The document discusses Credit Suisse seeking an anchor investment for its private equity fund. It recommends purchasing ABM Industries as a platform company to build upon through acquisitions. The recommendation analyzes ABM's industry exposure, growth strategy, margin expansion opportunities, management team, and potential exit opportunities for investors.

1. Credit Suisse Private Equity
Discussion Materials October 23, 2015 Paragon Financial Group
 

2. OUR TEAM
 Kelley School of Business, 2017
 Majors: Finance & Accounting
 Investment Banking Workshop ’17
 Kelley School of Business, 2017
 Majors: Finance & Accounting
 Investment Banking Workshop ‘17
 Kelley School of Business, 2018
 Majors: Finance & Accounting
 Investment Banking Workshop ‘18
 Kelley School of Business, 2017
 Majors: Finance & Accounting
 Investment Banking Workshop ‘17
Flat
Organizational
Structure
World-wide
Firm with
International
Reach
Diverse Senior
Banker
Background
Committed to
Maximizing
Your Value
Coverage in
Numerous
Industry
Verticals
Unbiased, Pure
Advisory Focus
Jamey Dorman Mitchell Morris
Neil Davé Jon Tripp

3. TABLE OF CONTENTS
I. EXECUTIVE SUMMARY……………………………………………………….......
II. STRATEGIC RECOMMENDATION…………………………………….………...
III. ABM COMPANY OVERVIEW……………………………………….…………….
IV. INVESTMENT THESIS………………………………………………….…………..
i. DIVERSE INDUSTRY EXPOSURE..………………………….………………..
ii. 2020 VISION: A SUSTAINABLE MODEL FOR GROWTH….…………..........
iii. ORGANIC GROWTH WILL BE DRIVEN BY MARGIN EXPANSION………
iv. BOLT-ON STRATEGY WILL DEVELOP A MORE DIVERSE COMPANY…..
v. STRONG MANAGEMENT TEAM…..………………………………………..
vi. EXIT OPPORTUNITIES ……………………………………………………….
V. VALUATION METRICS…………………………………………………………….
VI. APPENDIX…………………………………………………………………………...
4
5
6
7
8
9
10
11
13
14
15
20

4.  Overview
 Credit Suisse is seeking an anchor investment to begin its private equity fund
 Objective: Select a company to act as a foundation for the fund to build upon through a bolt-on strategy
 Create a plan to maximize value of current company with operational improvements
 Evaluate potential candidates for a post-purchase bolt-on strategy
 Recommendation
 Paragon Financial Group recommends purchasing ABM Industries as a bolt-on platform company
 Industry Analysis
 The facility services industry is extremely fragmented with over 80,000 companies with only 2% of those
companies having more than 10 employees
 Revenue trends have consistently exceeded expectations and outpaced the overall market
 Total US revenue for other administrative and support services rose 7.7% in Q2 of 2015
 Spending on commercial construction has increased year over year driving sales of facility maintenance
services and providing growth prospects for well positioned companies in the industry
 Company Assessment
 ABM Industries leads the market in janitorial services, holding a 5% market share
 ABM has completed numerous acquisitions with intentions of expanding into new markets, optimizing
margins and growing its current market share
 The new CEO is implementing a 2020 plan which will eliminate less profitable areas of the business as
well as create a new strategic alignment plan
 Bolt-on Strategy
 After evaluating the company’s current acquisition plan we believe there are 13 companies that should be
considered for future bolt-on acquisitions
EXECUTIVE SUMMARY
4Executive Summary │

5. 0
10
20
30
40
50
2006 2007 2008 2009 2010
TTEC BID ABM
Range of
mature to new
industries and
companies
Two highly
cyclical
companies
with ABM
proving to be
more recession
stable
• Revenue: $5,207.2
• LTM EBITDA: 194.6
• Debt: 305.1
• Revenue: $933
• LTM EBITDA: 247
• Debt: 512.1
• Revenue: $1,280
• LTM EBITDA: 168
• Debt: 115
 ABM is a facility maintenance provider
 Holds a 5% market share in the Janitorial
Industry, largest in industry
 ABM is a service provider for more than half
of the Fortune 500 companies
 Sotheby’s is a high-end auction house
specializing in art, wine and diamonds
 World’s largest art business
 Very cyclical company with most revenue
occurring during October
 TeleTech is a global business process
outsourcing company
 TeleTech’s top 5 customers account for 36% of
their revenue
Stock Performance 2006 – 2010
5
STRATEGIC RECOMENDATION
18.64
33.21
51.29
Volatility
Recommendation │

6. Middle-market
company
focused on
steady growth
through
acquisition
Strategic
transformation
initiative that
will create 40-
50M in run-
rate EBITDA
6
ABM COMPANY OVERVIEW
FY15 Financial Highlights
 FY15 Revenue: $5,032.8
 Consistent dividend repayment ($35m)
 Adjusted LTM EBITDA of $194.60
 Revenue growth of roughly 8% average over the
last 5 years
 Building & Energy Solutions grew over 14%
 Healthcare Support Services grew 24%
Strategic Realignment
Company Highlights
 Headquarters: New York, New York
 Five segments: Janitorial, Parking, Facility
Services, Security and Building & Energy
 Largest player in the Janitorial Services Industry
with roughly 5% market share
 Consistent growth seen through targeted
acquisitions in a wide breadth of industries and
geographical locations
 Diverse customer base with less than 2%
dependency on any customer
 Cross Selling at an all-time high due to Solve One
More initiative aimed at creating collaboration
between ABM service lines
 Recent change in leadership with an Executive
Vice President, Scott Salmirs, taking over as CEO
 Salmirs proposed extensive operational changes
and set comprehensive goals for the year 2020
 Business model will be centered around
end-market clients
 Share repurchase program
 Adopting best practices in account and
labor management
 Cost optimization and internal
development
 Continued emphasis on cross-selling across
industry verticals
Recent Activity
 5/5/15: Acquisition of CTS Services, LLC
 10/2/14: Acquisition of GBM Support Services
 8/7/14: Acquisition of Airco Commercial Services
 3/6/14: Acquisition of Alpha Mechanical, Inc.
52%
12%
12%
8%
9%
7%
Product Segment Breakdown
Jantiorial
Facility
Parking
Security
Building & Energy
Other
Company Overview │

7. ABM’s diverse service offering
creates stability and minimizes
shareholder risk
2020 vision aims to transition
ABM into a period of both
organic and inorganic growth
Wide variety of industry
verticals puts ABM in a unique
position to make acquisitions
Strong management with a
proven M&A track record and
several recent acquisitions
Below average EBITDA
margins provide multiple
avenues for internal growth
The company competes in
stable industries that have
withstood multiple periods of
cyclicality
7
INVESTMENT THESIS
Investment Thesis │

8. 8
Facility/Janitorial Services
 High competition and globalization
 Top 3 players control 25% market share
 Revenue growth expected to be consistent
with US economy
 High cost of technological advancements
will drive consolidation
Security Services
 Revenue trends continue to exceed
expectations
 Minimal M&A activity leaving industry
unconsolidated
 ABM leads the market with ~5% market
share, next largest has 1.2% market share
Parking Services
 Increasing number of vehicles registered
worldwide creating a need for the industry
 Diverse product offering including
transportation, parking solutions,
managing services, etc.
 Industry growth CAGR of 12.1% expected
Jani-King International Inc
Other
Companies
92.1%
ABM IndustriesInc.
4.9%
1.2%
DTZ
<1.0%
ServiceMaster
<1.0%
Building & Energy Solutions
 Services intended to reduce energy consumption and
minimize carbon footprint
 Increasing energy costs, changing legislature/regulations,
environmental pressures and aging buildings/facilities
causing an increase in demand for energy management
 Data driven analytics to push eco-friendly best practices
Janitorial Services Market Share
Spending on Nonresidential Construction Increasing YoY
100
200
300
400
500
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2011
2012
2013
2014
2015r
($ in billions)
Exposure to a
wide range of
industries
Opportunity
to grow and
shrink in
certain more
favorable
industries
DIVERSE INDUSTRY EXPOSURE
Investment Thesis │

9. Streamlined
company
operations will
drive profit
margins higher
Diverse end
market provides
sufficient
growth
opportunities
9
 Strategic realignment
 Focus on end-markets to improve client
satisfaction
 Emphasize high growth verticals
 Aviation, Healthcare, Tech
 Optimize account and labor management in
order to realize long term cost savings
 Costs, Benefits, and Initiatives
 $45-60M pre-tax outlay expected to be fully
incurred by Q3 2016
 Generation of $40-50M run-rate EBITDA by
second half of F2017
 Authorization of $200M share repurchase
Phase I
2015 - 2016
Phase II
2016- 2017
Phase III
2017- 2020+
KeyInitiativesGoals
 Realign
Organization
 Leverage Shared
services and
procurement
 Pursue strategic
alternatives for
Security
 Invest in key
capabilities
 Develop vertical
acceleration plans
 Develop account
planning and labor
management
programs
 Vertical business
plans well
underway
 Higher
penetration of
high margin
technical services
across the
enterprise
 Position company
for focused growth
 Create foundation
for a more efficient
organization
 Provide
management with
best in class tools
 Improve margin
profile
 Achieve vertical
growth trajectory
 Accelerate margin
growth
Janitorial
Security
Parking
Building & Energy
2020 VISION: A SUSTAINABLE MODEL FOR GROWTH
Investment Thesis │

10. With a lower
than average
operating
margin there
is more
growth
opportunities
Evaluation of
current
operating
segments to
determine
which should
garner more
focus
10
Operating Margin by Segment
Janitorial
Facility
Services
Parking Security
Building &
Energy
Solutions
Other
4.9% 4.1% 4.8% 3.0% 5.4% 4.0%
 Current operating margins are among
the lowest in the industry providing
margin expansion opportunities
 Minimize unprofitable
segments and focus growth on
higher margin segments
 Invest in technology to enhance
product offerings and manage
operational expenses
 Parking and Building & Energy
Solutions are heavily reliant on
technological advancements
 Continual alignment of infrastructure
between segments to increase margins
and realize increased synergies from
future acquisitions
 Move towards a focus on industry
verticals to provide the opportunity of
cross-selling products
 Sell-off low margin segments to a
bigger player to allow for more cash
flow and focus on ABM’s successful
pieces
0.0% 10.0% 20.0%
ServiceMaster Hldgs.
Rollins Inc.
CBRE Group, Inc.
SP Plus Corporation
Aramark
MITIE Group
Healthcare Services Group
EMCOR Group
ABM Industries
Operating Margins
EBIT EBITDA
ORGANIC GROWTH WILL BE DRIVEN BY MARGIN EXPANSION
Investment Thesis │

11. Janitorial Facility Parking Healthcare
11
B & E
BOLT-ON STRATEGY WILL DEVELOP A MORE DIVERSE COMPANY
Investment Thesis │

12. 12
Tier 1
Tier 2
Healthcare Services Group is an American based
company focused on primary care for hospitals and
senior living facilities. In the senior living facilities
they provide facility management, housekeeping &
laundry services as well as dining & nutrition
services. In hospitals HSG focuses on the
environmental services and dining & nutrition
services. Healthcare, one of the targeted growth
segments for ABM’s 2020 plan, would help to expand
a key segment for ABM.
Coverall provides both janitorial and service
maintenance to a variety of verticals. They focus
specifically on office facilities, healthcare, fitness
centers and gyms, retail and restaurant and more. The
growth potential with Coverall and ABM is going to
be in the verticals that ABM is has not yet penetrated.
Both fitness centers and retail/restaurants are gigantic
markets that ABM does not currently cover.
Expanding into these markets with ABM’s current
service offering may provide extreme revenue
growth.
SP+ Corporation provides professional parking,
ground transportation, facility maintenance, security,
and event logistics to a wide range of markets. It is
rated among the highest in quality of business in their
industry, and their management team is rated above
average in relation to their industry. The current focus
of the management team is reaching into
underpenetrated markets with an expectation of 5-7%
growth in gross profit. This business will provide an
increase in ABM’s existing operating margins.
Ameresco, Inc. provides comprehensive energy
efficiency and renewable energy solutions for facilities
throughout North America and the UK. Its $301
million market cap makes the acquisition feasible for
ABM, and its core competency aligns well with
ABM’s recent initiatives in the Building & Energy
sector. Amersco’s founder, a visionary, built a
product-neutral business model that goes beyond
conservation and tackles the entire energy stream for
its clients.
ABM has
voiced interest
in focusing
growth efforts
on Aviation,
Healthcare, and
Tech sectors
These suggested
acquisitions
will help
achieve higher
overall
operating
margins
BOLT-ON STRATEGY WILL DEVELOP A MORE DIVERSE COMPANY
Investment Thesis │

13. 13
Experienced
management
team with an
acquisition
heavy
background
Management
team has
experience
working with
merger and
acquisitions
Board of Directors & C-Suite
Maryellen C. Herringer
 Non-Executive Chairman of the
Board, ABM Industries
Incorporated
Linda Chavez
 President, Becoming American
Institute
J. Philip Ferguson
 Former Vice Chairman,
University of Texas Investment
Management Company
Anthony G. Fernandes
 Former Chairman, Chief
Executive Office and President of
Philip Services Company
Luke S. Helms
 Managing Director, Sonata
Capital Group
Sudhakar Kesvan
 Chairman and Chief Executive
Officer, ICF International
Scott Salmirs
 President and CEO, ABM
Industries Incorporated
William W. Steele
 Former President and Chief
Executive Officer, ABM
Industries
ABM MANAGEMENT TEAM
Wendy M. Webb
 Chief Executive Officer, Kestrel
Corporate Advisors
Investment Thesis │

14. 14
There are many
large strategic
buyers that are
growing into
the facility
management
space.
With facility
management
being a very
consistent cash
flow company
there are many
funds with
similar
companies in
their portfolio.
Strategic Buyers
Financial Buyers
TPG Capital is an
American private equity
firm that focuses on
larger deal sizes in C&R,
Industrials, technology
and health care. In 2014
TPG bought DTZ a
facility company for 1.142
billion at a 10.7x and have
since bought Cushman &
Wakefield to roll up the
two companies.
Apollo Global
Management is an
American based private
equity firm that has made
a name for itself doing
premier transactions. In
early 2015 Apollo bought
protection 1, Inc. A
facility company for 1.5
billion as well as ASG
Security to use as a roll
up.
Revenue: $14,731 M
EBITDA: $1,170 M
Revenue: $39,409 M
EBITDA: $3,354 M
Aramark is an American
based food service
company focusing on
facility care as well as
healthcare service
provisions. Aramark has
had a strong history of
acquisitions, most recently
purchasing Lotus Facilities
Management for
additional market share.
Johnson Controls is a
Fortune 500 diversified
conglomerate. Its
products include
automobile interior
design, car seats,
batteries, climate control
or facility management.
Recently news has
circulated for a potential
acquisition of EnerSys,
Inc.
Total Assets under
Management: $163 B
Total Assets Under
Management: $74.3 B
EXIT OPPORTUNITIES
Investment Thesis │

15. $24.00 $26.00 $28.00 $30.00 $32.00 $34.00 $36.00 $38.00 $40.00
Leveraged Buyout
Precedent Transactions
Comparable Companies
Discounted Cash Flow
($ in millions)
15
EBITDA:
Adjusted LTM
EBITDA
$194.60
We are
suggesting a
price range of
$28.50 - $31.00
per share
VALUATION BREAKDOWN
Valuation │
DCF Comps Precedents LBO Recommended Valuation Range
$33.06 - $38.23 $29.43 - $32.81 $31.46 - $34.84 $29.43 - $32.81 $31.00 - $33.50
Implied Share Price
Discounted Cash Flow:
Implied EV/EBITDA of 11.0x – 12.5x
Precedent Transactions:
Implied EV/EBITDA of 10.6x – 11.6x
Leveraged Buyout
Implied EV/EBITDA of 10.0x – 11.0x
Comparable Companies:
Implied EV/EBITDA of 10.0x - 11.0x

16. 16
DISCOUNTED CASH FLOWS
2013A 2014A LTM 2016E 2017E 2018E 2019E 2020E CAGR:
Revenues 4,809.28$ 5,032.80$ 5,207.20$ 5,472.77$ 5,746.41$ 6,033.73$ 6,305.24$ 6,588.98$ 4.82%
% Growth 4.4% 4.8% 5.1% 5.0% 5.0% 4.5% 4.5%
Cost of Goods Sold 4,281.59 4,483.00 4,625.70 4,854.34 5,091.32 5,345.88 5,583.29 5,831.25
% Margin 89.0% 89.1% 88.8% 88.7% 88.6% 88.6% 88.6% 88.5%
Gross Profit 527.69 549.80 581.50 618.42 655.09 687.84 721.95 757.73
% Margin 11.0% 10.9% 11.2% 11.3% 11.4% 11.4% 11.5% 11.5%
Selling, General & Administrative 342.17 359.30 386.90 400.93 420.98 442.02 461.91 482.70
% Margin 7.1% 7.1% 7.4% 7.3% 7.3% 7.3% 7.3% 7.3%
EBITDA 185.52 190.50 194.60 217.49 234.12 245.82 260.04 275.03
% Margin 3.9% 3.8% 3.7% 4.0% 4.1% 4.1% 4.1% 4.2%
Less: Depreciation & Amortization (60.39) (57.30) (58.00) (59.11) (60.34) (60.34) (61.79) (64.57)
EBIT 125.13 133.20 136.60 158.39 173.78 185.48 198.24 210.46
% Margin 2.6% 2.6% 2.6% 2.9% 3.0% 3.1% 3.1% 3.2%
Less: Taxes (43.79) (46.62) (47.81) (55.44) (60.82) (64.92) (69.39) (73.66)
Tax Rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
EBIAT 81.33 86.58 88.79 102.95 112.96 120.56 128.86 136.80
% Margin 1.7% 1.7% 1.7% 1.9% 2.0% 2.0% 2.0% 2.1%
plus: Depreciation & Amortization 60.39 57.30 58.00 59.11 60.34 60.34 61.79 64.57
less: Capital Expenditures (32.59) (37.40) (30.00) (41.59) (43.67) (45.86) (47.92) (50.08)
less: (inc)/dec. in net working capital (65.11) (42.49) (27.10) (16.85) (16.40) (19.19) (20.05) (20.96)
Unlevered Free Cash Flow 44.02$ 63.99$ 89.69$ 103.61$ 113.22$ 115.85$ 122.68$ 130.34$
Present Value 95.14$ 97.10$ 92.80$ 91.78$ 91.08$
Sum PV of FCFs 467.90$
Enterprise Value 2,293.70$
Implied Equity Value 2,039.80$
Actual FYE December 31st Projected LTM December 31st
Valuation │

17. 17
COMPARABLE COMPANIES ANALYSIS
($ in millions)
Company Ticker
Closing
Price
% of 52-
week
High
LTM
P/E
Market
Cap.
Enterprise
Value LTM 2014A 2015E LTM 2014A 2015E LTM 2014A 2015E EBITDA EBIT
Aramark ARMK $30.72 90.9% 34.3x $8,158 $13,668 0.9x 0.8x 0.9x - 10.6x 10.3x - 5.0x 4.5x - -
EMCOR Group EME 45.68 93.4% 17.5x 2,838 2,800 0.4x 0.4x 0.4x 7.8x 7.4x 7.6x 0.9x 0.9x 0.9x 5.5% 4.4%
ServiceMaster Global Hldg. SERV 33.03 84.9% 34.5x 4,564 7,018 2.8x 2.5x 2.7x 15.0x 15.5x 11.4x 6.1x 7.6x 4.6x 18.5% 14.6%
SP Plus SP 24.48 89.3% 22.6x 549 785 0.5x 0.5x 0.9x 9.9x 10.7x 9.1x 3.3x 3.4x 3.0x 5.1% 3.0%
Comfort Systems USA FIX 30.49 98.7% 30.1x 1,101 1,098 0.7x 0.5x 0.7x 12.4x 11.5x 11.4x 0.2x 0.6x 0.2x 5.9% 4.3%
MITIE Group MTO 4.97 - - 1,125 1,312 0.6x 0.5x 0.6x 15.2x 13.9x 8.5x 3.3x 3.3x 1.8x 3.8% 2.3%
Spotless Group SPO 2.10 83.5% 17.1x 1,772 2,205 1.0x 1.0x 0.9x 9.6x 9.1x 8.5x 2.1x 2.1x 1.9x 10.9% 8.2%
Programmed Main. Services PRG 2.56 - 11.6x 455 460 0.2x 0.2x 0.2x 5.8x 5.6x 4.6x 1.0x 1.0x 0.8x 3.7% 2.9%
ABM Industries ABM $28.56 84.0% 25.1x $1,602 $1,856 0.4x 0.4x 0.4x 12.9x 9.8x 8.8x 2.1x 1.7x 1.5x 2.8% 1.6%
High $45.68 98.7% 34.5x $8,158 $13,668 2.8x 2.5x 2.7x 15.2x 15.5x 11.4x 6.1x 7.6x 4.6x 18.5% 14.6%
Low 2.10 83.5% 11.6x 455 460 0.2x 0.2x 0.2x 5.8x 5.6x 4.6x 0.2x 0.6x 0.2x 3.7% 2.3%
Mean 21.75 90.1% 24.0x 2,570 3,668 0.9x 0.8x 0.9x 10.8x 10.5x 8.9x 2.4x 3.0x 2.2x 7.6% 5.7%
Median 27.49 90.1% 22.6x 1,448 1,758 0.7x 0.5x 0.8x 9.9x 10.7x 8.8x 2.1x 2.7x 1.9x 5.5% 4.3%
EBITDA Metric
Net
Debt
LTM Adjusted $194.60 10.0x - 11.0x $1,946 - $2,141 $254 $1,692 - $1,887 $29.43 - $32.81
2014A $190.50 10.5x - 11.0x 2,000 - 2,096 254 1,746 - 1,842 30.37 - 32.03
2015E $200.00 9.0x - 10.0x 1,800 - 2,000 254 1,546 - 1,746 26.89 - 30.37
57.5
57.5
57.5
EV/Sales EV/EBITDA Total Debt / EBITDA Margin (LTM)
Multiple Range Implied Enterprise Value Implied Equity Value
Shares
Oustanding Implied Share Price
Valuation │

18. 18
PRECEDENT TRANSACTIONS ANALYSIS
($ in millions) Enterprise Value/
Date
Announced Acquirer Target Consideration
Enterprise
Value
LTM
Sales
LTM
EBITDA
Jun-15 Wendel Group AlliedBarton Security Cash & Stock 1,670.00 0.8x 11.3x
May-15 DTZ Cushman & Wakefield Not Disclosed 2,000.00 1.0x 11.6x
Mar-15 CBRE Group Global WorkPlace Solutions Cash 1,475.00 0.4x 11.7x
Jun-14 DTZ PTG Capital Cash 1,142.20 0.6x 10.7x
Aug-13 Standard Register Company WorkflowOne LLC 339.10 0.7x 9.3x
Nov-12 ABM Industries Air Serv Corporation Cash 162.90 0.5x 13.1x
Nov-11 Birch Hill Equity Partners Management Distinction Group, Inc. Cash 150.00 0.5x 8.8x
Oct-11 Sealed Air Corporation Diversey Holdings, Inc. 4,576.30 1.4x 12.1x
High 1.4x 13.1x
Low 0.4x 8.8x
Median 0.6x 11.5x
Mean 0.6x 11.1x
LTM EBITDA Multiple Range Implied Enterprise Value Net Debt Shares
$194.60 10.6x - 11.6x $2,063 - $2,257 $254.00 $1,808.76 - $2,003.36 57.5 $31.46 - $34.84
Implied Equity Value Implied Share Price
Valuation │

19. 19
LEVERAGED BUYOUT ANALYSIS
Valuation │
9.5x 10.0x 10.5x 11.0x 11.5x
9.5x 20% 21% 23% 25% 26%
10.0x 18% 19% 21% 23% 24%
10.5x 16% 17% 19% 21% 22%
11.0x 14% 15% 17% 19% 20%
11.5x 12% 13% 15% 17% 18%
Exit Multiple
EntranceMultiple
IRR Sensitivity AnalysisLTM EBITDA Adjusted
194.60$
10.0x - 11.0x
1,946.00$ - 2,140.60$
Implied Equity Value
1,692.10$ - 1,886.70$
Share Price
29.43$ - 32.81$
Valuation Range
Entry Multiple Range
Implied Enterprise Value
Purchase Price
Enterprise Value 2,043.30$
Less: Existing Net Debt 305.10
Plus: Cash and Cash Equivalents 51.20
Equity Purchase Value 1,789.40$
Return Analysis
Exit Year 2020
Entry Multiple 10.5x
Exit Multiple 10.5x
IRR 19%
Cash Return 2.4x
Sources of Funds Amount % of Total Sources
Revolving Credit Facility - 0.0%
Term Loan B 584.42 27.5%
Senior Notes 639.47 30.1%
Equity Contribution 850.06 40.0%
Cash on Hand 51.20 2.4%
Total Sources 2,125.15$ 100.0%
Uses of Funds Amount % of Total Sources
Equity Purchase Price 1,789.40 84.2%
Repay Existing Bank Debt 305.10 14.4%
Fees and Expenses 30.65 1.4%
Total Uses 2,125.15$ 100.0%

20. 20
APPENDIX

21.  High office vacancy rates could diminish
need or desire for facility management
and janitorial services
 Decreases in office rent which could
harm ABM profit margins
 Execution of 2020 restructuring plan is
integral to the growth of ABM and poor
implementation could hurt margins
 Integration of latest acquisitions may
impede 2020 plan progress or disrupt
realization of synergies
21
POTENTIAL RISKS
2020 Plan
allows for
reduced risk
with
optimistic
projections
ABM is
directly
influenced by
both the rent
and vacancy of
office spaces
Mitigated Risk
 Lowered but apparent risk of
bankruptcy if levered too high without
sustainable cash flow plan
 High debt servicing costs if over-levered
 Diminished but apparent risk of
economic downturn affecting 2020 plan
implementation
Cost-Reduction Risk
 Potential for security divestiture
removing significant revenue stream
from core businesses
Operational/Market Risk
Vacancy Rates – By Largest Metropolitan City
2020 Plan Key Priorities
0. 5. 10. 15. 20.
Manhattan
San Jose
Houston
Washington D.C.
Orange County
Boston
Portland
Baltimore
New Jersey
Chicago
Philadelphia
Miami
Vacancy by %
Profitable
Growth
Organizational
Realignment
Cost
Optimization
Capital
Allocation
Focus
Direct focus
on industries
and solutions
where ABM
can
distinguish
itself
Organize
around target
industries by
moving to an
integrated
end-market
vertical focus
Leverage
scale to
manage costs
and allow for
increase
margins
Efficiently
return capital
to
shareholders
and bolster
investor
confidence
Appendix │

22. Facility/Janitorial Services
 Dominant market position
 Established industry presence and strong brand reputation
 Contracts within key markets, strong supplier relationships
 Ability to expand both organically and inorganically
 Access to niche markets
 Experienced management team
 Revenue trends continue to exceed expectations with over 85% of
companies beating their projections
 Revenue from existing accounts continue to hold very steady
 M&A trends continue to stay minimal with little consolidation over
the past 4 years
Key Factors of Success
Industry Trends
 Revenue: $31 billion
 ABM Revenue: $383 million (1.2% share)
 Top 3 Players control 25% market share
 Average Operating Margins – 4.5%
 High competition and globalization
Security Services
 Requirement-focused, customized solutions
 Competitive edge from cost leadership strategy
 Sophisticated electronic systems
 Comprehensive service offering
 Entry/exit protection, background checks and investigation,
crowd control, ushering, patrol, etc.
 Revenue growth expected to keep pace with US Economy
 Rapid incorporation of technology in security systems
 High cost of technology will sustain trend in consolidation
 Competition from high-tech systems is putting pressure on
labor-intensive security systems to grow and adapt
 Reduced reliance on manned guards will drive down wage costs
Key Factors of Success
Industry Trends
 Clean 1+ billion square feet of buildings
daily across multiple industries
 More than 50% of the Fortune 500 are ABM
clients
 ABM offers environmentally friendly
cleaning services to LEED Certified
buildings
 Maintain government facilities in 30
countries and over 20 military medical
facilities worldwide
 10.4% stock growth 6/30/14 - 6/30/15
22
Middle-market
company
focused on
steady growth
and expansion
Highly
developed
supplier and
dealer
networks, and
strong brand
recognition
INDUSTRY OVERVIEW
Appendix │

23. ABM
Healthcare
Support
Services is a
fully
integrated
service
provider
ABM provides
parking
services for
many of our
different
product
groups
allowing for
cross selling
 ABM Healthcare Support Services works to
provide everything from gurney
transportation to dietary plans for
hospitals across the country
 ABM Healthcare has seen a 24% sales
increase in 2014 making it the fastest
growing portion of ABM
 ABM Healthcare is focused around the
acquisition they made in 2012 of HHA
Services for $33.7 million
 ABM currently services over 300 hospitals
as well as over 700 medical facilities
Healthcare Services
 Ability to provide a full suite of products allowing the hospital to
use the company as a one stop shop
 Strong reputation and market brand
 Continued development of new products
 Highly rated customer satisfaction as many of the services have
direct client interaction and reflect on the hospital.
 Key connections with the hospital management teams
 With the APA healthcare act the number of patients at hospitals
has been steadily rising increasing hospital spending
 Hospitals have been looking for ways to cut costs after the APA
act increased operational expenses for many companies
 M&A trends in Healthcare have been steadily increasing
Key Factors of Success
Industry Trends
Parking Services Key Factors of Success
Industry Trends
 Three types of arrangements for parking
services: managed locations, leased
locations and allowance locations
 Provide valet/shuttle services, revenue
generating parking solutions and electronic
vehicle charging stations
 Largest competitors: LAZ Parking LLC and
SP Plus Corporation
 Companies compete at local, regional and
national levels
 Current Revenue: $616 million
 Park 22.8+ million cars annually at
hospitals across the country
 Increase in strategic use of technology: mobile parking app
 Efficiency for parking lot users – especially stadiums/arenas
 Honored by JFK, EWR and LGA airports for best performance
 Most revenue coming from managed locations which is the most
profitable type of service
 CAGR between 2013 and 2018 of 12.1%
 High growth rate in number of vehicles registered worldwide –
causing higher demand for parking management systems
 Smart City trends causing demand for more efficient parking
arrangements
23
INDUSTRY OVERVIEW (Cont.)
Appendix │

24. WACC sensitized
6%-8%
Exit Multiple
sensitized 8.5x to
10.5x
24
DISCOUNTED CASH FLOWS (Cont.)
2,294 8.5x 9.0x 9.5x 10.0x 10.5x
6.0% $2,204.91 $2,306.19 $2,407.46 $2,508.73 $2,610.01
6.5% $2,155.59 $2,254.40 $2,353.20 $2,452.00 $2,550.80
7.1% $2,101.99 $2,198.11 $2,294.23 $2,390.35 $2,486.47
7.5% $2,061.05 $2,155.12 $2,249.19 $2,343.26 $2,437.33
8.0% $2,015.73 $2,107.54 $2,199.35 $2,291.16 $2,382.96
2,039.8001398694 8.5x 9.0x 9.5x 10.0x 10.5x
6.0% $1,951.01 $2,052.29 $2,153.56 $2,254.83 $2,356.11
6.5% $1,901.69 $2,000.50 $2,099.30 $2,198.10 $2,296.90
7.1% $1,848.09 $1,944.21 $2,040.33 $2,136.45 $2,232.57
7.5% $1,807.15 $1,901.22 $1,995.29 $2,089.36 $2,183.43
8.0% $1,761.83 $1,853.64 $1,945.45 $2,037.26 $2,129.06
12 8.5x 9.0x 9.5x 10.0x 10.5x
6.0% 11.3x 11.9x 12.4x 12.9x 13.4x
6.5% 11.1x 11.6x 12.1x 12.6x 13.1x
7.1% 10.8x 11.3x 11.8x 12.3x 12.8x
7.5% 10.6x 11.1x 11.6x 12.0x 12.5x
8.0% 10.4x 10.8x 11.3x 11.8x 12.2x
Enterprise Value
Exit Multiple
Exit Multiple
Implied Equity Value
Implied EBITDA Multiple
Exit Multiple
WACCWACCWACCWACC
Final year EBITDA 275
Exit Multiple 9.5x
Terminal Value 2,613
Discount Rate 7.07%
Present Value 1,826
Enterprise Value 2,293.70$
Exit Multiple Method
Terminal Value
Final year FCF 130
Growth Rate 2.5%
Discount Rate 7.07%
Terminal Value 2,926
Present Value 2,080
Enterprise Value 2,548.09$
Perpetuity Growth Method
Enterprise Value 2,294
Less: Debt (305)
Less: Minority Interest 0
Less: Preferred Equity 0
Plus: Cash & Equivalents 51.2
Implied Equity Value 2,039.80$
Implied Equity Value
Appendix │

25. 25
LBO DEBT SCHEDULE & CASH FLOW STATEMENT
Appendix │
Revolving Credit Facility
Terms:
Size -$
Spread 2.50%
LIBOR Floor 1.00%
Term 6 Renewable
Commitment Fee on Unused 0.50%
Beginning Balance -$ -$ -$ -$ -$
Drawdown/(Repayment) - - - - -
Ending Balance -$ -$ -$ -$ -$
Interest Rate 3.50% 3.50% 3.50% 4.16% 3.86%
Interest Expense -$ -$ -$ -$ -$
Commitment Fee -$ -$ -$ -$ -$
Available Excess Cash 52.00$ 62.54$ 69.38$ 79.14$ 90.56$
Term Loan B
Terms:
Size 584.42$
Spread 4.25%
LIBOR Floor 1.00%
Term 6 Years
Repayment Schedule 0.00%
Beginning Balance 584.42$ 532.42$ 469.88$ 400.50$ 321.36$
Mandatory Repayments - - - - -
Optional Repayments 52.00 62.54 69.38 79.14 90.56
Ending Balance 532.42$ 469.88$ 400.50$ 321.36$ 230.80$
Interest Rate 5.25% 5.25% 5.25% 5.91% 5.61%
Interest Expense 29.32$ 26.31$ 22.85$ 21.31$ 15.49$
Available Excess Cash -$ -$ -$ -$ -$
Senior Notes
Terms:
Size 639.47$
Coupon 7.00%
Term 8
Beginning Balance 639.47$ 639.47$ 639.47$ 639.47$ 639.47$
Repayment - - - - -
Ending Balance 639.47$ 639.47$ 639.47$ 639.47$ 639.47$
Interest Expense 44.76$ 44.76$ 44.76$ 44.76$ 44.76$
($ in millions)
Statement of Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5
2016 2017 2018 2019 2020
Operating Activities
Net Income 54.80$ 66.76$ 76.62$ 85.91$ 97.64$
Plus: Depreciation and Amortization 59.11 60.34 60.34 61.79 64.57
Changes In Working Capital
(Inc.)/Dec. in Accounts Receivable (39.94) (41.16) (43.22) (40.84) (42.68)
(Inc.)/Dec. in Prepaids & Other Current Assets (8.43) (8.68) (9.12) (8.61) (9.00)
Inc./(Dec.) in Accounts Payable 8.25 8.56 9.19 8.57 8.95
Inc./(Dec.) in Income Tax Payable - - - - -
Inc./(Dec.) in Accrued Liabilities 6.77 6.97 7.32 6.92 7.23
Inc./(Dec.) in Other Current Liabilities 13.03 13.43 14.10 13.32 13.92
(Inc.)/Dec. in Net Working Capital (20.32) (20.88) (21.72) (20.64) (21.57)
Cash Flow From Operating Activities 93.59$ 106.21$ 115.23$ 127.06$ 140.64$
Investing Activities
Capital Expenditures (41.59)$ (43.67)$ (45.86)$ (47.92)$ (50.08)$
Cash Flow from Investing Activities (41.59)$ (43.67)$ (45.86)$ (47.92)$ (50.08)$
Cash For Financing Activities 52.00$ 62.54$ 69.38$ 79.14$ 90.56$
Financing Activities
Revolving Credit Facility - - - - -
Term Loan A - - - - -
Term Loan B 52.00 62.54 69.38 79.14 90.56
Senior Notes - - - - -
Senior Subordinated Notes - - - - -
Cash Flow from Financing Activities (52.00)$ (62.54)$ (69.38)$ (79.14)$ (90.56)$
Beginning Cash Balance 0.00$ 0.00$ 0.00$ 0.00$
Net Change 0.00 0.00 0.00 0.00 0.00
Ending Cash Balance 0.00$ 0.00$ 0.00$ 0.00$ 0.00$
Assumptions
Capital Expenditures (% of Sales) 0.76% 0.76% 0.76% 0.76% 0.76%