3rd Quarter 2014 - CHILDS Advisory Partners

QUARTERLY UPDATE
3Q 2014
INSIDE THIS ISSUE:
The First Word
Selected Transactions
Market Update
Sector Updates
About CHILDS
1
2
3
4
10
CHILDS NEWS AND EVENTS
11/3/14 – 11/5/14
CHILDS attends European Staffing
Industry Executive Forum in London
11/3/14
CHILDS advises Aspen Advisors in its
sale to The Chartis Group
The First Word: Let the Good Times Roll!! Now, How Long are They Going to Last?
Lower mid-market M&A activity (deals under $500 million) has been white hot over the past year due
to great business results and plenty of equity and debt capital chasing deals. As most of us know,
these conditions tend to be present in good economic times and the economy typically moves in
cycles. For those of us in the M&A world, we make it sport to follow trends and indicators that may
provide some insight into where we are in the business cycle. When someone purchases an asset,
whether it be a house, a business or a horse, the buyer is making a bet that the asset will appreciate.
Acquirors who often use a substantial amount of debt in their purchases (private equity buyout funds,
for example) are making an even bigger bet that the companies they buy will perform well in the
short-term to service its debt and over the long-term in order to exit successfully.
The impact of transaction timing on investment returns is easily demonstrated by comparing the
returns of private equity and debt funds for 2002 to returns from 2006. As shown below, deals
completed in 2006 were far less successful than those completed in 2002, presumably because those
bought in 2002 appreciated substantially before the Great Recession.
PE Funds
10/27/14 – 10/30/14
CHILDS attends the ACEP conference in
Chicago, IL
25.0%
10/20/14
CHILDS advises Bear Data in its sale to
Datalink
15.0%
10/3/14
CHILDS advises Vaco on its
recapitalization with Quad-C
Management
9/30/14
CHILDS advises itelligence on its
acquisition of Symphony
9/29/14-10/2/14
CHILDS attends the ASIS security
conference in Atlanta, GA
9/28/14-10/2/14
CHILDS attends the Oracle OpenWorld
conference in San Francisco, CA
9/15/14-9/17/14
CHILDS attends the NAPEO conference
in Miami, FL
8/29/14
CHILDS advises Best Doctors on its
acquisition of Rise Health
20.0%
20.7%
Debt Funds
21.3%
10.0%
5.7%
5.0%
6.6%
–
Vintage 2002
Vintage 2006
Most conventional research asserts that U.S. economic cycles last about seven years and that this is
the latest recovery started in March of 2010. Following this logic, we are about five years into this
recovery with two years to go. Based on this assumption, 2015 looks to be well-positioned and one
would think that 2016 will also go well given that it is an election year and the incumbent government
will be supporting the economy during such time. What about 2017 and beyond?
Most research supports the concept that this recovery may, in fact, be longer than most due to the
relatively slow pick-up in employment and wages. Additionally, the government substantially
supported the economy in this cycle. The prevailing thought is that this cycle may be a nine years
(absent negative world events). Thus, we could see good times for an additional four years or more. It
seems that these strong M&A conditions may be here for a while. I certainly hope this is the case!
Update on CHILDS Advisory Partners
Year-to-date through November, we have closed 21 transactions, compared to 10 for all of 2013. Our
close rate has been near 100%, indicating that pricing is firm and buyers are motivated. Our average
transaction size has increased to $65 million in total enterprise value, reflecting the continued flow of
high quality companies to the market, with a range of $15 - $175 million this year.
CHILDS ADVISORY PARTNERS
3438 PEACHTREE ROAD NE
PHIPPS TOWER, SUITE 1400
ATLANTA, GA 30326
PHONE: 404.751.3000
FAX: 404.751.3001
WWW.CHILDSADVISORYPARTNERS.COM
Jim CHILDS
1
CHILDS Quarterly Update: 3Q 2014
RECENT CHILDS TRANSACTIONS
has been acquired by
has been acquired by
has been recapitalized by
has acquired
has acquired
October 2014
October 2014
September 2014
August 2014
A portfolio company of RLH
November 2014
A portfolio company of
Gryphon Investors
A portfolio company of
Gryphon Investors
has acquired
has been acquired by
has been recapitalized by
has been acquired by
has acquired
August 2014
August 2014
July 2014
July 2014
July 2014
debt recapitalization
has acquired
has been acquired by
has been acquired by
has been acquired by
July 2014
June 2014
June 2014
May 2014
May 2014
has been recapitalized by
has been acquired by
has been recapitalized by
has been recapitalized by
has acquired
April 2014
April 2014
April 2014
February 2014
February 2014
has acquired
has been recapitalized by
has been acquired by
has been acquired by
has acquired
February 2014
December 2013
November 2013
November 2013
October 2013
has acquired
has been acquired by
has been recapitalized by
has been acquired by
has been recapitalized by
A portfolio company of
Gryphon Investors
Conversion
Capital
September 2013
August 2013
Note: CHILDS represented company listed on top half of tombstone
August 2013
May 2013
March 2013
2
CHILDS Quarterly Update: 3Q 2014
LOWER MIDDLE-MARKET M&A UPDATE
LOWER MIDDLE-MARKET PRIVATE EQUITY DEAL FLOW
Sources: Capital IQ, Dealogic, Pitchbook
3
CHILDS Quarterly Update: 3Q 2014
FACILITIES SERVICES SECTOR UPDATE
Facilities services remains an active segment for industry
consolidation and private equity investments, with deals focused on
opportunities in related, but adjacent sectors. The facilities services
sector remains attractive as companies continue to find outsourcing
to be the most cost-effective solution for these required services.
Key trends:


PUBLIC COMPANY ANALYSIS
Valuation Multiples
14.0x
12.0x
Fragmentation/Consolidation: Many sub-sectors within
facility services are highly fragmented with a few global
players dominating the market. The security services market
remains hot with consolidation as many lower middle market
firms continue to buy up local and regional security
businesses for geographic expansion. Additionally, larger
security firms such as G4S continue to refine their own
portfolio within the market as both buyers and sellers.
Movement to Enhance Global Footprint/Brand: Within all
sub-sectors of facility services, public strategic buyers remain
active in an effort to diversify across geographies and
verticals. Key acquirors in Q3 include: AECOM Technology,
Compass Diversified, Gunnebo Security and Iron Mountain.
10.2x
8.0x
9.6x
9.1x
9.0x
6.0x
4.0x
2.0x
0.0x
Route-Based
Diversified
Building
Rental
Services
Services
Forward Year EV/EBITDA
Engineering &
Construction
Last Twelve Months Indexed Stock Price Performance
160
Continued Investment from Private Equity: Financial
buyers continued to invest favorably within the facility
services sector with multiple platform investments in Q3.
Additionally, lenders reinforce a positive outlook on the
sector as private equity buyers continue to win high profile
auctions against strategic buyers such as: Pike Corporation,
Packers Sanitation, Kellermeyer Bergensons, Miller
Environmental, AmQuip Crane Rental, Access Information
Management and Gulfstream Services.
150
We expect M&A activity to remain active as the market continues to
take advantage of the low cost of financing and seeks alternatives to
slow organic growth. Overall, industry valuations remain at multiyear highs, and investor interest in the sector should remain strong
in the near term.
80

11.5x
10.0x
140
130
120
110
100
90
70
Nov-13
Jan-14
Route-Based
Diversified
Mar-14
May-14
Building
E&C
Jul-14
Sep-14
Nov-14
Rental
S&P 500 Index
RECENT M&A TRANSACTIONS
Date
Closed
Buyer
Target
Target Description
11/12/2014
Undisclosed
G4S Government Solutions
Provides fire & emergency, facilities maintenance, and base
operations support
11/5/2014
Leonard Green & Partners LP
Packers Sanitation Services Inc.
Provides contract cleaning and sanitation services to the food
processing industry
11/3/2014
Great Lakes Dredge & Dock
Magnus Pacific Corporation
Remediation services and geotechnical contracting provider
10/21/2014
The Jordan Company
Gulfstream Services Inc.
Oilfield rental tools and services provider
10/21/2014
Berkshire Partners
Access Information Management
Provides records and information management services
9/29/2014
GI Partners
Kellermeyer Bergensons Services
Provides facilities management services to retail and grocery chains
Note: Public company data as of November 14, 2014
4
CHILDS Quarterly Update: 3Q 2014
HUMAN CAPITAL MANAGEMENT SECTOR UPDATE
The Human Capital Management sector continues to experience
positive momentum as we move towards the end of 2014. Now
nearly five full years into an economic recovery, many economists
agree that we are currently in an elongated cycle with runway still
ahead.
It is believed that the European staffing cycle is
approximately two years behind the U.S., indicating multiple years
of expected growth to come.
The number of U.S. temporary help services jobs rose by nearly 9%
year-over-year in October. This is the fastest growth rate since
April, according to seasonally adjusted figures from the U.S. Bureau
of Labor Statistics. The temporary penetration rate continues to
climb, reaching another new high of 2.11%.
Over 237,000
temporary jobs have been added over the past year.
Overall employment in the U.S. continues to improve, with the
unemployment rate dropping to 5.8% in November. According to
the Society for Human Resource Management, November hiring
activity will reach four-year highs in both the U.S. manufacturing
and services sectors. IT employment shows signs of strengthening
with 0.2% growth in the number of IT jobs in October, reversing a
nine-month trend, according to the TechServe Alliance.
PUBLIC COMPANY ANALYSIS
Valuation Multiples
14.0x
12.0x
10.0x
11.5x
10.0x
9.4x
8.0x
8.3x
6.0x
4.0x
2.0x
0.0x
HRO
IT/Prof
C/ML
Search
Forward Year EV/ EBITDA
Last Twelve Months Indexed Stock Price Performance
150
140
Key trends/notes:
130


Medical Scribe M&A Activity: The two largest medical scribe
companies have traded in recent months. ScribeAmerica, the
largest medical scribe company, was recapitalized by Chicago
Growth Partners and PhysAssist was acquired by Team Health.
Positive Growth for Public Companies: Public staffing
companies reported positive revenue growth for the third
quarter, with firms such as Robert Half, Resources Connection,
Manpower, AMN, Randstad, On Assignment, and Kforce all
experiencing positive quarters. Many public companies are
also actively seeking acquisition opportunities as a way to
increase growth and add services.
120
110
100
90
80
70
60
Nov-13
Jan-14
C/ML
Mar-14
IT/Prof
May-14
Jul-14
Search
HRO
Sep-14
Nov-14
S&P 500 Index
RECENT M&A TRANSACTIONS
Date
Closed
Buyer
Target
Target Description
11/4/2014
Impellam Group
Lorien Resourcing
IT recruitment and managed services firm in the U.K.
10/30/2014
Investcorp
PRO Unlimited
Managed services provider for contingent workforces
10/20/2014
Team Health
PhysAssist Scribe Services
Provides managed medical scribe programs to emergency
departments
10/3/2014
Quad-C Management
Vaco*
Provides F&A, IT, and other professional staffing services nationwide
9/4/2014
The Jordan Company
Capstone Logistics
Outsourced supply-chain services to grocery, food service, retail and
automotive industries
7/28/2014
Chicago Growth Partners
ScribeAmerica*
Provides managed medical scribe programs to outpatient, inpatient,
and urgent care facilities
*CHILDS acted as the exclusive financial advisor to Vaco and ScribeAmerica
Note: Public company data as of November 14, 2014
5
CHILDS Quarterly Update: 3Q 2014
BUSINESS PROCESS OUTSOURCING SECTOR UPDATE
PUBLIC COMPANY ANALYSIS
Last quarter our newsletter highlighted three key trends influencing the
BPO sector. They included:
Valuation Multiples
1. Continued transition beyond “lift and shift” labor arbitrage to
providing analytics and other value added insight;
12.0x
2. Clear shift to higher skill sets and professional markets that were
not previously a focus area for BPO providers;
10.0x
3. The traditional service delivery model is quickly evolving and BPaas
/ cloud based models are overwhelmingly beating out more traditional
BPO models.
This quarter, Cognizant announced its intention to acquire TriZetto in a $2.7
billion transaction and entered into a transformative deal with Health Net.
Together, these represent two of the largest transactions in the company’s
history. Interestingly, these transactions exhibit each of the key themes we
previously touched on taking place in the industry.
These transactions meaningfully increase Cognizant’s operations in the
healthcare sector and greatly enhance the company’s capabilities. The
sector represents a major market opportunity for Cognizant due to the
regulatory and other disruption that has taken place in the industry and
participants’ demands to have end-to-end solutions to improve efficiencies.
R. Chandrasekaran, Executive Vice Chairman of Cognizant India discussed
these acquisitions and was enthused about the opportunities they provide
the company. Ultimately, the acquired underlying industry software
platform, running on infrastructure provided by Cognizant, delivered over
the cloud, and paired with the appropriate services required to run the
business process, will allow Cognizant to offer a fully integrated service to
their clients.
10.0x
9.3x
8.0x
8.4x
6.0x
4.0x
2.0x
0.0x
IT
F&A
AR
Forward Year EV/EBITDA
CC
Last Twelve Months Indexed Stock Price Performance
130
125
Mr. Chandrasekaran spoke about how these transactions were tied to the
Company’s broad desire to be at the forefront of the industry and exhibit the
macro trends that he referred to as the “dual mandate” which seeks to
simultaneously improve efficiency and scale with existing systems while
driving business innovation through newer technologies.
120
These transactions clearly evidence Cognizant’s continued shift to more
focused offerings away from pure labor arbitrage, increasing presence in
attractive markets such as healthcare, and providing these services over a
progressive cloud based model.
105
These moves, in conjunction with strong organic revenue growth in Q3 and
profits coming in slightly ahead of expectations, have resulted in Cognizant
trading less than 2% off its 52-week high.
10.6x
115
110
100
95
90
Nov-13
Jan-14
IT
Mar-14
F&A
May-14
A/R Collections
Jul-14
Sep-14
Call Center
Nov-14
S&P 500 Index
RECENT M&A TRANSACTIONS
Date
Closed
Buyer
Target
Target Description
9/15/2014
Cognizant Technology Solutions
TriZetto
IT and service solutions provider to the healthcare industry
7/15/2014
Allegis Group
Talent2
Provider of HR business process outsourcing services
7/7/2014
Exlservice Holdings
Blue Slate Solutions
Human resources outsourcing provider
5/14/2014
Clearlake Capital Group, LLC
ConvergeOne, LLC
Provider of communications solutions and managed services
3/25/2014
Systems In Motion
Zuna Infotech
Provider of IT and business process outsourcing services
1/6/2014
Convergys Corporation
Stream Global Services
Provider of business process outsourcing services
Note: Public company data as of November 14, 2014
6
CHILDS Quarterly Update: 3Q 2014
HEALTHCARE SERVICES SECTOR UPDATE
So far in 2014, healthcare M&A markets have delivered robust activity and
an increased number of closed transactions. Deal volume rose 10% over last
quarter, to 326 transactions. M&A activity in the third quarter was up 19%
versus a year ago, when 275 deals were announced.
There are numerous factors influencing this activity including strategic
initiatives, strong corporate coffers, availability of capital and low interest
rates. The unprecedented demographics and opportunities created by the
Affordable Care Act are also driving the scope and breadth of the current
market.
An increase in the number of insured patients may boost revenue, but with
that comes additional strains on costs and resources. Provider and payor
oriented services and solutions, therefore, remain at the forefront of
investor attention.


Valuation Multiples
14.0x
12.0x
12.0x
10.0x
11.4x
10.2x
9.7x
8.0x
8.4x
6.0x
4.0x
2.0x
Key themes:

PUBLIC COMPANY ANALYSIS
Technology:
Legislated shift away from fee-for-service toward
outcomes-based reimbursement continues to drive growth in
technology-enabled patient engagement and population health
management. Demand-based shift toward IT solutions that integrate
inpatient and ambulatory settings is contributing to innovation and
growth around Electronic Medical Record (EMR) platform technology.
Additionally, with the growing prevalence of higher insurance
deductibles and co-pays, we expect providers to increasingly seek
technology solutions for patient payments and collections.
Outsourced Services: Acute care hospitals and alternative site
healthcare providers are facing increased budgetary pressures and
placing a greater emphasis on cost savings initiatives. As a result, we
expect there will be further growth and adoption of third-party
outsourced services. Outside parties are increasingly being used to
manage various non-core functions within hospital facilities to reduce
operating costs.
Alternate Site Care: Improved service and lower out-of-pocket costs
for patients remain core drivers of growth in this segment. With no
apparent end to system-wide cost pressures in sight, we expect
continued patient and procedure volume to be directed away from
hospitals and toward outpatient and ambulatory facilities.
0.0x
Technology
Outsourced
Services
Alternate Site
Providers
Home
Healthcare
Hospitals
Forward Year EV/EBITDA
Last Twelve Months Indexed Stock Price Performance
160
150
140
130
120
110
100
90
Nov-13
Jan-14
Mar-14
Outsourced Services
Alternate Site Providers
May-14
Jul-14
Technology
S&P 500 Index
Sep-14
Nov-14
Hospitals
Home Healthcare
NOTABLE M&A TRANSACTIONS
Date
Closed
Buyer
Target
Target Description
Announced
OptumHealth Care Solutions
Alere Health
Diagnostic tools and health-monitoring solutions for payers
Announced
Global Health Exchange
Vendormate
Vendor relationship management software
11/3/2014
The Chartis Group (RLH)
Aspen Advisors*
Strategic planning and healthcare information technology consulting
services
10/23/2014
LLR Partners
Phreesia
Point-of-sale service platform
10/01/2014
Geisinger
PrimeMed P.C.
Diagnostic imaging, nuclear medicine, outpatient medical lab services,
physical therapy and diagnostic sleep studies
7/16/2014
AmSurg
Sheridan Healthcare
Outsourced comprehensive physician services
*CHILDS acted as the exclusive financial advisor to Aspen Advisors in its acquisition by The Chartis Group
Note: Public company data as of November 14, 2014
7
CHILDS Quarterly Update: 3Q 2014
IT SERVICES SECTOR UPDATE
M&A activity in the IT Services sector remained strong in the third
quarter, with over 240 transactions closed or announced. This is in
line with M&A activity in the previous quarter and 10% higher than
M&A activity during the third quarter of 2013.
We continue to see rich valuations in this sector, especially for
companies focused on cloud solutions/services and managed
services/hosting. Availability of cheap credit is certainly a
contributing factor; however, interest in these capabilities on the
buyer/investor front is fueling heightened valuations as well. This
is also true in the public markets, with managed services/hosting
companies trading at an average of 10.9x 2014E EBITDA versus
8.6x for consulting services firms. Some key trends that we are
seeing specifically in the cloud and managed services/hosting
sectors are below.
PUBLIC COMPANY ANALYSIS
Valuation Multiples
12.0x
10.0x
8.0x


8.6x
8.3x
7.0x
6.0x
4.0x
2.0x
0.0x
Managed
Services/Hosting
Key trends:

10.9x
Consulting Services Federal IT Services
Systems
Integrators/VARs
Forward Year EV/EBITDA
Continued Shift to Managed Services: The managed services
market is forecast to grow at a 12.0%+ CAGR over the next five
years, compared to the overall IT services market growing at a
5.0% CAGR. Industry growth is driving demand and healthy
valuations, with many managed services/hosting providers
selling at over 11.0x EV/EBITDA.
Explosive Growth in Cloud Computing: The global Cloud
market is forecasted to grow nearly 5x from $49.6 billion in
2012 to more than $241.0 billion in 2020 driven by a shift from
on-premise to Cloud hosting platforms.
Amazon Web Services (AWS) ranked #1 Cloud IaaS. Gartner
recently ranked AWS as the top IaaS provider ahead of
Microsoft, Google, VMware and many others. AWS has a large
and growing technology partner ecosystem that should
continue to benefit from the demand for AWS’ offering.
Last Twelve Months Indexed Stock Price Performance
120
110
100
90
80
70
Nov-13
Jan-14
Mar-14
Consulting Services
Federal IT Services
S&P 500 Index
May-14
Jul-14
Sep-14
Nov-14
Managed Services/Hosting
Systems Integrators / VARs
RECENT M&A TRANSACTIONS
Date
Closed
Buyer
Target
Target Description
Announced
Wipro
ATCO I-Tek
Hosted IT solutions and application management
11/6/2014
Blackstone / Accuvant
FishNet
VAR and IT solutions provider with focus on security solutions
10/31/2014
RLH / The Chartis Group
Aspen Advisors
HCIT services provider
10/20/2014
Datalink
BEAR Data Solutions
IT solutions provider with focus on IT infrastructure
10/15/2014
Data Intensity, LLC
CLEAR MEASURES Inc.
Remote database administration, analytics, and business services
10/1/2014
Cosentry
Red Anvil
Managed data center provider
Note: Public company data as of November 14, 2014
8
CHILDS Quarterly Update: 3Q 2014
SOFTWARE SECTOR UPDATE
PUBLIC COMPANY ANALYSIS
The market outlook for software remains strong. Key trends and growth
within CHILDS three main verticals include:
 Enterprise Software:
−
−
Global Enterprise Software spend is estimated to hit $320.5 billion by
the end of 2014 and grow 7.3% to $343.8 billion in 2015
The use of collaboration technologies, data analytics and mobile devices
have increased adoption and popularity of enterprise software over the
last few years
 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% each year through 2017
CRM is expected to be the leading subsector within the SaaS ecosystem
for the next five years, while conjointly representing 42% of the 2014
total SaaS market
 HR Technology:
−
−
The HR technology market is expected to grow 8.1% from $9.3 billion in
2014 to $10.1 billion in 2015
Key drivers for HR technology market include further adoption of
mobility, analytics, SaaS and social solutions
Strategic and financial buyers continue to have a strong appetite for
acquisitions and investments with large scale software transactions
continuing into the second half of 2014. SAP and Oracle continue their
heavy-weight acquisition battle with the announcements of agreements
with Concur and TOA, respectively. The healthcare IT market saw one of its
first large consolidations with Cerner’s announcement to acquire Siemens
HIT division. Finally, Vista Equity announced a sizeable buyout of the
infrastructure/BI software company, TIBCO. While the market for sellers
remains attractive, there is evidence of higher volume of opportunities in
the market.
Global software M&A deal volume has increased 6.0% year-over-year, and
we expect this trend to continue due to the sizeable reserves of dry powder
for strategic and financial buyers and favorable debt markets. Key trends in
the debt and equity market include:
 Valuation’s have reached pre-recession highs: across all
industries, average mid-market revenue and EBITDA multiples have
reached 1.58x and 9.8x, respectively
 Increased total leverage/EBITDA multiples for middle market
LBOs: Q2 ‘14 exceeded 2007 leverage levels at 5.7x, up from 4.8x in
2013 and 4.6x in 2012
 Significant amounts of private equity capital raised before the
downturn have created buying power: $466 billion of dry powder
is highest since 2009
Valuation Multiples
80.0x
70.0x
72.4x
60.0x
50.0x
40.0x
30.0x
20.0x
23.0x
17.1x
10.0x
7.3x
0.0x
4.7x
SaaS
3.4x
HR Technology
Forward Year EV/EBITDA
Enterprise Software
Forward Year EV/Revenue
Last Twelve Months Indexed Stock Price Performance
130
120
110
100
90
80
70
Nov-13
Jan-14
Mar-14
Enterprise Software
May-14
SaaS
Jul-14
Sep-14
HR Technology
Nov-14
S&P 500 Index
RECENT M&A TRANSACTIONS
Date
Closed
Buyer
Target
Target Description
9/29/2014
Vista Equity
TIBCO
Infrastructure and business intelligence software
9/14/2014
Cognizant
TriZetto
IT and service solutions provider to the healthcare industry
9/8/2014
SAP
Concur
Integrated travel and expense management solutions
8/31/2014
Oracle
TOA
Cloud-based on-demand mobile workforce management and field
service management solutions
8/5/2014
Cerner
Siemens Medical Solutions
Healthcare information technology products and software solutions
Note: Public company data as of November 14, 2014
9
CHILDS Quarterly Update: 3Q 2014
ABOUT CHILDS ADVISORY PARTNERS
CHILDS Advisory Partners provides exceptional investment banking services to high-performing business services and techenabled 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.
OUR SERVICES
 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
MERGERS &
ACQUISITIONS
 Strategic Acquisitions ‐ Our disciplined methodology coupled with our industry relationships
makes CHILDS an ideal buy‐side partner
 CHILDS proprietary knowledge database consists of active debt and equity investors focused
on service businesses (senior debt through mezzanine and growth equity)
CAPITAL
RAISES
 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
FINANCIAL &
STRATEGIC ADVISORY
 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
SECTOR FOCUS
BUSINESS AND TECH-ENABLED SERVICES
FACILITIES
SERVICES
HUMAN CAPITAL
MANAGEMENT
BUSINESS PROCESS
OUTSOURCING
HEALTHCARE
SERVICES
IT SERVICES
SOFTWARE
CONTACT INFORMATION
Jim Childs
Managing Director
Phone: (404) 751-3002
Email: [email protected]
Ross DeDeyn
Managing Director
Healthcare Services
Phone: (404) 751-3018
Email: [email protected]
Tom Donahue
Managing Director
Tech-enabled Services/Software
Phone: (617) 290-5433
Email: [email protected]
Don Holbrook
Managing Director
Tech-enabled Services/Software
Phone: (949) 276-8715
Email: [email protected]
Cooper Mills
Managing Director
Business Services
Phone: (404) 751-3003
Email: [email protected]
Jason Wallace
Managing Director
Business Services
Phone: (404) 751-3020
Email: [email protected]
Alan Bugler
Director
Business Services
Phone: (404) 751-3004
Email: [email protected]
Dave Phillips
Director
Business Services
Phone: (904) 292-9305
Email: [email protected]
Bob Koven
Vice President
Tech-enabled Services/Software
Phone: (404) 751-3019
Email: [email protected]
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