This report provides an overview of private equity activity in the state of Missouri. Our report offers key market place trends and

drivers as well as professional, high-level insights on the quantity, type, region, and industry of deals reported in the 2H of 2019

in Missouri. R.L. Hulett & Company uses data from Pitchbook for all accompanying charts. For more information please contact

Trevor Hulett at thulett@rlhulett.com.

Missouri PE Deal Report2H 2019

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Missouri PE Deal Report2020 Outlook

1

Under the so-called "phase one" trade deal signed in January, China

pledged to boost US imports by $200bn above 2017 levels and

strengthen intellectual property rules.

The U.S. agreed to halve some of the new tariffs it had imposed on

China.

The pause on trade war is good news for PE investors but the

uncertainty of next step (phase two) is still cause for considerable

volatility in the market.

Trade War & Tariffs

Coronavirus Impact

As of this writing, the S&P 500 Index had dropped 19% from its all-

time high set in Feb 2020 amid fears over the coronavirus outbreak

coupled with a correction in the oil and gas market.

Volatility has been extremely high in the equity markets in recent

weeks, which could present challenges in dealmaking and could put

pressure on transaction volumes over the next 3-6 months.

According to PitchBook, the global M&A market is already set for its

slowest first two months since 2006.

In the state of Missouri, we expect deal volume in the first half of

2020 to see a similar decline.

S&P 500 Index vs. WTI Crude Oil

30.00

35.00

40.00

45.00

50.00

55.00

60.00

65.00

70.00

2400

2600

2800

3000

3200

3400

3600

S&P 500 WTI Crude Oil

Global Deal Count in Jan & Feb

2400

3400

4400

5400

6400

7400

8400

2006 2008 2010 2012 2014 2016 2018 2020

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Missouri PE Deal Report2H 2019 Highlights

2

Deal activity in the state of Missouri declined in the 2nd half of 2019, down 24% compared to the first half of the year.

Despite the decreasing deal volume, deal value actually increased in 2019, led by Bain Capital’s $6 billion buyout of Redcard.

77% of the buyout deals in 2019 were add-ons as pricing on larger platform deals remained very competitive.

B2B sectors such as BPO services, Logistics, and other commercial services remained active in the Missouri market in 2019. Of particularnote was the IT sector, which almost doubled 2018’s deal volume, showing that new technologies are attracting attention from PE buyers.

The EV/EBITDA valuation multiple increased slightly in 2019, while EV/Revenue dropped to the range of 1x – 2x from 3x – 4x in 2018.

Marketplace Trends

As always, good companies are getting plenty of attention as they go to market. Key drivers

of interest include:

Key Drivers

St. Louis

Kansas

CityColumbia

• Diversified customer base • Low customer churn

• A good handle on key performance indicators

• Minimal legal risks in play

• Strong and capable management team • Good sources of recurring revenue

• Growth Opportunities • Cutting-edge Technology

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St. Louis – Growing Hub for Agriculture and Tech

3

St. Louis is a growing hub for startups, as well as Agriculture Technology (AgTech) companies. Investments for the future are made, and

companies are moving to the city. Some of the highlights for 2019 include:

The city has been named #2 in the Top 10 Rising Cities for Startups by Forbes Magazine

There has been a +20% tech job growth since 2014 (2nd largest in the country)

Venture capital investments are up 90% compared to the last three years

National Geospatial Intelligence Agency will construct a $1.75bn campus in St. Louis

Bayer backs BioSTL’s new Headquarters with a $1.5bn grant

Bunge, an agriculture giant with more than 31,000 employees, is moving its HQ from NY to St. Louis

Key Drivers

• St. Louis provides an unique geographic location

• Lower business and living cost

• Local Talent (According to TDC, STL has highest concentration of

plant science PhD’s in the world)

Missouri PE Deal Report

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Missouri PE Deal ReportPE Deals Closed by Quarter

4

PE deal activity in the state of Missouri slowed down a bit in the 2H of 2019 to 28 deals, down from 37 the 1H.

Of these 28 deals in 2H, the St. Louis area accounts for the largest share at 11 deals, compared to 6 in Kansas

City and 1 in Springfield.

Deal Activity Records

21

6

9 9 9

7 78 8

9

11

14

10

14

54

10

14 1415

1011 11

15 15

18

10

18

13

1615

21

24

12

10

23

12 12

20

12

26

21

17

20

16

21

18

10

0

5

10

15

20

25

30

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Missouri PE Deal ReportPrivate Equity Transactions

5

Largest Transaction

Seller / Target Transaction Type

Buyout/LBO

Buyer / Investor Deal Size

USD $6,000mm

Date Company Investor Primary Industry Code Transaction Type Transaction DetailDeal Size

($mm)

Implied EV

($mm)City Target Business Description

03-Dec-19 GME Supply Platte River Equity Distributors/Wholesale PE Growth/Expansion - - - Columbia Distributor of safety equipment.

22-Nov-19 EPR Properties Rosemawr Management Buildings and Property Buyout/LBO Asset Acquisition 454.0 454.0 Kansas City Portfolio of Charter Schools.

19-Nov-19 Thomas McGee Group HarbourVest Partners Insurance Brokers Buyout/LBO Add-on - - Kansas City Provider of brokerage services.

14-Nov-19Micro Medical

InstrumentsAudax Group BPO/Outsource Services Buyout/LBO Add-on - - Saint Louis

Provider of medical device contract manufacturing

services.

08-Nov-19 ASPEQ Heating Group Industrial Growth Partners Electrical Equipment Buyout/LBO Secondary Buyout - - Saint LouisProvider of electric heating and thermal management

products.

04-Nov-19 Jack Cooper VenturesSolus Alternative Asset

ManagementLogistics Buyout/LBO - 450.0 450.0 Kansas City Provider of transportation and logistics services.

01-Nov-19ABI Document Support

ServicesBV Investment Partners Medical Records Systems Buyout/LBO

Corporate

Divestiture- - Saint Louis Provider of document retrieval services.

18-Oct-19 Spartech Nautic Partners Industrial Supplies and Parts Buyout/LBO Secondary Buyout - - Maryland HeightsConverter of engineered plastics and polymer

products.

04-Oct-19 Redcard Bain Capital Medical Records Systems Buyout/LBO Add-on 6,000.0 6,000.0 Saint Louis Provider of claims services.

03-Oct-19 Banner Solutions Tailwind Capital Distributors/Wholesale Buyout/LBO Secondary Buyout - - Kansas City Distributor of building hardware.

03-Sep-19 Bluebird NetworkMacquarie Asset

Management Telecommunication Buyout/LBO - - - Columbia Provider of telecommunication services.

30-Aug-19 Vast Broadband Oak Hill Capital Internet Service Providers PE Growth/Expansion Recapitalization - - Sikeston Provider of internet services.

09-Aug-19 Vanguard Packaging Dunes Point Capital Paper Containers & Packaging Buyout/LBO - - - Kansas City Designer and manufacturer of packaging products.

06-Aug-19 Azimuth Energy Oakland Capital Partners Construction and Engineering Buyout/LBO - - - Saint Louis Operator of an engineering and construction company.

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Missouri PE Deal ReportPrivate Equity Transactions

6

Date Company Investor Primary Industry Code Transaction Type Transaction DetailDeal Size

($mm)

Implied EV

($mm)City Target Business Description

06-Aug-19 Cretcher Heartland AlpInvest Partners Other Commercial Services Buyout/LBO Add-on - - Kansas CityProvider of insurance, risk and business support

services.

05-Aug-19 BoardPaq Clearlake Capital Group Business/Productivity Software Buyout/LBO Add-on - - Saint CharlesProvider of an online application for paperless board

meetings.

05-Aug-19Summit Bank of Kansas

CityCastle Creek Capital Regional Banks Buyout/LBO Add-on - - Lee's Summit Provider of personal and commercial banking.

01-Aug-19 Federal Steel Supply V&A Capital Distributors/Wholesale Buyout/LBO - - - Chesterfield Distributor of steel pipes, fittings and flanges.

01-Aug-19 InterCarrier Networks Grain Management Communications and Networking Buyout/LBO Add-on - - Clayton Provider of critical bandwidth infrastructure solutions.

01-Aug-19 The Meyer Group LNC Partners Insurance Brokers Buyout/LBO Add-on - - Saint LouisProvider of insurance products and consultancy

services.

26-Jul-19Underground Records

Management

Access Information

ProtectedOther Commercial Services Buyout/LBO Add-on - - Columbia Provider of access and information management.

23-Jul-19 Grant Cooper Diversified Search Human Capital Services Buyout/LBO Add-on - - Saint Louis Provider of staffing and recruitment services.

19-Jul-19 2e Creative Fishawack Media and Information Services Buyout/LBO Add-on - - Saint Louis Provider of healthcare marketing strategy services.

18-Jul-19 Anchor Packaging The Jordan Company Plastic Containers & Packaging Buyout/LBO - - - Ballwin Manufacturer of rigid packaging products.

11-Jul-19 Thrive Autism Solutions Blue Sprig Pediatrics Clinics/Outpatient Services Buyout/LBO Add-on - - Saint Louis Provider of applied behavior analysis therapy.

09-Jul-19 Lew's Fishing BDT Capital Partners Recreational Goods Buyout/LBO Secondary Buyout - - Springfield Supplier of fishing equipment and tackle.

08-Jul-19 Meridian Loyalty InComm Media and Information Services Buyout/LBO Add-on - - Saint Louis Operator of a full-service incentives business.

03-Jul-19 Just Cash Canaccord Genuity Financial Software Buyout/LBO Add-on - - Saint LouisDeveloper of an application for access to ATM

networks.

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Missouri PE Deal ReportActive PE Investors in Missouri

7

Company Location# of Investments

(2019)Targets

St. Louis 12

St. Louis 9

Kansas City

6

St. Louis 6

Ballwin 6

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Missouri PE Deal Report

8

We saw 77% of PE transactions closed

as add-ons in the 2H of 2019. This is

up marginally from 65% in the

previous year and up from 49% in

2008. We expect add-ons to remain a

high percentage of PE transactions.

The Consolidation Game2

1

10 1

8

10

22

13 1

9

14 2

2

16 2

3

19

20

12

19

19

20

27 2

6

36 3

1

28

42

37

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

10

20

30

40

50

60

70

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Buyout/LBO (Non Add-On) Add-On Add-On %

2110

1810

2213 19

1422 16 23 19

37 3

4

10

513

1412 10 15 9

20 12 1919

2027

2636

31 28 42 37

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Buyout/LBO PE Growth/Expansion Platform Creation Add-On

PE Deals Closed by Type

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Missouri PE Deal ReportPE Deals by Sector

9

B2B sector has been the largest sector in

Missouri PE Deal activity. 13 deals have

been completed in the 2H 2019,

contributing to a total of 28 deals in the

year. Both B2B and B2C deals decreased

slightly in terms of deal count compared

to 2018, down 24% and 33%,

respectively.

2019 saw a total of 11 deals closed in the

IT sector, which almost doubled the prior

year’s deals. Of note was a significant

increase in the second half of 2019,

leading by the acquisition of Bluebird

Network by Macquarie Asset

Management and the Diligent takeover

of BoardPaq.

B2B biggest by deal count

2415

1510

27 2426 26

23 19

37 28

76

9

6

11 10

15

7

810

9 6

6

3

4 9

4

3

5 11

18

8

15

11

52

6

5 4

4

8 6 13 86

11

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

B2B B2C Energy Financial Services Healthcare IT Materials and Resources

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Missouri PE Deal ReportPE-Backed Exits by Type

10

Secondary buyouts (SBOs) have

been a popular exit type over the

last few years. However, Missouri

has seen a slow down in these

types of exits in 2019 as well as in

corporate acquisitions.

Persistence of SBO Exits

8

2

10

7 7

11 11 12

17

11

64

17

2

4

2

6

8

13 12

8

8

6

4

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Corporate Acquisitions IPO Secondary Buyouts

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Missouri PE Deal ReportInventory of Currently PE-Backed Companies

11

The number of companies in Missouri held by Private Equity firms has increased over the past decade. This

demonstrates the growth and appeal of the PE business model. Dry powder for investments is still largely

available in the private markets. We expect this trend to continue.

PE holdings on the rise

499

2 4 6 616 21

29 4155 62

7489

117

146

182

224

277

327

411

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

2012-2019

2007 - 2011

2000 - 2006

Pre-2000

# of PE Backed Companies

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Missouri PE Deal ReportValuation Multiples

12

Total Capital Invested Leverage

0.00x

10.00x

20.00x

30.00x

40.00x

50.00x

60.00x

70.00x

80.00x

20192018201720162015201420132012201120102009

EV/EBITDA

0.00x

1.00x

2.00x

3.00x

4.00x

5.00x

6.00x

20192018201720162015201420132012201120102009

EV/Revenue

0

5

10

15

20

25

20192018201720162015201420132012201120102009

0.00x

5.00x

10.00x

15.00x

20.00x

25.00x

20192018201720162015201420132012201120102009

Debt/ Equity Debt/ EBITDA

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EBITDA Revenue

31-Dec-19 W. L. Cassell and Associates IMEG Construction and Engineering - - - Kansas City Provider of engineering services

23-Dec-19 World's Fair Donuts - Food Products - - - Saint Louis Retailer of donuts

02-Dec-19 AmeriStaff QPS Employment Group Human Capital Services - - - Saint. PetersProvider of staffing services focusing on industrial and

clerical staffing

25-Nov-19 Tuva Interactive Alliance Technologies Software Development Applications - - - Saint Louis Operator of a digital agency

19-Nov-19 Catastrophe Cleaning & Restoration Interstate Restoration Other Commercial Services - - - Maryland Heights Provider of commercial restoration services

12-Nov-19 Element - The Data Agency - Media and Information Services (B2B) - - - Kansas City Provider of medical media services

12-Nov-19 Smoker's Outlet Smoker Friendly Specialty Retail - - - Wright City Operator of retail chain selling smoking products

05-Nov-19 Electronic Check Services Surge Holdings Telecommunications Service Providers - - - Springfield Provider of communication services

30-Oct-19 Pacific Mutual Door Hardwoods Distribution Distributors/Wholesale 34.5 - - Kansas CitySupplier of quality millwork products to the greater

kansas city area

25-Oct-19 Kozeny & McCubbin Buckley Madole P.C Legal Services (B2B) - - - Saint Louis Provider of legal services

24-Oct-19 Timberlake Engineering Customengr Construction and Engineering - - - Columbia Provider of engineering consulting services

01-Oct-19 NorthStar Battery EnerSys Energy Storage 182.5 13.04x 1.16x Springfield Designer and manufacturer of lead-acid batteries

01-Oct-19 Bank of Cairo & Moberly RMB Bancshares Regional Banks - - - Moberly Provider of banking services to its clients

01-Oct-19 Resource Optimization & Innovation HealthTrust Purchasing Group Consulting Services (B2B) - - - Saint LouisProvider of supply chain, business information,

business model, and manufacturing solutions

25-Sep-19 The Printing Source Garlich Printing Printing Services (B2B) - - - Saint Louis Provider of printing services for commercial customers

24-Sep-19 Peak Resorts Vail Resorts Holding Companies 265.0 5.73x 1.34x Wildwoodowns and operates day ski and overnight drive ski

resorts through its wholly-owned subsidiaries

12-Sep-19 Wiethop Truck Sales Summit Truck Group Road - - - Cape GirardeauProvider of dealership service offering brand inventory

for medium, heavy and severe service trucks

10-Sep-19 Hatchbuck Benchmark Internet Group Automation/Workflow Software - - - Saint LouisProvider of a web-based marketing automation

platform

06-Sep-19 Atlas Team Deveron UAS Government 0.1 Kansas City Provider of digital agricultural solutions

04-Sep-19 Kansas City Royals - Other Restaurants, Hotels and Leisure - - - Kansas City Operator of a baseball team

Target Business DescriptionEV

Date Company Investor Primary Industry CodeDeal Size

($mm)City

Missouri PE Deal ReportStrategic Acquisitions

13

Note: Strategic acquisitions are not analyzed in our report.

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Missouri PE Deal ReportStrategic Acquisitions

14

EBITDA Revenue

04-Sep-19 MediBeacon Huadong Medicine Company Monitoring Equipment 34.3 Saint LouisDeveloper of a kidney monitoring system designed to

fetch critical information about the renal function

03-Sep-19 Lowenhaupt Global Advisors CIBC Private Wealth Management Asset Management - - - Saint Louis Provider of investment advise

01-Sep-19 DL Insurance Group Lakenan Insurance agency Property and Casualty Insurance - - - Chesterfield Provider of Property Insurance services

30-Aug-19 Bucher Emhart Glass Rath Raw Materials (Non-Wood) - - - OwensvilleManufacturer of refractory materials for the container

glass industry

27-Aug-19 Pulse Systems Harris Healthcare Enterprise Systems (Healthcare) - - - Kansas City Developer of health care information system software

21-Aug-19 Perched Elasticsearch Education and Training Services (B2B) - - - Lohman Provider of education and consulting services

16-Aug-19 10/10 Taxi WHC Worldwide Automotive - - - Kansas City Provider of taxi services

13-Aug-19 Oak Street Sales WHC Worldwide Other Commercial Services - - - Kansas City Provider of transport acquisition services

02-Aug-19 QM Power KCK Group Electrical Equipment - - - Kansas City Developer of an electric motor technology

01-Aug-19 BankLiberty Central Bank Regional Banks 103.7 Kansas CityLiberty Bancorp Inc is a holding company for

BankLiberty, which is a full-service community bank

31-Jul-19 Center Oil Company BioUrja Group Distributors/Wholesale - - - Saint Louis Wholesaler of gasoline, diesel and ethanol

31-Jul-19 PenTech Computer Company NWO IT Services IT Consulting and Outsourcing - - - Saint Louis Provider of managed IT services

29-Jul-19 Stanbury Uniforms Varsity Spirit Clothing - - - Brookfield Designer and manufacturer of uniforms

26-Jul-19 American Railcar Industries The Greenbrier Companies Rail 418.3 - - Saint Charles Manufacturer of hopper and tank railcars

12-Jul-19 Navvis Healthcare - Consulting Services (B2B) 4.0 - - Saint Louis Provider of healthcare consultancy services

11-Jul-19 CADMIN Services D3 Technologies IT Consulting and Outsourcing - - - O'Fallon Provider of Information Technology (IT) services

10-Jul-19 Transmission Digest Babcox Publications Media and Information Services (B2B) - - - Springfield Publisher of an automotive journal

01-Jul-19 Air Industrial Resource Sullair Distributors/Wholesale - - - Kansas City Distributor of compressed air equipments

01-Jul-19 American Piping Products Blue Sprig Pediatrics Distributors/Wholesale 3.2 - - Chesterfield Distributor of pipes and fittings

Target Business DescriptionEV

Date Company Investor Primary Industry CodeDeal Size

($mm)City

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Missouri PE Deal ReportActive Strategic Investors in Missouri

15

Company Location# of Investments

(2019)Targets

St. Louis 5

St. Louis 5

St. Louis 5

St. Louis 3

Kansas City

2

| Confidential

About R.L. Hulett & Company

16

Founded

1981Experience

39 yearsTransactions Closed

230+ Second generation family-owned, middle-market investment bank

Focused on advising middle-market businesses with revenues from $10 to $250 million

Small Business Monthly’s Best M&A Providers: 2018-2020

Named one of “Top 100 Very Best Middle Market M&A Advisory Firms in the U.S.” by Axial Markets in 2017

CorporateINTL Magazine’s M&A Advisor of the Year: 2014-2019

Silver Sponsor in the Association for Corporate Growth

Member firm in the Alliance for M&A Advisors, an international network of over 900 M&A professionals

| Confidential

Recent Transactions

17

has completed a recapitalization with

has sold substantially all

of its assets to

The Boeing Company

has been acquired by

| Confidential

RLH Team

R.L. Hulett & Company is one of the most established middle-market investment banking firms in St. Louis

9 professionals from a variety of backgrounds

Managing Directors

Directors

Analyst

Bob Hulett Founder & Chairman, over five decades of experience as Investment Banker and CPA

Trevor Hulett CPA with over 25 years of Investment banking, Corporate Finance and Public Accounting experience

Pete Fischer 15 years of manufacturing management and 10 years of financial industry experience

Holly Hart CPA with 15 years of corporate development and Big 4 transaction group experience

David Vass 30 years of business executive level and business management experience in multiple industries

Jason Qiao

Senior Advisors

Turk Lewis Bill Sheridan

Marketing & Administration

Cheryl Morris 30 years of experience in marketing and office administration

18

| Confidential

Our Team

19

At R.L. Hulett and Co. we are ready to assist you or your clients in determining a succession plan and process. We have advised on over 230 transactions over our 39 years in business.

Mr. Vass has over 30 years of business management

experience including more than 10 years as President

of a highly successful consumer products

manufacturing company with revenues exceeding $25

million. During this time, he not only reversed a

declining sales and earnings trend, but increased both

sales and operating income over 100%. In addition, he

has spent over 20 years at the executive level of Vice

President of Sales and Business Development. Mr.

Vass earned his MBA from the University of Michigan.

David T. Vassdvass@rlhulett.com | (314) 721-0607 x 115

Director

Mr. Hulett has led M&A transactions in a variety of

industries including manufacturing/industrial,

software development/IT, business services and

value-added distribution. Prior to joining the firm, he

held senior level accounting and financial

management positions in both public accounting and

large corporate environment. Mr. Hulett holds his

Series 62, 63 and 79 Securities registration. Mr. Hulett

earned a Bachelor’s Degree in Accounting from the

University of Missouri, Columbia.

R. Trevor Hulettthulett@rlhulett.com | (314) 721-0607 x 112

Managing Director

Mr. Hulett founded the firm in 1981 and has

negotiated and completed more than 200 transactions

throughout his career. He began his career as a

Certified Public Accountant and practiced with Peat,

Marwick, Mitchell & Co. in St. Louis as an Audit

Manager and in New York as the Director of Training

for Private Business. Mr. Hulett has also served as

Chief Executive & Board Member for various middle

market companies. Mr. Hulett earned his MBA from

Lindenwood University.

Robert L. Hulettrlhulett@rlhulett.com | (314) 721-0607 x 103

Chairman & Managing Director

| Confidential

Methodology

20

Missouri Private Equity Deals

Private Equity Backed Missouri Companies

Missouri Private Equity Firms

Missouri private equity backed companies

are defined in this report as companies that

are headquartered in the state of Missouri

and financially backed in whole or in part by

private equity firms.

Private equity deals in Missouri are defined

in this report as investments made by

private equity firms or their portfolio

companies. These deals include companies

headquartered in Missouri that are

categorized as Buyout/LBO, secondary

buyouts, public to private,

growth/expansion, recapitalization, or PIPE.

Real estate is not included in our data.

Missouri private equity firms are defined in

this report as private-equity firms

headquartered in Missouri that are actively

investing or raising funds in the 2H of 2019.

Missouri PE Deal Report2H 2019