1
QUARTERLY UPDATE
INSIDE THIS ISSUE:
The First Word: M&A Market Strong Halfway Through 2015
We hosted our sixth annual CHILDS Growth Firm forum in Atlanta on May 7th. The
conference was our most-attended yet with over 300 attendees! Of the attendees,
approximately 175 were company executives and owners, 75 were private equity
investors, and the remaining were service professionals (i.e. lawyers, accountants). Our
approach is to hit relevant topics “head on” as it always facilitates interesting
conversations. And, of course, the networking is great as well. The overall theme from
our interactions at the conference was that times are very good and most people are
“playing offense” accordingly.
Our panel discussions were topical and well received. This year’s panels were:

 Raising Outside Capital: The Entrepreneur’s Perspective
 Executing Acquisitions: Best Practices and Lessons Learned
 How Private Equity Really Works: The Inside Scoop
We wrapped up the afternoon with our final keynote speaker, Tommy Newberry, who
is a well-known author, executive coach, and a friend. His talk, entitled “You’ve
Succeeded, Now What,” was excellent, and centered around being purposeful with your
time and energy to establish the relationships you value and to leave the legacy that
you want to leave behind. This message offered perspective and was a healthy
reminder for all of us who play the game of business.
The M&A market through the first half of 2015 remains very strong, and is reflected in
our business. We believe that market activity will continue full steam ahead into 2016.
CHILDS Advisory Partners ended 2014 as the leading U.S. firm for lower middle –
market (under $500 million) transactions in Human Capital Management/Staffing, IT
Services, and Healthcare IT Services. We continue to build momentum in those
segments.
In 2014-2015 we also added three new practice groups:

 SaaS software, with an emphasis on HCM, led by Tom Donahue
 Healthcare Services led by Ross DeDeyn

Industrial Services led by Jason Wallace
Our passion is to advise category-leading firms and I am very grateful for the many
private equity investors and entrepreneurs/owners who have trusted us to deliver
their desired outcomes. It is a privilege to be able to work with such excellent and good
people and to deliver positive results! Like Newberry said, “it is all about the
relationships you have and the legacy you leave.”
I hope you are having a great summer! When my Georgia Bulldogs reach the National
Championship game in January, I will report back!


Jim Childs
The First Word
1
Selected Transactions
3
Market Update
4
Sector Updates
5
About CHILDS
11
CHILDS NEWS AND EVENTS

7/31/15
CHILDS advises Agile Resources in its sale to
General Employment Enterprises

7/28/15
CHILDS advises Agora Group in its sale to
Virtusa Corp.

7/9/15
CHILDS advises Intelenex in its sale to Emtec

6/1/15 – 6/4/15
CHILDS attends Waste Expo in Las Vegas, NV

5/22/15
CHILDS advises Advanced Medical on its
recapitalization with Clearview Capital

5/22/15
CHILDS advises Advantage Resourcing in its
acquisition of Atterro

5/7/15
CHILDS hosts the 6th annual CHILDS Growth
Firm Forum in Atlanta, GA

3/16/15
CHILDS advises Solstice Mobile in its sale to St
Ives Group

3/16/15 – 3/19/15
CHILDS attends Staffing Industry Executive
Forum in Orlando, FL

2/4/15 – 2/5/15
CHILDS attends ACG Capital Connection
conference in Atlanta, GA

2/3/15 – 2/5/15
CHILDS attends LegalTech conference in New
York, NY


CHILDS ADVISORY PARTNERS
3438 PEACHTREE ROAD NE
PHIPPS TOWER, SUITE 1400
ATLANTA, GA 30326
PHONE: 404.751.3000
WWW.CHILDSADVISORYPARTNERS.COM
2Q 2015
2
CHILDS PARTICIPATES IN CORPORATE WORK STUDY PROGRAM WITH CRISTO REY
CHILDS Quarterly Update: 2Q 2014
Annual Event Connects Low-Income, College Motivated 9th & 10th Graders with Corporate Jobs
Atlanta, GA – August 14, 2015 - CHILDS Advisory Partners (“CHILDS”) is participating in Cristo Rey Atlanta Jesuit High
School’s (“Cristo Rey”) innovative Corporate Work Study Program for the 2015-2016 school year. Through this program,
students carry a full load of classes while working five full days a month in a corporate work setting. Students’ earnings cover
the majority of tuition for their rigorous college-prep education at Cristo Rey Atlanta.
On August 14th, CHILDS teamed up with 71 other companies from the Atlanta business community to participate in “Draft
Day” at Cristo Rey in Midtown. Representatives from CHILDS, as well as The Coca-Cola Company, Alston & Bird, General
Electric, Voya Financial, Cox Automotive, Delta Air Lines, The Home Depot, UPS Capital, and many other top Atlanta
businesses, joined to “draft” their teams of four students. Over 250 ninth and tenth-grade students participated.
CHILDS Advisory Partners CEO Jim Childs commented, “Here at CHILDS, we are very grateful for all that we have, and
recognize that this is a great opportunity to give back not only to the community, but to the next generation of business
leaders as well.”
CHILDS TEAM’S NEWEST ADDITIONS
Pictured above: Executive Assistant Leigh Ann Williams and CEO Jim Childs,
alongside four Cristo Rey students
3
RECENT CHILDS TRANSACTIONS
CHILDS Quarterly Update: 2Q 2015
Note: CHILDS represented company listed on top half of tombstone
has been acquired by
November 2013
has been acquired by
June 2014
has been acquired by
May 2014
has been acquired by
May 2014
has been acquired by
April 2014
has been recapitalized by
April 2014
has been recapitalized by
December 2013
has acquired
February 2014
has been recapitalized by
February 2014
has acquired
February 2014
has been recapitalized by
April 2014
has acquired
June 2014
has acquired
August 2014
has been recapitalized by
July 2014
October 2014
has been recapitalized by
has been acquired by
October 2014

has been acquired by
November 2014
A portfolio company of RLH
has been acquired by
July 2014
has acquired
September 2014
has acquired
August 2014
A portfolio company of
Gryphon Investors
debt recapitalization with
July 2014
A portfolio company of
Gryphon Investors
has acquired
July 2014
A portfolio company of
Gryphon Investors
has been acquired by
August 2014
A portfolio company of Trilantic Capital

has been acquired by
March 2015

has acquired
May 2015
May 2015
has been recapitalized by
July 2015
has been acquired by
July 2015
has been acquired by

has been acquired by
July 2015
August 2015
has entered into an agreement
to be acquired by
4
LOWER MIDDLE-MARKET M&A UPDATE
923
986
982
760
851
941
885
848
647
549
434
475
448
504
368
545
463
175
215
204
171
156
198
154
211
157
148
206
203
181
150
280
242
129
1,098
1,201
1,186
931
1,007
1,139
1,039
1,059
804
697
640
678
629
654
648
787
592
-
200
400
600
800
1,000
1,200
1,400
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2011
2012
2013
2014
2015
N
um
be
r o
f T
ra
ns
ac
tio
ns

<$100M
$100M - $500M
CHILDS Quarterly Update: 2Q 2015
LOWER MIDDLE-MARKET PRIVATE EQUITY DEAL FLOW
Sources: Capital IQ, Dealogic, Pitchbook
1,203
1,347
1,433
1,564
729
632
811
631
780
364
662
714
779
945
308
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2011
2012
2013
2014
YTD Jun. 2015
N
um
be
r o
f T
ra
ns
ac
tio
ns

Under $25M
$25M - $100M
$100M - $500M
5
PUBLIC COMPANY ANALYSIS
Last Twelve Months Indexed Stock Price Performance
Date
Closed
Buyer
Target
Target Description
7/28/15
Warburg Pincus
Universal Services / Guardsmark
Security and other building services
7/15/15
Pamlico Capital
Service Express,
Third party maintenance services for mission-critical data center
infrastructure
7/7/15
Team
Qualspec
Non-destructive testing inspection services in various industries from
petrochemical to manufacturing
6/30/15
Pernix Group
KBR Building Group
Construction services for serving manufacturing, industrial, life
sciences, R&D, commercial/mixed-use, and institutional clients
6/26/15
New Mountain Capital
Zep
Provider of specialty chemical products to a wide variety of industrial,
institutional, and retail customers
5/29/15
Carillion Canada
Outland Group
Integrated remote-site accommodation, camp management, catering,
maintenance, and housekeeping services in Canada
5/1/15
ABM Industries
CTS Services/Facility Support
Services
HVAC service and energy solutions for government, commercial, and
industrial buildings
INDUSTRIAL SERVICES SECTOR UPDATE
CHILDS Quarterly Update: 2Q 2015
RECENT M&A TRANSACTIONS
M&A activity around the broad industrial services sector in North
America picked up in 2Q15 with over 570 transactions, a nearly 5%
increase year-over-year. Valuations continue to be supported by
heightened confidence among strategic and financial buyers, as well
as ripe conditions for consolidation in many industry subsectors.
Key Trends:
 PE firms pursuing platforms with differentiated service
delivery capabilities, industry consolidation momentum:
PE interest remains high for facility and other services assets
with diversified, recurring revenue streams. Initial platform
investments are currently being valued at premiums, with the
ability to execute add-ons at accretive multiples. Sectors with
strong underlying
consolidation
trends
(i.e.
specialty
distribution, transportation and logistics, security, aviation,
environmental services) provide tailwinds to scale players and
PE buyer confidence in future exit opportunities.
 Strategic buyers using M&A to increase scale and density,
expand in new verticals and service lines, and execute
synergies: in July, the announcement of the Warburg Pincus-
backed Universal/Guardsmark acquisition created a 60,000
guard-strong security firm with management citing density and
back office synergies as key transaction rationale. Guardsmark
had grown for 38 years without acquisition prior to the
transaction. Strategic buyers are using transformational
acquisitions such as these, as well as smaller add-on
acquisitions, to add density and capabilities in key markets and
reduce costs to leverage overhead investments.
 Competitive
intensity driving
lower middle-market
consolidation interest and urgency: management and owners
of lower middle - market operators are feeling pressure to scale
up, especially in subsectors with consolidating customer bases
and intense supply chain/purchasing department pressure on
costs (i.e. aviation, retail, property management).
We expect middle and lower middle-market M&A to be strong during
the remainder of 2015, as industry players take advantage of
attractive market conditions to execute on their acquisitive growth
and liquidity objectives.
Valuation Multiples
Note: Public company data as of August 7, 2015
7.2x
7.8x
10.1x
10.9x
0.0x
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
Engineering &
Construction
Rental Services
Environmental
Services
Facilities Services
Forward Year EV/EBITDA
70
80
90
100
110
120
130
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Facilities Services
Rental Services
Environmental Services
Engineering & Construction
S&P 500 Index
6
PUBLIC COMPANY ANALYSIS
80
90
100
110
120
130
140
Aug-14
Sep-14
Oct-14
Nov-14 Dec-14
Jan-15
Feb-15 Mar-15
Apr-15
C/LI
IT/Prof
Search
HRO
S&P 500 Index
7.0x
9.4x
9.7x
10.9x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
Search
C/LI
IT/Prof
HRO
Forward Year EV/ EBITDA
Last Twelve Months Indexed Stock Price Performance
Date
Closed
Buyer
Target
Target Description
7/31/15*
ManpowerGroup
Veritaaq
Provides information technology staffing and consulting services in
Canada
7/31/15
General Employment Enterprises
Agile Resources
Provides information technology, staff augmentation, and consulting
services
7/29/15
Elwood Staffing Services
The York Companies
Provides commercial staffing solutions
7/6/15
Palladium Equity Partners
TransForce
Provides driver staffing solutions and Department of Transportation
compliance solutions in the United States
5/22/15
Clearview Capital
Advanced Medical Personnel
Services
Provides healthcare staffing solutions, in the travel allied segment
5/22/15
Advantage Resourcing America
Atterro
Offers specialty staffing, contingent workforce solutions, and
recruitment process outsourcing in the central United States
5/9/15
On Assignment
Creative Circle
Creative staffing agency specializing in advertising, marketing,
creative, and interactive professionals
HUMAN CAPITAL MANAGEMENT SECTOR UPDATE
CHILDS Quarterly Update: 2Q 2015
Our 1Q 2015 HCM update addressed the positive economic and
industry tailwinds currently in the market, and highlighted the
probability of a near-term recession as the primary risk to the status
quo. We anticipate that the prevailing levels of lower and middle-
market M&A activity will persist through 2015 and much of 2016,
with the market peaking and beginning to slow as 2016 comes to a
close. This view is consistent with our staffing cycle timing
expectations. The most likely risk to our overall market outlook
remains the aforementioned probability of a recession in the coming
one to three years.
The healthcare IT and IT staffing segments are currently outpacing
other industry segments in growth, as the emerging education and
training segment continues to exhibit a strong growth trajectory and
expansion. The substantial growth in the healthcare IT and IT staffing
segments can be attributed to a confluence of several factors,
including an uptick in demand for enterprise IT solutions leading to
increased spend in the IT staffing industry, and heightened emphasis
on medical technology and looming “meaningful use” attestation
deadlines per the Affordable Care Act (“ACA”) resulting in larger
budgets being allocated to healthcare spend. This has led to further
M&A activity as buyers’ appetites for HCM assets continues to increase
given the favorable macroeconomic trends, and sellers look to
capitalize on market conditions to realize their liquidity goals.
Additional highlights and trends:
 Healthcare’s broader impact: Reports forecast that the ACA will
contribute an incremental 2% of revenue growth for the C/LI
segment in 2015, and an additional 1% in 2016.
 Strategic buyers becoming more acquisitive and willing to
execute larger transactions: Research shows that 2Q 2015
experienced a dramatic increase in the average enterprise value of
PE exits to strategic buyers, going from an average of $325 million
over the previous 3 quarters to $630 million in the second quarter.
Valuation Multiples
RECENT M&A TRANSACTIONS
Note: Public company data as of August 7, 2015
*Announced date
*C/LI = Clerical/Light Industrial
7
PUBLIC COMPANY ANALYSIS
90
95
100
105
110
115
120
125
130
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
IT
F&A
A/R Collections
Call Center
S&P 500 Index
7.2x
10.2x
10.9x
11.2x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
CC
AR
F&A
IT
Forward Year EV/EBITDA
Last Twelve Months Indexed Stock Price Performance
Date
Closed
Buyer
Target
Target Description
8/3/15
UBIC
EvD (Evolve Discovery)
Offers eDiscovery services including litigation consulting and data
processing services
7/1/15
CyrusOne
Cervalis
Provides IT infrastructure and managed services solutions
7/1/15
Capgemini North America
iGATE Corporation
Provides IT and IT-enabled operations offshore outsourcing solutions
and services
5/21/15
Lexmark International Technology
Kofax
Provides capture and business process management software and
related maintenance and professional services
4/30/15
Epiq Systems
Iris Data Services
Provides eDiscovery managed services
3/16/15
Apax Partners
EVRY
Provides IT consulting services and infrastructure solutions
BUSINESS PROCESS OUTSOURCING SECTOR UPDATE
CHILDS Quarterly Update: 2Q 2015
Last quarter, our BPO update addressed the increasing frequency at
which consumers of BPO services have begun to change providers.
We explored the reasons behind the steep decline in contract
retention from over 80% five years ago to less than 50% today due to
pricing declines, switching cost subsidies, and multi-sourcing
strategies, among others. BPO providers have sought to address this
through acquisitions that broaden their overall scope of services and
expertise.
Also playing to the providers’ favor to mitigate the decline in retention
is a movement within clients’ organizations to restructure to better
achieve overarching business objectives.
This trend, increasing in prevalence, hinges on the shift away from
traditional organizational silos focused on individual functions to
create hybrid teams that more efficiently address the Company’s
needs. This movement is at its core a reengineering of business units,
but goes beyond a narrow objective of basic cost reduction. One area
where the shift is most prominent is across the finance, procurement,
and supply chain processes, largely due to the blurring boundaries of
these functions.
Progressive BPO providers are catering to the business outcome
based requirements of their clients, addressing process cycles, and
building end-to-end solutions and capabilities. We will likely see
service providers continue to evaluate the process adjacencies that
they could expand into to provide further integrated solutions. BPO
providers must align their internal capabilities to their client’s
business objectives and in doing so transition from transactional
support to a role of a strategic partner.
With this comes their opportunity to increase their footprint and
strategic importance within buyer organizations. This stickiness
factor will help neutralize the factors discussed above and should
prompt an increase in contract retention if successfully implemented.
Valuation Multiples
RECENT M&A TRANSACTIONS
Note: Public company data as of August 7, 2015
8
PUBLIC COMPANY ANALYSIS
Last Twelve Months Indexed Stock Price Performance
Date
Closed
Buyer
Target
Target Description/Comment
06/22/15*
Anthem
Cigna
One of the largest health insurers in the U.S. (15 million members),
with a focus on self-insured employer groups
06/15/15*
CVS Pharmacy
Target Pharmacy and Clinic
Business
Pharmacy and in-store clinic operations to be re-branded as CVS and
CVS Minute Clinic
06/12/15
HealthSouth
Reliant Hospital Partners
Operates portfolio of 11 inpatient rehabilitation hospitals in TX, MA,
and OH
05/18/15
MEDNAX
Virtual Radiologic Corporation
Provider of outsourced radiology physician and telemedicine services
through a network of 350+ radiologists
05/21/15*
CVS Pharmacy
Omnicare
Dominant pharmacy services provider to long-term care facilities
04/13/15
IBM (Watson Health)
Explorys
Leading healthcare data analytics platform providing cloud-based
solutions to providers and payors.
HEALTHCARE SERVICES SECTOR UPDATE
CHILDS Quarterly Update: 2Q 2015
NOTABLE M&A TRANSACTIONS
The Affordable Care Act continues to drive both consolidation in the
payor and provider spaces and investment in technology as the
healthcare services industry adjusts to the growing influx of patients.
Notably, late in the 2nd quarter, the U.S. Supreme Court in King v.
Burwell upheld the subsidies paid to lower income individuals through
the federal healthcare exchange. Almost immediately, Anthem
announced its intention to acquire Cigna for $54 billion. Within days,
Aetna announced its acquisition of Humana for $37 billion (after
Humana rebuffed an offer from Cigna) and Centene Corporation
announced its acquisition of Health Net for $6.8 billion.
Announced healthcare M&A transactions in the second quarter of 2015
totaled 312 and $108.2 billion, down 4% and 20% compared with the
same quarter a year ago, respectively. So, while deal volume and size
were down somewhat relative to last year, the blockbuster deals in the
insurance space noted above appear to have lit the fuse for increased
M&A activity in the coming quarters. Heightened activity should
particularly be prevalent in the provider space as health systems seek
to level the negotiating imbalance now created by the mega-HMO
groups.
It is not enough just to acquire revenue though, as providers and
payors alike navigate adjustments to a value-based healthcare
payment system and seek ways to improve bottom-line performance
(strained by the increased volume of patients from the ACA). As such,
technology-based outsourced services remain a key focus of strategic
players and continue to offer compelling return on investment for
financial buyers.
Valuation Multiples
Note: Public company data as of August 7, 2015
*Announced date
90
100
110
120
130
140
150
160
170
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Outsourced Services
Technology
Hospitals
Alternate Site Providers
S&P 500 Index
Home Healthcare
Commentary
8.7x
11.4x
12.0x
12.8x
12.9x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
Hospitals
Alternate Site
Providers
Home
Healthcare
Outsourced
Services
Technology
Forward Year EV/EBITDA
9
PUBLIC COMPANY ANALYSIS
Last Twelve Months Indexed Stock Price Performance
Date
Closed
Buyer
Target
Target Description/Comment
7/28/15
Agora Group
Virtusa
Pegasystems BPM Consulting
7/9/15
Emtec
Intelenex
Oracle Fusion IT consulting
7/1/15
Capgemini
iGate Corporation
IT services and offshore outsourcing
6/17/15
QTS Realty Trust
Carpathia Hosting
IT infrastructure and management services for enterprises and
federal agencies
5/11/15
4/20/15
KPMG
Beacon Partners
Triad Technology Partners
Healthcare management and IT consulting
ServiceNow solutions and services
5/7/15
MDC Partners
Y Media Labs
Digital and mobile agency
4/28/15
CyrusOne
Cervalis
Operates datacenters and provides a suite of cloud, managed hosting
and managed services
IT SERVICES SECTOR UPDATE
CHILDS Quarterly Update: 2Q 2015
RECENT M&A TRANSACTIONS
Momentum for global M&A activity in the IT Services sector continued
in Q2 2015, although deal volume was slightly off Q2 2014. Analysts
believe that the second half of 2015 could be even stronger than the
first, meaning 2015’s M&A market could be the best since 2007. In
addition to cash-rich balance sheets and high stock prices, the
positioning of the Federal Reserve to raise interest rates is driving an
urgency to close deals.
In the first half of 2015, PE-backed acquisitions accounted for
approximately 24% of all M&A activity. Lenders continue to compete
to win financings with favorable terms and structures, helping to
sustain this PE activity, despite the increase the market has seen in
valuations.
Strategic buyers remain active given cash-rich balance sheets, high
stock prices, and mandates to increase returns despite lower organic
growth rates. Specifically in the IT Services sector, we have seen
several strategic buyers complete multiple acquisitions this year:
 Emtec, Inc. acquired Intelenex to expand its Oracle Fusion
capabilities and Lucidity Consulting Group to add additional
consulting expertise in the Utilities & Manufacturing verticals.
 Having completed 9 acquisitions since its founding in 2005,
ConvergeOne tucked in 2 more with the acquisitions of Sunturn
and Mountain States Networking to expand its presence in the
Southern and Western US.
 KPMG acquired healthcare IT consulting firm Beacon Partners, as
well as the ServiceNow IT Service Management division of Triad
Technology Partners.
 Accenture has been one of the most active acquirers this year with
transactions that include Vlocity (cloud and mobile solutions),
Agilex (Federal digital solutions), and T’quila (Salesforce.com
solutions and services).

Valuation Multiples
Note: Public company data as of August 7, 2015
70
80
90
100
110
120
130
140
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Consulting Services
Managed Services/Hosting
Federal IT Services
Systems Integrators / VARs
S&P 500 Index
6.8x
8.9x
10.4x
11.8x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
Systems
Integrators/VARs
Federal IT Services Consulting Services
Managed
Services/Hosting
Forward Year EV/EBITDA
10
PUBLIC COMPANY ANALYSIS
Last Twelve Months Indexed Stock Price Performance
SOFTWARE SECTOR UPDATE
CHILDS Quarterly Update: 2Q 2015
RECENT M&A TRANSACTIONS
In the United States, 333 software transactions closed in the second
quarter of 2015. The number of transactions decreased by
approximately 10% compared to both the previous quarter and Q2
2014. Although transaction volume decreased, interest from both
strategic buyers and financial sponsors remains strong and valuations
continued to average near 3.0x revenue. Some of the more prominent
transactions from this period came from financial sponsors and an
increased number of private financings could be the cause of the slow
down in the number of transactions. Francisco Partners’ acquisition of
ClickSoftware and HealthcareSource HR and Vector Capital’s
acquisition of Saba point to the strong interest in the HCM space, a
trend CHILDS expects to continue through the next few years.
Industry Trends:
 Enterprise Software:
− The use of collaboration technologies, data analytics, and mobile devices
have increased adoption and popularity of enterprise software over the
last few years.
− SAP’s revenue growth of 12% YoY clearly outpaced Oracle and was
primarily driven by their cloud/SaaS software business; Cloud software
now represents > 50% of new license sales for SAP.
− SAP Revenue: $21.1B; up 12.8% YoY
− Oracle Revenue: $38.2B; up (0.1%) YoY
− Microsoft Revenue: $93.6B; up 7.8% YoY
 SaaS:
− Demand for cloud solutions will continue to be a key driver of the
overall software market. The $156 billion market is forecast to grow by
more than 15% annually through 2017.
− The SaaS business model, replete with recurring revenues, is a very
attractive one. However, it can present some difficulties in starting,
growing, and self-financing a SaaS company (vs. a perpetual model). The
majority of the high fliers in the market today are venture-backed, it is
the minority of them that are bootstrapped.
 HR Technology:
− The HR technology market is expected to grow 16.8% from $11.3 billion
in 2015 to $13.2 billion in 2016.
− Key drivers for HR technology market include contingent labor,
analytics, and adding social features.
Valuation Multiples
Note: Public company data as of August 7, 2015
*Announced date
75
85
95
105
115
125
135
145
155
165
175
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Enterprise Software
SaaS
HR Technology
S&P 500 Index
15.2x
46.1x
95.5x
3.6x
4.3x
6.4x
0.0x
10.0x
20.0x
30.0x
40.0x
50.0x
60.0x
70.0x
80.0x
90.0x
100.0x
110.0x
Enterprise Software
HR Technology
SaaS
Forward Year EV/EBITDA
Forward Year EV/Revenue
Date Closed
Buyer
Target
Target Description/Comment
8/6/15*
IBM
Merge Healthcare
Software solutions that facilitate image sharing for electronic
healthcare experiences
7/7/15*
Cisco
MaintenanceNet
End-to-end automated service revenue generation solutions
6/24/15
CA
Rally Software
Cloud-based solutions for management of agile software development
6/16/15
Permira Advisers, Canada
Pension Plan Invest. Board
Informatica Corporation
Enterprise data integration software and services
6/15/15*
Cox Automotive
DealerTrack
Web-based software solutions to automotive retailers
5/28/15
Francisco Partners
HealthcareSource HR
Talent management software solutions for the healthcare industry
11
CONTACT INFORMATION
SECTOR FOCUS
OUR SERVICES
ABOUT CHILDS ADVISORY PARTNERS
CHILDS Advisory Partners provides exceptional investment banking services to high-performing business services and tech-
enabled companies. Our unique combination of sector focused coverage, process excellence, and strength of team allow us to
maximize value – and achieve successful outcomes for our clients. Collectively, our senior bankers have executed over 450 M&A
and financing transactions. CHILDS is a member of FINRA and SIPC and is a registered broker-dealer.
 Sales and Recapitalizations – CHILDS works with management teams, financial sponsors, and
special committees to provide crucial insights into the intricacies and nuances of sale
processes
 Strategic Acquisitions - Our disciplined methodology coupled with our industry relationships
makes CHILDS an ideal buy-side partner
INDUSTRIAL
SERVICES
HEALTHCARE
SERVICES
HUMAN CAPITAL
MANAGEMENT
IT SERVICES
BUSINESS SERVICES AND TECHNOLOGY
BUSINESS PROCESS
OUTSOURCING
SOFTWARE
Jim Childs
Managing Director
Phone: (404) 751-3002
Email: jchilds@childsap.com

Ross DeDeyn
Managing Director
Healthcare Services
Phone: (404) 751-3018
Email: rdedeyn@childsap.com
Tom Donahue
Managing Director
Tech-enabled Services/Software
Phone: (617) 290-5433
Email: tdonahue@childsap.com
Don Holbrook
Managing Director
Tech-enabled Services/Software
Phone: (949) 276-8715
Email: dholbrook@childsap.com
Cooper Mills
Managing Director
Business Services
Phone: (404) 751-3003
Email: cmills@childsap.com
Jason Wallace
Managing Director
Business Services
Phone: (404) 751-3020
Email: jwallace@childsap.com
MERGERS &
ACQUISITIONS
CAPITAL
RAISES
FINANCIAL &
STRATEGIC ADVISORY
 CHILDS proprietary knowledge database consists of active debt and equity investors focused
on service businesses (senior debt through mezzanine and growth equity)
 CHILDS is continuously in the market assisting its clients raise capital for a multitude of
purposes including organic growth, acquisitions, and one-time owner dividends
 CHILDS can act as a strategic consultant to help leadership teams develop their strategic road
map in order to create and enhance shareholder value
 CHILDS can undertake a detailed analysis of a company’s tangible and intangible valuation
drivers as a separate undertaking or as a precursor to an M&A assignment
Alan Bugler
Director
Business Services
Phone: (404) 751-3004
Email: abugler@childsap.com
Dave Phillips
Director
Business Services
Phone: (904) 292-9305
Email: dphillips@childsap.com
CHILDS Quarterly Update: 2Q 2015