q2 2020 business services quarterly update€¦ · human resources outsourcing 3 business services...

Business ServicesQuarterly Update

Q 2 2 0 2 0

2 HUMAN RESOURCES OUTSOURCING

TA B L E O F C O N T E N T SPETER J. HILLMANAGING DIRECTORM 215.990.2725O [email protected]

13

CONTACT CENTER SERVICES

FIXED ASSET MANAGEMENT

ABOUT US

6

9

DAVID J. SILVERVICE PRESIDENTM 312.203.3893O [email protected]


Q2 2020

PUBLIC COMPANY OPERATING METRICS

HUMAN RESOURCES OUTSOURCING

2 B U S I N E S S S E R V I C E S Q U A R T E R LY U P D A T E | H U M A N R E S O U R C E S O U T S O U R C I N G

INDEX PERFORMANCEINDEX PERFORMANCE

Last Three Years Last Twelve Months

PPrriiccee AApppprreecciiaattiioonn 33--YYeeaarr LLTTMM 11--MMoonntthh

Brown Gibbons Lang & Company Human Resources Outsourcing Index(a) 40.6% (6.4%) 2.2%NASDAQ 64.6% 24.3% 5.3%S&P 500 27.6% 4.6% 1.5%

(a) Market cap weighted index assuming no dividend reinvestment. Brown Gibbons Lang & Company Human Resources Outsourcing Index is comprised of all companies listed on the following two pages.

-20%

0%

20%

40%

60%

80%

Jul-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20

BGL Human Resources Outsourcing NASDAQ S&P 500

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Jul-19 Sep-19 Dec-19 Mar-20 Jun-20

BGL Human Resources Outsourcing NASDAQ S&P 500


Q2 2020



RELATIVE VALUATION TRENDS


NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months‡ = Excluded from Mean and Median calculations Source: Public Filings, Press Releases, and Published Research Reports.

(1) As of close on 6/30/2020.(2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long- term debt, short-term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents.(3) As of March 31, 2020 except RGP (2/22/2020); KFY (April 30, 2020).(4) Excludes non-recurring and discontinued operations.

($ in millions, except per share data)EEqquuiittyy EEnntteerrpprriissee EEnntteerrpprriissee VVaalluuee// PPrriiccee// GGrroossss

CCoommppaannyy TTiicckkeerr PPrriiccee (1) VVaalluuee VVaalluuee (2) RReevveennuuee EEBBIITTDDAA (4) EEPPSS RReevveennuuee EEBBIITTDDAA EEPPSS PPrroofifitt EEBBIITTDDAA

CCoommmmeerrcciiaall SSttaaffiffinnggManpowerGroup Inc. (MAN) MAN $68.75 $3,990.9 $4,383.9 $20,437.7 $737.1 $6.92 0.21 x 5.9 x 9.9 x 16.1% 3.6%

Kelly Services, Inc. (KELY.A) KELY.A 15.82 620.9 666.2 5,234.1 110.2 (1.63) 0.13 x 6.0 x NM 18.0% 2.1%

TrueBlue, Inc. (TBI) TBI 15.27 530.7 600.3 2,310.7 95.4 (2.50) 0.26 x 6.3 x NM 26.2% 4.1%

MMeeaann $$11,,771144..22 $$11,,888833..55 $$99,,332277..55 $$331144..22 $$00..9933 00..2200 xx 66..11 xx 99 ..99 xx 2200..11%% 33..33%%

MMeeddiiaann 662200..99 666666..22 55,,223344..11 111100..22 ((11..6633)) 00..2211 xx 66..00 xx 99..99 xx 1188..00%% 33..66%%

PPrrooffeessssiioonnaall SSttaaffiffinnggRobert Half International Inc. (RHI) RHI $52.83 $5,959.8 $5,986.2 $6,112.6 $671.2 $3.76 0.98 x 8.9 x 14.0 x 41.4% 11.0%

Kforce Inc. (KFRC) KFRC 29.25 607.1 696.4 1,355.9 83.3 2.42 0.51 x 8.4 x 12.1 x 29.2% 6.1%

Resources Connection, Inc. (RGP) RGP 11.97 384.8 442.6 706.9 53.4 1.05 0.63 x 8.3 x 11.4 x 39.1% 7.6%

Hudson Global, Inc. (HSON) HSON 8.80 23.6 (2.1) 101.8 0.4 0.13 NM NM NM 9.1% 0.4%

MMeeaann $$11,,774433..88 $$11,,778800..88 $$22,,006699..33 $$220022..11 $$11..8844 00..7711 xx 88..55 xx 1122..55 xx 2299..77%% 66..33%%

MMeeddiiaann 449955..99 556699..55 11,,003311..44 6688..44 11..7744 00..6633 xx 88..44 xx 1122..11 xx 3344..22%% 66..88%%

HHeeaalltthhccaarree SSttaaffiffinngg

AMN Healthcare Services, Inc. (AMN) AMN $45.24 $2,125.2 $3,220.6 $2,292.1 $242.7 $1.96 1.41 x 13.3 x 23.1 x 33.5% 10.6%

Cross Country Healthcare, Inc. (CCRN) CCRN 6.16 230.8 316.7 837.1 21.3 (1.62) 0.38 x 14.9 x NM 24.5% 2.5%

MMeeaann $$11,,117788..00 $$11,,776688..66 $$11,,556644..66 $$113322..00 $$00..1177 00..8899 xx 1144..11 xx 2233..11 xx 2299..00%% 66..66%%

MMeeddiiaann 11,,117788..00 11,,776688..66 11,,556644..66 113322..00 00..1177 00..8899 xx 1144..11 xx 2233..11 xx 2299..00%% 66..66%%

IITT SSttaaffiffinngg

ASGN Incorporated (ASGN) ASGN $66.68 $3,500.7 $4,604.3 $3,990.7 $413.6 $3.44 1.15 x 11.1 x 19.4 x 28.7% 10.4%

Computer Task Group, Incorporated (CTG) CTG 4.03 60.7 61.6 383.9 11.1 0.32 0.16 x 5.6 x 12.6 x 19.4% 2.9%

RCM Technologies, Inc. (RCMT) RCMT 1.34 15.1 53.5 184.5 (1.3) (0.26) 0.29 x NM NM 25.4% -0.7%

MMeeaann $$11,,119922..22 $$11,,557733..11 $$11,,551199..77 $$114411..11 $$11..1177 00..5533 xx 88..33 xx 1166..00 xx 2244..55%% 44..22%%

MMeeddiiaann 6600..77 6611..66 338833..99 1111..11 00..3322 00..2299 xx 88..33 xx 1166..00 xx 2255..44%% 22..99%%

MMaarrkkeett && CCaappiittaalliizzaattiioonn LLTTMM PPeerrffoorrmmaannccee (3) VVaalluuaattiioonn MMaarrggiinnss






NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months‡ = Excluded from Mean and Median calculations Source: Public Filings, Press Releases, and PublishedResearch Reports.

(1) As of close on 6/30/2020.(2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long-term debt, short-term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents. (3) As of March 31, 2020 except KFY (October 31, 2019); PAYX (August 31, 2019); EXPO (September 27, 2019); and CRAI (September 28, 2019).(4) Excludes non-recurring and discontinued operations.

($ in millions, except per share data)EEqquuiittyy EEnntteerrpprriissee EEnntteerrpprriissee VVaalluuee// PPrriiccee// GGrroossss

CCoommppaannyy PPrriiccee (1) VVaalluuee VVaalluuee (2) RReevveennuuee EEBBIITTDDAA (4) EEPPSS RReevveennuuee EEBBIITTDDAA EEPPSS PPrroofifitt EEBBIITTDDAA

EExxeeccuuttiivvee SSeeaarrcchhKorn Ferry (KFY) $30.73 $1,673.2 $1,574.1 $1,977.3 $288.4 $1.90 0.80 x 5.5 x 16.2 x 30.0% 14.6%Heidrick & Struggles International, Inc. (HSII) 21.62 416.7 373.1 706.8 79.9 2.22 0.53 x 4.7 x 9.7 x 29.0% 11.3%

MMeeaann $$11,,004455..00 $$997733..66 $$11,,334422..11 $$118844..11 $$22..0066 00..6666 xx 55..11 xx 1133..00 xx 2299..55%% 1122..99%%MMeeddiiaann 11,,004455..00 997733..66 11,,334422..11 118844..11 22..0066 00..6666 xx 55..11 xx 1133..00 xx 2299..55%% 1122..99%%

HHRR OOuuttssoouurrcciinnggAutomatic Data Processing, Inc. (ADP) $148.89 $63,989.1 $64,744.9 $14,757.3 $3,689.1 $5.83 4.39 x 17.6 x 25.6 x 45.2% 25.0%Willis Towers Watson Public Limited Company (WLTW 196.95 25,354.5 31,521.5 9,193.0 2,214.0 8.16 3.43 x 14.2 x 24.1 x 45.1% 24.1%Paychex, Inc. (PAYX) 75.75 27,172.7 27,309.5 4,105.8 1,694.5 3.07 6.65 x 16.1 x 24.7 x 68.1% 41.3%TriNet Group, Inc. (TNET) 60.94 4,100.7 4,196.7 3,970.0 331.0 3.40 1.06 x 12.7 x 17.9 x 18.0% 8.3%Insperity, Inc. (NSP) 64.73 2,509.3 2,516.1 4,391.3 208.2 3.40 0.57 x 12.1 x 19.0 x 16.9% 4.7%

MMeeaann $$2244,,662255..33 $$2266,,005577..77 $$77,,228833..55 $$11,,662277..44 $$44..7777 33..2222 xx 1144..55 xx 2222..33 xx 3388..77%% 2200..77%%MMeeddiiaann $$2255,,335544..55 $$2277,,330099..55 $$44,,339911..33 $$11,,669944..55 $$33..4400 33..4433 xx 1144..22 xx 2244..11 xx 4455..11%% 2244..11%%

PPrrooffeessssiioonnaall && CCoonnssuullttiinnggFair Isaac Corporation (FICO) $418.04 $12,124.6 $13,069.4 $1,226.1 $316.0 $7.68 NM NM NM 71.1% 25.8%FTI Consulting, Inc. (FCN) 114.55 4,124.4 4,429.4 2,406.0 333.8 5.54 1.84 x 13.3 x 20.7 x 34.0% 13.9%Exponent, Inc. (EXPO) 80.93 4,171.6 4,041.5 397.7 112.3 1.60 NM NM NM 40.4% 28.2%CBIZ, Inc. (CBZ) 23.97 1,292.9 1,618.0 955.9 127.2 1.26 1.69 x 12.7 x 19.0 x 15.5% 13.3%Huron Consulting Group Inc. (HURN) 44.25 954.3 1,333.4 894.9 106.0 (0.17) 1.49 x 12.6 x NM 33.6% 11.8%CRA International, Inc. (CRAI) 39.50 307.7 518.4 471.7 45.0 2.77 1.10 x 11.5 x 14.3 x 29.7% 9.5%NTG Clarity Networks Inc. (NCI) 0.00 - 5.9 6.7 (4.5) (0.12) 0.89 x NM 0.0 x 26.1% -67.7%

MMeeaann $$33,,228822..22 $$33,,557733..77 $$990088..44 $$114488..00 $$22..6655 11..4400 xx 1122..55 xx 1133..55 xx 3355..88%% 55..00%%MMeeddiiaann 11,,229922..99 11,,661188..00 889944..99 111122..33 11..6600 11..4499 xx 1122..66 xx 1166..66 xx 3333..66%% 1133..33%%

MMaarrkkeett && CCaappiittaalliizzaattiioonn LLTTMM PPeerrffoorrmmaannccee (3) VVaalluuaattiioonn MMaarrggiinnss

Q2 2020

10.5x11.6x

10.8x9.8x 9.4x

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9.5x 9.3x 9.6x 9.8x

11.1x10.5x 10.8x

11.3x 11.6x12.3x

12.9x

11.5x 11.2x

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HISTORICAL EBITDA MULTIPLES




SUMMARY OF SELECTED M&A TRANSACTIONS

AAnnnnoouunncceedd TTaarrggeett TTaarrggeett DDeessccrriippttiioonn AAccqquuiirreerr VVaalluuee

6/29/2020 Onlyone Co. LtdOffers staffing and recruitment services for fashion and cosmetics industry.

M H Group Ltd. NA

6/24/2020Benefits Administration Corporation, Inc. (nka:Benefits Administration, LLC)

Provides general and employee benefit administration services.

Zenith American Holding, Inc. (nka:Harbour Benefit Holdings, Inc.)

NA

6/24/2020 D.E. Enterprises, Inc. Offers office and industrial placement services. Advanced Resources Group Inc. NA

6/24/2020 Bespoke Health & Social Care LtdSupplies workers to clients’ businesses for limited periods of time.

WestBridge Capital LLP NA

6/23/2020 Barrett, Liner & Buss, LLC Offers employee benefit solutions to employers. Arthur J. Gallagher & Co. NA

6/19/2020 Corporate Business Solutions LLCA professional employer and administrative services organization, provides human resource outsourcing services.

Group Management Services, Inc. NA

6/19/2020 Anistar Technologies, Inc. An infrastructure staffing company. NSC Technologies, Inc. NA

6/18/2020 1-Call Staffing LLCTemporary staffing company that serves administrative, industrial, and skilled manufacturing segments.

Ascend Staffing NA

Q2 2020

RECENT NEWS

Note: All per share results are reported on a fully-diluted basis.

6/29/2020 ECS a segment of AASSGGNN, has been selected by the Naval Information Warfare Center (NIWC) Atlantic to develop a legacy data consolidation solution prototype for the Defense Health Agency (DHA).

6/22/2020 KKeellllyy SSeerrvviicceess,, IInncc.. ((KKEELLYY..AA)) announced the appointment of Jim Bradley as Chief Administrative Officer.

6/20/2020 KKoorrnn FFeerrrryy ((KKFFYY)) reported that Michael Hyter has been appointed as the firm's Chief Diversity Officer. Hytwr will report directly to Korn Ferry CEO Gary Burnison and join the senior executive team.

6/12/2020 HHuurroonn CCoonnssuullttiinngg GGrroouupp IInncc.. ((HHUURRNN)) announced that on June 10, 2020, Ellen P. Wong resigned as Chief Accounting Officer of the company, effective June 19, 2020, to pursue a new opportunity. John D. Kelly, the company’s Executive Vice President, Chief Financial Officer and Treasurer, will assume the responsibilities of the company’s principal accounting officer following Ms. Wong’s resignation.



6 B U S I N E S S S E R V I C E S Q U A R T E R LY U P D A T E | C O N T A C T C E N T E R S E R V I C E S

Q2 2020

INDEX PERFORMANCE



Brown Gibbons Lang & Company Contact Center Services Index(a) 0.3% (12.3%) 3.9%NASDAQ 64.6% 24.3% 5.3%S&P 500 27.6% 4.6% 1.5%

(a) Market cap weighted index assuming no dividend reinvestment. Brown Gibbons Lang & Company Contact Center Services Index is comprised of all companies listed on the following page.

-40%

-20%

0%

20%

40%

60%

80%


BGL Contact Center Services NASDAQ S&P 500

-40%

-25%

-10%

5%

20%

35%


BGL Contact Center Services NASDAQ S&P 500





Q2 2020

NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months‡ = Excluded from Mean and Median calculations Source: Public Filings, Press Releases, and Published Research Reports.

(1) As of close on 6/30/2020.(2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long-term debt, short-term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents. (3) As of March 31, 2020.(4) Excludes non-recurring and discontinued operations.

($ in millions, except per share data) MMaarrkkeett && CCaappiittaalliizzaattiioonn LLTTMM PPeerrffoorrmmaannccee (3) VVaalluuaattiioonn MMaarrggiinnssEEqquuiittyy EEnntteerrpprriissee EEnntteerrpprriissee VVaalluuee// PPrriiccee// GGrroossss

CCoommppaannyy TTiicckkeerr PPrriiccee (1) VVaalluuee VVaalluuee (2) RReevveennuuee EEBBIITTDDAA ((44 )) EEPPSS RReevveennuuee EEBBIITTDDAA EEPPSS PPrroofifitt EEBBIITTDDAA

OOnn--SShhoorree

TTEC Holdings, Inc. (TTEC) TTEC $46.56 $2,169.6 $2,595.7 $1,681.6 $208.8 $1.70 1.54 x 12.4 x 27.4 x 27.6% 12.4%

Conduent Incorporated (CNDT) CNDT 2.39 499.7 2,213.7 4,360.0 463.0 (8.02) 0.51 x 4.8 x NM 21.6% 10.6%

Sykes Enterprises, Incorporated (SYKE) SYKE 27.66 1,116.7 1,285.8 1,623.0 164.7 1.59 0.79 x 7.8 x 17.4 x 38.3% 10.1%

StarTek, Inc. (SRT) SRT 5.08 196.0 471.8 657.7 48.7 (1.00) 0.72 x 9.7 x NM 15.8% 7.4%

MMeeaann $$999955..55 $$11,,664411..88 $$22,,008800..66 $$222211..33 (($$11..4433)) 00..8899 xx 88..77 xx 2222..44 xx 2255..88%% 1100..11%%

MMeeddiiaann 880088..22 11,,774499..77 11,,665522..33 118866..88 00..3300 00..7755 xx 88..77 xx 2222..44 xx 2244..66%% 1100..44%%

OOffff--SShhoorree

Genpact Limited (G) G $36.52 $6,954.3 $8,488.7 $3,634.5 $549.3 $1.69 2.34 x 15.5 x 21.6 x 34.5% 15.1%

WNS (Holdings) Limited (WNS) WNS 54.98 2,734.4 2,724.1 928.3 177.1 2.24 2.93 x 15.4 x 24.5 x 37.1% 19.1%

ExlService Holdings, Inc. (EXLS) EXLS 63.40 2,175.6 2,256.3 997.8 142.1 2.18 2.26 x 15.9 x 29.1 x 33.8% 14.2%

MMeeaann $$33,,995544..88 $$44,,448899..77 $$11,,885533..55 $$228899..55 $$22..0044 22..5511 xx 1155..66 xx 2255..11 xx 3355..11%% 1166..11%%

MMeeddiiaann 22,,773344..44 22,,772244..11 999977..88 117777..11 22..1188 22..3344 xx 1155..55 xx 2244..55 xx 3344..55%% 1155..11%%

AAllll CCoommppaanniieess

MMeeaann $$22,,226633..88 $$22,,886622..33 $$11,,998833..33 $$225500..55 $$00..0055 11..5588 xx 1111..66 xx 2244..00 xx 2299..88%% 1122..77%%

MMeeddiiaann 22,,116699..66 22,,225566..33 11,,662233..00 117777..11 11..6699 11..5544 xx 1122..44 xx 2244..55 xx 3333..88%% 1122..44%%






Q2 2020


8.0x 8.2x7.7x

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6/25/2020 EOH Holdings LimitedProvides business process outsourcing, IT services, and industrial technologies services.

ND NA

6/25/2020 1RivetProvides outsourced services, IT consulting services, and talent acquisition services.

Xalles Financial Services Inc NA

RECENT NEWS


6/10/2020 SSttaarrTTeekk,, IInncc.. ((SSRRTT)) reported first quarter net income of ($26.6) million for fiscal year 2020 as compared to ($3.3) million for the prior year period. Earnings per share were ($0.69) versus ($0.09) for the prior year period. Revenues for the quarter decreased to $160.9 million from $161.1 million for the same period in fiscal year 2019.

6/9/2020 TTTTEECC HHoollddiinnggss,, IInncc.. ((TTTTEECC)) announced the availability of virtual contact center solutions in the Asia Pacific and European regions.



9 B U S I N E S S S E R V I C E S Q U A R T E R LY U P D A T E | F I X E D A S S E T M A N A G E M E N T

Q2 2020

INDEX PERFORMANCE




Brown Gibbons Lang & Company Fixed Asset Management Index(a) (7.2%) (19.0%) (0.8%)NASDAQ 64.6% 24.3% 5.3%S&P 500 27.6% 4.6% 1.5%

(a) Market cap weighted index assuming no dividend reinvestment. Brown Gibbons Lang & Company Fixed Asset Management Index is comprised of all companies listed on the following page.

-40%

-20%

0%

20%

40%

60%

80%


BGL Fixed Asset Management NASDAQ S&P 500

-50%

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BGL Fixed Asset Management NASDAQ S&P 500



1 0 B U S I N E S S S E R V I C E S Q U A R T E R LY U P D A T E | F I X E D A S S E T M A N A G E M E N T

Q2 2020


NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months‡ = Excluded from Mean and Median calculations Source: Public Filings, Press Releases, and PublishedResearch Reports.

(1) As of close on 6/30/2020.(2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long-term debt, short-term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents. (3) As of March 31, 2020 except RTO, GFS (12/31/2019); ABM (4/30/2020); SW (2/29/2020); CTAS (2/29/2020); UNF (5/30/2020).(4) Excludes non-recurring and discontinued operations.

($ in millions, except per share data) MMaarrkkeett && CCaappiittaalliizzaattiioonn LLTTMM PPeerrffoorrmmaannccee (3) VVaalluuaattiioonn MMaarrggiinnss

EEqquuiittyy EEnntteerrpprriissee PPrriiccee// GGrroossss

CCoommppaannyy PPrriiccee (1) VVaalluuee VVaalluuee (2) RReevveennuuee EEBBIITTDDAA (4) EEPPSS RReevveennuuee EEBBIITTDDAA EEPPSS PPrroofifitt EEBBIITTDDAA

FFaacciilliittyy MMaaiinntteennaannccee

Rollins, Inc. (ROL) $42.39 $13,894.1 $14,331.5 $2,074.3 $405.1 $0.61 6.91 x 35.4 x 69.5 x 50.5% 19.5%

Rentokil Initial plc (LSE:RTO) 6.31 11,651.8 13,042.1 3,595.0 657.0 0.20 3.63 x 19.8 x 31.3 x 79.1% 18.3%

Chemed Corporation (CHE) 451.07 7,160.1 7,415.7 1,992.3 339.2 13.99 3.72 x 21.9 x 32.2 x 32.2% 17.0%

FirstService Corporation (TSX:FSV) 100.53 4,365.5 5,307.7 2,555.6 240.7 (6.28) 2.08 x 22.1 x NM 32.4% 9.4%

EMCOR Group, Inc. (EME) 66.14 3,627.5 4,036.8 9,315.7 567.8 5.82 0.43 x 7.1 x 11.4 x 14.8% 6.1%

ABM Industries Incorporated (ABM) 36.30 2,420.0 3,265.0 6,405.0 340.5 (0.36) 0.51 x 9.6 x NM 12.4% 5.3%

BrightView Holdings, Inc. (BV) 11.20 1,175.2 2,416.1 2,411.7 252.6 0.23 1.00 x 9.6 x 48.9 x 26.4% 10.5%

Comfort Systems USA, Inc. (FIX) 40.75 1,483.0 1,768.6 2,776.9 210.3 3.03 0.64 x 8.4 x 13.4 x 18.5% 7.6%

Healthcare Services Group, Inc. (HCSG) 24.46 1,820.2 1,735.0 1,813.8 115.9 1.02 0.96 x 15.0 x 24.1 x 13.3% 6.4%

SP Plus Corporation (SP) 20.71 476.3 1,250.1 923.0 120.5 (0.36) 1.35 x 10.4 x NM 24.1% 13.1%

MMeeaann $$44,,880077..44 $$55,,445566..99 $$33,,338866..33 $$332255..00 $$11..7799 22..1122xx 1155..99xx 3333..00xx 3300..44%% 1111..33%%

MMeeddiiaann 33,,002233..88 33,,665500..99 22,,448833..66 229955..99 00..4422 11..1188xx 1122..77xx 3311..33xx 2255..22%% 99..99%%

FFoooodd SSeerrvviicceess

Compass Group PLC (LSE:CPG) $13.77 $24,560.6 $30,927.6 $31,160.0 $2,260.9 $0.81 0.99 x 13.7 x 17.0 x 24.2% 7.3%

Sodexo S.A. (ENXTPA:SW) 67.75 9,866.2 14,861.3 24,855.4 1,696.9 5.05 0.60 x 8.8 x 13.4 x 14.6% 6.8%

Aramark (ARMK) 22.57 5,701.5 13,020.3 15,947.2 1,327.4 0.44 0.82 x 9.8 x 50.7 x 13.3% 8.3%

MMeeaann $$1133,,337766..11 $$1199,,660033..00 $$2233,,998877..55 $$11,,776611..77 $$22..1100 00..8800xx 1100..77xx 2277..11xx 1177..44%% 77..55%%

MMeeddiiaann 99,,886666..22 1144,,886611..33 2244,,885555..44 11,,669966..99 00..8811 00..8822xx 99..88xx 1177..00xx 1144..66%% 77..33%%

MMaannnneedd SSeeccuurriittyy SSeerrvviicceess

Securitas AB (OM: SECU B) $13.50 $4,926.3 $6,941.0 $11,331.9 $704.6 $0.88 0.61 x 9.9 x 15.4 x 17.2% 6.2%

G4S plc (LSE:GFS) 1.41 2,180.8 5,077.3 10,274.8 785.4 (0.08) 0.49 x 6.5 x NM 17.3% 7.6%

The GEO Group, Inc. (GEO) 11.83 1,409.8 4,177.9 2,472.3 413.9 1.27 1.69 x 10.1 x 9.3 x 24.6% 16.7%

The Brink's Company (BCO) 45.51 2,297.6 4,129.7 3,651.0 367.3 0.31 1.13 x 11.2 x NM 22.7% 10.1%

CoreCivic, Inc. (CXW) 9.36 1,119.7 3,122.4 1,987.7 426.4 1.44 1.57 x 7.3 x 6.5 x 27.6% 21.4%

Prosegur Compañía de Seguridad, S.A. (BME:PSG) 2.33 1,325.8 2,599.9 4,614.3 974.2 0.86 0.56 x 2.7 x 2.7 x 34.0% 21.1%

MMeeaann $$22,,221100..00 $$44,,334411..44 $$55,,772222..00 $$661122..00 $$00..88 11..0011xx 77..99xx 88..55xx 2233..99%% 1133..99%%


UUnniiffoorrmm // LLiinneenn RReennttaallss

Cintas Corporation (CTAS) $266.36 $27,714.8 $30,507.3 $7,259.3 $1,641.8 $8.82 4.20 x 18.6 x 30.2 x 46.1% 22.6%

UniFirst Corporation (UNF) 178.95 3,380.4 3,002.5 1,855.1 292.0 7.86 1.62 x 10.3 x 22.8 x 35.6% 15.7%

MMeeaann $$1155,,554477..66 $$1166,,775544..99 $$44,,555577..22 $$996666..99 $$88..3344 22..9911xx 1144..44xx 2266..55xx 4400..99%% 1199..22%%


EEnntteerrpprriissee VVaalluuee//





Q2 2020

10.5x11.6x

10.8x9.8x 9.4x

10.7x 11.1x 11.4x10.6x

9.5x

10.9x 11.0x 10.7x11.2x 10.8x

11.7x 12.0x 12.0x 12.1x 11.9x11.3x

13.3x 13.2x 13.3x

10.7x 10.8x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x








Q2 2020


6/29/2020Richmond Refrigeration Service, Inc.

Provides commercial refrigeration, air conditioning, and installation services.

CoolSys, Inc. NA

6/15/2020 Downey TreesProvider of professional landscape maintenance services.

SavATree NA

6/15/2020 First Call Plumbing Provider of plumbing and related services. Randazzo Heating & Cooling NA

6/14/2020 Tech-24Offers installation, maintenance, and emergency repair services for foodservice and HVAC equipment.

HCI Equity Partners NA

6/11/2020 Carolina Heating Service Inc.Provides maintenance, repair, and installation services for HVAC equipment.

NearU HVAC Services NA

6/10/2020 Hays Cooling & Heating Provider of plumbing and related services. HomeServe USA NA

6/10/2020 Kotikatu OyProvides maintenance and supporting services for residential and commercial properties.

PHM Holding Oy NA

6/9/2020 Fix-It Group, LLCProvides home maintenance, repair, and replacement services.

New Harbor Capital Management LLC

NA

6/5/2020 Topp's Tree Service Provider of specialized tree care services. Advanced Treecare NA


6/19/2020 SStteerriiccyyccllee,, IInncc.. ((SSRRCCLL)) announced that David W. Stahl, the company's Executive Vice President and Chief Information Officer, will be departing effective June 27, 2020, and that Janet H. Zelenka, the company's Executive Vice President and Chief Financial Officer, will assume the additional duties and responsibilities of Chief Information Officer, effective June 28, 2020.

6/17/2020 AABBMM IInndduussttrriieess IInnccoorrppoorraatteedd ((AABBMM)) reported second quarter net income of ($136.8) million for fiscal year 2020 as compared to $29.7 million for the prior year period. Earnings per share were ($2.05) versus $0.45 for the prior year period. Revenues for the quarter decreased to $1,496.0 million from $1,594.7 million for the same period in fiscal year 2019.

6/17/2020 GG44SS ppllcc ((GGFFSS)) at its AGM held on June 17, 2020 announced that the Board decided to suspend the 2019 final dividend payment.

6/17/2020 AABBMM IInndduussttrriieess IInnccoorrppoorraatteedd ((AABBMM)) announced the resignation of Chief Financial Officer Anthony Scaglione. The company has appointed Dean Chin, ABM's current Senior Vice President, Chief Accounting Officer and Corporate Controller, as interim Chief Financial Officer, effective July 1, 2020.

6/5/2020 SStteerriiccyyccllee,, IInncc.. ((SSRRCCLL)) announced its updated timeline for the deployment of its enterprise resource planning (“ERP”) system. The Company had previously expected to complete the North American deployment of its ERP system in 2020. In view of the impacts of COVID-19, the Company now expects to defer the North American implementation of the ERP system until the first half of 2021.

RECENT NEWS

GLOBAL BUSINESS SERVICES

FOCUS AREAS

WHO WE ARE

• Independent investment banking and financial advisory services for the global middle market since 1989

• Investment banking offices in Chicago, Cleveland, and Philadelphia, and real estate brokerage offices in Chicago, Cleveland, Denver, and San Antonio

• Founding member and exclusive U.S. partner of Global M&A Partners, Ltd., the world’s leading partnership of independent investment banking firms, which gives our clients access to experience and capital in more than 30 countries worldwide

• Deep industry experience in: Business Services, Consumer, Diversified Industrials, Environmental & Industrial Services, Healthcare & Life Sciences, Healthcare Real Estate, Metals & Metals Processing, Real Estate, and Transportation & Logistics

• Comprehensive suite of financial advisory services, including guidance and support for acquisitions, divestitures, capital markets, financial restructurings, and other strategic consulting

• Document management• Food services• HVAC management• Janitorial• Landscaping• Manned security• Signage• Snow removal• Uniform/linen rental• Waste disposal


• Business process outsourcing• Debt collection• Direct mail• Fulfillment• Inbound customer service• Market research• Marketing services• Outbound customer

acquisition• Technical support


• Background employment checks• Benefits administration• Distance learning• Employee training• Human Resources consulting• Payroll processing• Permanent placement• Professional Employer Organization (PEO)• Temporary staffing


The information contained in this publication was derived from proprietary research conducted by a division or owned or affiliated entity of Brown Gibbons Lang & Company LLC. Any projections, estimates or other forward-looking statements contained in this publication involve numerous and significant subjective assumptions and are subject to risks, contingencies, and uncertainties that are outside of our control, which could and likely will cause actual results to differ materially. We do not expect to, and assume no obligation to update or otherwise revise this publication or any information contained herein. Neither Brown Gibbons Lang & Company LLC, nor any of its officers, directors, employees, affiliates, agents or representatives makes any representation or warranty, expressed or implied, as to the accuracy, completeness or fitness of any information contained in this publication, and no legal liability is assumed or is to be implied against any of the aforementioned with respect thereto. This publication does not constitute the giving of investment advice, nor a part of any advice on investment decisions and nothing in this publication is intended to be a recommendation of a specific security or company, nor is any of the information contained herein intended to constitute an analysis of any company or security reasonably sufficient to form the basis for any investment decision. Brown Gibbons Lang & Company LLC, its affiliates and their officers, directors, employees or affiliates, or members of their families, may have a beneficial interest in the securities of a specific company mentioned in this publication and may purchase or sell such securities in the open market or otherwise. Nothing contained in this publication constitutes an offer to buy or sell or the solicitation of an offer to buy or sell any security. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, Inc., an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC.

LEADING INDEPENDENT FIRM COMPREHENSIVE CAPABILITIES

For questions about content and circulation, please contact editor, Rebecca Dickenscheidt, at [email protected] or 312.513.7476.

Sell-Side Advisory

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All Tranches of

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1 3 B U S I N E S S S E R V I C E S Q U A R T E R LY U P D A T E | A B O U T U S

DEDICATED LEADERSHIP

PETER J. HILLManaging DirectorBusiness Services • Leads BGL’s Business Services practice

• Over 25 years of investment banking and corporate finance experience

• Former Managing Director and Head of Business Services at Mufson Howe Hunter & Company, Stifel, and Legg Mason

• Investment banking positions at Barclays Capital and Lehman Brothers

• B.A., Middlebury College

PROFESSIONAL EXPERIENCE


One Magnif icent Mile 980 N. Michigan Avenue Suite 1880 Chicago, IL 60611312.658.1600

One Cleveland Center1375 East 9th StreetSuite 2500 Cleveland, OH 44114216.241.2800

C H I C A G O C L E V E L A N D

One Liberty Place 1650 Market StreetSuite 3600 Philadelphia , PA 19103484.262.5031

P H I L A D E L P H I A

EDUCATION

DAVID J. SILVERVice PresidentBusiness Services • Member of BGL’s Business Services practice

• Over 8 years of investment banking and corporate finance experience

• Former Vice President at PwC Corporate Finance and Alantra

• Significant domestic and cross-border M&A experience across various industry verticals

PROFESSIONAL EXPERIENCE EDUCATION

• B.S., Indiana University - Kelley School of Business


REPRESENTATIVE TRANSACTIONS

One Magnif icent Mile 980 N. Michigan Avenue Suite 1880 Chicago, IL 60611312.658.1600

One Cleveland Center1375 East 9th StreetSuite 2500 Cleveland, OH 44114216.241.2800

C H I C A G O C L E V E L A N D

One Liberty Place 1650 Market StreetSuite 3600 Philadelphia , PA 19103484.262.5031

P H I L A D E L P H I A



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