Business Services Commentary

LTM Public Company Multiples

The pace of M&A in the Business Services sector continues to build on its strong performance through the first half of 2013. Valuation multiples remained healthy and the oil & gas services sector continues to attract an outsized portion of M&A activity. Illustrative of this trend, Emcor, a leading industrial services firm, continued to support the consolidation in downstream services with its acquisition of RepconStrickland, a provider of turnkey engineering and maintenance services to the refinery market. RepconStrickland’s approach to providing end-to-end services for a category, rather than a specialized point solution, is representative of a broader trend towards “single sourcing” that is driving M&A throughout the Business Services sector. Similarly, in the asset-light facilities maintenance category, FacilitySource’s acquisition of Ascential Corporation comes as the first bolt-on addition to the Warburg Pincus-backed platform, bolstering its position as a leader in the asset light space and broadening its trade portfolio.

Leverage Multiples

1-Year Revenue Growth LTM EBITDA Margin

0.6x 0.5x 0.5x

0.9x

1.1x

9.0x 9.3x

11.3x 9.6x 10.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

1.6x

Facilities Industrial Staffing Logistics BPO

TEV / EBITDA

TE

V / R

even

ue

1.7x

2.2x

0.6x 0.5x 0.4x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

Facilities Industrial Staffing Logistics BPO

LTM

Deb

t / E

BITD

A

11.5%

25.5% 27.1%

11.5%

21.9%

0%

5%

10%

15%

20%

25%

30%

Facilities Industrial Staffing Logistics BPO

1-Ye

ar S

tock

Ret

urn

S&P 500 Return

Business Services Monthly June 2013

5.5%

11.4%

(0.6%)

4.7% 3.6%

(2%)

0%

2%

4%

6%

8%

10%

12%

Facilities Industrial Staffing Logistics BPO

1-Ye

ar R

even

ue G

row

th

1-Year Stock Returns

8.4%

5.9% 4.5%

12.6% 13.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Facilities Industrial Staffing Logistics BPO

LTM

EBI

TDA

Mar

gin

New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360

Boston200 Clarendon Street25th FloorBoston, MA 02116Tel: 617.259.2200

Atlanta15 Piedmont Center NE Suite 1010Atlanta, GA 30305 Tel: 404.995.6230

www.tmcapital.com

About TM Capital TM Capital’s Business Services ContactsTM Capital Corp. is a partner-owned investment banking firm based in New York, Boston

and Atlanta, which has completed over 250 transactions with a combined value in excess

of $13.5 billion. Since 1989, we have advised clients navigating a full range of critical

transactions, including complex mergers, acquisitions, debt and equity financings,

minority and majority recapitalizations, restructurings, and advisory services including

takeover defense, fairness and solvency opinions, valuations, as well as litigation support.

We have built deep industry expertise in key sectors and our team regularly publishes

research highlighting current and emerging trends in targeted industries and markets.

TM Capital is a member firm of M&A International Inc., the world’s leading alliance of mid-

market investment banks with over 600 M&A professionals in 40 countries. Members

have closed over 1,300 transactions totaling more than $75 billion in value over the past

five years. For more information, visit www.tmcapital.com.

James S. GrienPartner

jgrien@tmcapital.com 404-350-7943

Jarrad S. Zalkin Partner

jzalkin@tmcapital.com 617-259-2207

Andrew O. Redmond Vice President

aredmond@tmcapital.com 617-259-2215

Facility Services Transactions

Target Acquiror Target Description

Ascential Corporation FacilitySource, Inc National, asset light facilities maintenance in the electrical, plumbing, HVAC, storefront doors & glass, general repair and landscaping trades

Vacman Cleaning Ltd VPS Holdings Ltd Soft FM services include office cleaning, carpet cleaning, pest control and garden services

Summit Security Universal Protection Service, Inc

Provides a range of security services including uniformed security guards and security patrol services

CDA Inc Maxsent, LLC Provides security officers, security assessments, system installations and security personnel training

i-sys Corporation System Development-Integration, LLC

Provides a range of hard and soft FM services in the security, fire safety, HVAC and building automation trades

Staffing Services Transactions

Target Acquiror Target Description

Jonathan Roberts Associates, Inc

Howard-Sloan Professional Search, Inc

Recruiting and staffing services for technical professionals

ETS Staffing Inc Nesco Resource Inc Provides temporary staffing and direct placement for a variety of industries

Crowley Transportation Services, LLC

Centerline Drivers, LLC

Offers temporary and long-term driver staffing services for transportation and logistics companies

Personnel Solutions Corporate Resource Services, Inc

Provides staffing services for office and industrial personnel

Armstrong Craven Ltd

ISIS Equity Partners LLP

Offers executive search capabilities, talent pipelining and various business intelligence services

DateAnnounced Target Acquiror Target Description Enterprise Value

6/4/2013 PayRoll SA Automatic Data Processing, Inc

Provides human resource outsourcing, payroll, performance management and employee benefits services

NA

6/10/2013 US Collections, Inc Parallon Business Solutions, LLC

Provides revenue cycle management services including billing, follow up and collection services

NA

6/26/2013 PSG, Ltd Cushman & Wakefield, Inc

Provides outsourced services for HR, payroll, accounting, compliance, risk management and employee benefits

NA

6/10/2013 Trendset Inc AFS Logistics, LLC Provides freight audit and payment outsourcing services for the logistics and transportation industries

$1.1

6/17/2013 EdgeTech Document Shredding

AllShred, Inc Provides paper shredding services from collection to destruction

NA

Industrial Services Transactions

Target Acquiror Target Description

RepconStrickland, Inc EMCOR Group Inc Preventative maintenance, emergency repair and specialized technical services for the downstream oil and gas sector

The Energy Services Partnership Ltd

Ameresco, Inc Provides energy and utility management consulting services

United States Infrastructure Corporation

Leonard Green & Partners, LP

Underground utility location services and utility risk management services

NorthAm Engineering, SA de CV

Foster Wheeler AG Offers project management services for offshore and onshore power projects

Peak Power Engineering, Inc

Atwell, LLC Engineering consulting services for industrial power systems, transmission lines and substations

Distribution & Logistics Transactions

Target Acquiror Target Description

Penser Transportation Inc

Suddath Global Logistics, LLC

Logistics services include warehousing, transportation, cross docking, cold storage, food consolidation and manufacturing support

ITG GmbH Internationale Spedition + Logistik

LGI Logistics Group International Gmbh

Logistics services in areas ranging from transport, to supply chain management, to e-commerce fulfillment

Suncoast Ocean Lines, LLC

Momentum Transportation USA Inc

Provides shipping services for vehicles, household goods and commercial/industrial cargo

Clipper Projects A/S Thorco Shipping A/S Operates a fleet of large shipping vessels for bulk shipping

Maritime International, Inc

D J Powers Company, Inc

Provides international freight transportation services

Facilities Services Transactions (June 2013) Industrial Services Transactions (June 2013)

Staffing Services Transactions (June 2013) Distribution & Logistics Transactions (June 2013)

BPO Services Transactions (June 2013) Recent TM Capital Business Services Experience