aerospace, defense & government services

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is private limitedcompany incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England andWales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which HarrisWilliams LLC and Harris Williams & Co. Ltd conduct business.

AEROSPACE, DEFENSE & GOVERNMENT SERVICES

INDUSTRY UPDATE │ JANUARY 2017

0

PAGE |

Engines40%

Components22%

Line17%

Airframe14%

Modifications7%

(6%)

(3%)

0%

3%

6%

9%

12%

15%

18%

2001 2003 2005 2007 2009 2011 2013 2015

THE COMMERCIAL AEROSPACE AFTERMARKET IS POISED FOR CONTINUED GROWTH

Global

Demand for

Air Transport

Will Drive

Long-Term

Fleet Growth in

Commercial

Aerospace



All Signs Point

to Sustained

Commercial

Aftermarket Growth

BOW WAVE DRIVING INCREASED HEAVY CHECKS (HMVS)

LOW FUEL COSTS DRIVING DELAY IN RETIREMENTS

INCREASING PASSENGER AND CARGO TRAFFIC, RECORD AIRCRAFT UTILIZATION, AND DELAYS IN AIRCRAFT RETIREMENTS ARE DRIVING INCREASING MAINTENANCE DEMAND ACROSS ALL GENERATIONS OF THE FLEET

STRONG GLOBAL MRO DEMAND SUSTAINED GROWTH OVER THE NEXT DECADE

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0

200

400

600

800

1000

1200

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

# of Retirements % of Installed Fleet

North America

29%

Asia Pacific

28%

Europe26%

Middle East8%

Latin America

6%

Africa4%

By Segment By Region

2015 Global MRO Demand by Region 2015 Global MRO Demand by Region

40%41%

22%

22%17%

16%

14%

13%

7%

8%

$0

$20

$40

$60

$80

$100

$120

2015 2025

Engine Component Line Airframe Modifications

$64.3B

$96.0B CAGR5.3%

2.8%

3.6%

4.3%

4.4%

0

500

1,000

1,500

2,000

2009 2011 2013 2015 2017P 2019P 2021P

Deliveries

First HMVs

HMVs forecasted to grow at

over 4% annually through 2024P

Aircraft Deliveries and First HMVs1

Sources: Airline Monitor, Boeing (RPM Growth), CapitalIQ (S&P 500), Airline Monitor (Cargo RTKS, RPMs, Global Fleet)1) First HMVs calculated as five years after initial aircraft delivery

PASSENGER TRAFFIC IS RESILIENTWORLD AIR CARGO TRAFFIC

CONTINUES TO TREND UPWARD

THE GLOBAL FLEET WILL CONTINUE TO EXPAND STEADILY

150

175

200

225

250

2000 2003 2006 2009 2012 2015

Cargo RTKs (in billions)

0

500

1,000

1,500

2,000

2,500

0

5,000

10,000

15,000

0

20,000

40,000

60,000

1990 1994 1998 2002 2006 2010 2014 2018P 2022P 2026P 2030P 2034P

Global Fleet RPMs

Y-o-Y RPM Growth and S&P 500 Index

Historical and Projected Global Fleet and Revenue Passenger Miles (1990-2035)

4.2% CAGR

4.0% CAGR

Strong growth despite four recessions

and several macroeconomic setbacks

Global fleet and RPMs will expand more

than 2.5x over the next 20 years

1

PAGE |

$68.8

$78.8

2015 2024

Latin America (2.1% CAGR)

Africa (9.6% CAGR)

Middle East (2.1% CAGR)

Asia Pacific (1.2% CAGR)

Europe (0.9% CAGR)

North America (1.1% CAGR)

THE DEFENSE AFTERMARKET IS GROWING INTERNATIONALLY

Legacy

Aircraft

Support is of

Critical

Importance To

The U.S.

Military and

International

Militaries

Sources: RBC Equity Research Global Aerospace & Defense 2015 Primer (Projected U.S. O&M Spend), Avascent (Aircraft MRO Spend)

2

Alignment With Key Military

Programs Will

Be Critical



DEFENSE AVIATION MRO IS EXPANDING GLOBALLY, DRIVEN BY INCREASED SPENDING BY THE U.S. DOD AND STRONG GROWTH IN ASIA, AFRICA AND THE MIDDLE EAST

U.S. DOD O&M BUDGETS ARE INCREASING ACROSS THE BOARD

$26+ BILLION BUDGET FOR DOD DEPOT MAINTENANCE

$248 $245 $251

--

$50

$100

$150

$200

$250

$300

FY15 FY16 FY2017E

Air Force O&M (+2.1%)

Increased OPTEMPO for

fighters and bombers

DoD-Wide O&M (+5.4%)

Increased SOCOM

Funding

Army O&M (0.8%)

Slight increase in base

budget flying hours

Navy O&M (2.3%)

Increasing depot staffing

and F-16 depot throughput

GROWING INTERNATIONAL MILITARY AIRCRAFT MRO SPEND

$73.3

$25.9 $25.6 $26.5

FY15 FY15 FY16 FY17

Outsourced$34.5

Organic$38.8

Total DoD

Maintenance

Depot Maintenance

(~35% of Total)

($ in billions) ($ in billions)

2015 – 2020P Projected Increase in Global Military MRO Spend

($ in billions) More than 75% of global growth expected in Asia, Africa and the Middle East

South America

$2.8

Africa & Middle East

$6.4

Asia / Pacific

$11.0

Europe and Russia

$4.9

GLOBAL MILITARY MROGROWING AT 1.5% CAGR

MILITARY AIRCRAFT DELIVERIES (2015 – 2024)

GROWING INTERNATIONAL MILITARY AIRCRAFT MRO SPEND

($ in billions) ($ in billions)

0

500

1,000

1,500

2,000

UH

-60

/S-7

0

F-3

5

AH

-64

CH

-47

NH

90

C-1

30

V-2

2

EC

14

5

PC

-21

Eu

rofig

hte

r

Ra

fale

T-5

0

F-1

6

F-1

8

Kin

g A

ir

P-8

A4

00

T-6

Gri

pe

n

CH

-53

UH-60/S-70, F-35, and AH-64 leading significant

military aircraft deliveries over the next decade

$4.9

$1.5 $1.0 $0.9 $0.8 $0.5 $0.2 $0.2 $0.1

Transport &

Utili ty Rotary

Wing

Light/Medium

Transport

Fighter / Attack Attack Rotary

Wing

Trainer Special Mission Heavy Transport General Av iation Tanker

Difference in MRO Spend (2024 vs. 2015)

($ in billions)

%

Change37% 21% 3% 23% 27% 12% 11% 13% 4%

PAGE |

AEROSPACE AFTERMARKET SERVICES PUBLIC AND M&A MARKETS REMAIN STRONG

While Trading

Multiples

Amongst

Service

Providers Have

Contracted

Slightly,

Stocks Have

Continued to

Outperform

the Market

Sources: FactSet (Public Market Data)

Aftermarket

Services M&A

Activity

Remained High in 2016,

Led by Private

Equity Buyers

and New

Sponsor-

Backed

Platforms



STOCK PERFORMANCE OF AEROSPACE SERVICE PROVIDERS SIGNIFICANTLY OUTPACED THE BROADER MARKET IN 2016, WITH CONTINUED HIGH LEVELS OF M&A ACTIVITY IN THE SECTOR

ENTERPRISE VALUE / 2017E EBITDA

RECENT AEROSPACE AFTERMARKET M&A

STOCK PRICE INDEX – LAST 12 MONTHS

10.6x 10.1x

9.0x8.5x

5.6x

18.4x

14.4x

13.3x

10.4x 10.3x9.5x

8.5x 8.1x

10.8x

9.4x 9.4x8.7x

7.6x 7.4x 6.7x 6.6x

6.2x 5.6x

Aerospace Structural ComponentsAerospace EquipmentAerospace Services

Median: 7.5xMedian: 10.3xMedian: 9.0x

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17

Aerospace Structural Components

Aerospace Equipment

Aerospace Services

6.0%

23.8%

46.6%

S&P 500 18.7%

Announced: September 2016 Closed: September 2016 Closed: August 2016 Closed: July 2016

Announced: July 2016 Closed: April 2016 Closed: January 2016 Closed: October 2015 Closed: July 2015

3

APU Repair Business

Announced: December 2016

PAGE |

11.1x

8.8x

7.3x

5.9x

18.8x

16.4x

17.3x

13.6x

13.4x

13.4x

12.6x

12.0x

11.5x

10.8x

10.6x

10.3x

10.2x

10.2x

10.1x

10.0x

9.5x

9.2x

8.7x

8.2x

8.0x

7.8x

7.6x

7.5x

6.9x

6.7x

5.9x

5.8x

12.3x

11.8x

11.7x

11.3x

11.2x

10.1x

10.0x

9.0x

7.8x

Bombardier, Inc.

The Boeing Co.

Air bus Group SE

Embraer SA

Arconi c, Inc.

HEICO Corp.

Zodi ac Aerospace SA

RBC Bear ings , I nc.

TransDigm Gr oup, I nc.

Woodward, Inc.

BBA Aviation Plc

B/E Aerospace, Inc.

Meggit t Pl c

Ast ronics Corp.

Hexcel Corp.

Moog, Inc.

Wesco Air cr af t Hol di ngs, I nc.

Rockwel l Coll ins, Inc.

Est er line Technologies Cor p.

Bar nes Group, I nc.

Kaman Corp.

KLX, I nc.

AAR Corp.

HEROUX-DEVTEK INC

Saf ran SA

Senior Plc

Ducommun, Inc.

LMI Aer ospace, I nc.

Magell an Aerospace Corp.

Spi ri t AeroSys tems Hol di ngs , I nc.

Tri umph Group, I nc.

GKN Plc

AMETEK, I nc.

Par ker- Hannif in Corp.

Curti ss -Wr ight Corp.

Honeywell I nt er nati onal, Inc.

Eat on Corp. Plc

United Technologies Corp.

Crane Co.

Textr on, Inc.

Rolls -Royce Holdings Plc

General El ectr ic Co.

AEROSPACE VALUATION AND M&A TRANSACTION DATA

STOCK PERFORMANCE AND TRADING MULTIPLES

AEROSPACE M&A ACTIVITY



Enterprise Value > $100 million

Aircraft OEMs

Aerospace Equipment and Structural Components

Diversified Industrial – Heavy Aerospace Exposure

SELECT RECENT AEROSPACE M&A ACTIVITY

EV / CY 2017E EBITDA

4

Median: 8.0x

Median: 10.2x

Median: 11.2x

($ in millions)

NM

CY2017E CY2017E CY2017E Current Market % of Stock Price

Rev enue EBITDA EBITDA MarginStock Price Cap 52-Wk High YoY Change

Bombardier $16,844 $988 5.9% $1.40 $4,563 66.1% 134.5%

Boeing 93,015 10,614 11.4% 147.02 97,710 91.8% 26.0%

Airbus 72,324 7,123 9.8% 61.27 53,591 86.6% 16.7%

Embraer 5,947 833 14.0% 5.07 4,050 65.9% (34.5%)

Arconic $12,187 $1,741 14.3% $20.18 $9,154 89.1% --

HEICO 1,467 351 23.9% 75.79 4,736 92.0% 45.6%

Zodiac Aerospace 5,620 484 8.6% 22.67 7,231 83.6% 51.6%

RBC Bearings 661 165 24.9% 82.00 2,185 86.3% 58.3%

TransDigm Group 3,547 1,691 47.7% 251.38 13,384 85.4% 15.0%

Woodward 2,099 369 17.6% 67.70 4,224 94.7% 52.3%

BBA Av iation 2,357 450 19.1% 3.28 3,628 92.1% 72.2%

B/E Aerospace 3,084 656 21.3% 59.03 6,234 96.0% 61.9%

Meggitt 2,476 538 21.7% 5.67 4,213 87.1% 23.9%

Astronics 669 115 17.2% 36.71 962 78.7% 15.2%

Hexcel 2,112 496 23.5% 49.24 4,663 89.3% 29.3%

Moog 2,447 316 12.9% 69.90 2,292 95.7% 21.5%

Wesco Aircraft 1,522 209 13.7% 13.95 1,470 88.4% 45.3%

Rockwell Collins 5,383 1,322 24.6% 88.24 11,696 91.4% 4.4%

Esterline Technologies 2,021 311 15.4% 84.85 2,506 89.6% 10.4%

Barnes Group 1,325 295 22.2% 45.62 2,527 91.4% 49.1%

Kaman 1,876 186 9.9% 48.89 1,348 92.5% 29.7%

KLX Aerospace 1,665 321 19.3% 39.37 2,468 81.4% 72.4%

AAR 1,914 165 8.6% 38.05 1,096 98.2% 33.5%

Heroux-Dev tek 352 61 17.2% 11.65 400 94.5% 14.5%

Safran 19,729 3,825 19.4% 67.82 29,999 91.0% 18.3%

Senior 1,185 157 13.2% 2.22 1,014 62.5% (6.8%)

Ducommun 561 62 11.0% 27.08 314 90.3% 116.2%

LMI Aerospace 377 47 12.5% 7.88 122 77.4% (6.0%)

Magellan Aerospace 790 139 17.5% 13.96 748 88.8% 13.0%

Spirit AeroSystems 6,895 1,114 16.2% 55.91 6,890 90.8% 26.7%

Triumph Group 3,530 493 14.0% 27.30 1,256 68.1% (22.1%)

GKN 11,563 1,327 11.5% 3.86 7,184 85.3% 21.4%

Ametek $3,933 $1,042 26.5% $47.61 $11,736 90.5% 5.9%

Parker-Hannifin 11,365 1,669 14.7% 137.23 19,263 93.8% 64.1%

Curtiss-Wright 2,168 432 19.9% 100.32 4,237 93.2% 41.0%

Honeywell 39,575 8,561 21.6% 112.21 89,976 93.5% 22.1%

Eaton 19,708 3,356 17.0% 65.54 30,625 93.6% 41.7%

United Technologies 58,880 10,568 17.9% 106.85 90,920 94.7% 29.0%

Crane 2,745 478 17.4% 74.40 4,261 94.3% 62.6%

Textron 14,256 1,684 11.8% 44.56 13,265 87.5% 31.4%

Rolls Royce 17,213 2,100 12.2% 8.20 15,740 71.3% 30.7%

General Electric 126,909 21,094 16.6% 30.87 276,273 93.5% 9.6%

Wesco Air cr af t Hol di ngs, I nc.

Est er line Technologies Cor p.

HEROUX-DEVTEK INC

Magell an Aerospace Corp.

Spi ri t AeroSys tems Hol di ngs , I nc.

Honeywell I nt er nati onal, Inc.

United Technologies Corp.

Rolls -Royce Holdings Plc

Announced

Date Target Subsegment Acquirer

Jan-17 Zodiac Aerospace Aircraft Interiors Safran

Jan-17 Ross Aviation Dulles FBOAviation Serv ices and

SupportJet Aviation Group

Jan-17 Avtron HoldingsAviation Serv ices and

Support

Odyssey Investment Partners

Affiliate

Jan-17 Pulse Aero LimitedAviation Serv ices and

SupportRockwell Collins

Jan-17 Hi-Rel GroupElectromechanical, Power,

and Related Proprietary

Hermetic Solutions Group

(PA&E)

Jan-17 GAMA AviationAviation Serv ices and

SupportBBA Aviation

Dec-16 Teletronics Technology Avionics and Electronics Curtiss-Wright

Dec-16 Scotia TechnologyElectromechanical, Power,

and Related Proprietary United Flexible (ACP)

Dec-16 Thompson Aero Seating Aircraft InteriorsAVIC International Holding

Corporation

12

23

11

910

15

26

21

17

19

22

2

10.4x9.8x

9.0x 9.3x 9.2x9.8x

9.9x

11.5x 11.5x

12.5x

10.4x11.0x

-

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

0

5

10

15

20

25

30

35

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Me

dia

n E

BITD

A M

ultip

le

Nu

mb

er o

f De

als

Strategic Financial

PAGE |

13.0x

12.9x

12.3x

11.2x

9.5x

9.2x

8.8x

8.7x

7.3x

15.7x

15.2x

12.8x

11.7x

11.7x

11.6x

11.5x

11.2x

10.4x

9.3x

8.6x

6.8x

6.8x

NM

Lockheed Mar ti n Cor p.

Northr op Gr umman Corp.

Rayt heon Co.

General Dynami cs Corp.

Thales SA

BAE Sys tems Plc

The Boeing Co.

Hunt ingt on I ngall s I ndust ri es , I nc.

Air bus Group SE

Mercur y Sys tems, I nc.

Kratos Def ense & Securit y Sol ut ions , I nc.

Tel edyne Technol ogies, I nc.

Elbit Sys tems Ltd.

L3 Technologies , Inc.

FLIR Syst ems, I nc.

Ult ra Elect ronics Holdings Pl c

Harri s Cor p.

Cubi c Cor p.

Orbit al ATK, Inc.

Cobham Plc

Comtech Telecommuni cati ons Cor p.

DEFENSE VALUATION AND M&A TRANSACTION DATA



Defense Prime

Contractors

Defense Technologies

DEFENSE M&A ACTIVITY SELECT RECENT DEFENSE M&A ACTIVITY



5

Median: 9.5x

Median: 11.5x

($ in millions)


CY 2017E CY 2017E CY 2017E Current Market % of Stock Price

Rev enue EBITDA EBITDA Margin Stock Price Cap 52-Wk High YoY Change

Lockheed Martin $49,603 $7,034 14.2% $263.42 $74,437 97.6% 17.6%

Northrop Grumman 25,050 3,838 15.3% 246.29 40,583 97.0% 25.0%

Raytheon 25,568 3,760 14.7% 146.10 43,172 95.8% 22.2%

General Dynamics 32,040 4,802 15.0% 168.43 53,592 93.5% 39.7%

Thales 16,684 2,027 12.2% 97.07 20,074 96.7% 29.4%

BAE Systems 24,451 2,845 11.6% 7.45 23,717 94.6% 17.2%

Boeing 93,015 10,614 11.4% 147.02 97,710 91.8% 26.0%

Huntington Ingalls 7,143 994 13.9% 176.20 8,853 89.3% 54.4%

Airbus 72,324 7,123 9.8% 61.27 53,591 86.6% 16.7%

Mercury Systems $380 $84 22.2% $30.36 $1,228 96.6% 76.9%

Kratos 705 54 7.7% 6.55 568 79.7% 149.1%

Teledyne Technologies 2,200 378 17.2% 121.71 4,291 94.1% 58.2%

Elbit Systems Holdings 3,193 410 12.9% 104.69 4,481 99.1% 26.7%

L-3 Communications 10,606 1,283 12.1% 152.11 11,480 93.9% 32.9%

FLIR Systems 1,714 407 23.7% 35.45 4,819 95.4% 13.2%

Ultra Electronics Holdings 1,014 187 18.5% 24.46 1,648 88.2% 1.8%

Harris 7,249 1,538 21.2% 103.90 12,533 96.6% 19.7%

Cubic 1,511 130 8.6% 44.20 1,281 87.4% 12.1%

Orbital ATK 4,588 706 15.4% 85.73 5,113 93.8% 1.9%

Cobham 2,529 449 17.8% 2.00 2,951 63.1% (38.9%)

Comtech Telecommunications 595 68 11.4% 11.47 254 45.7% (42.1%)

Chemring 598 95 15.9% 1.99 578 88.7% 9.1%

AeroVironment 291 24 8.3% 27.54 591 84.9% (2.9%)

Lockheed Mar ti n Cor p.

Northr op Gr umman Corp.

Rayt heon Co.

General Dynami cs Corp.

Thales SA

BAE Sys tems Plc

The Boeing Co.

Hunt ingt on I ngall s I ndust ri es , I nc.

Air bus Group SE

Mercur y Sys tems, I nc.

Kratos Def ense & Securit y Sol ut ions , I nc.

Tel edyne Technol ogies, I nc.

Elbit Sys tems Ltd.

L3 Technologies , Inc.

FLIR Syst ems, I nc.

Ult ra Elect ronics Holdings Pl c

Harri s Cor p.

Cubi c Cor p.

Orbit al ATK, Inc.

Cobham Plc

Comtech Telecommuni cati ons Cor p.

Announced


Jan-17LBA International and Aegis

Engineering

Tactical and Protection

Equipment and Systems Safariland

Jan-17Implant Sciences Explosive

Trace Detection Business Unit

Homeland Security

Technologies and SystemsL-3 Technologies

Dec-16 Meggitt Target Systems Unmanned Systems QinetiQ Group

Dec-16 DRS Environmental SystemsTactical and Protection

Equipment and Systems HDT Global

Dec-16 Liquid Robotics Unmanned Systems Boeing

Nov-16 Prox Dynamics Unmanned Systems FLIR Systems

Nov-16 MacDonald HumfreyHomeland Security

Technologies and SystemsL-3 Communications

Nov-16 Pacific Safety ProductsTactical and Protection

Equipment and Systems Safariland

Oct-16 Berger BulletsWeapon Systems and

MunitionsNammo Group

27

30

2019

29

25

16

18

11

16 16

1

11.9x

13.4x

12.0x

10.5x 10.5x

8.6x 8.4x

9.9x

8.5x

9.0x10.4x

-

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

0

5

10

15

20

25

30

35

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Me

dia

n E

BITD

A M

ultip

le

Nu

mb

er o

f De

als

Strategic Financial

PAGE |

CY2017E CY2017E CY2017E Current Market % of Stock Price

Rev enue EBITDA EBITDA Margin Stock Price Cap 52-Wk High YoY Change

KEYW $315 $40 12.8% $12.95 $473 95.4% 129.4%

SAIC 4,607 353 7.7% 80.88 3,690 90.6% 94.1%

ManTech International 1,665 129 7.8% 43.34 1,549 95.2% 36.3%

Engility 2,126 189 8.9% 35.00 1,170 89.4% 8.0%

CACI International 4,217 369 8.7% 126.10 3,006 94.3% 40.6%

Booz Allen Hamilton 5,942 587 9.9% 35.60 5,359 92.4% 18.9%

Leidos 10,182 966 9.5% 49.45 7,491 83.2% (9.6%)

CSRA 5,182 900 17.4% 31.31 5,360 93.4% 14.1%

Vectrus 817 34 4.1% 21.96 253 62.8% 17.6%

NCI, Inc 333 30 8.9% 13.10 185 85.6% (2.1%)

Serco $3,751 $144 3.8% $1.70 $2,034 91.2% 75.4%

CGI 8,325 1,565 18.8% 48.29 14,875 95.4% 18.0%

Jacobs 10,909 668 6.1% 58.00 7,011 91.5% 54.1%

ICF 1,240 127 10.3% 52.60 1,017 88.3% 59.8%

AECOM 17,856 943 5.3% 37.02 5,539 90.9% 36.6%

Babcock International 6,756 876 13.0% 12.36 5,929 80.6% (0.6%)

Fluor 18,975 915 4.8% 52.25 7,377 90.4% 26.3%

KBR 4,597 327 7.1% 16.78 2,377 93.5% 13.7%

GOVERNMENT SERVICES VALUATION AND M&A TRANSACTION DATA



Government Services

GOVERNMENT SERVICES M&A ACTIVITY SELECT RECENT GOVERNMENT SERVICES M&A ACTIVITY


Median: 11.7x


6

Diversified Services – Heavy Government Exposure

Median: 10.0x

($ in millions)


15.5x

12.8x

12.4x

12.3x

12.2x

11.2x

9.0x

8.8x

8.4x

6.1x

14.6x

10.3x

10.2x

10.1x

10.0x

9.3x

8.0x

7.6x

Announced


Jan-17 BluVectorIntelligence and

CybersecurityLLR Partners

Jan-17 The Kemtah Group IT Serv ices and Consulting Belcan

Jan-17 Enlighten IT Consulting IT Serv ices and Consulting MacAulay-Brown

Dec-16 Veris GroupIntelligence and

CybersecurityCoalfire

Dec-16 Edaptive Systems IT Serv ices and Consulting ManTech International

Dec-16 Haystax TechnologyIntelligence and

CybersecurityFishtech Ventures

Dec-16 DeltekSystems Engineering and

Technical AssistanceRoper Technologies

Nov-16 Aquilent Software and Information

Serv icesBooz Allen Hamilton

Nov-16 The Radiant GroupIntelligence and

CybersecurityDigital Globe

18

2223

15

26

24

18

7

19

14

19

2

9.9x

12.2x 11.9x

10.5x

10.0x

11.1x

7.6x

9.4x10.0x 10.0x

8.1x

-

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

0

5

10

15

20

25

30

35

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Strategic Financial

Aerospace, Defense & Government

Services

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HARRIS WILLIAMS & CO. OFFICE LOCATIONS

Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

UNITED STATES EUROPE

BostonOne International PlaceSuite 2620Boston, Massachusetts 02110Phone: +1 (617) 482–7501

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689–2400

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359–2700

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648–0072

San Francisco575 Market Street31st FloorSan Francisco, California 94105Phone: +1 (415) 288–4260

Washington, D.C. 800 17th St. NW2nd FloorWashington, D.C. 20006Phone: +1 202-207-2300

FrankfurtBockenheimer Landstrasse 33–3560325 FrankfurtGermanyPhone: +49 069 3650638 00

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

Aerospace, Defense & Government

Services

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep–sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.

OUR FIRM


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HARRIS WILLIAMS & CO.



SOURCES

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DISCLOSURES

FactSet, Harris Williams & Co. Proprietary Information

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co.Ltd, which is private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK,registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulatedby the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conductbusiness.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Copyright© 2017 Harris Williams & Co., all rights reserved.

http://www.harriswilliams.com/

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