Multiple Issue. Record high for IPO exits. Private Equity Transaction Advisory Services

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1 Multiple Issue Private Equity Transaction Advisory Services Record high for IPO exits The exit market in Europe has continued to perform very strongly in Q2 set a record for PE-backed IPO quarterly value, with volume reaching its highest level since Looking ahead, the pipeline for the buyout market looks strong for the second half of the year.

2 Welcome About Multiple Multiple is a quarterly publication summarizing trends in buyouts* across Europe. EY and Equistone Partners Europe are proud to sponsor the Centre for Management Buyout Research (CMBOR), whose data is analyzed in Multiple. The following analysis and commentary is based on research recorded by CMBOR. Countries covered: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, Turkey and the UK. *Buyouts: CMBOR defines buyouts as over 50% of shares changing ownership, with management or private equity, or both, having a controlling stake upon deal completion. Equity funding must primarily be from private equity funds and the bought-out company must have its own financing structure, e.g., management buyout (MBO) or management buy-in (MBI). For full details on the CMBOR methodology, please refer to page 15. Multiple July

3 Contents 4 Headlines 5 Pipeline prospects 6 Current conditions 7 Market watch 8 Deal dynamics 9 Sector insights 11 Inside the deal 12 Country spotlight 16 Contacts 17 Further insights The IPO continues to flex its muscles by setting a record for quarterly value, with volume reaching its highest level since While questions remain on IPO fatigue, the pipeline is strong. In the previous quarter, IPO gains were largely confined to the UK and the Nordic region. However, IPOs spread across Europe this quarter, including France, Spain, Italy and Germany. With local divestments across the UK and Europe holding up well this year, there appears to be greater primary buyout activity. Looking forward, more corporate mergers in Europe would generate further large divestments. Although this is happening in the US where multibillion dollar deals are taking place Europe has yet to see this activity. Sachin Date, Europe, Middle East, India and Africa (EMEIA) Private Equity Leader, EY The data in this report was captured on 2 July Multiple July

4 Headlines Deal activity edges up in H1 compared with 2013 Total deal value in the first half of 2014 was 25.8b, compared with 23.6b in the first half of Value in H1 is down markedly on the second half of last year ( 35.1b). However, in 17 of the last 20 years, value has picked up in the second half of the year. H is broadly in line with the average opening half by value since At 312 deals, volume in the first half of 2014 is also up on the 279 recorded in H and the 281 seen in the second half of European IPO market remains open for private equity firms The first six months of 2014 have seen private equity (PE)- backed IPOs rise to the highest level ever, with 31 flotations contributing 33.4b of value in H Boosted by the revival in the capital markets, the total value of European exits in H has totaled 55.1b, more than twice the value of new buyouts ( 25.8b). European buyouts volume and value Average deal value tumbles At just 11.1b, value in Q was down sharply on the previous quarter ( 14.7b). This follows the pattern of 2013, when Q2 was by far the weakest quarter. At 159 deals, volume in Q was up slightly on the previous quarter (152). It is also up on the same quarter last year. The average size of PE-backed buyouts has fallen by over a third in the first six months of 2014 to 82.7m. This is due to the drop in the number of deals valued at over 250m. UK dominance continues The UK was home to 60 of the 159 deals across Western Europe in the quarter. The next biggest contributor was Germany, with 19 deals. This is the fifth consecutive quarter that the UK has contributed at least twice as many deals as its nearest rival. Activity in France has slowed, with just 14 deals completing. This compares with 25 in Q and 19 in the final quarter of In terms of Q2 value, the UK s position was also dominant at 3.9b. The next best performers were Ireland at 2.2b (due in large part to the 1.7b Skillsoft deal) and France at 1.7b. Retail tills fail to ring, but technology, media and telecommunications makes progress The retail sector was very slow in the first half of Value is just 728m so far this year. In each of the last four years, the sector has seen value exceed 5.3b. So the sector needs a very strong second half of the year if it is to keep up with recent trends. Technology, media and telecommunications (TMT) has had a very strong first half. The sector has already topped 6.8b and is well set to beat last year s total figure of 7.1b. Meanwhile, health care recorded a strong quarter, with the highest quarterly value since Total value ( m) 2009 Total number 9,284 10,974 23,891 34,474 30,342 33,104 H1 H H1 H H1 H Total value ( m) 2012 Total number 26,092 28,880 H1 H ,641 35,059 H1 H ,792 H1 312 H2 Source: CMBOR; Equistone Partners Europe; EY year 2014 to end Q2 only Multiple July

5 Pipeline prospects The pipeline for Q is strong, with more than 20b of announced deals pending. Of the top five deals announced, two are likely to complete in Q3: the acquisition of Visma AS by Cinven for 2.5b (source: Cinven press release) and the acquisition of GEA Heat Exchangers GmbH by Triton Partners for approximately 1.3b (source: GEA Group press release). The acquisition of Nets Holding by Bain Capital, Advent International and Danish pension fund ATP, announced in Q1 (source: Nets press release), is also still pending. In France, a number of large deals have been announced and could come to fruition soon. Astorg and Montagu Private Equity have entered exclusive negotiations with Cinven and the Sebia Group management team to jointly acquire the Sebia Group (source: Montagu Private Equity press release). On the exit side, Symrise AG has agreed to the 1.3b acquisition of Diana Group SA from Ardian, the France-based PE firm. This deal is expected to close in Q3 (source: Symrise press release). In Germany, Clayton, Dubilier & Rice has agreed to acquire Mauser AG from Dubai International Capital for a value of approximately 1.2b (source: Clayton, Dubilier & Rice press release). Nordic Capital has reached an agreement to acquire GesundHeits GmbH, Germany s market leader for home care services, from IK Investment Partners. Few other large deals in Germany have been announced. Major deals are also expected in H in Switzerland. Meanwhile, as sentiment about Spain s private equity industry changes, there is a lot of interest in the Spanish deal market. Spain saw an uptick in Q2 2014, and this looks likely to continue. Cinven has recently signed a definitive agreement to acquire Gas Natural Fenosa Telecom SA from Gas Natural SDG SA for a total consideration of 510m (source: Cinven press release). The IPO exit route will remain popular in the coming months, particularly in the Nordics, where EQT is planning to list hotel operator Scandic on the stock market (source: Reuters). In Continental Europe, Eurazeo could plan an IPO as early as this year for Elis, with a potential value of 3b or more (source Bloomberg). Pipeline 20b from 22 deals Multiple July

6 Current conditions In H1 2014, the total value of local and foreign divestments was higher than the total value of secondary buyouts for the first time since While the buoyant IPO market is having a material impact on the secondary buyout market, local divestments were up in volume and value in H With a total value of 8.5b, local divestments are already at 94% of last year s total figure ( 9.0b) and above the 2012 total ( 7.3b). This is consistent with the findings of the latest EY Global Corporate Divestment Study (GCDS). The study, based on a survey of more than 720 corporate executives, found that 80% of executives are open to offers for their most prized assets and that a 30% premium could seal a deal for most. For many businesses, divestments are now a fundamental part of their strategy. Leading companies focus on selling assets in the same rigorous way that they focus on acquisitions. Some of the largest local divestments in H took place in the TMT industry (Scout24 and Trader Media) and financial services (Altamira Asset Management and Ogier Fiduciary Services). At 54m, the average value for foreign divestments in H was much lower than for local divestments ( 123m). Looking ahead, it seems that there will be more primary buyouts from corporates. However, large corporate mergers in Europe would generate larger divestments. H deals 25.8b With economic recovery continuing in many countries, main selection indices remaining buoyant, a supportive monetary policy from central banks and volatility staying at low levels, we expect a strong second half in EMEIA. Martin Steinbach, EY EMEIA IPO Leader H H deals 35.1b 279 deals 23.6b Multiple July

7 Market watch The march of IPOs continues At 21 deals, IPO volume for Q is the highest since 1998, and the quarterly value ( 23.2b) is a record. As IPO valuations march on and sponsors monetize their assets, PE has been unable to compete, and the secondary buyout market has been passed over. Total IPO value is 33.4b so far this year. Already, this exceeds the total recorded in the whole of last year. It far outstrips secondary buyout value in H ( 9.9b) and represents a complete turnaround from last year, when secondary buyout value ( 33.2b) topped that of IPOs ( 25.1b). Of the top 20 exits in H1 2014, 15 were IPOs and just 2 were secondary buyouts. While the IPO market remains strong, secondary buyouts will continue to decline. PE and venture capital (VC) investors accounted for 25% of IPOs in the EMEIA region in H1 2014, substantially more than in H They were also well represented in the region s share of the largest deals worldwide accounting for 5 of EMEIA s 9 listings in the top 20 IPOs by capital raised. Can the IPO advance continue? Although there are signs of IPO fatigue, especially in the retail sector, the pipeline for IPOs remains strong. In the previous quarter, IPO strength was largely confined to the UK and the Nordic countries. However, this quarter has seen IPOs spread to other parts of Europe. UK exit market still strong, Spain bounces back The exit market in the UK has continued to perform very strongly in The UK was home to nearly half of all Western European exits (95 out of a total of 195) and it contributed over a third ( 22.2b) of the total European exit value ( 55.2b). France was the second-strongest country in terms of volume, with 28 exits so far in Spain has already far outstripped the annual exit values seen in the years since With two of the five largest exits in Q2 and a total value of 7.2b so far this year, the Spanish deal market is attracting a lot of interest. Largest European exits, Western Europe, Q Company name Deal year Country Exit month Acromas Holdings/Saga & AA 2007 UK 6 Vendor CVC Capital Partners, Charterhouse Capital Partners, Permira Exit value ( m) Exit type 4,363 Flotation ISS 2005 Denmark 3 EQT Partners 3,970 Flotation B&M Retail 2013 UK 6 Clayton Dubilier & Rice 3,375 Flotation Friedrich Grohe 2004 Germany 1 Texas Pacific Group, Credit Suisse First Boston 3,060 Trade sale Elior 2006 France 6 Charterhouse Capital Partners, Intermediate Capital Group, Chequers Capital 2,470 Flotation Avincis/Inaer Inversiones Aereas 2005 Spain 5 Kohlberg Kravis Roberts, Investindustrial 1,962 Trade sale Applus Servicios Tecnologicos 2007 Spain 5 The Carlyle Group, Intermediate Capital Group 1,900 Flotation SkillSoft plc (SSI Investments III) 2010 Ireland 5 Berkshire Partners, Bain Capital, Advent International Corporation 1,669 Secondary buyout Ceva Sante Animale 2007 France 6 NiXEN Partners 1,602 Secondary buyout Pets at Home 2010 UK 3 Kohlberg Kravis Roberts 1,466 Flotation Com Hem 2011 Sweden 6 BC Partners 1,274 Flotation Anima/Monte Paschi Asset Management Nord Anglia Education (Premier Bisco) 2009 Italy 4 Clessidra SGR 1,260 Flotation 2008 UK 3 Baring Private Equity 1,214 Flotation Cerved Business Information 2013 Italy 6 CVC Capital Partners 1,200 Flotation Mivisa Envases 2011 Spain 4 Blackstone Group, N+1 Mercapital 1,200 Trade sale Ontex 2010 Belgium 6 GS Capital Partners, TPG Capital 1,200 Flotation Brit Insurance 2011 UK 3 CVC Capital Partners, Apollo Global Management 1,149 Flotation Odigeo/Vacaiones edreams 2010 Spain 4 Permira, Ardian 1,100 Flotation Card Factory (Short Rhyme) 2010 UK 5 Charterhouse Capital Partners 939 Flotation Poundland 2010 UK 3 Warburg Pincus 898 Flotation Source: CMBOR; Equistone Partners Europe; EY year 2014 to end Q2 only Multiple July

8 Deal dynamics Mid-market subdued, but higher-end follows 2013 pattern Volume in the mid-value range of 100m 500m was low in Q The quarter s 19 deals were down on the 26 seen in this range in Q and Q4 2013, and were in line with the 17 deals recorded in Q At 3.7b, value in this range was also down on the previous quarter ( 6.3b). However, it was again comparable with the same quarter last year ( 3.4b). In the high-value bracket ( 500m or greater), the quarter saw five deals. This is down on the seven deals recorded in the previous quarter, but in line with the Q2 lull in 2013 (four deals). Debt edges down while equity ratio rises At the top end of the market, lots of debt is still being used. But below the top end, debt is still proving hard to get hold of. So far in 2014, the average proportion of debt used to finance European deals over 100m is 49%. This is down slightly on the 52.5% recorded in However, the percentage of equity used to fund deals has risen. It has climbed from 42% in 2013 to 49% in Although this is still below the heights seen in 2009, when levels of equity used averaged 64%, it remains well above the levels of During this boom year, the average proportion of equity was just 35% and debt comprised 58% of all deal structures. In H1 2014, the level of mezzanine financing used in deal structuring hit a four-year low of 1.6%. Refinancing activity holds up The first half of 2014 saw 87 refinancings at a combined value of 24.3b. While this is slightly above 2013 s mid-year figure of 23.2b, it represents a significant increase on the period between 2008 and 2012, when the strongest six-month period (H2 2012) saw a value of 18.6b. This rise is evidence that companies already within a portfolio are finding it easier to acquire debt. Record low for creditor exits Alongside the record number of IPOs, Q2 saw just four creditor exits (e.g., firms going into administration) the lowest quarterly number since This remarkably low number confirms the picture of a healthier mix of exits. It also demonstrates the positive outlook for the PE market in the second half of 2014, as economic prospects continue to improve across Europe. Deal size H H b plus 500m 1b 100m 500m Up to 100m Total number of deals Source: CMBOR; Equistone Partners Europe; EY year 2014 to end Q2 only Multiple July

9 Sector insights The TMT sector has had a strong start to 2014 in Europe. In H1, the sector has seen a total buyout value of 6.8b almost reaching the 7.1b recorded in the whole of last year. This pickup is largely explained by the sector accounting for four of the six largest buyouts completed across Europe so far this year: Scout24 ( 2.0b), SkillSoft ( 1.7b), Unit4 NV ( 1.2b) and Trader Media ( 740m). Manufacturing H deals 4.8b BSS H deals 3.3b Behind TMT, manufacturing was the standout sector by value, with a total of 4.8b in H Its 94 deals were up on the 83 recorded in the first half of last year. This is almost double the 52 deals contributed by the second-place sector by volume, business and support services (BSS) deals 12.9b deals 10.8b The financial services sector has totaled 2.6b so far this year. The value of deal flow in the sector has already overhauled the 2.5b seen in the whole of However, just two deals, completed in Q1, account for almost half of this total value: Banco Santander s sale of Altamira Asset Management to Apollo Global Management for 660m and the acquisition of Skrill by CVC Capital Partners and Investcorp for 600m. The first six months of 2014 saw a significant drop-off in the number and value of deals in the retail sector. Just 10 deals, contributing a total value of 728m, were completed. This compares with 4.7b from 21 deals in H However, the attractiveness of the IPO markets has led to the retail sector performing well in the exit markets. The 8.1b seen so far in 2014 has already overtaken the total 2013 value of 6.3b. This rise has been driven by the high-profile IPOs of B&M Retail ( 3.3b) and Pets at Home ( 1.5b) in the UK. TMT H deals 79 deals 6.8b 7.1b Financial services H deals 35 deals 2.6b 2.5b Source: CMBOR; Equistone Partners Europe; EY year 2014 to end Q2 only Higher valuations in technology continue to be a challenge for private equity. But many deals offer only one or two shots at investment rounds before exit. This perhaps creates a do it or lose it mentality for investors that are looking to gain exposure in certain areas such as e-commerce, social media or cloud. Jeff Liu, EY Global Technology Leader, Transaction Advisory Services Multiple July

10 Sector insights (continued) Largest buyout deals, Western Europe, H Company name Country Deal month Investor Sector Value ( m) Scout24 Holding Germany 3 Hellman & Friedman Media 2,000 SkillSoft Ireland 5 Charterhouse Capital Partnres Software 1,669 Ceva Sante Animale France 6 Temasek, CDH Investment Medical 1,602 Unit4 NV Netherlands 3 Advent International IT 1,174 CABB GmbH Germany 6 Permira Chemicals 800 Trader Media UK 3 Apax Partners Media 741 Altamira Asset Management Spain 1 Apollo Global Management Financial services 664 Vat Holding Switzerland 2 Rexam Pharma Devices & Prescription Packaging CapVis Equity Partners Partners Group Engineering 653 UK 5 Montagu Private Equity Pharmaceuticals 600 Kerneos France 3 Astorg Partners Chemicals 600 Skrill UK 2 CVC Capital Partners, Investcorp Financial services 597 CarTrawler Ireland 4 Insight Venture Partners, BC Partners Technology 538 Innovia UK 4 Arle Capital Partners, Electra Manufacturing 496 Callcredit Information Group UK 2 GTCR Financial services 486 Well Intervention Services Business (Aker) Norway 1 EQT Partners Energy 475 MergerMarket UK 2 BC Partners Business services 464 Dr Martens/R Griggs Group UK 1 Permira Footwear 381 Eddie Stobart Logistics UK 3 DouglasBay Capital Transport 336 Beacon Rail Leasing UK 5 Pamplona Capital Partners Transport 327 Acino Switzerland 1 Nordic Capital, Avista Capital Partners Health care 325 Source: CMBOR; Equistone Partners Europe; EY year 2014 to end Q2 only Multiple July

11 Inside the deal The H results from CMBOR bring some positive news to the PE market. Contributing to this uptick is BC Partners successful acquisition of Mergermarket, the UK-based provider of global news, intelligence, analysis and data. This deal is one of the largest completed buyouts in Western Europe in Multiple speaks to Hamilton Matthews, CEO of Mergermarket, about this transaction and its approach to partnering with PE. Q. After eight years of corporate ownership under Pearson, Mergermarket has found a new owner in PE firm BC Partners. Can you tell us about the deal and how it fits into your current strategy? Broadly, our sale was a typical corporate carve-out. Pearson had decided that its strategy was focused on more pure educational plays. Accordingly, the FT Group, which is owned by Pearson and which we were part of, has been broken up over the past few years. When Pearson appointed a new CEO last year, he encouraged us to find a sensible home. Pearson embarked on the sale process last June, and went to market in September. The whole process moved very swiftly and was completed between Pearson and BC Partners by November The buyers in the final round were big buyout firms, along with some bulge-bracket corporates. It s an interesting point to underline that, when the deal is right, the big buyout firms will dip into the mid-market. Q. What were the main challenges to finding an appropriate buyer? During the sale, Pearson was understandably and ultimately looking for the best price that s the key motivation for virtually all selling parties. Despite this, Pearson was very open and collaborative, and was eager to reach a decision with which Mergermarket s management team was comfortable. Both Pearson and Mergermarket agreed that BC Partners was the standout contender in the auction process, primarily because they offered the highest price, but also because of the firm s complete understanding of our business and the market in which we operate. Early on, BC Partners researched and took an analytical approach to our business. The firm had done its homework, and was not asking the routine questions other bidders were. Q. During the transaction process, what was the most important factor in ensuring successful completion? The most important aspect of the sale was putting together a credible and accurate representation of what our business is and does. The idea of selling Mergermarket as a data company was floated, but that is not at the heart of what we do. We are an editorial and media business so it was essential to represent the business the right way. For us, having the right support network was crucial. We had a very supportive seller and a very credible investment bank, JP Morgan Cazenove, which was great at connecting us with potential buyers. Q. Post-acquisition, what is your focus over the next 12 months? In the short term, there are a number of things on our plate. We have put together a value creation road map that will help us focus on five key streams. Part of this plan includes operations. We have placed a huge amount of emphasis on financial analysis. We have figured out that our reporting function is so different from what Pearson required. Another aspect of what we re after is earnings before interest, taxes, depreciation, and amortization (EBITDA) growth. But we are not necessarily looking for cost savings. Rather, the emphasis is on figuring out what is core to our business. For instance, Xport Reporter was deemed not to be core, so we closed that business stream down. At the same time, we are also looking at a handful of bolt-on acquisitions, and we have some really interesting leads. We are seeking out purchases in markets in which we do not currently operate. We are also exploring organic growth options to expand our offerings to segments where we are currently active. These extensions should complement existing products and help us tighten up our business plan. Multiple July

12 Country spotlight UK H1: 9.1b from 111 buyouts largest deal: 741.0m The UK continued its consistent performance. It accounted for 35% of all buyout value in H1 2014, when it generated 9.1b from 111 deals. This is 1.7b higher than the value of H1 2013, when 7.4b was garnered from 87 deals. The exit market in the UK has remained strong so far in Nearly half of all European exits (95 out of 195) have taken place in the UK. These deals have contributed 40% ( 22.2b) of the total European exit value ( 55.2b). Germany H1: 4.3b from 35 buyouts largest deal: 2.0b Germany was the second-strongest market in terms of buyout numbers in Q Its 19 deals contributed 1.4b of value 13% of the total sum of European deals. However, this was 50% less in total deal value than the 2.8b seen in Q1. This relatively slow start to 2014 was confirmed on the exit side. Just 20 private equity exits contributed a value of 6.1b 11% of the total European market in H This represents little more than a third of 2013 exit value in the country. There is a healthy level of large exit deals in the pipeline in the engineering, manufacturing and industrials sectors. Multiple July

13 Country spotlight (continued) France H1: 3.4b from 39 buyouts largest deal: 1.6b Activity in France has slowed, with just 14 deals completing in Q This compares with 25 in Q and 19 in the final quarter of However, at 1.7b, France accounted for 15% of all Western Europe s buyout value in Q2. With 28 exits in 2014, volume has been holding up in the French exits market. France was the second most active market after the UK (95). The total exit value of 5.9b in H is already approaching the total of 2013 ( 7.9b), and it is far above 2012 s total exit value ( 3.8b). Spain H1: 1.2b from 14 buyouts largest deal: 664.0m There was a strong uptick in the Spanish buyout market in Q The quarter saw 11 deals completed, compared with only 3 in Q1. The largest transaction in the second quarter was the acquisition of Cementos Balboa by KKR, for an estimated value of 225m. Spain has also seen a significant increase in exit values so far this year. With nine deals contributing 7.2b, H has already outpaced the total 2013 figure of 1.3b. Spain accounted for 4 of the top 15 exits in Q2 2014, including the trade sale of Avincis and the Applus IPO. Multiple July

14 Country spotlight (continued) Ireland H1: 2.2b from 3 buyouts largest deal: 1.7b With a total value of 2.2b from three deals in H1 2014, Ireland has recorded its highest value since These impressive numbers were due, in large part, to the second-largest deal of the year. This is the acquisition of Skillsoft by Charterhouse Capital Partners from Berkshire Partners, Bain Capital and Advent International Corporation. This secondary buyout was valued at 1.7b. Netherlands H1: 1.8b from 21 buyouts largest deal: 1.2b With 1.8b of total value from 21 deals, the Dutch buyout market has almost equaled the total deal value seen last year ( 1.9b). This is due largely to the 1.2b acquisition of Dutch software company Unit4 NV by global private equity firm Advent International in Q On the exits side, there have been four secondary buyouts and one trade sale so far this year. Together, they have raised just 251m. This is significantly lower than the first half of 2013, both in terms of value ( 621) and volume (nine exits). Multiple July

15 CMBOR methodology The data only includes the buyout stage of the PE market (MBO, MBI, institutional buyout (IBO) and buy-in management buyout (BIMBO)), and does not include any other stage, such as seed, start-up, development or expansion capital. Unless otherwise stated, the data includes all buyouts, whether PE-backed or not, and there is no size limit to deals recorded. In order to be included as a buyout, over 50% of the issued share capital of the company has to change ownership, with either management or a PE company, or both jointly, having a controlling stake upon deal completion. Buyouts and buy-ins must be either management-led or led by a PE company using equity capital primarily raised from one or more PE funds. Transactions that are deemed not to adhere to the PE, MBO or MBI model are not included. Transactions that are funded from other types of funds, such as real estate and infrastructure, are not included. Deals in which a PE firm buys property as an investment are not included. In order to be included, the target company (the buyout) must have its own separate financing structure and must not be held as a subsidiary of a parent holding company after the buyout. Firms that are purchased by companies owned by a PE firm are treated as acquisitions and are not included in the buyout statistics. However, these deals are recorded in the acquisitions by buyout companies statistics. All quoted values derive from the total transaction value of the buyout (enterprise value) and include both equity and debt. The buyout location is the location of the headquarters of the target company and it is not related to the location of the PE company. The quarterly data only counts information on transactions that formally close in that quarter and does not include announced deal information. Multiple July

16 Contacts Sachin Date EMEIA Private Equity Leader sdate@uk.ey.com Belgium Central and southeast Europe Commonwealth of Independent States France Germany, Switzerland and Austria Italy Luxembourg Netherlands Nordics Spain Turkey United Kindgom and Ireland Marketing: Pierre Vigouroux Transaction Advisory Marketing pierre.vigouroux@fr.ey.com For more information, please visit ey.com/multiple. Multiple July

17 Further insights Global Private Equity Watch 2014 PE has started 2014 with a renewed sense of confidence via an improvement in fund-raising conditions and an increase in exit pace and options. View report For more information, visit ey.com/privateequity. Global IPO Trends 2014 Q2 After a bumper start to the year with the strongest first quarter since 2011, global IPO activity continued to climb in the second quarter. View report For more information, visit ey.com/ipocenter. Capital Insights How can companies combine the best traditional business methods with innovative approaches to help shape their destinies? View report For more information, visit capitalinsights.info. Global Integration Survey 2014 Our survey reveals five key practices that companies need to follow in order to deliver on their strategic goals when it comes to postdeal integration. View report For more information, visit ey.com/mergerintegration. Global Capital Confidence Barometer April 2014 The Global Capital Confidence Barometer surveyed a panel of more than 1,600 executives to identify boardroom trends and practices in the way companies manage their capital agendas. View report For more information, visit ey.com/ccb. Global Corporate Divestment Study 2014 The 2014 Global Corporate Divestment Study focuses on how companies review their portfolios and the leading practices of those that are able to maximize divestment outcomes. View report For more information, visit ey.com/divest. Multiple July

18 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. About EY s Transaction Advisory Services How you manage your capital agenda today will define your competitive position tomorrow. We work with clients to create social and economic value by helping them make better, more informed decisions about strategically managing capital and transactions in fast-changing markets. Whether you re preserving, optimizing, raising or investing capital, EY s Transaction Advisory Services combine a unique set of skills, insight and experience to deliver focused advice. We help you drive competitive advantage and increased returns through improved decisions across all aspects of your capital agenda EYGM Limited. All Rights Reserved. EYG no. DE0560 EMEIA Marketing Agency ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com/multiple EY recognized by mergermarket as top of the European league tables for accountancy advice on transactions in calendar year 2012 and 2013 The views of third parties set out in this publication are not necessarily the views of the global EY organization or its member firms. Moreover, they should be seen in the context of the time they were made.