ANUARY 2018 UPDATE - Bowstring Advisors · Charlotte, NC and maintains offices in both Fort...
8
1 J ANUARY 2018 UPDATE I NSIDE THIS ISSUE: The First Word: 2017 in Review, 2018 Outlook 2017 was another incredibly strong year for middle market M&A. Continued activity by private equity combined with low interest rates and good business results make a perfect combination. Average valuations remain very high as well. The big question is will it last? Our take at CHILDS is that the growth of private equity activity is the “new normal.” As shown below, the number of public companies has decreased nearly 50% since 2000 while the number of PE-backed companies has risen dramatically. In effect, institutional capital has gone from IPOs to private equity for the middle market over the past 20 years. While the growth in PE-backed companies has been noteworthy, various estimates put PE ownership of middle market businesses at less than 10%. Thus, there appears to be significant opportunity to support the sustainability of this dynamic. Accordingly, with increased demand and a relatively stable supply, it is natural that valuations for middle market businesses will increase and stay higher. The other dynamic causing an increase in lower mid-market M&A is that PE-backed companies often employ consolidation strategies. Thus, add-on acquisitions also help fuel the increase in M&A, particularly for businesses less than $100 million in enterprise value. The only constraint we see for the M&A market is the economic cycle, which is the wildcard. Public equity markets have been on an impressive run with no obvious signs of slowing. However, this current expansion cycle is entering its tenth year, the third longest period of expansion in the last 100 years. Opinions vary widely as to the timing and probability of an economic downturn. Our mindset is that 2018 should continue to be very favorable for M&A. As for our firm, we had another record year in 2017 and continued to build our team. We moved offices in both Atlanta and Southern California to accommodate growth. Our 9th annual conference, CHILDSConnect, will be on May 10th in Atlanta at the St. Regis in Buckhead. Last year the conference almost doubled in size with over 400 owners, executives, and investors interested in middle market growth opportunities in attendance. I hope to see you all there! Jim Childs CEO CHILDS Advisory Partners The First Word 1 CHILDSConnect Invitation 2 About CHILDS 3 Recent CHILDS Transactions 4 Market Update 5 CHILDS Deal Spotlights 6 CHILDS CELEBRATES OFFICE RELOCATIONS IN ATLANTA & LOS ANGELES CHILDS Advisory Partners has officially relocated its headquarters in Atlanta and its office in Los Angeles to accommodate the firm's growth. "We are excited about our recent expansion and the move to our new Atlanta headquarters and Los Angeles location," commented Jim Childs, CEO and Founder of CHILDS. "This is just one more milestone toward our goal of being the leading middle market investment bank in the country. With over 45 professionals across our three locations in Atlanta, Los Angeles and Boston, we are well positioned to serve our clients and look forward to hosting them in our new offices." ATLANTA OFFICE (HEADQUARTERS) THREE ALLIANCE CENTER 3550 LENOX ROAD, SUITE 1200 ATLANTA, GA 30326 PHONE: 404.461.4600 LOS ANGELES OFFICE CROWN CABOT FINANCIAL CENTER 28202 CABOT ROAD, SUITE 300 LAGUNA NIGUEL, CA 92677 PHONE: 949.596.9112 BOSTON OFFICE 275 GROVE STREET BLDG 2, SUITE 400 NEWTON, MA 02466 PHONE: 617.663.5508 WWW.CHILDSADVISORYPARTNERS.COM - 2,000 4,000 6,000 8,000 U.S. Public Companies U.S. PE-Backed Companies *Sources: The World Bank; Pitchbook; Capital IQ
Transcript of ANUARY 2018 UPDATE - Bowstring Advisors · Charlotte, NC and maintains offices in both Fort...
1
JANUARY 2018 UPDATE
INSIDE THIS ISSUE:The First Word: 2017 in Review, 2018 Outlook
2017 was another incredibly strong year for middle market M&A. Continued activity byprivate equity combined with low interest rates and good business results make a perfectcombination. Average valuations remain very high as well. The big question is will it last?
Our take at CHILDS is that the growth of private equity activity is the “new normal.” As shownbelow, the number of public companies has decreased nearly 50% since 2000 while thenumber of PE-backed companies has risen dramatically. In effect, institutional capital hasgone from IPOs to private equity for the middle market over the past 20 years.
While the growth in PE-backed companies has been noteworthy, various estimates put PEownership of middle market businesses at less than 10%. Thus, there appears to be significantopportunity to support the sustainability of this dynamic. Accordingly, with increased demandand a relatively stable supply, it is natural that valuations for middle market businesses willincrease and stay higher.
The other dynamic causing an increase in lower mid-market M&A is that PE-backedcompanies often employ consolidation strategies. Thus, add-on acquisitions also help fuel theincrease in M&A, particularly for businesses less than $100 million in enterprise value.
The only constraint we see for the M&A market is the economic cycle, which is the wildcard.Public equity markets have been on an impressive run with no obvious signs of slowing.However, this current expansion cycle is entering its tenth year, the third longest period ofexpansion in the last 100 years. Opinions vary widely as to the timing and probability of aneconomic downturn. Our mindset is that 2018 should continue to be very favorable for M&A.
As for our firm, we had another record year in 2017 and continued to build our team. Wemoved offices in both Atlanta and Southern California to accommodate growth. Our 9thannual conference, CHILDSConnect, will be on May 10th in Atlanta at the St. Regis inBuckhead. Last year the conference almost doubled in size with over 400 owners, executives,and investors interested in middle market growth opportunities in attendance. I hope to seeyou all there!
Jim ChildsCEOCHILDS Advisory Partners
The First Word 1
CHILDSConnect Invitation 2
About CHILDS 3
Recent CHILDS Transactions 4
Market Update 5
CHILDS Deal Spotlights 6
CHILDS CELEBRATES OFFICE
RELOCATIONS IN ATLANTA & LOS ANGELES
CHILDS Advisory Partners has officiallyrelocated its headquarters in Atlanta and itsoffice in Los Angeles to accommodate thefirm's growth.
"We are excited about our recent expansionand the move to our new Atlanta headquartersand Los Angeles location," commented JimChilds, CEO and Founder of CHILDS. "This isjust one more milestone toward our goal ofbeing the leading middle market investmentbank in the country. With over 45professionals across our three locations inAtlanta, Los Angeles and Boston, we are wellpositioned to serve our clients and lookforward to hosting them in our new offices."
ATLANTA OFFICE (HEADQUARTERS)THREE ALLIANCE CENTER
3550 LENOX ROAD, SUITE 1200ATLANTA, GA 30326PHONE: 404.461.4600
LOS ANGELES OFFICE
CROWN CABOT FINANCIAL CENTER
28202 CABOT ROAD, SUITE 300LAGUNA NIGUEL, CA 92677PHONE: 949.596.9112
BOSTON OFFICE
275 GROVE STREET
BLDG 2, SUITE 400NEWTON, MA 02466PHONE: 617.663.5508
WWW.CHILDSADVISORYPARTNERS.COM
-
2,000
4,000
6,000
8,000
U.S. Public Companies U.S. PE-Backed Companies*Sources: The World Bank; Pitchbook; Capital IQ
YOU’RE INVITED - REGISTER TODAY!
“As a past client of CHILDS, I knew the conference would be great. CHILDSConnect provides a very efficient way to meet people and network while still giving attendees valuable and relevant content.”Dan Campbell, CEO at Hire Dynamics
“CHILDSConnect is a staple on my annual calendar and has proven to be a great place to meet middle market executives/owners. It is one of the only conferences I’ve been to with a professional yet casual vibe creating the perfect environment for relationship building.”
Sean Barrette, Partner at L Squared Capital Partners
“Outside of the excellent networking opportunities at CHILDSConnect, I found the roundtable discussions to be incredibly valuable. I walked away energized with new ideas within my industry of interest.”
Mark Perlstein, President & CEO at Datavail Corporation
www.childsadvisorypartners.com/childsconnect • 404-461-4600
THURSDAY, MAY 10TH, 201811:30 a.m. - 5:30 p.m. • St Regis Atlanta
Cocktail Reception to Follow
REGISTER ONLINE BY APRIL 26TH
www.childsadvisorypartners.com/childsconnect
3
OUR TEAM
SECTOR FOCUS AREAS
QUICK FACTS
ABOUT CHILDS ADVISORY PARTNERS
CHILDS Advisory Partners provides investment banking services to middle market business services, healthcare and technology companies.CHILDS' combination of sector focus, process excellence and a deep, experienced team drives the delivery of superior client outcomes. With 45professionals, CHILDS is one of the fastest growing M&A advisors in the U.S. and was named the 2016 Boutique Investment Bank of the Year byThe M&A Advisor. CHILDS is a member of FINRA and SIPC and is a registered broker‐dealer.
▪ 45 professionals across three offices in U.S. with headquarters in Atlanta
▪ 83 transactions closed since 2014
▪ Sponsor coverage provides access to private equity investors and family offices
▪ International alliances provide global buyer coverage
▪ Named 2016 U.S. Boutique Investment Bank of the Year by The M&A Advisor
INDUSTRIAL
SERVICESTECHNOLOGY
HUMAN CAPITAL
MANAGEMENT
IT & PROFESSIONAL
SERVICES
BUSINESS SERVICES
SERVICES SOFTWARE
HEALTHCARE TECHNOLOGY
Ravi Bhagavan Managing Director
Technology(949) 596-9111
Alan Bugler Managing DirectorBusiness Services(404) 461-4604
Jim ChildsCEO
(404) [email protected]
Ross DeDeynManaging Director
Healthcare(404) 461-4618
Tom DonahueManaging Director
Technology(617) 663-5508
Don HolbrookManaging Director
Technology(949) 596-9112
Cooper MillsManaging DirectorBusiness Services(404) 461-4603
Dave PhillipsManaging DirectorBusiness Services(904) 292-9305
Scott RhodesManaging Director
Technology(404) 461-4621
Jason WallaceManaging DirectorBusiness Services(404) 461-4620
SERVICE OFFERINGS
Capital Raises
Mergers & Acquisitions
Financial & Strategic Advisory
January 2018 Update
4
January 2018 Update
Note: CHILDS represented company listed on top half of tombstone4
RECENT CHILDS’ TRANSACTIONS
a portfolio company of
has been acquired by
September 2016
has recapitalized
December 2016
a portfolio company of
has been acquired by
April 2017
has been recapitalized by
March 2017
has been acquired by
April 2017
a portfolio company of
March 2017
has acquired has acquired
December 2016
has been acquired by
January 2017
a portfolio company of
has been recapitalized by
January 2017
has received an investment from
December 2016
has been recapitalized by
November 2016
a portfolio company of
has acquired
August 2016
has been recapitalized by
September 2016
has been recapitalized by
August 2016
Global Private Equity
has been recapitalized by
July 2016
has been recapitalized by
April 2016
has been acquired by
May 2017
has been acquired by
July 2017
has acquired
June 2017
has been acquired by
August 2017
has been acquired by
December 2017
a portfolio company of
December 2017
has been recapitalized by
has been acquired by
December 2017
a portfolio company of
has been recapitalized by
November 2017
has been recapitalized by
November 2017
has been recapitalized by
November 2017
has been acquired by
October 2017
has been acquired by
October 2017
a portfolio company of
has been recapitalized by
March 2016
has been recapitalized by
March 2016
a portfolio company of
5
LOWER MIDDLE MARKET M&A UPDATE
January 2018 Update
LOWER MIDDLE MARKET U.S. PRIVATE EQUITY DEAL FLOW
Source: Pitchbook
1,282 1,422 1,517 1,548
1,802 2,043
1,906 1,715
610
732
955 774
963
977 1,045
852 646
779
799 851
1,113
968 990
877
2,538
2,933
3,271 3,173
3,878 3,988 3,941
3,444
-
1,000
2,000
3,000
4,000
2010 2011 2012 2013 2014 2015 2016 2017
Nu
mb
er o
f T
ran
sact
ion
s
Under $25MM $25M - $100MM $100MM - $500MM
6,581 7,380
8,139 7,764
9,261 10,202
8,884
6,591
979
1,132
1,257 1,284
1,700
1,848
1,697
1,390 514
693
801 673
1,102
1,030
868
833 8,074
9,205
10,197 9,721
12,063
13,080
11,449
8,814
-
2,000
4,000
6,000
8,000
10,000
12,000
2010 2011 2012 2013 2014 2015 2016 2017
Nu
mb
er o
f T
ran
sact
ion
s
Under $100MM $100M - $250MM $250MM - $500MM
6
January 2018 Update
CHILDS Advisory Partners served as the exclusive financial advisor to DSG Consulting, Inc.(“DSG” or the “Company”), a leading provider of outsourced sales training and enablementservices to Fortune 500 and middle market companies in North America and Europe, in itsrecapitalization by private equity firm Stone-Goff Partners (“SGP”).
Founded in 1994, DSG enables salesforces to implement their company’s growth strategythrough customized sales enablement programs. Solution offerings include sales messagecreation, sales process design, sales coaching system development, in-person and virtualtraining, and ongoing reinforcement and content updates post-launch. The Company serves adiverse, blue-chip customer base across six core verticals including Technology, BusinessServices, Healthcare, Manufacturing, Telecommunications, and Financial Services.
“The CHILDS team provided invaluable guidance throughout the process, which resulted in thisexciting partnership with SGP,” said DSG President, Matt McClendon.
CHILDS Advisory Partners served as the exclusive financial advisor to A. Soriano Corp (“Anscor”)and Cirrus Medical Staffing (“Cirrus”), a leading provider of healthcare staffing solutions, in itssale of Cirrus to Webster Capital.
Formed in 2004, Cirrus Medical Staffing provides travel healthcare professionals to acute carehospitals and healthcare facilities, as well as home health settings, nationwide. Cirrus is based inCharlotte, NC and maintains offices in both Fort Lauderdale, Fl. and the Philippines. Cirrusfocuses on staffing high quality providers across a diverse set of specialties within the nurse andtravel segments.
“CHILDS provided superior advisory services to Cirrus throughout the transaction process,leveraging their experience and knowledge of the travel nursing sector and broader healthcarestaffing industry,” said William Ottiger, Senior Vice President at Anscor. “Additionally, CHILDS’diverse relationships within the buyer universe resulted in a great partnership between Cirrusand Webster Capital.”
CHILDS Advisory Partners served as the exclusive financial advisor to MC Sign (the “Company”),the leading nationwide provider of sign and lighting services, on the sale to Arcapita InvestmentManagement U.S., Inc. MC Sign was previously held by Caltius Equity Partners (“Caltius”) andCompany management.
Leveraging an industry-leading network of vendor-partners, MC Sign provides customers with acomprehensive suite of sign services including new installations, rebrandings, andrefurbishments, as well as on-demand sign maintenance and emergency repairs. MC Sign hasalso steadily grown its lighting services business which completes interior and exterior lightinginstallations and is currently capitalizing on the high-growth LED retrofit/conversion market inthe United States.
Michael Morgan, Managing Director at Caltius commented, “The CHILDS team did a fantastic jobmanaging the MC Sign process on behalf of Caltius and the Company. They demonstrated athorough understanding of the business and were thoughtful in helping us communicate theplatform opportunity that is well-positioned for continued growth, both organically and throughacquisitions.”
CHILDS’ BUSINESS SERVICES DEAL SPOTLIGHTS
7
CHILDS’ January 2018 Update
CHILDS Advisory Partners served as the exclusive financial advisor to Aegis Compliance & EthicsCenter, LLC, (“Aegis” or the “Company”), a pre-eminent US healthcare compliance services firmwidely recognized for providing leading industrywide compliance and privacy-related servicesand for its strength in the clinical research arena, in its strategic combination with AnkuraConsulting Group, LLC (“Ankura”).
Since 2002, Aegis has assisted over 300 organizations with compliance-related services, workedwith 20 percent of all US hospitals, and provided services to more than half of existing USmedical schools. In addition to the team's healthcare and clinical research compliance expertise,Aegis brings a range of cross-industry compliance-related capabilities covering the spectrum ofenterprise risk management, compliance and ethics, and monitoring and independent oversightservices. The team, combined with Ankura's existing healthcare compliance services led by F.Lisa Murtha, gives Ankura the market-leading team to assist healthcare clients.
Julie Colasacco of Aegis stated “We are all very excited about joining Ankura. This combinationenables both firms to provide an expanded range of service offerings. We are grateful to theCHILDS team for helping us find a great strategic partner.”
CHILDS Advisory Partners served as the exclusive financial advisor to AIM Consulting Group,LLC (“AIM”), a technology consulting firm with headquarters in Seattle and branch offices inboth Denver and Minneapolis, in its sale to Addison Group (“Addison”), a portfolio company ofOdyssey Investment Partners.
Founded in 2006, AIM Consulting is a rapidly growing, nationally recognized leader intechnology solutions and services. AIM is focused on adding value to its more than 400customers by developing long-term relationships and by attracting and retaining the besttechnology consulting talent in the region. AIM offers a range of service offerings andengagement models to solve the most challenging customer problems.
Kyle Guilford, CEO and Co-Founder of AIM, stated, “The advisory service we received from theCHILDS team was outstanding. Our partnership started long before the engagement began.CHILDS was helpful in providing real market data, getting to know our leadership team and ourvalues, and helping us execute on a strategy that resulted in a transaction that is great foreveryone from our employees to leadership. It truly is a win–win for everyone. CHILDS’knowledge of our industry, relationships with buyers, attention to detail and their expertiseduring due diligence is very much appreciated. It’s why we were able to find the right partnerfor AIM and achieve a great outcome.”
CHILDS Advisory Partners served as the exclusive financial advisor to Holland Square Group,LLC, (“HSG”), a leading healthcare IT professional services firm specializing in the Cernerecosystem, in its acquisition by ALKU, a highly specialized consulting services firm, backed byWestView Capital Partners.
Founded in 2009, HSG provides consulting resources that address the technology needs ofhealthcare organizations, including providers, payers, and related technology and servicesvendors. While it provides services for all of the major healthcare technologies, HSG specializesin the Cerner ecosystem, providing talent that has expertise specifically with the CernerElectronic Health Record (“EHR”) system and other supporting IT systems. At the core of HSG isa set of highly scalable, process-driven methodologies for recruiting experienced EHR and coreIT talent and driving client satisfaction.
The CHILDS team provided invaluable guidance throughout the process, which resulted in asuccessful transaction for both parties,” said Andrew S. Park, Principal of Holland Square Group.
CHILDS’ TECHNOLOGY DEAL SPOTLIGHTS
The preferred investment bank for high performing business services, healthcare and technology companies.
www.childsadvisorypartners.com 404.461.4600
![Kulpa, Paula (MTC) [mailto:Paula.Kulpa@ontario.ca] Sent: … · 2020. 1. 24. · Subject: Bowstring Arch Bridges, Municipal Class EA Projects: Bowstring Arch Bridges, Humber Bridge](https://static.fdocuments.net/doc/165x107/5fc4a06febce581c3266c1e7/kulpa-paula-mtc-mailtopaulakulpa-sent-2020-1-24-subject-bowstring.jpg)
