The document summarizes information from a 2017 M&A conference, including: 1) A panel discussion on current M&A deal activity, valuations, and outlook. 2) A presentation on Amazon's acquisition of Whole Foods, noting the deal sent grocery and retail stock prices lower. 3) The acquisition could have wide implications across various sectors.

1. 2 0 1 7 M & A C O N F E R E N C E Email questions to MAConference@FaegreBD.com
2 0 1 7 M & A C O N F E R E N C E
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Market Update: Current Deal Activity,
Valuation and Outlook
Paul Jevnick | BMO Capital Markets, U.S. Mergers & Acquisitions
Paul Galloway | Bridgepoint
Brett Peterson | NCP
Terry Bressler | Prairie Capital Advisors
Moderator: Adam Hertzke | Faegre Baker Daniels

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The Ever-Changing Status of Middle Market M&A
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June 2016March 2016August 2015

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M&A Activity Levels
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Total U.S. M&A Deal Volume and Value <$300M Transaction Value
2013 to Q2-2017
Source: Capital IQ

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M&A Activity Levels
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Private Equity Exits
2013 to Q2-2017
Source: Pitchbook

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Market Overview
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Market Overview
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Iowa M&A Transactions
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 The Bridgepoint Midwest M&A Index decreased 15.9% from Q1-17 to Q2-17
 On a year-over-year basis, the index increased 29.2%, a healthy increase from recent lows in Q2-16
Bridgepoint Midwest M&A Index
Source: Bridgepoint Merchant Banking, Capital IQ (07/21/17)
Bridgepoint Midwest M&A Quarterly Update, Q2-17
Quarterly Midwest M&A Index
(Q3-06 = 100)
(30)
(20)
(10)
0
10
20
30
60
70
80
90
100
110
120
130
140
Yr/YrChange(%)
Index
Yr/Yr Change Index
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Source: Bridgepoint Merchant Banking, Capital IQ (07/21/17)
Quarterly Midwest M&A Volume
Bridgepoint Midwest M&A Quarterly Update, Q2-17
 Total Midwest M&A transaction volume decreased 15.2% from 269 transactions in Q1-17 to 228
transactions in Q2-17
 Demand for quality investment opportunities remains strong, but activity continues to be inhibited by lower
quality supply
269
328
318 312 307
284
309
261
312
278
294
226 233
258
247
269
228
0
50
100
150
200
250
300
350
TransactionVolume
Quarterly Midwest M&A Transaction Volume
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Source: Bridgepoint Merchant Banking, Capital IQ (07/21/17)
Quarterly Midwest M&A Sector Analysis
Bridgepoint Midwest M&A Quarterly Update, Q2-17
 Consumer Services, Financial Services and Industrials accounted for 64.1% of total Q2-17 Midwest M&A
transaction volume
 Transaction activity by sector has remained largely consistent quarter-over-quarter
Consumer
23.7%
Financials
21.1%
Industrials
19.3%
Information
Technology
15.4%
Healthcare
7.5%
Energy
6.6%
Materials
3.9%
Utilities
2.6%
Q2-17 Midwest M&A Transaction Volume by Sector
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Quarterly Midwest M&A Deal Sizes
Source: Bridgepoint Merchant Banking, Capital IQ (07/21/17)
Bridgepoint Midwest M&A Quarterly Update, Q2-17
 The median Midwest M&A deal size increased to $45.2mm in Q2-17, a level unseen since data collection
began in 2006
 The current median deal size remains well above the historical median of $22.9mm due to an uptick in
larger transaction sizes, which is consistent with recent national trends
Quarterly Midwest M&A Median Deal Size
$13.8
$17.5
$31.4
$22.7
$22.9
$15.3
$20.6
$16.5
$19.0
$35.5
$20.0
$30.2
$36.8 $38.0 $38.5
$25.6
$45.2
MedianDealSize($mm)
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Quarterly Midwest M&A Valuations
Source: Bridgepoint Merchant Banking, Capital IQ (07/21/17)
Bridgepoint Midwest M&A Quarterly Update, Q2-17
 Median TEV/EBITDA valuations of 9.6x in Q2-17 show some softening from recent quarters
 Midwest Q2-17 valuations returned to levels below the historical median of 10.8x while valuations at a
national level have remained steady, above their historical median
14.6x
10.8x
7.0x
9.1x
8.5x
11.3x
8.4x
8.0x
12.4x
15.0x
13.1x
6.8x
11.3x
8.9x
13.6x
12.5x
9.6x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
Valuation(TEV/EBITDA)
Quarterly Midwest M&A Median Valuation
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Quarterly Midwest M&A Buyers & Sellers
Bridgepoint Midwest M&A Quarterly Update, Q2-17
Source: Bridgepoint Merchant Banking, Capital IQ (07/21/17)
Quarterly Midwest M&A Buyers and Targets
 Transactions involving Midwest
Buyers decreased 25.0% from
136 in Q1-17 to 102 in Q2-17,
the lowest level since Q3-09
 Transactions involving Midwest
Targets have remained
consistent the last 5 quarters
 Midwest Buyers have
consistently outpaced Midwest
Targets since Q2-14
50
70
90
110
130
150
170
190
210
Midwest Buyers Midwest Targets
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Quarterly Midwest Financing Issuers & Investors
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-17
Source: Bridgepoint Merchant Banking, Capital IQ (07/11/17), Pitchbook
0
20
40
60
80
100
120
Quarterly Midwest Financings Issuers and Investors
Midwest Issuers Midwest Investors
 Total private equity and
venture capital transactions
with Midwest issuers
increased 1.5% from Q1-17
to Q2-17
 Transactions with Midwest
investors decreased 38.1%
from Q1-17 to Q2-17
 The demand for capital by
Midwest companies
continued to increase from
recent lows in Q4-1
 Due to inadequate supply by
Midwest investors, local
companies routinely are
forced to “import capital” from
out-of-market sources to
meet their financing needs
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Bridgepoint Midwest Capital Raise Indices
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-17
Source: Bridgepoint Merchant Banking, Capital IQ (07/11/17)
 The Bridgepoint Midwest Private Equity Index decreased 27.5% on a year-over-year basis and increased
6.4% on a quarter-to-quarter basis
 The Bridgepoint Midwest Venture Capital Index decreased 20.2% on a year-over-year basis and
increased 7.8% on a quarter-to-quarter basis
Quarterly Midwest PE and VC Indexes
(Q1-11 = 100)
40
60
80
100
120
140
160
IndexValue
PE Index VC Index
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TEV*/EBITDA by Deal Size ($ Millions)
2013 to Q1-2017
M & A V a l u a t i o n s
Source: GF Data
*TEV = Total Enterprise Value
M&A Valuations

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TEV/EBITDA Multiple by Buyer Type (Financial vs Strategic, $10-250M of TEV)
2013 to Q1-2017
Source 1: Financial Buyers: GF Data ($10-250M TEV)
Source 2: Strategic Buyers: Capital IQ ($10-250M TEV; excluding outliers defined as transactions with TEV/EBITDA of less than 3.0X and more
than 14.0x)
M & A V a l u a t i o n s
M&A Valuations

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Loan Issuance for the Middle Market <$100M
2009 to June-2017
U S C r e d i t M a r k e t s
U.S. Credit Markets

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Loan Issuance for the Middle Market >$100M to $500M
2009 to June-2017
Source: Thomson Reuters
U S C r e d i t M a r k e t s
U.S. Credit Markets

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Equity and Debt Capitalization
2013 to Q1-2017
U S C r e d i t M a r k e t s
U.S. Credit Market
Source: GF Data

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Senior Debt and Sub. Debt / EBITDA – TEV of $10-250 Million
2013 to Q1-2017
Source: GF Data
U S C r e d i t M a r k e t s
U.S. Credit Market

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2 0 1 7 M & A C O N F E R E N C E
22
Market Update: Current Deal Activity,
Valuation and Outlook
Paul Jevnick | BMO Capital Markets, U.S. Mergers & Acquisitions
Paul Galloway | Bridgepoint
Brett Peterson | NCP
Terry Bressler | Prairie Capital Advisors
Moderator: Adam Hertzke | Faegre Baker Daniels

23. 2 0 1 7 M & A C O N F E R E N C E Email questions to MAConference@FaegreBD.com
Overview of Amazon’s Announced Acquisition of
Whole Foods

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Deal Announcement Sent Grocery and Retail
Sectors into a Tailspin (US$ millions)
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Transaction has a Wide Range of Potential
Implications
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