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SYSTEM SOFTWARE M&A Tearsheet August 2016 Alps Venture Partners TRANSACTION MULTIPLES | HISTORICAL TRENDS | GEOGRAPHIC HEAT MAP
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SYSTEM SOFTWARE!M&A Tearsheet!
!August 2016!Alps Venture Partners!
TRANSACTION MULTIPLES | HISTORICAL TRENDS | GEOGRAPHIC HEAT MAP
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Merger & Acquisition Summary – System Software
Valuation Summary
Total Deal Value ($mm) 48,101
Average Deal Value ($mm) 373
Average TEV/Revenue 4.4x
Average TEV/EBITDA 27.4x
Average Day Prior Premium (%) 45%
Average Week Prior Premium (%) 48%
Average Month Prior Premium (%) 46%
*Source–CapitalIQ,AlpsVPAnalysisDateRange:Jain1,2010–August15,2015
Transaction Ranges
Greater than $1 billion 9
$500 - $999.9 mm 8
$100 - $499.9 mm 26
Less than $100 mm 86
HISTORICAL TREND ANALYSIS
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Transaction Multiples - Trends
*Source–CapitalIQ,AlpsVPAnalysis;
4.7x 5.3x3.0x 4.3x 4.8x 3.4x
25.5x
17.7x
39.1x
29.2x27.1x
29.6x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
40.0x
45.0x
2010 2011 2012 2013 2014 2015
Mul$p
les
AverageTEV/Revenue
AverageTEV/EBITDA
Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year
Average TEV/Revenue 4.7x 5.3x 3.0x 4.3x 4.8x 3.4x 4.4x
Average TEV/EBITDA 25.5x 17.7x 39.1x 29.2x 27.1x 29.6x 27.7x
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Transaction Numbers - Trends
*Source–CapitalIQ,AlpsVPAnalysis;
13
13
1-1
-1
2-
4
67
2
7
2 2
20
1715
20
86
-
5
10
15
20
25
2010 2011 2012 2013 2014 2015
Num
bero
fTransac$o
ns
>$1billion
$500-$999.9mm
$100-$499.9mm
Lessthan$100mm
(in$Million) 2010 2011 2012 2013 2014 2015 5Year
AverageDealValue 151.6 491.6 342.3 476.7 527.6 251.5 398.0
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Geographic Heat Map
*Source–CapitalIQ,AlpsVPAnalysis;NumberoftransacGonsinMajorRegions;
AsiaPacific–30%Americas–43% Europe/MENA/Africa–27%
Region / Transactions Number Total Value Average Size
Asia Pacific 39 1,461 37 Europe/MENA/Africa 35 3,196 91 Americas 55 43,444 790
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Biggest Transactions
Target Deal Value ($mm)
BMC Software, Inc. 8,377
McAfee, Inc. 7,696
MICROS Systems, Inc. 5,262
Ariba Inc. 4,608
Sourcefire, Inc. 2,395
Novell, Inc. 2,145
ArcSight, Inc. 1,649
Radiant Systems, Inc. 1,242
Websense, Inc. 1,055
OPNET Technologies, Inc. 994
*Source–CapitalIQ,[email protected]
Alps Venture Partners has established a team of experts that have experience in valuing businesses across diverse industry sectors and all developmental stages; ranging from clients with seed funding to pre-IPO stage. With the team having experience of both valuations and audits, our detailed and insightful valuation appraisal reports, along with our responsive support, help our clients easily pass through any stringent audit review process in a smooth, efficient and time-bound manner.
TaxCompliance FinancialReporVng StrategicValuaVon
Financial Reporting and Tax Compliance Services
IRC 409a
We have experience of handling more than 2000+ 409a valuations across Industries. With the team having experience of both valuations and audits, our detailed and insightful Section 409A appraisal reports, along with our responsive support, help our clients easily pass through any stringent audit review process in a smooth, efficient and time-bound manner.
Fair Value Measurement
We help PE and VC clients to comply with ASC 820 and IFRS 13 standard’s complex provisions and avoid any audit issues in their quarterly and annual reporting.
Relative TSR Programs We value the awards with Relative TSR metrics, using sophisticated modeling techniques which allow clients to quickly and accurately value new grants.
Our business valuation experienced team along with the team of veteran Patent lawyers position us uniquely to assist clients in completing annual G o o d w i l l a n d I n v e s t m e n t Impairment testing.
ASC 350 / IAS 38
ASC 718 (FAS 123R)/IFRS 2 Our experienced team at Alps Venture Partners has performed hundreds of stock options valuations for ASC 718 for privately held companies and publicly listed companies across diverse industry sectors and enterprise development stages.
ASC 805 / IFRS 3 We have unmatched proficiency in delivering Business Combinations Accounting solutions to clients in v a r i e d i n d u s t r i e s . O u r comprehensive USPAP compliant appraisal reports are auditable and cost-effective, and help our clients stay focused on the deal.
IRC 83 B Election Alps Venture Partners has extensive experience in assisting companies seeking to comply with IRC 83 B election. Failing to make a timely 83(b) election may lead to disastrous tax consequences for a start-up company founder or employee.
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Corporate Finance Services
We provide clients with high quality research, analytical and advisory support for transactions. We offer a range of services such as initial opportunity assessment, market analysis, financial modeling, commercial and financial due diligence, valuation, capital structure planning, and deal structuring. v I n v e s t m e n t O p p o r t u n i t y
Assessment v Target Identification v Preparation of Pitch Books v Buyer & Seller Services v Fairness Opinions v Financial Modeling v Business and Financial Due
Diligence etc.
Transaction advisory
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Financial Modeling
Whether it is evaluating new bus iness ventures , proposed transactions or financial and operational strategies, a robust and dynamic financial model is an integral component to the decision-making process.
Transaction Identification
We can help by global target identification considering the requirements with maximum synergy.
The financial due diligence process is a necessity to any transaction. Our aim is to enable owners and managers to make such investments with confidence by supporting and advising at every stage. We will help reduce the risk – and stress – of investing at home or in another country.
Due Diligence
Custom Research We provide clients with customized research report, model, decks with client specific requirements such as: v Business plan development, v Diagnostic review of operations v Competitor benchmark analysis v Intellectual Property
Disclaimer
The contents of this presentation are protected by copyright. You may read the contents and make copies for your own personal use. You may also give copies of reasonable extracts, on an occasional basis, free of charge to your contacts for their personal use provided that Alps Venture Partners is acknowledged as the source, the text is not altered in any way, and this warning is brought to their attention. Any other use or copying of the contents of this presentation is prohibited, unless Alps Venture Partners gives its prior written consent. For further information please contact us at [email protected] Pursuant to Title 17, United States Code, Section 512(c)(2), notifications of claimed copyright infringement under United States copyright law should be sent to Service Provider’s Designated Agent. ALL INQUIRIES NOT RELEVANT TO THE ABOVE PROCEDURE WILL RECEIVE NO RESPONSE. This Agreement (and any further rules, policies, or guidelines incorporated by reference) shall be governed and construed in accordance with the laws of the United States (USA), United Kingdom, Canada, Brazil, France, and India without giving effect to any principles of conflicts of law. Alps Venture Partners welcomes your questions or comments regarding this Statement of Privacy. If you believe that Alps Venture Partners has not adhered to this Statement, please contact Alps Venture Partners at our given toll free contact numbers.
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