BDO M&A SNAPSHOTS | 1 BDO M&A SNAPSHOTS Our 2013 Deal Highlights 2 | BDO M&A SNAPSHOTS ABOUT BDO BDO UK BDO INTERNATIONAL bn 1 300 Partners 2013 US$6.45 revenue Offices 22 3,500 Staff for exceptional 1,250 Offices 1 Countries 144 56,000 Staff 1No. client service of our 1. US$6.45bn (€4.92 bn) combined fee income 2013 90% clients 76% would recommend us1 already have2 1. Independent research (Mid-Market Monitor 2012 and 2013) undertaken by Meridian West shows BDO has the highest client satisfaction rating among its peers 2. Client Listening Programme 2012/13 BDO M&A SNAPSHOTS | 1 BDO CORPORATE FINANCE What sets us apart of the world’s most completed deals by countries within active advisers 251 UK Corporate Finance our global network 1 144 over Corporate £8.25bn partners deal value 30 200+ Finance team An AWARD WINNING for client increase in deal corporate finance service 60% completions 2013 business 1No. 2 | BDO M&A SNAPSHOTS Expertise through experience 251 deals in 2013 BDO M&A SNAPSHOTS | 3 MAXIMISING VALUE EXPERTS IN SELLING BUSINESSES 4 | BDO M&A SNAPSHOTS MAXIMISING VALUE BDO’s Mergers & Acquisitions team advised on the sale of Branded3 Search Limited to Sale of Branded3 St Ives plc. Search Ltd to Branded3 is a specialist search and digital agency which seamlessly fuses search engine optimisation, social, creative and technical expertise to accelerate business St Ives plc growth. The agency is one of the country’s leading authorities on search. The acquisition represents a continuation of St Ives’ strategy to create a complementary range of digital marketing services that will enable the Group to add further value to existing and new clients. I could not have picked a better team to work on the sale of my business. My impression of corporate finance houses has always been that they are all about the numbers but the team at BDO proved me wrong. They were committed, passionate and very hard working (I did not realise the amount of work that goes into a deal). Most of all, they smashed the target that I set them. I cannot say more. VIN CHINNARAJA CEO – Branded3 Search BDO M&A SNAPSHOTS | 5 MAXIMISING VALUE BDO’s Mergers & Acquisitions team advised on the sale of DPM Europe, DPM Sale of DPM Singapore and Lilley and Gillie Charts to Global Navigation Solutions. and Lilley & The acquired businesses distribute marine navigational charts and digital products and provide portfolio management services. GNS is backed by Phoenix Equity Partners Gillie Charts to with the aim of building the world’s leading marine navigational products and services Global Navigation business. The acquisition builds on DPM’s 150 year history and strengthens GNS’s global Solutions presence, especially in the key maritime market of Singapore. BDO was able to use its global network to identify strategic buyers and achieve a premium price for the vendors. The BDO Corporate Finance team were an excellent choice for our private company owner-operator setup. Their relationships, experience and guidance were instrumental in helping us to successfully navigate the selling process, to both prospective trade buyers and eventual private equity buyers. Their pragmatic advice, commercial mindset and close teamwork were highly valued and I would use them again in the future. JAMES ANDERSON Chairman – Harrison Maritime Industries Limited 6 | BDO M&A SNAPSHOTS MAXIMISING VALUE BDO’s Mergers & Acquisitions team advised the shareholders of Probe Oil Tools on the Sale of Probe Oil sale of the company to Acteon Group. Tools Limited Acteon, a specialist subsea services company with its headquarters in Norwich, is one of the largest firms in East Anglia providing integrated subsea services to the oil, gas to Acteon Group and renewable industries. Limited It has acquired Great Yarmouth-based Probe Oil Tools, a specialist provider of high specification pressure control equipment for the offshore and onshore exploration industries, which was established in 1973 by Managing Director Keith Ford. BDO M&A SNAPSHOTS | 7 MAXIMISING VALUE BDO’s Mergers & Acquisitions team advised on the IBO of CPA to Cinven and IBO of CPA management. Subsequently we advised CPA Global on the acquisition of First to File Global and Inc. The acquisition represented another step in CPA’s strategy to be a technology leader in the arena of patent renewals and related services. The deal provided CPA acquisition of with document management software that has been specifically developed for the IP industry in the US. The business is based out of Silicon Valley (with the technology First to File Inc by hub being in Boise, Idaho) and provides CPA with a scalable presence on the West CPA Global Coast of the USA. BDO ran a tight and controlled process involving multiple business streams, which delivered a very successful result for the company. PETER SEWELL CEO – CPA Global 8 | BDO M&A SNAPSHOTS Revenue US$6.45bn BDO International 144 countries BDO M&A SNAPSHOTS | 9 FINDING INTERNATIONAL BUYERS INTERNATIONAL ACCESS 10 | BDO M&A SNAPSHOTS BDO’s Mergers & Acquisitions team advised the shareholders of Trac Group Limited Sale of Trac Group on the sale of the group to US based Sequa Corporation via its subsidiary Chromalloy. Limited to Sequa Sequa is backed by the Carlyle Group. Trac Group is a specialist engineering business machining aerospace and IGT Corporation components for the highly technical “hot part” section of engines as well as tooling design and manufacture. Trac is projecting huge growth driven by many high volume programs such as the Rolls Royce’s Trent XWB and Snecma’s Leap engines, which FINDING INTERNATIONAL BUYERS FINDING INTERNATIONAL benefit from long term order visibility. BDO successfully identified a key strategic international buyer which paid a premium for the group. The sale of Trac Group represented the culmination of decades of hard work by the shareholders and their families. It was important to see the fruits of that work, so we carefully selected our Corporate Finance adviser to maximise value. BDO was chosen and successfully sourced an international buyer with real strategic motivation to acquire Trac. The sale process was driven with purpose, skill and a hard edged negotiation - BDO was always ahead of the game. The shareholders are delighted with the outcome and would have no hesitation in recommending BDO to others. LEIGH ROBINSON Managing Director and majority shareholder – Trac Group Limited BDO M&A SNAPSHOTS | 11 FINDING INTERNATIONAL BUYERS FINDING INTERNATIONAL BDO’s Mergers & Acquisitions team advised on the sale of Doodson Broking Group Sale of Doodson to Integro Insurance Brokers. Doodson Broking Group is a market leading broker Broking Group to specialising in worldwide live entertainment contingency risk for global touring music acts and performing artists. Integro Insurance With offices based in both the UK and US the group handles over £50m of annual Brokers premium on behalf of insurers and its clients. The sale to Integro, a US based broking group with a growing focus on entertainment and media, further consolidates the Doodson Group as the market leader in its chosen field. BDO’s Corporate Finance expertise and understanding of our sector was invaluable in securing a successful outcome to what was a complex transaction. They provided us with a high level of support throughout the transaction process and we were impressed with their dedication, reactivity and ability to find creative solutions. Overall they made a significant contribution to getting the deal over the line. NEIL CLAYTON Managing Director – Doodson Broking Group 12 | BDO M&A SNAPSHOTS BDO’s Mergers & Acquisitions team advised on the sale of Sterling Security Limited Sale of Sterling to Burg-Wächter KG. Sterling Security is one of the UK’s leading suppliers of locks and Security Ltd to security hardware products. The transaction marks an important step in the internationalisation strategy of the Burg-Wächter KG Burg-Wächter Group. The acquisition will allow the German family owned, safe and security product manufacturer access to the UK market. FINDING INTERNATIONAL BUYERS FINDING INTERNATIONAL BDO successfully utilised its international network to source an overseas buyer who was willing to pay a strategic premium for Sterling Security. We were delighted with the BDO team. They quickly identified Sterling’s strategic potential and the IM was first class. Despite challenging market conditions, BDO delivered a comprehensive list of credible suitors, providing flexibility to ensure Sterling went to the best home. They made the overseas purchaser very confident and comfortable in the business and process. In particular, their level headed approach, coupled with quality commercial advice, was vital in successfully delivering an excellent result for the shareholders and the company. TONY KELLY Managing Director – Sterling Locks Limited BDO M&A SNAPSHOTS | 13 FINDING INTERNATIONAL BUYERS FINDING INTERNATIONAL BDO’s Mergers & Acquisitions team advised Mayerton Holdings Limited (“Mayerton”) Sale of Dalian in relation to the sale of its Chinese subsidiary, Dalian Mayerton Refractories Limited Mayerton to Magnesita Refractorios S.A. from Brazil. Mayerton is a leading manufacturer and supplier of high quality refractories and Refractories Ltd tailor-made refractory solutions for the global iron and steel industry and to other refractory consuming industries worldwide. This was a complex transaction in which we worked with the BDO International M&A network including the BDO Shanghai office. Once the Sale had been agreed a period of time had to elapse for Chinese regulatory approval of the sale to go through. The UK based BDO team travelled to China to get a thorough understanding of the business and used their international network to access global players in the sector including the purchaser, Magnesita from Brazil. They continued to support us through lengthy discussions on a complex cross border transaction including advice on the completion mechanics.