‹#›
Kathleen ThomasManaging Director
Managing Director Managing Director Managing DirectorManaging Director Director, BD Chief Operating OfficerDirector
Co-PresidentFounder & CEO Managing DirectorManaging Director Managing DirectorManaging Director Managing Director Managing Director
Managing Director Chief Operating Officer EVP, Professional ServicesGroup
Chief Marketing OfficerManaging Director Director
2
Managing Director
MSI and Morpace are leading market research firms.
Turnkey Intelligence is a leading sports research and advisory firm.
Challenger is a leading performance improvement platform, focused on sales, marketing and customer service in-person and online training.
FC Business Intelligence is a leading B2B events and information business.
MediaMonks is a leading global creative production platform.
IABHC is a leading provider of education for front-line clinicians, treatment center executives, and public health professionals.
FuseFX is a leading independent visual effects studio providing services for episodic television, feature films, commercials, and VR productions.
Hargrove is a leading experiential events and exhibitions production company.
PennWell is a leading integrated B2B events and information company serving the energy, safety, technology and healthcare sectors
JHI is a leading multi-channel marketing communications, education and data provider serving pharmaceutical, eye care & healthcare professionals.
ThinkHR is a leading provider of trusted HR knowledge software and services.
Dennis Publishing is a leading consumer media and e-commerce organization.
Kimble Applications is a global leader in professional services automation.
Webcollage is a leading product content management SaaS platform for global brands and retailers.
WS&A is a leading tech-enabled survey and analytics platform providing insights to support corporate planning and business outcomes.
FMAV is a leading audiovisual and live event production company.
MTM provides Learning & Development data and analytics solutions for corporations to measure the effectiveness of their L&D investment.
MERGE is a leading integrated healthcare marketing and technology development agency.
ZRG Partners is a leading global executive search firm.
OPEN Health is a leading multi-disciplinary health communications and market access group.
PBM is a leading business media and communications company serving the home furnishings and gift industries.
3
M&A Advisory and Sector Expertise Across Converging Categories4
Marcus AnselmManaging Director
6Source: Statista via Recode, Zenith
188 184178 179 175 173 174 174 174 173 170
168
48
61
7685
95
109120
131
147
160171
180
40
60
80
100
120
140
160
180
200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020*
Minu
tes
TV
Internet
188
48
171
170
Note: * - forecast; Source: eMarketer
2% 2% 3% 3% 3% 4% 4% 4% 5% 5% 6% 6% 7% 8%10%
12%14%
16%18%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* 2021*
2%
14%
7
4% 4% 6% 7% 9% 12% 14% 16% 17% 20% 23% 26%31% 34% 38% 40% 44% 47%
54%37% 37% 37% 36% 36%
36%37%
38% 39%39%
39%38%
36%35%
34% 33%34%
35%32%60% 58% 58% 57% 55% 52% 48% 45% 44% 41% 38% 36% 33% 30% 28% 27%
22% 18% 14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* 2021*
Digital TV Everything else
Source: JEGI | CLARITY Insights
4%
44%
8
Source: Statistic Brain Research Institute 9
DEMANDS UNIQUE AND CREATIVE TECHNOLOGY SKILLS
Source: Deloitte, McKinsey 10
Source: Deloitte, McKinsey 11
Source: Coca Cola Company 12
Note: 1. Top 10 Marketing Companies according to Agency Spotter; Source: Coca Cola Company 13
93154
15
AgencyServices
Full ServiceDigital
SpecialistDigital
MarketingTech
StrategicCommunications
TechServices
Ad Tech ContentProduction
ConsultancyServices
Research
Transactions by target capability
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2018 and 31/12/2018 where the target is within the Marketing Services space
Generalist
Generalist
Specialist
2018
64%
16
2003 2018
Source: JEGI | CLARITY estimates
Non-Traditional Marketing Services Buyers
17
Integration of technology, content and data
Across multiple platforms
Personalised content at scale … globally
18
19
Adam GrossManaging Director
SELLERS OFSERVICES AND
PRODUCTS
B2B MARKETINGSOLUTIONS
BUYERS ANDEND USERS
Platforms Used to Bring Buyers and Sellers Together And Ultimately Help Sellers Drive Buying Decisions
21
▪ B2B Marketing Solutions comprise a diverse array of products:➢ Print and digital media➢ Events➢ Email marketing➢ Content marketing➢ Marketing data
➢ Search marketing➢ Sales enablement➢ Lead/demand generation➢ Market research➢ Industry data
B2B Marketing Solutions are integrating across all channels, with different sets of data, insights and analytics to reach the right
buyers, at the right time with the right product or service
Source: Outsell Information Industry Outlook Report
B2B Marketing Solutions TAM
3.1% Growth $38.2
2 Years Ago
$42.0
Today
$39.4 6.6% Growth
Last Year
4.9% CAGR Over Last Two Years(billions)
22
Large Cap leaders have set the standard for B2B marketing models, through user-friendly software platforms that utilize data, insights and analytics to
connect buyers and sellers
Company Insight TTMEV/Revenue
TTMEV/EBITDA
➢ Customer Relationship Management platform➢ Helps companies service existing customers and identify and
target new potential customers➢ Data, insights, and analytics driven software
➢ PR cloud➢ Covers a client’s communications needs, helping them reach,
target and engage audiences➢ Embedded in the workflow, utilizing insights, intelligence and
data to target the right audiences with the right message
➢ Online Professional Network ➢ Creates economic opportunities for executives, with a focus
on sales, job opportunities, and references/referrals➢ Underpinned by data, insights, and analytics
8.3x 88.0x
4.3x 13.9x
10.4x NM
Source: CapitalIQ 23
SUBSCRIBERS
▪ 6+ million opted-in subscribers (can be targeted vertically and horizontally)
CORPORATIONS& ASSOCIATIONS
▪ 200+ corporation and association relationships
MARKETERS
▪ Highly efficient and actionable way for marketers to reach key target audiences
Tech-enabled B2B marketing solutions enabling marketers to reach target audiences by delivering trusted content to
decision-makers via email
24
Source: PitchbookNote: 2018 data is annualized, from actual data through September
B2B Marketing Solutions M&A
$36.5
2018
$32.1 13.7% Growth
2017
(billions)
B2B Marketing Solutions saw $36.5 billion of M&A transaction value in 2018, representing a 13.7% growth rate over 2017
25
Sources: CapitalIQ and Preqin
Confidence
Capital
Underpinned by a scarcity of quality assets in the market, which is driving pricing
Corporations have
strong balance sheets
($3Tr in cash) and a
growth imperative
Despite recent dips, US
equity markets trading
at historically high
levels
US economy grew
approximately 3% in
2018
Unemployment is at
historically low
levels – 3.9% YE2018
Debt markets remain
vibrant
Private equity firms
look to invest $1.8Tr of
dry powder
26
Take PrivatePre-Arranged Merger
Buyer Seller Type
Strategic Acquisition
Strategic Acquisition
Strategic Acquisition
Strategic Acquisition
Strategic Acquisition
Strategic Acquisition
Strategic Acquisition
Buyer Seller Type
PE Buyout
PE Buyout
PE Buyout
PE Buyout
PE Buyout
PE Buyout
PE Buyout
27
EV $245 million; 2.8x revenue ($87.5 mm)
➢ Transformation & Growth
➢ Doubled Forrester’s addressable market, from $20B to $40B
➢ Brings Forrester’s strategy expertise together with SD’s operations expertise
➢ Delivers actionable intelligence and expert guidance to B2B companies
➢ Helps executives elevate sales, marketing and product performance
Source: CapitalIQ
acquires
28
➢ Growth and consolidation
➢ Looking for a high-quality events platform in North America to enhance and expand its global events portfolio
➢ North American events can be expanded across Clarion’s events platform globally
➢ A diversified and integrated B2B media and events company
➢ Strong marketing solutions platform, including 40 events, primarily in North America
Source: JEGI Proprietary Data
acquires
29
Models and Metrics Agency & Media Tech-Enabled
ServicesBusiness Info/
Software
Valuation Multiple Expansion
Multiples expand as revenue becomes more contractual (“visible”), solutions become more embedded (“stickier”) and margins expand
Revenue Model Project / Retainer Annual / Visible Contractual
Delivery Model Project Management Managed Service Dashboard / Data Feed
Pricing Model Cost-plus Solution-based License
EBITDA Margin 15-20% 20-25% 25%+
Revenue Multiple Tipping Point
30
Data, insights, and analytics are now table stakes
According to PWC, there is a new market force that could contribute up to $15.7 trillion to the global economy by 2030
This powerful market force enables brands to personalize the customer experience, analyze data to make intelligent decisions, and adjust those
decisions in real-time
31
Artificial Intelligence
32
33
Michael HirschManaging Director
Joseph SanbornManaging Director &
Co-Head of Tech Banking
Source: SMB Group estimates, U.S. Census Bureau data, and World Bank estimates
Mid-Market Businesses(100-1,000 Employees)
Small Businesses(< 100 Employees)
Upper Mid-Market Businesses
(1,000-2,500 Employees)
SMB Market Segments
▪6.4 million firms ▪113 million employees ▪$2.5+ trillion revenue ▪$250+ billion IT spend
35
Retail
▪ Auto Dealers▪ Grocery▪ Neighborhood Stores▪ Pharmacies▪ Restaurants
Consumer Services
▪ Child Care▪ Health and Wellness▪ Home Services▪ Tutoring▪ Vehicle Repair
Community
▪ Associations▪ Local Government▪ Not-for-Profit▪ Religious Institutions▪ Sports and Leisure
Professional Services
▪ Accounting/Tax▪ Dental & Medical▪ Insurance▪ Legal▪ Real Estate
36
Cloud
Mobile
APIIntegration
“Five Forces”
WorkforceShifts
Digital Marketing /Advertising
37
COO
CTO
CIOCRO
CFO
CPO
CMOLarge IT Organizations
+CEO
System Integrators
38
SMB Business Requirements
+
SMB “Point Applications”
Family Members
TeamA Handful of
Key Employees
39
Customer Acquisition
Customer Engagement
…emmm…..
Administration Service/Fulfillment
Source: Preqin, 451 Research, Pitchbook
Growth Equity
(Strategic Growth)
Venture Capital Private Equity
▪ Willingness to embrace smaller market opportunities
▪ Comfortable with 20-50% growth rates in companies vs. 50-100%+ requirements of VCs
▪ “Goldilock’s view” of balancing between high burn of VC-backed vs. cash flow needs of PE
▪ Leveraging proven technologies developed in the enterprise market
40
Horizontal (Version 1.0)Customer Acquisition Customer Engagement Service/Fulfillment Administration
Vertical (Version 2.0)
Professional Services
Consumer Services
Community
Retail
41
Public ConsolidatorsPE-Backed Holding Companies
Acqu
isitio
ns
42
▪ Huge investment in vertical SMB software companies
▪ Redefining models to capture more wallet share
▪ Early stages of growth of vertical market offerings
43
Jeff BeckerManaging Director &
Co-Head of Tech Banking
Tactical / Record Keeping
Cost Center
Perpetual License Model
Little Innovation
45
3. Emergence of SaaS
2. People Are Biggest Resources/Expenses
4. High Venture Capital and IPO Activity
1. Automated ERP, SCM, etc.
HCM is Highly Strategic Today
46
47
2000-2005
SaaS HCM Emerges▪ Focused on HR
power users▪ Basic process
automation▪ Venture capital
flows into HCM
2013-Present
Next-Gen HCM▪ Expanded to users
throughout enterprise
▪ Data and Analytics to drive enterprise decision making
▪ PE and Growth Equity dominate transactions
2005-2010
Leaders Emerge
2010-2013
Consolidation Craze
48
Historically Low Unemployment
Skills Gap
War for Talent
HCM Solutions Address Enterprise “Pain Points”
49
GigEconomy
Millennials in Workforce
Need Predictive Insights
70%
90%
110%
130%
150%
170%
190%
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
JEGI HCM Index S&P 500 Russell 2000 IndexIndexed Stock Performance
▪ Huge TAM = $193 billion growing at 9% CAGR ▪ Early adopter of SaaS▪ Strong macro tailwinds▪ Large horizontal opportunity
TAM Source: The Starr Conspiracy Intelligence Unit 50
Strategic Deals Financial Deals
51
▪ Future is about using Data/Analytics and AI to either:➢ Make HR professionals/processes more productive and effective➢ Optimize the “employee experience”, much like has been done for the
“customer experience”
Target
Engage
Measure
Upgrade
Retain
Employee Consumer
52
Recent JEGI HCM Deals
Team’s Pre-JEGI HCM Deals
53