GLOBAL
SCOPE
PARTNERS INTERNATIONAL M&A ADVISORS
YEAR BOOK
2 015
James Humes
THE ART OF COMMUNICATION IS THE LANGUAGE OF LEADERSHIP
01
CONTENTS LETTER FROM THE PRESIDENT
03
ABOUT GLOBALSCOPE
04
WHY GLOBALSCOPE
05
SECTOR EXPERTISE
06
SECTOR SPECIFIC ANALYSIS
07
SERVICES
21
EXECUTIVE & SUPPORT TEAM
23
EVENTS
37
CASE STUDIES
40
TRANSACTIONS
42
02
LETTER FROM THE PRESIDENT
Welcome to the first edition of Globalscope Partners’ Yearbook. We are delighted to introduce our network of M&A advisors and share with you our network capability. Globalscope has come a long way from the humble beginnings of a small network started by investment bank ACS in the late 1980s. We stand today as Globalscope Partners : an international network of 45 individual M&A advisory firms, in 38 countries, with 500+ professionals, focusing on mid-market transactions in all continents. We have achieved this solid foundation through our unfailing commitment to making our relationships work, carefully and strategically increasing our partnership roster according to demand, taking a dynamic approach to how we do business together, and regularly meeting as friends and business partners to keep each other up to date with our clients' interests and activity. Our partners meet at least twice a year at the semi-annual Globalscope conferences in rotating host cities to discuss clients' needs and progress business, as well as agreeing on goals and initiatives to keep driving our network from strength to strength. At our semi-annual conference in Athens in October last year Globalscope formally merged with Asia M&A, taking on nine new firms located in the major cities of Asia. With 20% – 25% of all M&A transactions being international (involving buyers from a different country to the target company), it is essential for our partner firms' clients to have access to an international network of corporate finance advisors and Globalscope now has a significant footprint in every major global business hub. The Globalscope website, www.globalscopepartners.com, was launched last year and is an excellent tool for our partners and our clients, with a private area containing an extranet for sharing projects, a customised private equity database, a document sharing portal and a highly populated transactions database. This year, we have streamlined our sector activity and focused on maximising the expertise in our network. Our sector teams met many times in the last 12 months to discuss both recent transactions and the evolving underlying structural drivers of the global M&A landscape in the sectors; as a direct result, we can quickly offer our clients a breadth of expertise across most industries. In 2014, Globalscope’s performance has stood firm in challenging times for M&A, completing 140 deals with a total transaction value of over € 1.3 bn (excluding transactions with undisclosed values). We look forward to building on our track record in the mid-market league tables in the public domain in the future. In this yearbook, you will be introduced to the individuals and the firms that made it happen. We have included contact details, so please feel free to pick up the phone or tap out an email and get in touch. I hope you enjoy the Globalscope yearbook.
With best wishes,
Michael Moritz Globalscope President
03 LETTER FROM THE PRESIDENT
ABOUT GLOBALSCOPE
FUND
RAISING
FOUNDED IN
1987
MERGERS & ACQUISITIONS
5
CONTINENTS
ABOUT GLOBAL SCOPE
38
COUNTRIES
45
PARTNERS
500+
PROFESSIONALS
BUSINESS STRATEGY &
RESTRUCTURING
140 TRANSACTIONS LTM
Globalscope is an entrepreneur-led global network of mid-market M&A boutiques founded in 1987 to support clients in international transactions. Currently, we have 45 partner firms in 38 countries. We work with the senior management of private and public companies on selling and acquiring businesses managing the diverse issues arising from the implementation of business growth strategies reorganisation & restructuring international joint ventures licensing initiatives
ABOUT GLOBALSCOPE 04
WHY GLOBALSCOPE
Global M&A Network
03
01
Enabler To Increase International M&A
02 Peer Member In Each Economy
Globalscope is your trusted advisor and enabler, increasing international mid-market M&A transactions by volume and value. In 2014, we advised on more than 140 transactions with a cumulative transaction value of over ₏1.3bn (excluding transactions with undisclosed values). We have a partner firm in each economy where there is demand for international transactions. They are carefully selected according to strict criteria including a high level of professionalism, track record and expertise that complements the existing partnership roster. In addition to access to our extensive database of potential buyers and companies for sale, Globalscope’s partner firms are in constant contact and can quickly identify an opportunity for a client if it exists within the network.
05 WHY GLOBALSCOPE
SECTOR EXPERTISE
We believe that industry knowledge and transactions experience make all the difference. At Globalscope, our sector teams meet frequently both to discuss recent transactions and to share sector insights and observations at a local level. Globalscope partners are up to date and informed across the sectors and have a deep understanding of industry trends in most economies. This approach has proved of great value in assisting our clients to find the best possible outcome for their sale, acquisition or buy-out.
GLOBALSCOPE IS ACTIVE IN THE FOLLOWING SECTORS Building & Construction
Healthcare/Pharmaceuticals
Business Services
Leisure & Retail
Chemicals
Life Sciences
Consumer
Medical Technology
Energy & Renewables
Oil & Gas
Engineering/Industrials
Real Estate
Financial Services & Insurance
Technology, Media & Telecoms (TMT)
Food & Agribusiness
Transport, Logistics & Distribution
SECTOR EXPERTISE 06
SECTOR-SPECIFIC ANALYSIS
Industry knowledge and transaction experience make all the difference; there's no substitute for advisors who have the combination of in-depth knowledge of your industry and M&A tactics and strategies. At Globalscope we cover a broad range of sectors including:
Financial Services
Life Sciences
Consumer
Industrials
Technology, Media & Telecoms (TMT) Services Globalscope Partners offers its clients up to date and in depth sector expertise including sector themes, notable recent transactions, detailed lower mid-market trends and market analysis.
07 SECTOR SPECIFIC ANALYSIS
SECTOR SPECIFIC ANALYSIS 08
CONSUMER The sector M&A landscape During the Jakarta 2015 Globalscope conference, the network’s global Consumer sector team met to discuss recent transactions and the evolving underlying structural drivers of the global sector M&A landscape. A key theme is the growing appetite of US and European based food groups for expanding in emerging markets. More details can be obtained from team members and/or regional heads – see contact details below.
Sector themes Consumer engagement key to loyalty The rise of the internet as a medium of communication has made it increasingly important for companies to monitor what consumers are saying about their brands. Utilising social media is an effective way to solicit consumer opinions and create a two-way dialogue. Used in the wrong way, however, it can easily become a quick way to lose loyal fans. Brand status rising in emerging markets Having lived on relatively low incomes, many middle-class consumers in the world's emerging markets are hungry to spend their newly augmented incomes on branded products. Flexible working changes landscape Flexible working conditions and the ever-evolving role of women in the workforce are changing the consumer landscape. For example, single occupant households are driving demand for on-the-go products around the world.
Notable recent transactions Smucker enters pet food market US jam maker JM Smucker has entered the fast-growing pet food business with its acquisition of Big Heart Pet Brands for $5.8bn. With approximately two-thirds of US households having at least one pet, this deal fits with Smucker’s strategy to serve the meal and snack needs of the whole family. Post Holdings acquires MOM Brands US listed Post Holdings has acquired MOM Brands, the producer, marketer and distributor of ready-to-eat cereal products, for $1.2bn. This acquisition allows Post to expand into the bagged and hot cereal categories. Beijing based Hony Capital acquires Pizza Express In another example of China’s growing appetite for overseas investments, British restaurant chain Pizza Express has been acquired by Chinese group Hony Capital for $1.5bn.
Lower-mid market observations Catering to on-off dieters As consumers around the world become heavier, a growing focus within the world of food has been on healthier food products that fit into changing diets. Weight conscious consumers in developed markets are increasingly “on-off” dieting, creating opportunities for manufacturers to meet changing demands. Food waste a growing concern for food brands As food wastage becomes increasingly regarded as unethical by consumers, manufacturers are having to find alternative ways to reduce waste. Wastage is often generated by inefficiencies in the supply chain; addressing these inefficiencies will be a key trend going forward.
09 SECTOR SPECIFIC ANALYSIS
Sector contacts
Andrea Pagliara Consumer Lead
Martijn Peters Consumer Co-Lead
a.pagliara@palladiofinanziaria.it +39 0272 7307
martijn.peters@dex.nl +31 6130 85245
M&A trends & market analysis The following data are compiled specifically for the Consumer sector, with valuation trends over time in the first chart based on semi-annually averaged transactional data and regional and sub-sector comparisons in the second and third charts based on listed companies data as at mid February 2015.
Comment 2009
2010
2011
2012
2013
2014
14
Context Sector TEV/EBITDA
All Market Consumer Transactions TEV/EBITDA Multiple (Values over $5m) has fallen to 12.1 from its previous high of 12.8 in 2014 H1
13 12 11
This compares to the current cross-sector All Market Transactions TEV/EBITDA Multiple of 11.5
10 Lower-Mid Market Consumer Transactions TEV/EBITDA Multiple (Values in range $5m-$150m) has increased slightly to 10.2 from its previous low of 9.8 in 2014 H1
9 8 7
This compares to the current cross-sector Lower-Mid Market Transactions TEV/EBITDA Multiple of 9.1
6 20
Europe
18 16 14
Asia & Pacific 14.7
13.5
14.6 11.4
11.0
12
Africa & ME
US & Canada 13.9
Latin America
12.8 10.9
10.6
10 7.5
8 6 4 2
Regional TEV/EBITDA All Market Consumer Listed Companies TEV/EBITDA Multiple (Values over $5m) by region is highest in Asia & Pacific at 14.7, 15% higher than the lowest in Latin America of 12.8
This compares to the All Market Consumer Listed Companies TEV/EBITDA Multiple of 13.9
Lower-Mid Market Consumer Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) has increased slightly to 10.2 from its previous low of 9.8 in 2014 H1
This compares to the Lower-Mid Market Consumer Listed Companies TEV/EBITDA Multiple of 11.2
0 20 18 16
Durables Consumer & Apparel Services
12
15.6
12.7
12.3 11.0
Food Luxuries 14.0
10.8
10 8 6 4 2 0 Data supplied by:
Food Staples
13.6
13.2
14
Retailing
Data analysed by:
11.2
10.1
Sub-sector TEV/EBITDA All Market Consumer Listed Companies TEV/EBITDA Multiple (Values over $5m) by sub-sector is highest in Retailing at 15.6, 40% higher than the lowest in Food Staples of 11.2
This compares to the All Market Consumer Listed Companies TEV/EBITDA Multiple of 13.9
Lower-Mid Market Consumer Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by sub-sector is highest in Food Staples at 12.7, 25% higher than the lowest in Food Luxuries of 10.1
This compares to the Lower-Mid Market Consumer Listed Companies TEV/EBITDA Multiple of 11.2
SECTOR SPECIFIC ANALYSIS
10
FINANCIAL SERVICES The sector M&A landscape During the Jakarta 2015 Globalscope conference, the network’s global Financial Services sector team met to discuss recent transactions and the evolving underlying structural drivers of the global sector M&A landscape. A key theme is the continued search for yield as investment managers are forced to re-assess their risk profiles. More details can be obtained from team members and/or regional heads – see contact details below.
Sector themes Continued low interest rates Worldwide central bank interest rates remain low and expectations are that this trend will continue, driving capital into equities and having a positive impact on valuations. Investment management consolidation The rise of alternative finance providers, set against the backdrop of the decline of more traditional investment banking activities, is expected to result in a round of consolidation in the Investment Management sector. Extensive client lists and effective channels to market are expected to drive values. African investments in vogue With traditional emerging markets performance on the whole disappointing, there has been a notable shift of focus towards Africa where opportunity for growth remains largely untapped. Technology and data Financial companies are increasingly pushing control, and crucially the freedom to make errors, out to clients as their interactions become increasingly automated. How companies handle this change will be critical to success.
Notable recent transactions Old Mutual Wealth acquisition of Quilter Cheviot The acquisition of UK based Quilter Cheviot, a leading discretionary investment manager, from Bridgepoint Capital for £585m ($936 million) will expand Old Mutual Wealth’s adviser and client proposition and accelerate its strategy to build a vertically integrated wealth management business. The transaction represents a healthy return for Bridgepoint Capital as the business had more than doubled in profitability and assets under their ownership. Hearst Corp increasing stake in Fitch Group Fitch, the provider of credit rating services, is now owned 80% by Hearst Corp, the US publisher of newspapers and magazines. Hearst Corp has increased its equity stake from 50% (acquired in 2006) as part of its strategy to diversify into data and information-based companies while growing its media business. The transaction is valued at $2bn. Divestments to drive domestic activity As financial companies and institutions continue to divest non-performing businesses, we expect this to primarily drive domestic M&A activity as cross-border investments are riskier prospects without an established local presence. Crowd-funding and P2P lending Although still a relatively young and small sector, internet-based alternative financing providers are proving hot investment territory for established financial institutions, possibly looking to hedge their bets. Growing PE interest in niche markets 2015 is expected to see Private Equity firms looking to capitalise on rising stock markets and confidence to make healthy returns from the specialist areas of the investment management sector.
11
SECTOR SPECIFIC ANALYSIS
Sector contacts
Jørgen Beuchert Financial Services Lead
AndrĂŠ Steenekamp Financial Services Co-Lead
Josh Park Financial Services Co-Lead
jorgen.beuchert@dmc.dk +45 41 99 82 50
andre@gkacapital.com +27 21 856 5494
parkj@kaedegroup.com +81 90 9852 8847
M&A trends & market analysis The following data are compiled specifically for the Financial Services sector, with valuation trends over time in the first chart based on semi-annually averaged transactional data and regional and sub-sector comparisons in the second and third charts based on listed companies data as at mid February 2015. 2009
2010
2011
2012
2013
2014
16
Comment
Context
Sector TEV/EBITDA
14 12 10 8 6
All Market Financial Services Transactions TEV/EBITDA Multiple (Values over $5m) has risen to 12.8 from its previous low of 12.0 in 2014 H1
This compares to the current cross-sector All Market Transactions TEV/EBITDA Multiple of 11.5
Lower-Mid Market Financial Services Transactions TEV/EBITDA Multiple (Values in range $5m-$150m) has risen further to 10.2 from its previous low of 7.2 in 2013 H2
This compares to the current cross-sector Lower-Mid Market Transactions TEV/EBITDA Multiple of 9.1
4 Europe 20
Asia & Pacific
18 14 12 10
US & Canada
Latin America
16.1
15.8
16
Africa & ME 17.7
13.4
12.5
11.8
10.5 10.8
10.8
8
7.8
6 4 2
Regional TEV/EBITDA All Market Financial Services Listed Companies TEV/EBITDA Multiple (Values over $5m) by region is highest in Africa & ME at 17.7, 69% higher than the lowest in Europe of 10.5
This compares to the All Market Financial Services Listed Companies TEV/EBITDA Multiple of 13.4
Lower-Mid Market Financial Services Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by region is highest in Africa and ME at 16.1, 107% higher than the lowest in Latin America of 7.8
This compares to the Lower-Mid Market Financial Services Listed Companies TEV/EBITDA Multiple of 12.8
0
20
Banks
Diversified Insurance Real Estate
18
15.8
16 14
12.7
12
11.2
10 8
10.8
11.9 11.5
8.2
6 4 2 0 Data supplied by:
Data analysed by:
14.5
Sub-sector TEV/EBITDA All Market Financial Services Listed Companies TEV/EBITDA Multiple (Values over $5m) by sub-sector is highest in Real Estate at 15.8, 92% higher than the lowest in Banks of 8.2
This compares to the All Market Financial Services Listed Companies TEV/EBITDA Multiple of 13.4
Lower-Mid Market Financial Services Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by sub-sector is highest in Real Estate at 14.5, 34% higher than the lowest in Diversified of 10.8
This compares to the Lower-Mid Market Financial Services Listed Companies TEV/EBITDA Multiple of 12.8
SECTOR SPECIFIC ANALYSIS
12
LIFE SCIENCES The sector M&A landscape During the Jakarta 2015 Globalscope conference, the network’s global Life Sciences sector team met to discuss recent transactions and the evolving underlying structural drivers of the global sector M&A landscape. A key theme is the increasing availability of medical information to both consumers and suppliers of healthcare. More details can be obtained from team members and/or regional heads – see contact details below.
Sector themes The rise of connectivity and Big Data Smart use of Big Data is making application models more efficient and outcome orientated. Likewise, connectivity and increased ease of data exchange/collection is driving higher efficiency and quality standards. This change represents a new set of challenges such as data safety and security. Tailored genome-based care Personalised and individualised prevention, diagnostic and therapy medicine is possible given recent developments in genome-based technologies. This key theme is expected to continue. Medicine becoming a consumer product The number of self-medicated and self-informed patients is increasing. Wikipedia and other public sources of healthcare information, combined with growth in private spending on health, lifestyle and anti-ageing products, are a real threat to the physician. Easier to buy ideas With the rise in the number of drugs going off-patent and pharma companies reducing spending on innovation, firms are increasingly looking to acquire smaller innovative firms, driving M&A activity.
Notable recent transactions Merck & Co. acquires Cubist The healthcare company Merck & Co. has announced its acquisition of Cubist Pharmaceuticals for $9.5bn, providing the company with access to the antibiotics market and the potential to offset its recent revenue decline. Pfizer acquires worldwide licences OPKO and Pfizer have entered a global agreement on OPKO’s Long-Acting Human Growth Hormone programme. The agreement allows OPKO to de-risk its programme and to drive larger worldwide sales by using Pfizer’s marketing muscle to help adoption of the product when the transaction is approved. Merck KGaA acquires Sigma-Aldrich Merck KGaA of Darmstadt has acquired Sigma-Aldrich for £17bn, establishing one of the leading players in the global Life Sciences industry.
Lower-mid market observations High levels of activity in medical sectors The most active areas of the lower-mid market sector in the period have been dental care, minimally invasive surgical devices and disposables. Innovation drives Pharma activity Innovation in the lower-mid market Pharma sector is increasingly driving M&A as it is seen as an essential constituent of an acquisition target. Cross border integration ‘Diagnostic deals’ in the Pharma, Medtech and Providers sectors are on the rise and are expected to bolster M&A activity, in particular with respect to cross-border deals.
13 SECTOR-SPECIFIC ANALYSIS
Sector contacts
Caspar Graf Stauffenberg Life Sciences Lead
Jacob Matthew Pharma Lead
Manfred Drax Life Sciences Co-Lead
caspar.stauffenberg@catcap.de +49 40 300 836 0
jacob@mapegroup.com +91 22 6154 4500
manfred.drax@catcap.de +49 40 300 836 0
M&A trends & market analysis The following data are compiled specifically for the Life Sciences sector, with valuation trends over time in the first chart based on semi-annually averaged transactional data and regional and sub-sector comparisons in the second and third charts based on listed companies data as at mid February 2015. 2009
2010
2011
2012
2013
2014
16
Comment
Context
Sector TEV/EBITDA
14 12 10 8 6
All Market Life Sciences Transactions TEV/EBITDA Multiple (values over $5m) has risen further to 13.5 from its previous low of 9.0 in 2013 H1
This compares to the current cross-sector All Market Transactions TEV/EBITDA Multiple of 11.5
Lower-Mid Market Life Sciences Transactions TEV/EBITDA Multiple (Values in range $5m-$150m) has fallen to 9.3 from its previous high of 10.3 in 2014 H1
This compares to the current cross-sector Lower-Mid Market Transactions TEV/EBITDA Multiple of 9.1
4
24 22 20 18 16 14 12 10 8 6 4 2 0 24 22
Europe
Asia & Pacific
Africa & ME
21.3
US & Canada
Latin America
19.1 17.1 14.4 14.0
14.0
13.9
12.3 8.2
Equipment & Supplies
Providers & Services
MedTech
20.7
6.8
BioTech 21.8
Regional TEV/EBITDA All Market Life Sciences Listed Companies TEV/EBITDA Multiple (Values over $5m) by region is highest in Africa & ME at 21.3, 74% higher than the lowest in Latin America of 12.3
This compares to the All Market Life Sciences Listed Companies TEV/EBITDA Multiple of 14.9
Lower-Mid Market Life Sciences Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by region is highest in Europe at 17.1, 152% higher than the lowest in Latin America of 6.8
This compares to the Lower-Mid Market Life Sciences Listed Companies TEV/EBITDA Multiple of 14.3
Pharma
Sub-sector TEV/EBITDA
20 18 16
16.2
17.3 15.4
14
14.8 12.7
12
11.9
15.3 13.7
All Market Life Sciences Listed Companies TEV/EBITDA Multiple (Values over $5m) by sub-sector is highest in MedTech at 20.7, 63% higher than the lowest in Providers & Services of 12.7
This compares to the All Market Life Sciences Listed Companies TEV/EBITDA Multiple of 14.9
Lower-Mid Market Life Sciences Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by sub-sector is highest in BioTech at 21.8, 83% higher than the lowest in Providers & Services of 11.9
This compares to the Lower-Mid Market Life Sciences Listed Companies TEV/EBITDA Multiple of 14.3
10 8 6 4 2 0 Data supplied by:
Data analysed by:
SECTOR-SPECIFIC ANALYSIS
14
INDUSTRIALS The sector M&A landscape During the Jakarta 2015 Globalscope conference, the network’s global Industrials sector team met to discuss recent transactions and the evolving underlying structural drivers of the global sector M&A landscape. Notwithstanding the recent weakness in oil and resources prices, the Globalscope members’ view of the Industrials M&A market is positive with the sector expected to be active in the coming six months and prices holding up. More details can be obtained from team members and/or regional heads – see contact details below.
Sector themes Manufacturing in a state of transition Global manufacturing supply chains continue to grow, increasing the number of intermediate stages between the processing of basic raw materials and completion of the finished product. This means an increase in the complexity and international nature of these supply chains. Efficiency and capacity upgrades in aerospace Airlines and governments are increasingly impressed by new technology in commercial aircraft design which is leading to accelerated replacement of obsolete fleets and healthy order-books for the commercial aerospace sub-sector. Population growth drives agri-chemical demand As the global population continues to rise, so too does the demand for fertilisers, pesticides and other agri-chemical products around the world. Companies should also expect increasing demand for innovative products in crop sciences.
Notable recent transactions Holcim and Lafarge negotiate merger Swiss firm Holcim and French firm Lafarge continue to negotiate the creation of a $44bn cement giant. In the process, they are expected to shed several billion dollars worth of assets in order to comply with competition rules. Strategic Value Partners acquires Linpac Packaging UK based Linpac Packaging makes food packaging and plastic containers. The deal with US-based Strategic Value Partners is the latest in a series of disposals by Linpac since it ran into trouble under Montagu Private Equity’s ownership in 2009. Ares Management acquires Farrow & Ball Farrow & Ball, the UK based luxury paints and homewares producer, has been acquired by US-based Ares Management for $433m, stating a shared vision for accelerating the growth of the business.
Lower-mid market observations Global stability to encourage cross-border deals In the years following the financial crisis, global markets are enjoying a period of relative stability. Against this backdrop lower-mid market industrial companies will be encouraged to pursue overseas opportunities. Environmental technology opportunities Lower-mid market companies that offer advances in environmental impact reduction can expect to see interest from larger businesses hoping to acquire such technology to help them meet their social impact objectives. Construction building momentum Population growth and optimism in the global economy are leading to a surge in new construction projects and providing opportunities for fast-moving lower-mid market suppliers.
15 SECTOR-SPECIFIC ANALYSIS
Sector contacts
Marcin Majewski Industrials Lead
Giuseppe Benedetti Energy & Renewables Lead
Pankaj Bhuwania Industrials Co-Lead
marcin.majewski@aventis-capital.com +78 22 518 79 68
gb@benedettirossi.com +39 02 4801 5369
pankaj.bhuwania@rcsadvisors.in +91 98 1045 8044
M&A trends & market analysis The following data are compiled specifically for the Industrials sector, with valuation trends over time in the first chart based on semi-annually averaged transactional data, and regional and sub-sector comparisons in the second and third charts based on listed companies data as at mid February 2015. 2009
2010
2011
2012
2013
2014
14
Comment
Context
Sector TEV/EBITDA
12 10 8 6
All Market Industrials Transactions TEV/EBITDA Multiple (Values over $5m) has increased further to 10.1 from its previous low of 7.3 in 2013 H1
This compares to the current cross-sector All Market Transactions TEV/EBITDA Multiple of 11.5
Lower-Mid Market Industrials Transactions TEV/EBITDA Multiple (Values in range $5m-$150m) has fallen to 8.0 from its previous peak of 8.7 in 2013 H1
This compares to the current cross-sector Lower-Mid Market Transactions TEV/EBITDA Multiple of 9.1
4
20
Europe
18
Asia & Pacific
Africa & ME
US & Canada
Latin America
16 14
12.0
12 10
8.6
9.9
9.4
11.3 11.0
11.2 8.7
8.3
8.3
8 6 4 2
Regional TEV/EBITDA All Market Industrials Listed Companies TEV/EBITDA Multiple (Values over $5m) by region is highest in Asia & Pacific at 12.0, 45% higher than the lowest in Latin America of 8.3
This compares to the All Market Industrials Listed Companies TEV/EBITDA Multiple of 10.8
Lower-Mid Market Industrials Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by region is highest in Africa & ME at 11.0, 32% higher than the lowest in Latin America of 8.3
This compares to the Lower-Mid Market Industrials Listed Companies TEV/EBITDA Multiple of 9.8
0 20
Energy
Materials
18
Capital Goods
AutoMobiles
Utilities
Sub-sector TEV/EBITDA
16
13.5
14
11.0
12 10
8.6
10.0
10.0
8.5
9.7
9.2
10.1 8.7
All Market Industrials Listed Companies TEV/EBITDA Multiple (Values over $5m) by subsector is highest in Capital Goods at 13.5, 58% higher than the lowest in Energy of 8.6
This compares to the All Market Industrials Listed Companies TEV/EBITDA Multiple of 10.8
Lower-Mid Market Industrials Listed Companies TEV/EBITDA Multiples (Values in range $5m-$150m) Materials at 10.0, 18% higher than the lowest in Energy of 8.5
This compares to the Lower-Mid Market Industrials Listed Companies TEV/EBITDA Multiple of 9.8
8 6 4 2 0 Data supplied by:
Data analysed by:
SECTOR-SPECIFIC ANALYSIS
16
SERVICES The sector M&A landscape During the Jakarta 2015 Globalscope conference, the network’s global Services sector team met to discuss recent transactions and the evolving underlying structural drivers of the global sector M&A landscape. A key theme is the increasing use of technology to provide services, reducing costs and improving efficiency. More details can be obtained from team members and/or regional heads – see contact details below.
Sector themes Rise in growth by acquisition Some Services sector businesses are finding historic organic growth rates difficult to maintain but, in this case, many are successfully responding to pressure to grow by making acquisitions. Boosting worker productivity Greater use of data analytics in the sector is driving increased efficiencies and plugging the skills gap by supporting businesses in areas of limited capability and capacity. Globalscope members are seeing increasing commoditisation of services with technology enabling more to be done by lower grade staff. Cost synergy benefits Rising costs and tighter margins are putting pressure on service providers. This is likely to result in increased M&A activity as companies look to generate revenue and cost saving synergy benefits through greater scale, capability and geographic footprint. Technology led innovation Technology has the potential to change the way business services providers operate by improving efficiency and quality standards and bringing innovations that allow companies to remain competitive.
Notable recent transactions FedEx acquired Genco Distribution System Inc. In this transaction FedEx paid $1.4bn for Genco, a reverse logistics company that processes return items from more than 130 owned warehouses in North America. The acquisition will allow FedEx to enter new e-commerce markets, as well as strengthening their current service offerings to existing customers. Visual Data Media Services acquired re:fine Content management, distribution, storage and post-production services provider Visual Data Media Services has acquired London based re:fine, the content processing services provider. The deal will allow both parties to access each other’s markets, technologies and infrastructure.
Lower-mid market observations Health of the broader economy As providers of ancillary services to businesses in other sectors, the value of services businesses themselves is often closely tied to the health of the broader economy. As indices, such as the FTSE, flirt with all-time highs, it is yet to be seen if the boost global growth receives from lower oil prices will offset negative factors, including diminished expectations about medium-term growth in many advanced and emerging market economies. High level of fragmentation The business services sector contains many large, high-profile profitable suppliers yet remains highly fragmented. Small to medium size businesses make up a significant proportion of the industry and are managing to achieve above average growth rates.
17 SECTOR-SPECIFIC ANALYSIS
Sector contacts
Jim Keeling Services Lead
Dominic Marinelli Resource Services Lead
Martijn Peters Services Co-Lead
jim.keeling@corbettkeeling.com +44 20 7626 6266
dmarinelli@terraincapital.com +61 3 9665 2444
martijn.peters@dex.nl +31 6 13 08 52 45
M&A trends & market analysis The following data are compiled specifically for the Services sector, with valuation trends over time in the first chart based on semi-annually averaged transactional data, and regional and sub-sector comparisons in the second and third charts based on listed companies data as at mid February 2015. 2009
2010
2011
2012
2013
2014
16
Comment
Context
Sector TEV/EBITDA
14 12
All Market Services Transactions TEV/EBITDA Multiple (Values over $5m) has fallen to 10.1 from its previous high of 15.5 in 2014 H1
This compares to the current cross-sector All Market Transactions TEV/EBITDA Multiple of 11.5
Lower-Mid Market Industrials Transactions TEV/EBITDA Multiple (Values in range $5m-$150m) has also fallen to 5.7 from its previous high of 9.8 in 2014 H1
This compares to the current cross-sector Lower-Mid Market Transactions TEV/EBITDA Multiple of 9.1
10 8 6 4
20
Europe
Asia & Pacific
18 16 14 12
Africa & ME 17.4
14.0 11.5 11.8
US & Canada
13.3 12.0
11.0
Latin America
12.7 10.0
10
8.3
8 6 4 2
Regional TEV/EBITDA All Market Services Listed Companies TEV/EBITDA Multiple (Values over $5m) by region is highest in Africa & ME at 17.4, 74% higher than the lowest in Latin America of 10.0
This compares to the All Market Services Listed Companies TEV/EBITDA Multiple of 13.1
Lower-Mid Market Services Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by region is highest in Africa & ME at 13.3, 60% higher than the lowest in Latin America of 8.3
This compares to the Lower-Mid Market Services Listed Companies TEV/EBITDA Multiple of 11.5
0 20 18
Professional HR and Services Consulting
12
Transport
Infrastructure
15.5
16 14
Real Estate Mgmt
Sub-sector TEV/EBITDA
14.3
13.9
12.9
12.3 10.0
11.1
10.6
10
10.1
10.7
All Market Services Listed Companies TEV/EBITDA Multiple (Values over $5m) by sub-sector is highest in Real Estate Management at 15.5, 40% higher than the lowest in Transport of 11.1
This compares to the All Market Services Listed Companies TEV/EBITDA Multiple of 13.1
Lower-Mid Market Services Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by sub-sector is highest in Real Estate Management at 14.3, 43% higher than the lowest in Professional Services of 10.0
This compares to the Lower-Mid Market Services Listed Companies TEV/EBITDA Multiple of 11.5
8 6 4 2 0 Data supplied by:
Data analysed by:
SECTOR-SPECIFIC ANALYSIS
18
TECHNOLOGY, MEDIA & TELECOMS The sector M&A landscape During the Jakarta 2015 Globalscope conference, the network’s global Technology, Media & Telecoms (TMT) sector team met to discuss recent transactions and the evolving underlying structural drivers of the global sector M&A landscape. A key theme is the move towards faster connectivity and the innovation expected to make use of the new capacity. More details can be obtained from team members and/or regional heads – see contact details below.
Sector themes Embracing rich media Digital advertising continues to replace more traditional formats and demand for video is increasing. Content providers may look to M&A to meet the demands of distributors and deliver rich media to consumers. Internet of Things (IoT) set to launch The IoT ecosystem is highly fragmented with new technologies emerging and older technologies evolving. As the technologies move towards standards, our members expect to see the sector rapidly take off and acquisitions to complete the larger players’ product or service suites. Cyber security potential for consolidation Increased usage of mobile, cloud and social media is promoting the expansion of security technology and services. As more start-ups enter the market and the “big 5” cyber security brands lose market share, there will be a consolidation of start-ups with strong traction. Network upgrades create opportunities Mobile carriers across Europe have been upgrading their wireless networks to technology and growth standards in line with the US market. The likely impact of this is an increase in M&A activity as the market consolidates to take advantage of new opportunities.
Notable recent transactions SAP pays out for Concur SAP has acquired the travel and expenses cloud company Concur for $8.3bn. With this acquisition SAP now leapfrogs Oracle in terms of cloud revenue run-rate, second only to Salesforce. Belden secures Tripwire Belden, a traditional cable manufacturer, has acquired cybersecurity solutions company Tripwire for $710m, proving that “strategic” acquisitions do not have to come from inside the tech sphere. Publicis and Sapient combine France based Publicis paid a premium of 44% to acquire US digital agency Sapient for $3.7bn. This will increase its presence in the US and in the ever important digital space.
Lower-mid market observations Large number of cross-border M&A deals A high proportion of TMT M&A deals (nearly 27%) were cross-border over the last six months, compared with a global average of 23%. This is a trend that runs parallel to what our members are seeing in the lower-mid market as innovation and growth is acquired. Lower-mid market helping large incumbents Lower-mid market companies are helping the large incumbents overcome their transitional challenges in moving towards SaaS delivery and will continue to be in demand. Importance of good housekeeping In the run up to a sale, time and value can be wasted as a result of past poor housekeeping, particularly with respect to IP – which is especially important in the TMT sector where IP can make up a significant proportion of the value of a company.
19 SECTOR-SPECIFIC ANALYSIS
Sector contacts
Paddy MccGwire Software & Tech Lead
Mark Miller Digital & Internet Sector Head
pmccgwire@cobaltcf.com +44 20 7659 0310
mark.miller@catcap.de +404 0300 8360, +49 40300 8360
M&A trends & market analysis The following data are compiled specifically for the TMT sector, with valuation trends over time in the first chart based on semi-annually averaged transactional data and regional and sub-sector comparisons in the second and third charts based on listed companies data as at mid February 2015. 2009
2010
2011
2012
2013
2014
12
Comment
Context
Sector TEV/EBITDA
11 10
Lower-Mid Market TMT Transactions TEV/EBITDA Multiple (Values in range $5m-$150m) has risen further to 10.8 from its previous low of 7.4 in 2013 H2
This compares to the current cross-sector Lower-Mid Market Transactions TEV/EBITDA Multiple of 9.1
All Market TMT Transactions TEV/EBITDA Multiple (Values over $5m) has also risen to 10.7 from its previous low of 9.1 in 2013 H2
This compares to the current cross-sector All Market Transactions TEV/EBITDA Multiple of 11.5
9 8 7 6
20
Europe
18
Asia & Pacific
Africa & ME
US & Canada
Latin America
16 14 12
12.3 10.5
11.9
10.9
10.3
10
11.6
12.8
8.4
8.0
8
Regional TEV/EBITDA All Market TMT Listed Companies TEV/EBITDA Multiple (Values over $5m) by region is highest in the US & Canada at 11.6, 45% higher than the lowest in Africa & ME of 8.0
This compares to the All Market TMT Listed Companies TEV/EBITDA Multiple of 10.9
Lower-Mid Market TMT Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by region is highest in the US & Canada at 12.8, 59% higher than the lowest in Latin America of 8.0
This compares to the Lower-Mid Market TMT Listed Companies TEV/EBITDA Multiple of 12.0
8.0
6 4 2 0 20
Media
Software
Hardware
18
12
Telecoms
Sub-sector TEV/EBITDA
14.7
16 14
Semiconductors
11.9 11.9
12.7
11.7
11.7 12.2
10.5
10
7.7
8 6 4 2
8.7
All Market TMT Listed Companies TEV/EBITDA Multiple (Values over $5m) by sub-sector is highest in Software at 14.7, 92% higher than the lowest in Telecoms of 7.7
This compares to the All Market TMT Listed Companies TEV/EBITDA Multiple of 10.9
Lower-Mid Market TMT Listed Companies TEV/EBITDA Multiple (Values in range $5m-$150m) by sub-sector is highest in Software at 12.7, 46% higher than the lowest in Telecoms of 8.7
This compares to the Lower-Mid Market TMT Listed Companies TEV/EBITDA Multiple of 12.0
0 Data supplied by:
Data analysed by:
SECTOR-SPECIFIC ANALYSIS 20
SERVICES
Globalscope’s industry-focused expertise enables our partners to provide invaluable insights, especially in international transactions. Our partners develop and formulate M&A strategies which bring together potential buyers and sellers. We identify, screen and initiate discussions with potential acquisition targets; structure and negotiate transactions; and arrange acquisition financing.
21 SERVICES
01
02
03
Mergers and Acquisitions
Business Strategy & Restructuring
Fund Raising
M&A is the main focus of the network and the core activity for most of our partner firms.
We offer our clients expert advice in their business and financial strategy and restructuring.
Whether the deal is an acquisition, sale or management buy-out, we work with our clients to develop a clear strategy and devise a plan with the best outcome for all stakeholders.
This could involve: reviewing their value proposition; competitor analysis; product/services analysis; market review and positioning; or assessment of alternative growth strategies-all of which are key to creating and realising shareholder value.
Globalscope has a strong track record, with enormous experience in conducting M&A transactions, combined with deep sector knowledge and access to a huge database of prospective buyers and sellers.
Globalscope is able to source finance from corporates and institutional or private equity investors. We secure the most appropriate funding structure. Though the best source of finance in the short term may be available domestically, we provide a broader international context which may be relevant for the future plans of our clients’.
Globalscope partners share international opportunities and issues to provide a robust global context which is vital to the success of cross-border initiatives.
SERVICES 22
EXECUTIVE & SUPPORT TEAM
Globalscope's executive team is made up of 5 directors, a treasurer and an administrator.
Michael Moritz Globalscope President T : +49 40 300 8360 E : michael.moritz@globalscopepartners.com Michael Moritz is Managing Partner at CatCap, an owner operated corporate finance boutique with offices in Hamburg and Munich, Germany.
Russell D'Alba
Head of Conference Strategy and Globalscope Marketing T : +1 716 626 1200 E : russell.dalba@globalscopepartners.com Russell D'Alba is President and Managing Director of Paramax Corporation, a full service middle-market intermediary in the USA.
Anna Edwards Globalscope Administrator T : +44 20 8133 8023 E : anna.edwards@globalscopepartners.com Anna Edwards is based in London, UK, and oversees the day to day operations of the network.
23 EXECUTIVE & SUPPORT TEAM
HervĂŠ Le Roy
Globalscope President Elect, Head of Sectors
Martijn Peters Head of Partner Recruitment and Network Expansion
T : +33 1 49 54 73 10 E : herve.leroy@globalscopepartners.com
T : +31 73 303 29 21 E : martijn.peters@globalscopepartners.com
HervĂŠ Le Roy is CEO of CMW Corporate Finance, a well-known French M&A practice, founded in Paris in 1986.
Martijn Peters is Managing Director of Dex international M&A, the Netherlands, an international M&A practice specialising in sell-side advisory, buy-side advisory and expansion strategies.
Josh Park
Paddy MccGwire
Head of Integration
Globalscope Treasurer & Past President
T : +813 6205 7994 E : josh.park@globalscopepartners.com
T : +44 20 7491 1271 E : paddy.mccgwire@globalscopepartners.com
Josh Park is Executive Vice President of Kaede Financial Advisory, an independent M&A advisory firm in Tokyo, Japan.
Paddy MccGwire is Managing Partner of Cobalt Corporate Finance, a Technology specialist adviser based in London, UK, since 1996.
Imperial House 15 Kingsway London WC2B 6UN
GLOBAL PARTNERS - AFRICA
Botswana - Gaborone
Namibia - Windhoek
South Africa - Cape Town
GKA Capital
Mr Gert Kruger Address : 7 Winchester Road, West Beach - 7441, Cape Town Tel : +27 28 754 1828 Email : gert@gkacapital.com Website : www.gkacapital.com Additional Office Locations: Gaborone (Botswana) Windhoek (Namibia)
GLOBAL PARTNERS
24
GLOBAL PARTNERS - AMERICAS
Brazil - São Paulo
Mexico - Monterrey
Canada - British Columbia, Calgary, Nova Scotia, Toronto, Winnipeg
Uruguay - Montevideo
USA - Buffalo, Chicago, Los Angeles, Minneapolis, New York, Texas
&
GUARITA ASSOCIADOS Guarita & Associados
Osprey Capital Partners Inc.
Mr Marcio Ferrazoli
Mr Stephen Jakob
Address : Rua Funchal 263, 18th Floor, Vila Olímpia, São Paulo / SP - 04551-060, Brazil
Tel : +55 11 3089 6606 Email : mferrazoli@guarita.com Website : www.guarita.com
25 GLOBAL PARTNERS
Address : Suite 2204, 200 Front Street West, Toronto - M5V 3K2, Canada Tel : +1 416 867 8282 Email : sjakob@ospreycapital.ca Website : www.ospreycapital.ca Additional Office Locations: Winnipeg, British Columbia, Calgary & Nova Scotia
Paramax Corporation
Greif & Co.
Mr Russell D’Alba
Mr Lloyd Greif
Address : 333 International Drive, Suite A, Williamsville, NY - 14221, USA
Address : 633 West Fifth Street, Sixty-Fifth Floor, Los Angeles, CA - 90071-2005, USA
Tel : +1 716 626 1200 Email : rjd@paramaxcorp.com Website : www.paramaxcorp.com Additional Office Locations: Rochester (New York state)
Tel : +1 (213) 346 9250 Email : greif@greifco.com Website : www.greifco.com
Allegiance Capital Corporation
Ficus Capital S.A.
Mr David Mahmood
Mr Paul Elberse
Address : 16400 Dallas Parkway, Suite 300, Dallas, Texas - 75248, USA
Address : F. Vidal 688, Montevideo - 11300, Uruguay
Tel : +1 214 217 7750 Email : dmahmood@allcapcorp.com Website : www.allcapcorp.com Additional Office Locations: Chicago, Minneapolis, Monterrey (Mexico), New York
Tel : +598 2711 2252 Email : elberse@ficuscapital.com Website : www.ficuscapital.com
GLOBAL PARTNERS
26
GLOBAL PARTNERS - ASIAPAC
Australia - Melbourne, Perth
Indonesia - Jakarta
South Korea - Seoul
China - Beijing, Jiaxing, Shanghai
Japan - Tokyo
Vietnam - Hanoi
India - Bangalore, Chennai, Mumbai, Pune
Singapore
Terrain Capital
Tomkins Turner
Mr Michael Ramsden
Mr Todd Grover
Address : 8 Chapel Street, Richmond Victoria, Melbourne - 3121, Australia
Address : Suite 8, 232 Churchill Avenue Subiaco, Perth - 6008, Australia
Tel : +61 3 9665 2444 Email : mramsden@terraincapital.com Website : www.terraincapital.com
Tel : +61 8 6424 9130 Email : todd.grover@ttcorporate.com.au Website : www.ttcorporate.com.au
27 GLOBAL PARTNERS
Beijing HRS Consulting
a'XYKno Capital Services Ltd
Mr Jeff Zhao
Ms R Priti
Address : Suite 401, Ziguang Building A, Huixin East Road #11, Chaoyang District Beijing - 100020, China Tel : +86 10 52865198 Email : jzhao@china-hrs.com Website : www.china-hrs.com Additional Office Locations: Jiaxing & Shanghai
RCS Advisors (India) Pvt. Ltd.
Address : 904 Trade World, C wing, 9th Floor, Kamal City, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, India
Tel : +91 932 467 2383 Email : priti@axykno.com Website : www.axykno.com
MAPE Advisory Group Pvt Ltd
Mr Kamal Rungta
Mr Jacob Mathew
Address : 407 Winners Court, 23 Lullanagar Cross, Kondhwa, Pune - 411040, India
Address : 13/14, 1st Floor, Nirlon House Dr Annie Bessant Road, Worli, Mumbai - 400030, India
Tel : +91 20 2683 7941 Email : kamal.rungta@rcsadvisors.in Website : www.rcsadvisors.in
Tel : +91 22 615 44500 Email : jacob@mapegroup.com Website : www.mapegroup.com Additional Office Locations: Bangalore & Chennai
Naxel iPartners
Kaede Financial Advisory Inc.
Mr Fadjar Sutandi
Mr Shin Satake
Address : AJN Center 5th Floor, Jl. HOS Cokroaminoto No 49A, Menteng, Jakarta, Pusat - 10350, Indonesia
Address : Prudential Tower 4F, 2-13-10 Nagata-cho, Chiyoda-ku, Tokyo - 100-0014, Japan
Tel : +62 21 39 899 655 Email : ipartners@naxel.biz Website : www.naxel.biz
Tel : +813 6205 7994 Email : satakes@kaedegroup.com Website : www.kaedefa.com
GLOBAL PARTNERS
28
GLOBAL PARTNERS - ASIAPAC
Stirling Coleman
H-Partners Korea
Mr Steven Lau
Mr Jack Yang
Address : 4 Shenton Way S6X Centre 1, 07-03 - 068807, Singapore
Tel : +65 6327 5700 Email : stevenlau@stirlingcoleman.com Website : www.stirlingcoleman.com
Nexus Group
Mr Nguyen Huu Hieu Address : 5th Floor, Indovina Bank Building, 36 Hoang Cau Street, Dong Da District, Hanoi - 100000, Vietnam Tel : +84 4 351 90200 Email : hieu.nguyen@nexusgroup.vn Website : www.nexusgroup.vn
29 GLOBAL PARTNERS
Address : 3F Starting Building, 720-9 Yeoksamdong, Gangnamgu, Seoul 135-920, South Korea
Tel : +82 70 4900 2390 Email : jack.yang@hpartnerskorea.com Website : www.hpartnerskorea.com
GLOBAL PARTNERS 30
GLOBAL PARTNERS - EUROPE
Belarus - Minsk Czech Republic - Prague
Germany - Düsseldorf, Hamburg, Munich Greece - Athens
Denmark - Copenhagen
Hungary - Budapest Israel - Tel Aviv
Finland - Helsinki France - Paris Georgia - Tbilisi
Netherlands - s’Hertogenbosch, Helvoirt Norway - Trondheim
Sweden - Stockholm
Poland - Warsaw
Switzerland - Kerzers Ukraine - Kiev
Italy - Milan, Vicenza
Portugal - Lisbon Russia - Moscow
Luxembourg - Luxembourg
Spain - Barcelona
United Kingdom - London
Venture Investors Corporate Finance
Dansk Merchant Capital A/S
Mr Albert Michael Rostock-Poplar
Mr Jørgen Beuchert
Address : Křemencova 17, Prague, Prague 1 - 110 00, Czech Republic
Address : Amager Strandvej 50, 1st floor, Copenhagen - DK-2300, Denmark
Tel : +420 777 117 100 Email : rm@vi.cz Website : www.vicf.cz
Tel : +45 41 99 82 50 Email : jorgen.beuchert@dmc.dk Website : www.dmc.dk
31 GLOBAL PARTNERS
Summa Capital
CMW Corporate Finance
Mr Joakim Frimodig
Mr Hervé Le Roy
Address : Bulevardi 6 A 9, Helsinki - 00120, Finland
Address : 118, rue de Vaugirard, Paris - 75006, France
Tel : +358 20 743 0280 Email : joakim.frimodig@summa.fi Website : www.summa.fi
Tel : +33 1 49 54 73 10 Email : hleroy@cmw.fr Website : www.cmw.fr
Alliance Group Capital
Transfer Partners Group
Mr Aieti Kukava
Mr Henning von Poser
Address : 47/57. M Kostava Str, Tbilisi - 0179, Georgia
Address : Ursulinengasse 1, Düsseldorf - D-40213, Germany
Tel : +995 32 242 4181 Email : akukava@agh.ge Website : www.agc.ge
Tel : +49 211 506 6890 Email : vonposer@transfer-partners.de Website : www.transfer-partners.com
CatCap
CCI Management
Mr Michael Moritz
Mr Franz Günther
Address : Valentinskamp 24, Hamburg - D-20354, Germany Tel : +49 40 300 8360 Email : michael.moritz@catcap.de Website : www.catcap.de Additional Office Locations: Munich
Address : Angerfeldstrasse 8b, Gilching, Munich - D-82205, Germany
Tel : +49 8105 379737 Email : ccim@ccim.de Website : www.ccim.de
GLOBAL PARTNERS
32
GLOBAL PARTNERS - EUROPE
First Athens Corporate Finance SA
Heal Partners
Mr Pantelis Papageorgiou
Mr Péter Karli
Address : 1 Elikonos Street, Athens - GR-15452, Greece
Address : Bázis Office Center 14-24., Horvát utca Budapest, HU-1027, Hungary
Tel : +30 210 677 3285 Email : pp@firstathens.com Website : www.firstathens.com
Tel : +36 1 882 0375 Email : pkarli@healce.com Website : www.healce.com
Portofino Investments
Palladio Corporate Finance
Mr Ilan Nir
Mr Lorenzo Valentino
Address : 1 Harbarzel Street, 3rd Floor, Victoria House, Tel Aviv - 69710, Israel
Address : Via Fiori Oscuri 11, Milan - 20121, Italy
Tel : +972 3 645 0900 Email : ilan.nir@portofinoinv.co.il Website : www.portofinoinv.co.il
33 GLOBAL PARTNERS
Tel : +39 02 727 30700 Email : l.valentino@palladiofinanziaria.it Website : www.palladiofinanziaria.it Additional Office Locations: Vicenza
Benedetti & Associates
Tenzing Partners SA
Mr Giuseppe Benedetti
Mr Daniel Schneider
Address : Palazzo dei Cigni snc, Piazza Marco Polo, Basiglio - 20080, Italy
Address : 119 Av. Gaston Diderich, L-1420, Luxembourg
Tel : +32 02 4801 5369 Email : gb@benedettirossi.com Website : www.benedettirossi.com
Tel : +352 26 38 9461 Email : dschneider@tenzing-partners.com Website : www.tenzing-partners.com
DEX international M&A
StratĂŠgique
Mr Martijn Peters
Mr Frank van Goethem
Address : Utopialaan 49, s'Hertogenbosch, 5232 CD, The Netherlands
Address : Zwijnsbergen, Helvoirtsestraat 6, Helvoirt, 5268 BB, The Netherlands
Tel : +31 73 303 29 21 Email : martijn.peters@dex.nl Website : www.dex.nl
Tel : +31 411 71 25 20 Email : frankvangoethem@strategique.nl Website : www.strategique.nl
Impello Management AS
Augeo Ventures
Mr Bjørnar Reitan
Mr Dariusz Budzen
Address : Innherredsveien 7, Trondheim - NO-7014, Norway
Address : Ul. Rozbrat 6/5 Warsaw - 00-451, Poland
Tel : +47 92 64 86 66 Email : bjornar.reitan@impello.no Website : www.impello.no
Tel : +48 22 745 17 55 Email : dariusz.budzen@augeo.pl Website : www.augeo.pl
GLOBAL PARTNERS 34
GLOBAL PARTNERS - EUROPE
Aventis Capital
Bluemint Capital
Marcin Majewski
Mr Diego Hernando
Address : 111 Marszałkowska St., Warsaw - 00-102, Poland
Address : Rua Cova da Moura, 2 - 5.º Esq. Lisbon, 1350 - 115, Portugal
Tel : +48 22 518 79 68 Email : marcin.majewski@aventis-capital.com Website : www.aventis-capital.com
Tel : +351 213 104 170 Email : dho@bluemint.eu Website : www.bluemint.eu
RB Partners
Next Corporate
Mr Konstantin Dzhimbinov
Mr César Prado López
Address : 2 Smolensky Bulvar, Moscow - 119034, Russia
Address : Av. Diagonal, 508, 4-1, Barcelona - 08006, Spain
Tel : +7 495 726 5917 Email : dzhimbinovKD@rbpartners.ru Website : www.rbpartners.ru
Tel : +34 935 189 981 Email : cpl@nextcorporate.com Website : www.nextcorporate.com
35 SECTOR-SPECIFIC ANALYSIS
ScandCap
Nomima Ltd
Mr Johan Frenckner
Mr Fritz Loeffel
Address : M채ster Samuelsgatan 3, Stockholm - 11144, Sweden
Address : Gerbeackerstrasse 8, Kerzers - CH-3210, Switzerland
Tel : +46 8 551 182 20 Email : johan.frenckner@scandcap.com Website : www.scandcap.com
Tel : +41 31 755 70 75 Email : info@globalscope.ch Website : www.globalscope.ch
Capital Times
Corbett Keeling
Mr Dmitriy Baranovskiy
Mr Jim Keeling
Address : Mikhailovskaya Str. 12b, Kiev - 01001, Ukraine Tel : +380 44 499 88 34/35 Email : d.baranovskiy@capital-times.com Website : www.capital-times.com Additional Office Locations: Minsk (Belarus)
Address : 8 Angel Court, London - EC2R 7HP, UK
Tel : +44 20 7626 6266 Email : jim.keeling@corbettkeeling.com Website : www.corbettkeeling.com
Cobalt Corporate Finance
Mr Paddy MccGwire Address : 23 Hanover Square, London - W1S 1JB, UK
Tel : +44 20 7491 1271 Email : pmccgwire@cobaltcf.com Website : www.cobaltcf.com
SECTOR-SPECIFIC ANALYSIS 36
EVENTS
Our partners get together at least twice a year at Globalscope conferences to network, share best practice, have one-to-one deal meetings and sector meetings. The conferences are held in different locations on each occasion, providing partners with access to experts on the local economy and M&A conditions, as well as giving local and regional business heads time to discuss opportunities for our clients. Globalscope conferences are private events for our partners only.
37 EVENTS
At the semi-annual conference in Athens, the partners of Globalscope voted unanimously in favour of a merger with Asia M&A Group. The merger added nine key firms in Asia, and boosted the total Globalscope roster to 45 firms in 38 countries.
Globalscope M&A network at the semi-annual conference London, October 2013
EVENTS 38
EVENTS
Globalscope M&A network Jakarta, March 2015
Jakarta 2015
Athens 2014
Monday, March 23rd Opening hosted by NaXel iPartners. Networking cocktail party at BACCO wine bar.
Wednesday, October 1st Opening hosted by First Athens. Networking cocktail party.
Tuesday, March 24th Introduction and presentation by NaXel iPartners. Observers' introductions. Introduction to Indonesia & its investment opportunities. Diverse deal meetings & sector meetings. Dinner and Oscars at Seribu Rasa restaurant.
Thursday, October 2nd Introduction and presentation by First Athens. Observers' introductions. Diverse deal meetings & sector meetings. Guest speaker presentation. Dinner and Oscars at Acropolis Museum.
Wednesday, March 25th Best practice presentation. Case study of collaboration. Marketing strategies. Regional workshop. Diverse deal meetings & sector meetings. Members' meeting. Vote on observers. Dinner and dancing at Exodus restaurant.
Friday, October 3rd Best practice presentation. Listing on the AIM/SE market. Marketing committee meeting. Diverse deal meetings & sector meetings. Guest speaker presentation.
Thursday, March 26th and Friday, March 27th Public conference including local and regional business owners from ASEAN region and members of KADIN (Indonesian Chamber of Commerce). Deal presentations by Globalscope members to audience & networking. Guest speaker presentations.
Saturday, October 4th Members' meeting. Vote on observers.
The next Globalscope conference will take place in Tel Aviv, Israel, from 7th-10th October, hosted by Portofino Investments. 39 EVENTS
CASE STUDIES Globalscope advised Kontomierz on the merger with Kreditech In 2014, Globalscope advised on the sale of Kontomierz (Poland) to Kreditech (Germany). The project fully utilised Globalscope’s international network, with three Globalscope partners involved.
01
The Target Kontomierz is a technology company offering a personal finance management tool as well as screen scraping technology which allows its users to scan and read banking information such as previous transactions. The collected data can subsequently be transposed into a common format to be used for further applications.
02
The Acquirer Kreditech, founded in 2012, is a frontier financial technology company offering payday and instalment loans, with Poland as its biggest market. It became a customer of Kontomierz shortly after launching its Polish operations. It uses Kontomierz's services for identity verification and for loan applicant analysis. While Kreditech was using Kontomierz, its default rate fell dramatically.
03
The Deal Rationale Both Kontomierz and Kreditech stand to benefit from significant synergies: Kreditech will support Kontomierz with global market entries in Spain, Mexico, Russia and Brazil scheduled for 2015, and together they can continue Kreditech's rapid growth of 500% a year. Focused on building a one-stop shop for personal finance for customers worldwide, the group’s unique technology uses big data gathered from 15,000 data points for its proprietary self-learning credit scoring algorithms. Since 2012, Kreditech’s innovative technology has served two million consumers in nine countries. It is the fastest growing company in consumer finance technology in Europe, with a lending run rate of more than €100 million.
04
The Process CatCap acted as the lead sell-side advisor in the process. As the financial technology sector is UK and US-centric, it was critical to build international competition outside Poland and Germany during the sale process. This was achieved by working closely with Globalscope partner firms, including Cobalt, to find potential buyers from the UK and US markets. In this way, the seller could select the best potential acquirer from a global choice. Combining CatCap’s and Cobalt’s tech insights and networks was very fruitful and improved the results for our client. During due diligence, Augeo from Poland, another Globalscope partner firm, supported on the financial aspects and was also available for support on important issues such as taxation and law. In the end, it was the advice of Augeo which made it technically possible to execute the deal. Globalscope demonstrated excellent collaboration between professionals from a variety of countries and all seniority levels. The deal was efficient, productive and yielded an excellent result with great client satisfaction.
CASE STUDIES 40
CASE STUDIES Globalscope advised on the acquisition of Tubexpress by Van Leeuwen Pipe and Tube Group In 2014 , Globalscope partners Solving Efeso (the Netherlands) and Guarita (Brazil) acted as joint buy-side advisors to Van Leeuwen (the Netherlands) on the acquisition of Tubexpress (Brazil). Solving focused on market analysis and deal structuring, Guarita played a major role in the contacts and the contract negotiations with the seller.
01
The Target Tubexpress is a distribution company supplying pipes and tubes to the (petro)chemical and oil and gas industry. The company has two branches in Brazil, in Osasco and São Carlos, both in the state of São Paulo, and employs around 65 people.
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The Acquirer Van Leeuwen is an international trading company specialising in steel pipes and pipe and tube applications. The company is active in virtually all industrial sectors. The group has 50 branches spread throughout Europe, the Middle East, Asia, Australia and North and South America and has a turnover of €658 million (2012) with around 1,000 employees.
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The Deal Rationale Van Leeuwen wanted to enter the Brazilian market.
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The Process Guarita and Solving acted as buy-side advisors to Van Leeuwen from the very start of the process (formulation of market-entry strategy), until closing. Activities performed: Comprehensive market analysis, using public information and local expert information via Guarita's contacts in Brazil Thorough selection process in order to choose the right candidate, based on selection criteria defined by Solving and Guarita together with the client Multiple personal contacts with the seller to be able to build trust, bridge the ‘information gap’ and overcome cultural differences Guidance of the client through the process, explaining local practices, legal and economic environment Management of due diligence process to get the full insight of all potential risk factors
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