Equiteq Knowledge Economy Global M&A Report 2019 KEY FINDINGS

M&A activity and valuations increased with large variations in deal flow across the industry and by region

2% 17%

1.1x No. of Average transactions deal values 2018 vs. 2017 2018 vs. 2017 9.8x 7.2x $81.3m $17.9m 0.7x Average Median deal size 2018 deal size 2018

63% 2.1 years earn-out 2,664 deals 2,664 Average 2018 deal structured 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 with 63% of consideration paid upfront and remainder as an earn-out over 2.1 years Deal volumes EBITDA valuation multiple Revenue valuation multiple

The Equiteq Knowledge Economy Share Price Index1 declined with broader equity market indices, but remains well above long term averages

31 Dec 2018 251 7% 151%

Share price Share price return return 2018 10 years

9.5x 1 Jan 2009 100 6.2% 12.5% S&P 500 FTSE 100 0.9x declined in 2018 declined in 2018 4.6x

0.4x 4% CAGR of constituent listed company cash balances Management index consulting index best performer second best 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (up 8%) performer (down 3%) Share price index EBITDA valuation multiple Revenue valuation multiple

Note 1: On page 4 we discuss the S&P 500 and FTSE 100 indices as benchmarks for comparison to the Equiteq Knowledge Economy Share Price Index. Source: Equiteq M&A and share price data throughout the report relies on third party sources, see page 4 for more information.

The Knowledge Economy Global M&A Report 2019 Segmental M&A review

Management Media Engineering Human IT Services Consulting Agencies Consulting Resources

Deal volumes 780 739 671 212 262

Average deal size ($m) 107.8 90.0 35.1 31.4 19.8

Median deal size ($m) 19.2 20.6 13.6 24.7 11.5

Median revenue 1.0 1.2 1.4 0.7 0.4 valuation mutliple (x)

Median EBITDA 9.8 9.3 11.3 11.2 8.4 valuation multiple (x)

Accenture Gallagher Ankura Altran Interactive Hub International Ernst & Young CBRE Dentsu Selected serial buyers Dekra profiled in the report Hakuhodo DXC Technology Segal Group PA Consulting McIntosh Perry S4 Capital Hewlett Packard Staffing 360 Sia Partners Stantec Enterprise WPP Solutions

Key buyer statistics 8% 29% 31% of deals are by of deals are by serial acquirers of deals are by financial buyers completing multiple knowledge listed strategic economy deals over the last buyers three years

Hot spaces for buyer demand

Digital Innovation Artificial intelligence Advanced data transformation strategy & machine learning analytics

Regional M&A review

1,239 1,040 197 96 92 Deals Deals Deals Deals Deals

5% 7% 26% 4% 1%

North America Europe Asia-Pacific Australia & NZ Rest of the World

Cross-border M&A accounted for 17% of all deals - notably higher in APAC, Australia & NZ

© Equiteq Advisors Ltd. 2019 About Equiteq

Equiteq is a global leader in providing strategic advisory and merger & acquisition services to owners of IP-rich technology and services businesses

There are unique challenges to value growth and equity realization for shareholders and investors in the knowledge economy. Equiteq helps owners transform equity value and then realize maximum value through global sale processes.

Selected recent Equiteq transactions:

Equiteq advised Equiteq advised Equiteq advised Equiteq advised on the transaction on the transaction on the transaction on the transaction

Orbium OEE Consulting Cervello LightStream Analytics Business & Technology Customer Journey Data Analytics Consulting Data Analytics Consulting Specialist Sold to Sold to Sold to Merged with

A.T. Kearney Accenture ABeam Consulting gobeyond

Equiteq advised Equiteq advised Equiteq advised Equiteq advised on the transaction on the transaction on the transaction on the transaction

Essential Design Copperman Solidiance System Partners Innovation Strategy SAP BPC Specialist Management Consulting Salesforce Consulting

Sold to Sold a majority stake to Merged with Sold to

PA Consulting Decision Inc. YCP Holdings DXC Technology

Equiteq advised Equiteq advised Equiteq advised Equiteq advised on the transaction on the transaction on the transaction on the transaction

Mexia DBM The NAV People Dartmouth Partners Microsoft Integration Microsoft Dynamics NAV Consulting Market Research Partner Recruitment Consulting

Joined Merged with MBO backed by Received investment from

Deloitte The Illuminera Group FPE Capital Literacy Capital plc

If you would like to enquire about receiving Equiteq’s comprehensive Knowledge Economy Global M&A Report 2019, or if you would like to discuss your current strategic objectives as a business owner or acquisition strategy as an acquirer, please contact your regional office:

London: +44 (0) 203 651 0600 Email: [email protected] New York: +1 212 256 1120 Website: equiteq.com : +33 (0) 173 053 941 Singapore: +65 3109 1955 Sydney: +61 2 9051 9007

The Knowledge Economy Global M&A Report 2019 Disclaimers and important information

Equiteq is an M&A and strategic advisory firm that seeks to provide you, the owners of knowledge-intensive services businesses, with the best possible information, advice and experience to help you make decisions about selling your firm and preparing it for sale. What follows is a legal disclaimer to ensure that you are aware that if you act on this advice, Equiteq cannot be held liable for the results of your decisions. The information is not intended to provide tax, legal or investment advice. We make no representations or warranties in regard to the contents of or materials provided in this report, and exclude all representations, conditions and warranties, express or implied arising by operation of law or otherwise, to the extent that these may not be excluded by law.

Any reproduction or distribution of this document, as a whole or in part, or the disclosure of the contents hereof, without the prior written consent of Equiteq, is prohibited. All recipients agree they will keep confidential all information contained herein and not already in the public domain.

This report has been compiled by Equiteq’s dedicated market intelligence team with unique insights from Ramone Param, the firm’s thought leadership director. The report utilizes multiple data sources including proprietary newsfeeds, press releases, various third-party information sources and data services. Additionally, our daily activities in the M&A marketplace with buyers and sellers provide insights into emerging trends and informs our research report’s point of view.

It is important to note that financial data, including valuation multiples, are derived from various sources including S&P Capital IQ and PitchBook information databases, combined with findings from our daily activities in the market with buyers and sellers that we utilize on an anonymized basis. Average and median results are adjusted for interpreted anomalies and outliers by segment. Deal volumes (the number of transactions completed) for the latest period being analyzed are estimated based on reported deal volumes and the application of an adjustment factor to account for transactions completed, but not immediately captured in our subscription databases. Due to refinements in data, adjustment methodologies and market definitions, as well as updates to our information sources - historic figures may vary between our reports.

Past performance does not guarantee future results. Future returns will likely vary. Certain information contained herein concerning performance data or economic or