KPMG Corporate Finance LLC Business Services M&A Quarterly · 2020-02-26 · Ink Global is a leading travel media and marking services company. Through its media partnerships, Ink
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
IndiaIndiaKV KuchimanchiRamanand K V AnandVermaniDivya Seth SachinBansal
ChinaShanghaiRainbowWangAndy Qiu
AustraliaMelbournePeter Turner
DenmarkCopenhagen Eric Bots-Bjerre
RussiaMoscowRobert Vartevanian
HungaryBudapestTamás Simonyi
Sri LankaColombo Shiluka Goonewardene
TaiwanTaipeiJerry Y.K. Chu
SingaporeSingaporeBenjamin Ong
UAEDubaiSimi Nehra
IrelandBelfastMichele Connolly
South KoreaSeoulSung-WonPark
CroatiaZagrebDanielRadic
1 Refers to the global Corporate Finance practices of KPMG International’s network of independent member firms.2Thomson Reuters SDC; global full market transactions completed by volume.
1
M&A League Table – FY 2017 KPMG Awards & Recognition
KPMG Corporate Finance is a leadingMiddle Market investment banking platformto the business services market, servingdomestic and international clients. OurBusiness Services team offers a full rangeof investment banking and advisoryservices. Our experience covers a broadrange of end markets including:
— Consulting & Professional Services
— Facilities Management & Services
— Engineering & Construction
— Staffing & HRO
— Outsourcing & BPO
— Education & Training
— Media & Marketing Services
— Information Services
— Consumer Services
— Industrial Services
17
3
Consulting & Professional Services— Specialty Consulting— Customer Engagement / Call Center
Management— IT Consulting— HR Staffing & Professional Services
Engineering & Construction— Diversified Engineering & Construction Providers— Specialty Engineering & Construction Firms— Construction Contractors
acted as financial advisor to Ink Global on its sale
to
Deal Spotlight
Ink Global is a leading travel media and marking services company. Through its media partnerships, Ink connects advertisers and brands to more than 802 million travelers. Ink creates and delivers inspiring, awarding winning content for the world’s largest airlines, railways, travel companies and its passengers.
advised the management team of Authority Brands, a portfolio company of
PNC RiverArch, on their sale to
Authority Brands is the parent company of two home service franchisors, the Cleaning Authority, a provider of residential cleaning services to 100,000+ customers, and Homewatch CareGivers, which delivers in-home care services to the elderly, disabled, and patients requiring after-surgery care.
Announced / Closed Target Target Business Description Acquirer TV EV
EV / Revenue
EV / EBITDA
Closed19-Sep
Remedy Employer Services
A Professional Employer Organziation (PEO), provides outsourced HR services in Florida
CoAdvantage Corp. / Morgan Stanley NA NA NA NA
Closed12-Sep Questex LLC
A B2B information and events servicesprovider serving travel, hospitality, life science / healthcare, and technology industries
MidOcean Partners NA NA NA NA
Announced10-Sep Engility Holdings, Inc. Provides IT and professional services to the
Federal governmentScience Applications International Corporation $2,490 $2,450 1.28x 13.7x
Closed5-Sep LMG International LLC A leading employee benefit and risk
consulting firmOneDigital Health and Benefits, Inc. NA NA NA NA
Closed28-Aug 24-7 Intouch, Inc.
A multi-channel contact center and Business Process Outsourcing (BPO) solutions provider
Ontario Teachers' Pension Plan Board NA NA NA NA
Announced14-Aug Summit Strategies Group
An investment consulting firm, offering defined contribution and outsourced Chief Investment Officer (CIO) support
Marsh & McLennan Companies NA NA NA NA
Closed13-Aug Buck Consultants Provider of HR consulting, benefits,
administration and technology services H.I.G. Capital, LLC NA NA NA NA
Announced22-Jul Syntel, Inc. Operates as an integrated IT and knowledge
process outsourcing services provider Atos SE $3,670 $3,570 3.67x 13.4x
Q3’18$32.7bn(1)
U.S. aggregate sector deal value decreased to $4.1bn during the quarter, down from $12.9bn in Q2’18, while volume rose 16.7%
43.5%U.S. share of global M&A volume in Q3’18
U.S. M&A volume accounted for 43.5% of global M&A activity in Q3’18, up from 40.8% in Q2’18
In Q3’18, aggregate Global deal value for the sector more than double to $32.7bn, up from $15.3bn in Q2. Global deal volume rose 9.3%
Q2’18$15.3bn
Notable Recent U.S. Sector Transactions
5
Consulting & Professional Services M&A Update
Notes:(1)During the third quarter, RELX PLC’s $26.2bn acquisition of RELX NV, comprised 80.2% of global aggregate deal value for the Consulting & Professional Services sector. Excluding the transaction, global aggregate deal value for the sector was $6.5bn in Q3’18.Source: S&P Capital IQ. Consulting & Professional Services is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represent aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Consulting & Professional Services is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Consulting & Professional Services is defined by an internally originated list of subsectors viewed as best representing the industry.
Total Mean 62.5% 13.2% 6.9% 1.70x 12.6xTotal Median 73.7% 12.0% 6.5% 1.46x 12.4x
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Consulting & Professional Services is defined by an internally originated list of subsectors viewed as best representing the industry.
U.S. E&C deal value increased to $4.9bn(1) in Q3’18, up from $1.5bn in Q2’18. The total number of U.S.transactions increased 20.3%
The U.S. accounted for 33.6% of global E&C M&A activity in Q3’18, up from 28.6% in Q2’18
Global aggregate deal value for the E&C sector was roughly flat in Q3’18, while global sector deal volume experienced a modest increase of 2.4%
33.6%
Q3’18$8.2bn
Q2’18$8.1bn
Notable Recent U.S. Sector Transactions($MM)
LTMAnnounced / Closed Target Target Business Description Acquirer TV EV
EV / Revenue
EV / EBITDA
Closed1-Oct PowerTeam Services A provider of maintenance and construction
services to the utility industry Clayton, Dubilier & Rice NA NA NA NA
Closed11-Sep 8760 Engineering, LLC Specializes in design consulting for
mechanical & electrical building systems Bernhard, LLC NA NA NA NA
Closed4-Sep
Power Grid Engineering, LLC
Provides transmission substation engineering and field services CE Power Solutions, LLC NA NA NA NA
Closed3-Aug
Mercury Communications, Inc.
A general contractor, specializing in planning, designing, deploying, and maintaining infrastructure projects
The Keeley Companies NA NA NA NA
Announced30-Jul
Berger Group Holdings, Inc.
Provides infrastructure engineering, environmental science and economic development consultancy services
WSP Global, Inc. $400 $400 0.80x 8.9x
Closed20-Jul
Capital Land Services, Inc.
Offers site acquisition, design, engineering, and construction services to telecom and oil & gas markets
Telamon Corporation NA NA NA NA
Announced2-Jul The Gordian Group, Inc.
A software provider, offering workflow solutions for building construction and maintenance service companies
Fortive Corporation $775 $775 NA NA
Closed2-Jul Huen Companies Provide commercial and industrial electrical
construction services MYR Group, Inc. $47 $47 NA NA
10
Engineering & Construction M&A Update
Source: S&P Capital IQ. Engineering & Construction is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:(1)During the third quarter, Brookfield Business Partners’ $4.6bn announced acquisition of Westinghouse Electric, comprised 94.8% of U.S. aggregate deal value for the Engineering & Construction sector. Excluding the transaction, U.S. aggregate deal value for the sector was $251m in Q3’18.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Engineering & Construction is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Source: S&P Capital IQ. Engineering & Construction is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Source: S&P Capital IQ. Facilities Management & Maintenance is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Source: S&P Capital IQ. Facilities Management & Maintenance is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Total Mean 52.6% 15.5% 4.9% 1.65x 11.5xTotal Median 50.4% 13.4% 5.4% 1.32x 11.2x
Source: S&P Capital IQ. Facilities Management & Maintenance is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Source: S&P Capital IQ. Media & Marketing Services is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Source: S&P Capital IQ. Media & Marketing Services is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Total Mean 60.1% 23.6% 6.9% 2.26x 13.3xTotal Median 69.3% 22.5% 5.1% 2.13x 13.0x
Source: S&P Capital IQ. Media & Marketing Services is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
In Q3’18, aggregate Global T&L sector deal valuedecreased to $14.9bn(1) from $53.7.2bn(2) in Q2’18, while deal volume was up 11.3%
Q3'18$14.9bn
Q2'18$53.7bn The U.S. accounted for 21.4% of global T&L M&A
activity in Q3'18, up from 15.9% in Q2’18
Reported U.S. T&L sector deal value increased to $1.2bn in Q3’18, up from $127.6m in Q2'18
Q2'18
Q2'1815.9%
Q3'1821.4%
Transportation & Logistics M&A Update
Notable Recent U.S. Sector Transactions
22
($MM)LTM
Announced / Closed Target Business Description Acquirer TV EV
EV / Revenue
EV / EBITDA
Announced25-Sep
Smith Transportation Services, Inc. An asset-light transportation services provider Post Capital Partners,
LLC NA NA NA NA
Announced13-Sep AFN Logistics
Provides freight brokerage, third-party logistics (3PL), and transportation management services
GlobalTranz Enterprises, Inc. / The Jordan Company
NA NA NA NA
Closed31-Aug Mode Transportation An asset-light transportation services provider York Capital
Management $239 $239 NA 10.0x
Closed31-Jul Rock-It Cargo USA LLC Provides specialty transportation services to
the music and entertainment industry ATL Partners NA NA NA NA
Closed16-Jul Berry Aviation, Inc. Provides private aviation, aerial transportation
and, maintenance servicesAcorn GrowthCompanies NA NA NA NA
Closed10-Jul MNX Global Logistics Provides specialized and expedited
transportation and logistics services Audax Group, Inc. NA NA NA NA
Closed3-Jul Landair Holdings, Inc.
A dedicated truckload carrier, the Company also provides 3PL transportation, warehousing and logistics inventory management services
Covenant Transportation Group, Inc. $99 $99 0.81x NA
Closed1-Jul Unlimited Freight, LLC A leading multi-modal 3PL transportation
service provider Berkshire Hathaway, Inc. NA NA NA NA
Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:(1)During the third quarter, COSCO Shipping’s announced acquisition of Orient Overseas for $10.4bn comprised 69.8% of global aggregate deal value for the Transportation and Logistics sector. Excluding the transaction, Q3’18 global aggregate deal value for the sector was $4.5bn.(2)During the second quarter, HOCHTIEF’s announced acquisition of Abertis Infraestructuras for $36.8bn comprised 68.5% of global aggregate deal value for the Transportation and Logistics sector. Excluding the transaction, Q2’18 global aggregate deal value for the sector was $16.9bn.
Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Total Mean 60.8% 19.6% 15.5% 1.64x 11.2xTotal Median 61.4% 15.8% 9.3% 1.41x 11.2x
Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of September 28, 2018, the last trading day of the quarter. 2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Important NoticeThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. The information contained in this communication does not constitute a recommendation, offer, or solicitation to buy, sell or hold any security of any issuer. Past performance does not guarantee future results.