0x 10.2x MDC Partners Inc. (NasdaqGS:MDCA) $3.14 58% $230 $1,522 1.3x 10.7x Mean 83% $9,801 $12,236 1.3x 9.1x Median 87% $11,408 $14,217 1.3x 9.5x Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Business Process Outsourcing Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) $78.82 95% $41,452 $40,508 2.4x 13.7x Genpact Limited (NYSE:G) $44.07 90% $8,014 $9,310 2.5x 14.2x SYNNEX Corporation (NYSE:SNX) $116.29 71% $5,875 $6,064 0.2x 4.6x TTEC Holdings, Inc. (NasdaqGS:TTEC) $99.48 90% $4,695 $5,166 2.5x 15.5x WNS (Holdings) Limited (NYSE:WNS) $73.02 94% $3,602 $3,507 3.8x 21.3x ExlService Holdings, Inc. (NasdaqGS:EXLS) $91.09 91% $3,018 $2,946 3.0x 17.5x Sykes Enterprises, Incorporated (NasdaqGS:SYKE) $43.84 94% $1,740 $1,882 1.1x 9.5x Unisys Corporation (NYSE:UIS) $25.66 92% $1,703 $1,578 0.8x NM Mean 90% $8,762 $8,870 2.0x 13.8x Median 91% $4,148 $4,336 2.5x 14.2x 31 Source(s): CapitalIQ APPENDIX Publicly Traded Companies
  33. 33. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Consulting Accenture plc (NYSE:ACN) $278.50 95% $175,598 $170,436 3.7x 22.5x Booz Allen Hamilton Holding Corporation (NYSE:BAH) $80.60 80% $11,089 $12,494 1.6x 15.4x FTI Consulting, Inc. (NYSE:FCN) $140.11 95% $4,675 $4,871 1.9x 13.9x ICF International, Inc. (NasdaqGS:ICFI) $88.31 91% $1,650 $2,099 1.4x 14.0x CBIZ, Inc. (NYSE:CBZ) $32.74 93% $1,736 $2,013 2.0x 18.4x Huron Consulting Group Inc. (NasdaqGS:HURN) $49.90 80% $1,089 $1,301 1.6x 18.4x CRA International, Inc. (NasdaqGS:CRAI) $71.40 82% $571 $678 1.3x 13.9x Resources Connection, Inc. (NasdaqGS:RGP) $13.56 90% $440 $448 0.7x 10.8x Houlihan Lokey, Inc. (NYSE:HLI) $67.36 90% $4,586 $0 0.0x NA Mean 88.5% $22,382 $21,593 1.6x 15.9x Median 89.9% $1,736 $2,013 1.6x 14.7x 32 APPENDIX Publicly Traded Companies Source(s): CapitalIQ
  34. 34. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Education and Training Chegg, Inc. (NYSE:CHGG) $84.33 73% $12,052 $12,440 NM NM Pearson plc (LSE:PSON) $10.67 117% $7,977 $8,825 1.9x 17.7x Grand Canyon Education, Inc. (NasdaqGS:LOPE) $108.60 94% $4,975 $4,890 5.7x 15.7x John Wiley & Sons, Inc. (NYSE:JW.A) $54.94 87% $3,020 $4,070 2.2x 12.6x Laureate Education, Inc. (NasdaqGS:LAUR) $13.73 89% $2,704 $3,466 3.4x 14.8x Graham Holdings Company (NYSE:GHC) $577.99 86% $2,813 $2,898 1.0x 8.2x Strategic Education, Inc. (NasdaqGS:STRA) $91.33 49% $2,221 $2,278 2.2x 9.9x Adtalem Global Education Inc. (NYSE:ATGE) $39.15 89% $1,983 $2,081 1.9x 8.5x Stride, Inc. (NYSE:LRN) $29.98 57% $1,203 $1,404 1.0x 10.2x Perdoceo Education Corporation (NasdaqGS:PRDO) $12.09 68% $838 $485 0.7x 3.0x American Public Education, Inc. (NasdaqGS:APEI) $35.31 86% $664 $447 1.3x 9.7x Franklin Covey Co. (NYSE:FC) $27.65 87% $397 $398 2.2x 22.9x Universal Technical Institute, Inc. (NYSE:UTI) $5.76 69% $191 $341 1.2x NM GP Strategies Corporation (NYSE:GPX) $17.81 98% $301 $313 0.7x 10.6x Lincoln Educational Services Corporation (NasdaqGS:LINC) $6.44 72% $173 $226 0.8x 9.5x Zovio Inc (NasdaqGS:ZVO) $4.13 56% $133 $130 0.3x 19.0x Mean 80% $2,603 $2,793 1.8x 12.3x Median 86% $1,593 $1,743 1.3x 10.4x 33 APPENDIX Publicly Traded Companies Source(s): CapitalIQ
  35. 35. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Facility Maintenance and Services Waste Management, Inc. (NYSE:WM) $128.79 89% $54,452 $68,227 4.4x 15.3x Republic Services, Inc. (NYSE:RSG) $99.58 88% $31,683 $40,927 4.0x 13.5x Waste Connections, Inc. (NYSE:WCN) $107.65 86% $28,337 $32,730 6.0x 19.6x Iron Mountain Incorporated (NYSE:IRM) $37.16 85% $10,674 $21,548 5.2x 15.2x Rollins, Inc. (NYSE:ROL) $33.96 79% $16,939 $17,258 7.8x 35.3x Stericycle, Inc. (NasdaqGS:SRCL) $67.20 84% $6,185 $8,301 3.2x 16.3x FirstService Corporation (TSX:FSV) $146.61 67% $6,497 $7,270 2.6x 25.1x Clean Harbors, Inc. (NYSE:CLH) $85.37 88% $4,606 $5,838 1.9x 11.7x Covanta Holding Corporation (NYSE:CVA) $13.85 89% $1,829 $4,390 2.3x 14.1x ABM Industries Incorporated (NYSE:ABM) $50.91 92% $3,422 $3,907 0.7x 9.1x Casella Waste Systems, Inc. (NasdaqGS:CWST) $63.25 92% $3,248 $3,716 4.8x 23.0x H&E Equipment Services, Inc. (NasdaqGS:HEES) $36.63 88% $1,352 $2,456 2.1x 17.6x US Ecology, Inc. (NasdaqGS:ECOL) $41.48 91% $1,297 $2,093 2.3x 14.1x SP Plus Corporation (NasdaqGS:SP) $32.62 89% $761 $1,433 3.1x 32.8x GDI Integrated Facility Services Inc. (TSX:GDI) $41.13 69% $959 $1,094 1.0x 10.3x Heritage-Crystal Clean, Inc (NasdaqGS:HCCI) $26.85 77% $655 $697 1.7x 16.7x CECO Environmental Corp. (NasdaqGS:CECE) $8.09 85% $280 $337 1.1x 11.4x Perma-Fix Environmental Services, Inc. (NasdaqCM:PESI) $7.28 91% $89 $90 0.9x 35.5x Mean 84.9% $9,626 $12,351 3.0x 18.7x Median 87.7% $3,335 $4,148 2.4x 15.8x 34 APPENDIX Publicly Traded Companies Source(s): CapitalIQ
  36. 36. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Human Resources and Staffing Automatic Data Processing, Inc. (NasdaqGS:ADP) $187.90 95% $80,654 $81,491 5.6x 21.4x Robert Half International Inc. (NYSE:RHI) $77.50 85% $8,694 $8,423 1.7x 22.5x ASGN Incorporated (NYSE:ASGN) $94.80 86% $5,058 $5,910 1.5x 14.6x Upwork Inc. (NasdaqGS:UPWK) $42.65 67% $5,595 $5,460 13.5x NM ManpowerGroup Inc. (NYSE:MAN) $101.26 81% $5,434 $5,428 0.3x 11.6x TriNet Group, Inc. (NYSE:TNET) $77.83 89% $5,145 $5,218 1.3x 12.2x Korn Ferry (NYSE:KFY) $62.52 90% $3,368 $3,249 1.9x 16.5x Hays plc (LSE:HAS) $2.08 122% $3,453 $3,220 0.4x 30.4x Insperity, Inc. (NYSE:NSP) $83.33 87% $3,200 $3,061 0.7x 14.2x Kforce Inc. (NasdaqGS:KFRC) $53.17 86% $1,123 $1,142 0.8x 12.8x TrueBlue, Inc. (NYSE:TBI) $21.83 73% $781 $788 0.4x 21.3x Kelly Services, Inc. (NasdaqGS:KELY.A) $22.09 82% $875 $744 0.2x 10.9x SThree plc (LSE:STEM) $5.30 127% $696 $676 0.4x 12.5x Heidrick & Struggles International, Inc. (NasdaqGS:HSII) $35.12 77% $692 $471 0.7x 7.4x Barrett Business Services, Inc. (NasdaqGS:BBSI) $67.22 84% $523 $381 0.4x 9.7x Impellam Group plc (AIM:IPEL) $3.76 124% $174 $232 0.1x NM ShiftPixy, Inc. (NasdaqCM:PIXY) $2.46 29% $48 $39 4.2x NM Mean 87.2% $7,383 $7,408 2.0x 15.6x Median 85.8% $3,200 $3,061 0.7x 13.5x 35 APPENDIX Publicly Traded Companies Source(s): CapitalIQ
  37. 37. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Payment Processing Visa Inc. (NYSE:V) $212.55 89% $452,525 $459,222 NM 31.9x Mastercard Incorporated (NYSE:MA) $359.59 90% $353,687 $356,264 NM 40.8x PayPal Holdings, Inc. (NasdaqGS:PYPL) $238.11 77% $284,408 $281,094 12.3x NM Global Payments Inc. (NYSE:GPN) $204.31 93% $59,484 $67,964 9.0x 23.4x Broadridge Financial Solutions, Inc. (NYSE:BR) $152.84 91% $17,729 $19,431 4.0x 19.4x The Western Union Company (NYSE:WU) $24.88 93% $10,133 $12,007 2.5x 10.0x WEX Inc. (NYSE:WEX) $213.16 91% $9,246 $11,695 7.6x 34.1x Jack Henry & Associates, Inc. (NasdaqGS:JKHY) $152.95 76% $11,542 $11,462 6.7x 25.5x Euronet Worldwide, Inc. (NasdaqGS:EEFT) $137.02 82% $7,296 $7,075 2.8x 27.1x ACI Worldwide, Inc. (NasdaqGS:ACIW) $38.24 88% $4,457 $5,515 4.3x 21.4x EVERTEC, Inc. (NYSE:EVTC) $37.25 84% $2,643 $2,994 5.7x 14.7x Conduent Incorporated (NasdaqGS:CNDT) $6.82 87% $1,413 $2,903 0.7x 6.6x Cardtronics plc (NasdaqGS:CATM) $38.80 92% $1,756 $2,435 2.3x 9.8x i3 Verticals, Inc. (NasdaqGS:IIIV) $30.52 85% $661 $880 5.5x NM Mean 87.1% $86,927 $88,639 5.3x 22.0x Median 89.0% $9,689 $11,578 4.9x 22.4x 36 APPENDIX Publicly Traded Companies Source(s): CapitalIQ
  38. 38. CONFIDENTIAL B u s i n e s s S e r v i c e s I n d u s t r y R e p o r t Aggregate Metrics Mean 84% $23,349 $24,826 2.6x 16.2x Median 87% $3,453 $4,070 1.9x 14.2x Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 3/31/2021 High Cap Value LTM LTM Technology Services International Business Machines Corporation (NYSE:IBM) $134.54 90% $119,080 $171,866 2.3x 10.9x Accenture plc (NYSE:ACN) $278.50 95% $175,598 $170,436 3.7x 22.5x Zoom Video Communications, Inc. (NasdaqGS:ZM) $315.24 54% $94,367 $90,229 NM NM Infosys Limited (NSEI:INFY) $18.89 1% $79,367 $76,610 5.6x 20.8x Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) $78.82 95% $41,452 $40,508 2.4x 13.7x CDW Corporation (NasdaqGS:CDW) $165.77 90% $23,292 $26,528 1.4x 16.1x Slack Technologies, Inc. (NYSE:WORK) $40.65 91% $23,632 $22,979 NM NM EPAM Systems, Inc. (NYSE:EPAM) $387.14 83% $22,257 $21,142 7.6x 45.6x Leidos Holdings, Inc. (NYSE:LDOS) $96.57 85% $13,609 $18,632 1.5x 14.1x Avnet, Inc. (NasdaqGS:AVT) $41.01 90% $4,128 $5,277 0.3x 14.9x Teradata Corporation (NYSE:TDC) $38.50 65% $4,221 $4,362 2.3x 14.9x Insight Enterprises, Inc. (NasdaqGS:NSIT) $95.19 91% $3,350 $4,103 0.5x 11.6x ManTech International Corporation (NasdaqGS:MANT) $86.61 85% $3,522 $3,606 1.4x 15.4x Switch, Inc. (NYSE:SWCH) $15.85 79% $2,071 $3,432 6.7x 13.8x Cincinnati Bell Inc. (NYSE:CBB) $15.35 99% $781 $2,944 1.9x 7.2x Unisys Corporation (NYSE:UIS) $25.66 92% $1,703 $1,578 0.8x NM ePlus inc. (NasdaqGS:PLUS) $99.00 92% $1,345 $1,515 1.0x 12.7x PC Connection, Inc. (NasdaqGS:CNXN) $47.21 86% $1,214 $1,132 0.5x 14.1x The Hackett Group, Inc. (NasdaqGS:HCKT) $16.20 86% $496 $452 1.9x 18.3x Mean 81.5% $32,394 $35,123 2.5x 16.7x Median 89.8% $4,221 $5,277 1.9x 14.5x 37 APPENDIX Publicly Traded Companies Source(s): CapitalIQ

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