HUMAN CAPITAL MANAGEMENT SAAS Q1 2018

TABLE OF CONTENTS HIGHLIGHTS  Key Takeaways  M&A Activity & Multiples  Sixty-five mergers and acquisitions (M&A) were announced  Public Company Valuation or closed in 2017, down from the 5-year-high of 75 deals & Operating Metrics last year.  Firm Overview & HCM Credentials  The median revenue multiple paid for private targets decreased slightly to 5.0x in 2017, remaining near the five- SENIOR CONTRIBUTORS year-high of 5.5x set in 2016

David Michaels  The median LTM revenue multiple for public HCM SaaS Head of Technology, Media & Telecom 310-929-5955 companies increased to 5.5x in 2017 from 4.6x in 2016 [email protected]  The M&A window remains open with valuations favorable to Teak Murphy Director the seller although there is some risk that a market 310-746-5006 correction impacts valuation multiples longer term [email protected] www.capstoneheadwaters.com January 2018 SECTION I KEY TAKEAWAYS KEY TAKEAWAYS

M&A ACTIVITY & DEAL SIZE MEDIAN VALUATION MULTIPLES MEDIAN PUBLIC COMPANY METRICS ▼ 65 deals in 2017, down from the ▼ M&A revenue multiple of 5.0x ▲ Stock price gain of 33.4% in 2017 5- year-high of 75 deals in 2016 down slightly from 5.5x in 2016 vs. 28.2% for NASDAQ ▼ Median deal size of $20.0 million, ▲ Public company revenue multiple ▼ Revenue growth of 12.7% in 2017 down from $31.0 million in 2016 of 5.5x up from 4.6x in 2016 vs. 17.1% for 2016 ▲ Public company EBITDA multiple ▲ EBITDA margin of 14.6% in 2017 of 20.1x up from 18.8x in 2016 up slightly from 14.3% in 2016

NOTABLE RECENT M&A TRANSACTIONS MOST ACTIVE BUYERS M&A OUTLOOK

Buyer Target Segment EV ▲ M&A window remains open with Core $4.8B valuations favorable to the seller Benefits & HR BPO Administration Platform Workforce $2.2B ▼ Some risk that market correction Management impacts valuations longer term Workforce $3.4B Management Workforce $915M Management

Hiring $627M

Workforce $533M Management

Hiring $500M

Core $340M Administration Workforce $212M Management Core $134M Administration

2 SECTION II M&A ACTIVITY & MULTIPLES M&A TRANSACTION VOLUME BY SEGMENT

 2017 transaction volume of 65 deals trailed the 2016 transaction volume of 75 » Q4’17 saw 17 deals, up slightly from 13 deals in Q3’17  Workforce Management represents the largest segment in terms of transaction volume, trailed by the Hiring segment  2017 M&A dollar volume decreased significantly to $10.8 billion compared to $35.8 billion in 2016 due the lack of a megamergers » Megamergers in 2016 included / LinkedIn ($29.4 billion) and Verizon / Fleetmatics ($2.4 billion) 80

70 14 15 60 19 50 11 10 31 19 40 39 25 30

27 20 Transactions 20 26 28 10 21 21 16 18 9 0 2012 2013 2014 2015 2016 2017

Total Private $ $892 $382 $13,230 $612 $4,006 $6,570 Total Public $ $3,318 $0 $187 $728 $31,747 $4,337

Hiring (Sourcing/Recruiting/Onboarding) Workforce Management Core Admin (T&A, Payroll, Benefits)

4 M&A TRANSACTION VOLUME BY DEAL SIZE

 Median transaction size decreased to $20.0 million in 2017, as there were more smaller transactions in 2017 than in any of the previous five years  There were eight transactions of $100 million or more in 2017, up from five in 2016

80

70

60

50 44 36 61 40

43 38 30 1 37 2 2 2 8 5 20 6 8 4 3 1 10 3 21 4 1 3 4 14 2 8 10 8 4 5 0 2012 2013 2014 2015 2016 2017 Total Deals 55 48 73 54 75 65 Deals w/ Value 12 11 29 16 14 29 Median ($M) $116 $12 $47 $28 $31 $26 <$25M $25-100M $100-500M $500M-1B $1B+ Non-Disclosed

5 MEDIAN HCM M&A REVENUE MULTIPLES

 The median 2017 revenue multiple paid decreased slightly to 5.0x, but still remained near the five-year-high set in 2016 at 5.5x  The Q4’17 median revenue multiple paid increased to 5.0x compared to 4.0x in Q3’17  The 25th and 75th percentile median LTM revenue multiple shifted down slightly with the range shrinking from 2.1x–9.2x in 2016 to 2.4x–6.0x in 2017

6.0x 5.5x

5.0x 5.0x 4.7x

4.0x 3.6x 3.4x 3.0x 3.0x

Median Revenue Multiple 2.0x

1.0x

0.0x 2012 2013 2014 2015 2016 2017 25th % 2.8x 4.7x 2.9x 2.0x 2.1x 2.4x 75th % 4.1x 4.7x 4.9x 4.0x 9.2x 6.0x

6 NOTABLE RECENT M&A TRANSACTIONS

LTM Multiple Premium Enterprise Ann. Date Buyer Target Segment Target Description Strategic Rationale Revenue on $ to 1 Mo Value Multiple Invested Prior

Aon plc, Benefits Administration and HR Business Blackstone’s last four technology deals have been for Core Process Outsourcing Platform comprises a benefits services business, which they see as area for future 2/10/17 $4.8B 2.1x NA NA Administration administration platform which provides cloud-based growth opportunities. The acquisition of AON’s HR BPO HR management services. business is in line with Blackstone’s strategy.

Verizon will combine Fleetmatics with their other recent Fleetmatics Group PLC provides software-as-a-service Workforce acquisition, Telogis, which will help Verizon Telematics 8/1/16 mobile workforce solutions for small and medium- $2.2B 7.0x 7.0x 38.6% Management become a leading provider of fleet & mobile workforce sized businesses (SMBs) worldwide. management solutions.

CEB Inc. operates as a practice insight and The acquisition of CEB will enhance Gartner’s ability to Workforce technology company in the , Europe, 1/5/17 deliver value to its clients and help them make the right $3.4B 3.5x NA 30.6% Management and internationally. The company operates through decisions with confidence. two segments, CEB and CEB Talent Assessment.

Develops cloud-based field service software solutions The acquisition enhances GE’s overall technology stack Workforce 11/14/16 that help companies to manage contracts, around the Predix platform and advances their $915M 10.2x 4.5x NA Management scheduling, and parts. Industrial Internet vision.

Provides an employment classified ad website for Careerbuilder’s owners, TEGNA, Tribune and McClatchy 6/19/17 Hiring globally through www.careerbuilder.com. Also viewed Careerbuilder as a non-core asset and decided $627M 0.9x NA NA provides related online reference content. to sell to private equity.

Provides cloud-based incentive compensation After two years of mixed results as a public company, Workforce 5/30/17 solutions for employee and sales performance Xactly was an ideal take-private candidate for Vista due $533M 5.5x NA 34.9% Management management in the U.S. and the U.K. to its market leadership in incentive compensation.

Provides enterprise and mobile employee Insight Ventures sees enormous opportunity in the recruitment management and job applicant tracking staffing and recruiting space and recognizes Bullhorn’s 10/23/17 Hiring $500M 5.0x NA NA (SaaS) for businesses and substantial market opportunity as well as its reputation staffing agencies globally. in the marketplace. The acquisition of TSheets will enable Intuit to provide TSheets.com, LLC develops cloud-based time tracking Core its customers a more simplified way to quickly and 12/5/17 technology for organizations in the United States and $340M 8.5x 21.9x NA Administration accurately track their time, send invoices, run payroll, internationally. and understand profitability by project.

Develops, markets, and sells SaaS-based talent The acquisition enables Saba to combine their learning Workforce 2/23/17 management software including Halogen and development capabilities with performance $212M 2.4x NA 20.4% Management Performance for employee feedback & performance management to create new value for their customers

Provides health benefits management SaaS for The acquisition enables Castlight to offer a one-stop Core 1/4/17 businesses including financial management, solution in the digital health employee wellness space $134M 19.1x 2.0x NA Administration customized health benefit plans, and data analytics. that maximizes employee and care giver engagement

*Includes largest transactions based on Enterprise Value

7 MOST ACTIVE HCM SAAS BUYERS – LAST 2 YEARS

# of Deals HCM Transactions Company HCM Total Date Company Value Date Company Value 10/2/17 Associated Data Services NA 1/3/17 Payroll Specialties $4M 5/26/17 iSystems $79M 7 7 1/3/17 Corporate Payroll $3M 5/26/17 Compass HRM $6M 3/21/16 Mangrove Software $17M 1/3/17 Personnel Management Systems $5M

6/6/17 Assessment & Dev. Consultants NA 2/9/16 EnlightKS NA 5 8 1/24/17 PAN NA 1/4/16 Applied Measurement Professional NA 1/10/17 Software Secure NA

7/27/17 Digital Instinct NA 6/28/16 EmLogis (IP Assets) NA 5 5 1/5/17 FMSI NA 1/14/16 Empower Software NA 10/25/16 Datamatics Management Services NA

12/24/17 Learning Seat $26M 6/24/16 Badeville $8M 4 7 6/5/17 Learning Heroes NA 4/8/16 ViewCentral $4M

12/20/16 LogBuy (UK Assets) NA 3 3 3/8/16 Yomp NA 8/5/16 Perkz NA

2 25 6/13/16 LinkedIn $29B 2/4/16 Connectifier $141M

2 8 3/22/17 Bluegarden NA 12/21/16 Movenium NA

2 6 4/10/17 Prestige Nursing NA 9/7/16 Inspirus NA

2 2 8/4/17 Prehire NA 7/1/16 Simply Hired NA

2 2 9/30/16 Kanjoya $20M 5/20/16 Vestrics $10M

8 HCM BUYER MAP

DIVERSIFIED PROVIDERS

HIRING WORKFORCE MANAGEMENT CORE ADMINISTRATION TIME & PAYROLL & SOURCING RECRUITING ONBOARDING PERFORMANCE LEARNING RECOGNITION ATTENDANCE BENEFITS

Red outline indicates public company

9 SECTION III PUBLIC COMPANY VALUATION & OPERATING METRICS HCM SAAS PUBLIC COMPANY UNIVERSE

DIVERSIFIED

HIRING

WORKFORCE MANAGEMENT

CORE ADMINISTRATION

11 MEDIAN STOCK PERFORMANCE – HCM SAAS UNIVERSE

 Q4’17 HCM SaaS Public Companies saw a median gain of 5.0% underperforming the NASDAQ which posted a median gain of 6.3%, but outperformed the SaaS 130 which posted a median gain of 4.1%  Ten companies in the HCM SaaS Public Companies outperformed the NASDAQ with 14 companies outperforming the SaaS 130

Stock Performance Performance StockStock Performance Performance -–9/309/30-12/31-12/31 140% Callidus 16.2% 128.6% Sage 15.2% 122.8% 118.9% Ultimate Software 15.1% 120% Recruit 14.9% Microsoft 14.8% Asure Software 13.7% Paychex 13.5% 100% Intuit 11.0% ADP 7.2% Paycom 7.2% 80% IBM 5.7% Solium 5.6% Freelancer 5.0% Median 5.0% 60% MYOB 4.8% 48.6% 45.8% SAP 2.6% Upland 2.4% 37.9% WageWorks 2.1% 40% 33.4% 32.9% 51job 28.2% 0.4% Instructure (0.2)% HealthStream (0.9)% 20% Oracle (2.2)% Paylocity (3.4)% 5.0% 6.3% 4.1% Workday (3.5)% 0% Cornerstone (13.0)% Benefitfocus (19.8)% Last 5 Years Last 3 Years LTM 9/30-12/31 (30)% (20)% (10)% 0% 10% 20% HR HCM NASDAQ SaaS 130 Based on data available as of 12/31/17

12 MEDIAN LTM REVENUE MULTIPLES – HCM SAAS UNIVERSE

 Median LTM revenue multiple increased to 5.5x, reversing a two-year decline » Workday and Paycom garnered the highest multiples at 12.5x and 11.4x, respectively, while IBM and Recruit garnered the lowest multiples at 2.2x and 2.2x, respectively

LTMLTM Enterprise Enterprise Value Value/Revenue / Revenue LTMLTM Enterprise Enterprise ValueValue/Revenue / Revenue

6.0x Workday 12.5 x 5.5x Paycom 11.4 x 5.1x Intuit 7.7 x 5.0x Paylocity 7.5 x 5.0x 4.7x Paychex 7.5 x 4.6x Callidus 7.4 x 51job 7.2 x Ultimate Software 7.1 x 4.0x Microsoft 6.6 x MYOB 6.6 x Instructure 6.4 x Sage 5.5 x Upland 5.5 x 3.0x Median 5.5 x Solium 5.0 x SAP 4.9 x Oracle 4.8 x 2.0x Asure Software 4.6 x Cornerstone 4.3 x ADP 4.1 x WageWorks 3.9 x 1.0x Freelancer 3.6 x Benefitfocus 3.6 x HealthStream 2.5 x IBM 2.2 x 0.0x Recruit 2.2 x 2013 2014 2015 2016 2017 0x 2x 4x 6x 8x 10x 12x 14x Based on data available as of 12/31/17 Based on data available as of 12/31/17

13 REVENUE MULTIPLES AS FUNCTION OF GROWTH & MARGINS

 A regression analysis of public HCM SaaS data points suggests that revenue multiples are highly correlated to a combination of revenue growth and the long-term margin potential of the business

EVEV/LTM / LTM Rev Rev as as a Functiona Function of Growthof Growth Factor Factor x Margin x Margin Potential Potential(1)(2)(3) (1)(2)(3)

12.5 x 12.0 x 11.4 x

10.0 x 7.5 x 7.4 x 7.5 x 8.0 x 7.1 x 7.7 x 6.6 x 7.2 x 6.4 x 6.0 x 4.9 x 5.0 x 6.6 x 4.8 x 5.5 x 5.5 x 4.0 x 3.9 x 3.6 x 4.1 x 3.6 x 4.3 x 2.2 x 2.5 x 2.0 x 2.2 x

0.0 x 0.20 0.40 0.80 1.60

(1) Growth Factor = (1 + NTM Growth Rate)^3 (2) Margin Potential = Greater of 50% of Gross Margin or LTM EBITDA Margin (3) Asure Software excluded because growth rate is driven by acquisition strategy rather than organic growth

14 MEDIAN LTM EBITDA MULTIPLES – HCM SAAS UNIVERSE

 Median LTM EBITDA multiple came in at 20.1x, reaching a five year high and continuing the year-over-year increase.  Ultimate Software garnered the highest multiple at 92.3x, while IBM had the lowest multiple at 10.5x.

LTMLTM EnterpriseEnterprise Value Value/EBITDA / EBITDA LTMLTM Enterprise Enterprise Value/EBITDAValue / EBITDA

25x Ultimate Software 92.3 x Paycom 54.0 x Upland 40.1 x Solium 34.5 x 20.1x Asure Software 33.6 x 20x 18.8x Intuit 24.7 x 51job 23.2 x 16.2x HealthStream 22.7 x 15.7x Sage 20.4 x 15x 14.4x Median 20.1 x WageWorks 19.7 x MYOB 19.6 x SAP 19.4 x Microsoft 19.2 x 10x ADP 19.0 x Paychex 17.1 x Recruit 17.1 x Oracle 12.2 x IBM 10.5 x 5x Benefitfocus NM Callidus NM Cornerstone NM Freelancer NM Instructure NM 0x Paylocity NM 2013 2014 2015 2016 2017 Workday NM

Based on data available as of 12/31/17 0x 20x 40x 60x 80x 100x Companies with EBITDA Margin <7.5% and EBITDA multiple above 20x deemed NA Based on data available as of 12/31/17

15 MEDIAN REVENUE GROWTH – HCM SAAS UNIVERSE

 Median revenue growth rate decreased to 12.7%, compared to 17.1% in 2016. » Revenue growth is expected to decrease to a median of 11.2% over the next twelve months.  Workday is projecting the highest growth at 60.3% as they expect continued growth in their customer base and expansion of their product offerings.  IBM is projecting the lowest growth at 0.7% as they operate in a more saturated and mature market.

RevenueRevenue Growth Growth vs. vs Prior Prior 12 12 Mos Months NTM/LTMNTM / LTM Revenue Revenue Growth Growth Projection Projection 18% 17.1% 17.1% Workday 60.3% Asure Software 37.4% 16% Upland 31.2% Instructure 28.3% 13.9% Paycom 26.4% 14% 51job 25.3% 12.7% Paylocity 22.6% Solium 19.3% 12% 11.5% 11.2% Callidus 19.0% Ultimate Software 17.9% Microsoft 17.1% 10% MYOB 14.4% Sage 11.2% 8.0% Median 11.2% 8% WageWorks 10.8% Cornerstone 10.3% 6% Intuit 9.9% Recruit 9.2% Benefitfocus 7.5% 4% ADP 7.1% Paychex 6.9% HealthStream 6.7% 2% SAP 5.8% Freelancer 5.2% Oracle 4.2% 0% IBM 0.7% 2013 2014 2015 2016 2017 NTM 0% 20% 40% 60% 80% 12/31/17 Based on data available as of 12/31/17 Based on data available as of 12/31/17

16 MEDIAN EBITDA GROWTH – HCM SAAS UNIVERSE

 Median EBITDA growth rate increased to 11.6% in 2017 with a significant jump to 47.4% expected in the next twelve months.  Workday is projecting the highest EBITDA growth at 305.9% while Solium is projecting the lowest EBITDA growth at (3.9)%.

EBITDA Growth vs Prior 12 Mos NTM / LTM EBITDA Growth Projection Revenue Growth vs. Prior 12 Months NTM/LTM Revenue Growth Projection 60% Workday 305.9% Cornerstone 279.1% 50% 47.4% Ultimate Software 262.8% Paylocity 240.9% Upland 235.6% Asure Software 156.0% 40% Paycom 81.9% WageWorks 74.8% Instructure 56.6% 30% MYOB 52.4% HealthStream 48.4% Median 47.4% 20% 51job 46.4% 11.6% SAP 46.4% Microsoft 10% 6.5% 35.0% 4.5% Intuit 32.5% Oracle 24.3% Sage 22.1% 0% IBM 19.8% (1.2)% Paychex 6.8% Recruit 6.6% (10)% ADP 5.2% (9.3)% Solium (3.9)% Benefitfocus NM (20)% Callidus NM 2013 2014 2015 2016 2017 NTM Freelancer NM 12/31/17 (100)% 0% 100% 200% 300% 400% Based on data available as of 12/31/17 Companies with EBITDA Margin between -5.0% and 5.0% deemed NA Based on data available as of 12/31/17

17 MEDIAN GROSS MARGIN TRENDS – HCM SAAS UNIVERSE

 Median gross margins have remained relatively constant for the past five years, increasing slightly in LTM to 63.3%. » Sage garnered the highest gross margin at 93.4% as their revenue is primarily derived from software subscriptions, which tend to have the highest margins. » Solium had the lowest gross margin at 42.2% as their revenue mix includes services revenue, which tend to have lower margins.

Gross Margins Gross Margins by Company Gross Margins Gross Margins by Company 70% 65.1% Sage 93.4% 63.7% 63.7% 62.5% 63.3% Freelancer 85.7% Paycom 85.3% 60% Intuit 84.7% Asure Software 77.8% 51job 72.5% Instructure 71.2% 50% Paychex 70.7% Workday 70.5% SAP 69.6% 40% Cornerstone 69.6% Upland 65.0% WageWorks 63.3% Median 63.3% 30% Microsoft 62.5% Ultimate Software 62.0% MYOB 61.4% Callidus 61.0% 20% Paylocity 58.7% Oracle 58.4% HealthStream 56.7% 10% Benefitfocus 51.1% IBM 46.3% Recruit 45.8% ADP 42.9% 0% Solium 42.2% 2013 2014 2015 2016 2017 0% 20% 40% 60% 80% 100% Based on data available as of 12/31/17 Based on data available as of 12/31/17

18 MEDIAN EBITDA MARGIN TRENDS – HCM SAAS UNIVERSE

 Median EBITDA margin increased slightly to 14.6% compared to the five year low of 14.3% set in 2016.  More mature companies such as Paychex, Oracle, and Microsoft tend to have more operating leverage, resulting in higher margins.

EBITDA Margins Margins EBITDAEBITDA Margins Margins byby Company Company

25% Paychex 43.7% Oracle 38.9% Microsoft 34.7% MYOB 33.8% 19.5% 51job 31.1% 20% 18.3% Intuit 30.9% 17.3% Sage 26.9% SAP 25.2% ADP 21.6% 14.3% 14.6% IBM 21.5% 15% Paycom 21.2% WageWorks 19.9% Solium 14.6% Median 14.6% Asure Software 13.7% 10% Upland 13.6% Recruit 12.7% HealthStream 11.1% Ultimate Software 7.7% Paylocity 7.1% 5% Freelancer (0.0)% Benefitfocus (1.1)% Callidus (2.7)% Cornerstone (10.4)% Workday (13.1)% 0% Instructure (32.3)% 2013 2014 2015 2016 2017 (50)% (30)% (10)% 10% 30% 50% Based on data available as of 12/31/17 Based on data available as of 12/31/17

19 SECTION IV FIRM OVERVIEW & HCM CREDENTIALS 2 1 HCM EXPERIENCE OF CAPSTONE HEADWATERS TEAM

 Driver recruiting  Employee giving  Web-based and compliance management employee software for SaaS solution for onboarding and has received a growth trucking vertical has recapitalized with large enterprise has been acquired by compliance SaaS investment from solution

 Leading  Social  Leading provider of data performance provider of services to management workforce

has been acquired by support has been acquired by and analytics has been acquired by scheduling workforce SaaS software globalization

 Leading  Learning  Provides hiring provider of development solutions for the temporary and and mobile recruitment and

permanent has been acquired by training in the has been acquired by retention of has recapitalized with staffing services life sciences hourly workers vertical

21 2 2 TENSTREET CASE STUDY

 Tenstreet is the leading provider of driver recruiting and compliance software-as-a-service (SaaS) solutions for private fleets and for-hire trucking companies. The Company’s comprehensive web and mobile software suite includes modules for recruiting, online application submission and tracking, Department of Transportation (“DOT”) regulatory compliance, employment verification, background investigation, onboarding and employee retention. has received a growth investment from  Tenstreet is the clear market leader in the trucking vertical with approximately 45% of the top 250 for-hire carriers as enterprise customers.

 Capstone Headwaters ran a highly competitive and efficient process that resulted in receiving eight offers within six weeks of being engaged. Capstone Headwaters was able to drive multiple buyers to raise their bids  to a valuation that equates to 11.5x LTM revenue and 19.6x LTM EBITDA. The undersigned represented With valuation maximized, Tenstreet was able to choose the winning Tenstreet, Inc. bidder based on the best fit.

November 2016 2017

IT DEAL OF THE YEAR ($100MM - $!B)

INTERNATIONAL AWARDS

22 2 3 TECHNOLOGY, MEDIA & TELECOM SENIOR TEAM

 The Capstone Headwaters TMT team has decades of transaction experience and domain expertise in several TMT market segments. Our clients receive hands-on, senior-level attention on every transaction. With a long track record of success, we are dedicated to delivering results that maximize value for our clients

DAVID MICHAELS GAURAV BHASIN TYLER COMANN PAUL JANSON DAVID FRANCIONE Head of Technology, Media & Telecom Managing Director Managing Director COO Managing Director 310-929-5955 415-766-3862 415-272-2463 303-572-6012 617-419-2040 [email protected] [email protected] [email protected] [email protected] [email protected]

JOHN SNEAD THOMAS PECHT RACHEL CANDLER DAVID DESIMONE TEAK MURPHY Managing Director Managing Director Director Director Director +44 7979 704302 770-932-8700 303-619-3791 617-619-3324 310-746-5006 [email protected] [email protected] [email protected] [email protected] [email protected]

23 2 4 HCM SAAS REPORT CONTRIBUTORS

DAVID MICHAELS TEAK MURPHY BRANDON OVERMYER JAY WONGWATANA-ANAN Head of TMT Director Vice President Analyst 310-929-5955 310-746-5006 310-929-7117 310-929-7116 [email protected] [email protected] [email protected] [email protected]

David Michaels is a Managing Director and Teak Murphy is a Director in the Brandon is a Vice President in the Jay Wong is an Analyst within the is responsible for managing the firm’s Technology, Media & Telecom Group, Technology, Media & Telecom Group, Technology, Meida & Telecom Group. Prior Technology, Media & Telecom Group. based out of Los Angeles. Prior to working closely with clients to execute and to joining Capstone, Jay worked at Moss David founded SagePoint Advisors in 2008, Capstone’s acquisition of SagePoint optimize mergers, acquisitions and Adams LLP conducting M&A financial due a boutique investment banking firm Advisors, Teak worked at SagePoint as a strategic capital raises. Prior to joining diligence for both corporate and private focused on providing merger, acquisition Senior Associate advising technology Capstone, Brandon was an Analyst in equity clients with a focus on the and strategic advisory services to growth companies on mergers, acquisitions and technology investment banking with technology and consumer products companies in the technology and telecom strategic capital raises. Prior to joining ArchPoint Partners in San Francisco, industries. Jay also worked as an external sectors. Prior to founding SagePoint, David SagePoint, Teak worked as a Senior supporting the senior team on middle auditor providing assurance services to was a Co-Founder, Partner and Managing Associate with Enterprise Partners Venture market domestic and cross-border middle market and public companies. Jay Director at Montgomery & Co., a leading Capital, the largest Southern California technology transactions. Brandon has received a BA in Business Economics with investment bank focused on serving based VC firm, where he evaluated previously worked in varying roles with an emphasis in Accounting from the emerging-growth technology companies investment opportunities and worked Apple, LG and a number of startup ventures University of California, Santa Barbara and and their venture backers. David co- closely with senior management and board in addition to civil litigation practice. is a licensed CPA in the state of California. founded Montgomery’s investment members to successfully grow portfolio Brandon received his BA from University of banking business in 1996 and played an companies. Prior to Enterprise Partners, Florida, graduating with distinction in three instrumental role in building the business Teak worked as an Associate in technology years. He received his JD from Baylor to over $50 million in revenues and 80 investment banking at Montgomery & Co. University School of Law and is a member employees. Mr. Michaels also ran the firm’s where he spent three years working closely of the Florida Bar. Communications and Digital Media with SagePoint's founder David Michaels Technology practice areas for several years on buy-side and sell-side M&A prior to his departure. David has intimate transactions. Prior to Montgomery, Teak knowledge of the strategic landscape, worked at Cowen & Co. advising market dynamics and technology technology companies on M&A and IPO underpinnings of several high technology transactions. Teak's experience working on market segments. Prior to joining fund raising, mergers and acquisitions, and Montgomery in 1994, David worked at initial public offerings as both an advisor Bankers Trust Corporate Finance and investor provides unique insight into Department, where he helped execute the needs of venture-backed companies. merger and acquisition assignments. Prior Teak graduated from the University of to that, Mr. Michaels worked as a structural Southern California with honors, receiving a engineer at General Dynamics, Mr. B.S. in Business Administration/Finance. Michaels received an M.B.A. in entrepreneurship from the Anderson School of Management at UCLA and holds a B.S. in Mechanical Engineering from the University of Michigan.

24 BUILT FOR THE MIDDLE MARKET

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Capstone Headwaters is an elite investment banking firm dedicated to serving the corporate finance needs of middle market business owners, investors and creditors. Capstone Headwaters provides merger & acquisition, private placement, corporate restructuring and financial advisory services across 16 industry verticals to meet the lifecycle needs of emerging enterprises. Headquartered in Boston, MA and Denver, CO, Capstone Headwaters has 20 offices in the US, UK and Brazil with a global reach that includes over 300 professionals in 34 countries.

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