CAPSTONE S HISTORICAL VALUATION INDEX APRIL 2017

Transcription

1 CAPSTONE S HISTORICAL VALUATION INDEX APRIL 2017 EV (Enterprise Value in millions of USD) LTM MULTIPLES EV/EBITDA % CHANGE* READ MORE $10 - $ x 0.7% $100 - $ x 0.8% Page 3 $250 - $ x -0.5% INDUSTRY BUSINESS SERVICES 8.6x -6.2% Page 4 CONSUMER PRODUCTS 9.5x -3.4% Page 5 EDUCATION & TRAINING 13.4x 4.0% Page 6 GOVERNMENT & DEFENSE 8.5x 5.2% Page 7 HEALTH & MEDICAL 10.2x 0.0% Page 8 INDUSTRIAL & MANUFACTURING 7.7x -2.0% Page 9 EV/REVENUE TECHNOLOGY & TELECOM 7.2x -5.3% Page 10 Source: All data is from Capital IQ, unless specifically noted otherwise, LTM = last twelve months ending April 30, 2017 *% change is compared to the LTM multiples ending the month prior ABOUT CAPSTONE S HISTORICAL INDEX Capstone s Historical Index tracks valuations across the middle market and in various industries. Two of the primary ways we calculate valuations are by analyzing the prices paid for recent acquisitions and the available data from public companies. The Education & Training industry exclusively uses public company data, since transaction valuations are rarely disclosed. In addition, the Technology & Telecom index uses EV/Revenue to track valuations, while the rest use EV/EBITDA. Capstone s index is intended to gauge the state of valuations as compared to previous years, rather than to provide a specific valuation estimate for your company for that, please reach out to one of our bankers.

2 ESTABLISHED PRESENCE AWARDS & ACCOLADES Capstone was formed with a singular purpose: to build an entrepreneurial-focused firm capable of delivering superior results with unmatched skill. We have earned that position in the sectors we cover by representing emerging industry leaders. Today, we are a highly differentiated firm with capabilities that are rare in our industry MIDDLE MARKET INVESTMENT BANKING FIRM OF THE YEAR US MIDDLE MARKET INVESTMENT BANK OF THE YEAR USA MID-MARKET INVESTMENT BANKING FIRM OF THE YEAR PROVEN CAPABILITIES Mergers & Acquisitions Corporate Restructuring Private Placements Advisory Services Corporate Sales Corporate Restructurings Venture Capital Advisory Recapitalizations Turnaround Management Valuation Services Divestitures Chapter 11 Advisory Subordinated Debt Merchant Banking Acquisitions Interim & Crisis Management Unitranche Debt Leveraged Buyouts Specialty M&A Senior Debt Management Buyouts Performance Improvement Venture Debt Mergers Quality of Earnings Analysis Bridge Loans Joint Ventures & Alliances Liquidating Trust & Lit Support Working Capital Lines GRIT INTEGRITY PERFECTION FORESIGHT PASSION EXCELLENCE

3 OVERALL MIDDLE MARKET ABOUT THE OVERALL MIDDLE MARKET INDEX The reason we include our Overall Middle Market Index is because valuations vary greatly based on size. Larger companies generally command higher multiples because: 1. they re higher in demand, 2. buyers will pay a premium for industry leaders, and 3. lenders are willing to provide more debt on larger transactions, boosting valuations. Below are transaction multiples for companies in the middle market, segmented by size of the transaction. Please note that the EV/EBITDA and Transaction Volume graphs only include data for transactions that disclosed financial information. EV/EBITDA TRANSACTION MULTIPLES DISCLOSED 9.0x 7.0x 8.6x EV in millions 9.9x 10.1x 10.7x 10.9x 8.9x 8.4x 8.2x 9.9x 8.8x 9.8x 9.8x LTM $10 - $100 $100 - $250 $ EV in millions $10 - $100 $100 - $250 $ BUYER BREAKDOWN March 2015 March 2016 March % 25.1% 24.5% 72.4% 74.9% 75.5% p3

4 BUSINESS SERVICES TRANSACTION EV/EBITDA MULTIPLES 8.3x 8.6x 8.3x 8.3x 8.3x 8.6x Three year EBITDA multiple average x 11.5x 10.5x 9.5x 9.0x Capstone Business Services Group S&P 500 HEAD OF BUSINESS SERVICES 24.8% Todd McMahon % Speak with Todd and get p4

5 CONSUMER PRODUCTS TRANSACTION EV/EBITDA MULTIPLES 1 8.7x 11.5x 9.8x 9.1x 10.2x 9.5x Three year EBITDA multiple average x x 9.0x Capstone Consumer Products Group S&P 500 HEAD OF CONSUMER PRODUCTS 21.0% Tom Elliott telliott@capstonellc.com % Speak with Tom and get p5

6 EDUCATION & TRAINING 15.0x x Capstone Education & Training Group S&P 500 HEAD OF EDUCATION & TRAINING 29.2% Jacob Voorhees jvoorhees@capstonellc.com % Speak with Jacob and get p6

7 GOVERNMENT & DEFENSE TRANSACTION EV/EBITDA MULTIPLES 8.6x 9.8x 10.5x 8.3x 8.5x x Three year EBITDA multiple average x 9.0x Capstone Government & Defense Group S&P 500 HEAD OF GOVERNMENT & DEFENSE 27.3% Ted Polk tpolk@capstonellc.com % Speak with Ted and get p7

8 HEALTH & MEDICAL TRANSACTION EV/EBITDA MULTIPLES 9.0x 9.9x 10.3x 8.9x 10.8x 10.2x Three year EBITDA multiple average x Capstone Health & Medical Group S&P 500 HEAD OF HEALTH & MEDICAL 28.6% Eric Williams ewilliams@capstonellc.com % Speak with Eric and get p8

9 INDUSTRIAL & MANUFACTURING TRANSACTION EV/EBITDA MULTIPLES 8.3x 8.4x 8.3x 8.3x 7.7x 7.7x Three year EBITDA multiple average x 11.5x 10.5x 9.5x Capstone Industrial & Manufacturing Group S&P 500 HEAD OF INDUSTRIAL & MANUFACTURING 23.1% David Bench % Speak with David and get p9

10 TECHNOLOGY & TELECOM TRANSACTION EV/REVENUE MULTIPLES* 7.0x 5.0x 3.0x 1.0x 7.3x 7.2x 5.7x 4.7x 5.1x 5.0x Three year Revenue multiple average *SaaS and Cloud transactions only. PUBLIC COMPANY EV/REVENUE INDEX 4.5x 3.5x 3.0x 2.5x 1.5x Capstone Technology & Telecom Group S&P 500 HEAD OF TECHNOLOGY & TELECOM 31.2% David Michaels % Speak with David and get p10