The 2016 Faegre Baker Daniels M&A Conference Update, including a presentation and talking points by Bridgepoint Merchant Banking's Managing Principal Adam Claypool.

1. M&A 2016
D E S M O I N E S ▼ A U G U S T 4
CONFERENCE
1

2. 2 0 1 6 M & A C O N F E R E N C E
2 0 1 6 M & A C O N F E R E N C E
2
Market Update: Current Deal Activity,
Valuations and Outlook
Robert Biodrowski, Wells Fargo Securities, LLC
Tom Cavanagh, BCC Advisers
Adam Claypool, Bridgepoint Merchant Banking
Kyle Crowe, Green Holcomb Fisher
Moderator: Bruce Engler, Faegre Baker Daniels

3. Confidential
M I N N E A P O L I S P H O E N I X S E A T T L E A T L A N T A
Middle Market M&A Update
August 4, 2016
Iowa M&A Conference

4. Confidential
4
U.S. Middle Market M&A Statistics
Iowa M&A Conference
Total Number of Deals
Note: Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Source: FactSet Mergerstat
8,786
9,327 9,276
8,912
11,395
12,367 12,317
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2010 2011 2012 2013 2014 2015 TTM 6/30/2016

5. Confidential
5
U.S. Middle Market M&A Statistics
Iowa M&A Conference
Note: Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Source: FactSet Mergerstat
Valuation Multiples
(Median EV/EBITDA)
10.0x
8.4x
9.9x
8.4x
8.9x
10.1x
10.6x 10.4x
9.7x 9.6x
9.9x
8.5x 8.3x
9.7x
11.0x
9.9x 10.1x
10.5x
12.0x
11.1x
10.2x
9.3x
9.8x 10.0x
8.0x
9.0x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016

6. Confidential
6
U.S. Private Equity Statistics
Iowa M&A Conference
Fundraising
(dollars in billions)
Source: PitchBook
$67
$108 $112
$122
$146
$126
$27
108
137 141
183 186
163
48
0
50
100
150
200
$0
$50
$100
$150
$200
2010 2011 2012 2013 2014 2015 Q1
2016
Capital Raised ($B) Number of Funds Closed

7. Confidential
7
U.S. Private Equity Statistics
Iowa M&A Conference
Source: PitchBook
Overhang
(dollars in billions)
$470 $474
$499
$530 $533 $543
$0
$200
$400
$600
$800
2010 2011 2012 2013 2014 2015

8. Confidential
8
U.S. Middle Market Acquisition Activity
Iowa M&A Conference
Total Number of Deals by Buyer Type
Note: Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Source: FactSet Mergerstat, PitchBook
5,959
6,741
7,799
6,875
9,153 9,655 9,433
1280
1448
1760
1644
2041
2058 2000
7,239
8,189
9,559
8,519
11,194
11,713 11,433
0
3,000
6,000
9,000
12,000
15,000
2010 2011 2012 2013 2014 2015 TTM 6/30/2016
Strategic Financial

9. Confidential
9
U.S. Middle Market Acquisition Activity
Iowa M&A Conference
Note: Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Source: FactSet Mergerstat, PitchBook
Aggregate Transaction Value by Buyer Type
(dollars in billions)
$122 $126 $139 $113
$171 $155 $164
$241
$273
$301
$301
$421
$390 $376
$363
$399
$440
$414
$592
$545 $540
$0
$200
$400
$600
$800
2010 2011 2012 2013 2014 2015 TTM 6/30/2016
Strategic Financial

10. Confidential
10
U.S. Middle Market Acquisition Activity
Iowa M&A Conference
Strategic Buyer Acquisition Statistics
(dollars in billions)
5,959
6,741
7,799
6,875
9,153 9,655 9,433
$122 $126
$139
$113
$171
$155
$164
$0
$50
$100
$150
$200
0
3,000
6,000
9,000
12,000
15,000
2010 2011 2012 2013 2014 2015 TTM 6/30/2016
Total Number of Deals Aggregate Deal Value ($B)
Note: Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Source: FactSet Mergerstat, PitchBook

11. Confidential
11
U.S. Middle Market Acquisition Activity
Iowa M&A Conference
Note: Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Source: FactSet Mergerstat, PitchBook
Financial Buyer Acquisition Statistics
(dollars in billions)
1,280
1,448
1,760 1,644
2,041 2,058 2,000
$241
$273
$301 $301
$421
$390
$376
$0
$100
$200
$300
$400
$500
0
600
1,200
1,800
2,400
3,000
2010 2011 2012 2013 2014 2015 TTM 6/30/2016
Total Number of Deals Aggregate Deal Value ($B)

12. Confidential
12
U.S. Middle Market Acquisition Buyer Types
Iowa M&A Conference
Percentage of Acquisitions by Buyer Type
(% of total number of deals)
Note: Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Source: FactSet Mergerstat, PitchBook
82% 82% 82% 81% 82% 83%
18% 18% 18% 19% 18% 17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015
Strategic Financial

13. 2 0 1 6 M & A C O N F E R E N C E 13
 The Bridgepoint Midwest M&A Index decreased 14.5% from Q1-16 to Q2-16, its lowest level since Q4-09
 On a year-over-year basis, the Index decreased 18.0% from Q2-15, continuing the declining trend in
Midwest M&A transactions over the past four years
Bridgepoint Midwest M&A Index
Source: Bridgepoint Merchant Banking, Capital IQ (07/19/16), Pitchbook
Bridgepoint Midwest M&A Quarterly Update, Q2-16
(70)
(50)
(30)
(10)
10
30
50
40
50
60
70
80
90
100
110
120
130
140
Yr/YrChange(%)
Index
Yr/Yr Change Index
Bridgepoint Midwest M&A Index

14. 2 0 1 6 M & A C O N F E R E N C E 14
Source: Bridgepoint Merchant Banking, Capital IQ (07/19/16)
Quarterly Midwest M&A Volume
Bridgepoint Midwest M&A Quarterly Update, Q2-16
 Total Midwest M&A transaction volume in Q2-16 increased 3.1% from Q1-16
 Demand for quality investment opportunities remains strong, but activity continues to be inhibited by lower
quality supply
274
303
369
329
269
328 318 312 307
284
309
261
312
278
294
226 233
0
50
100
150
200
250
300
350
400
TransactionVolume
Quarterly Midwest M&A Transaction Volume

15. 2 0 1 6 M & A C O N F E R E N C E 15
Source: Bridgepoint Merchant Banking, Capital IQ (07/19/16)
Quarterly Midwest M&A Sector Analysis
Bridgepoint Midwest M&A Quarterly Update, Q2-16
 Consumer Services, Financial Services and Industrials accounted for 59% of total Q2-16 Midwest M&A
transaction volume
 Information Technology increased 8.8% while Financials decreased 6.3%
Consumer
24%
Financials
18%
Industrials 17%
Info Tech
16%
Energy
9%
Healthcare 8%
Materials 4%
Telecomm / Utilities
4%
Quarterly Midwest M&A Transaction Volume by Sector

16. 2 0 1 6 M & A C O N F E R E N C E
Quarterly Midwest M&A Deal Sizes
16
Source: Bridgepoint Merchant Banking, Capital IQ (07/19/16), Pitchbook
Bridgepoint Midwest M&A Quarterly Update, Q2-16
$14.9
$29.8
$9.7
$17.5
$31.4
$22.7
$15.3
$16.5
$35.5
$20.0
$36.8
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
MedianDealSize($mm)
Quarterly Midwest M&A Median Deal Size
 The median Midwest M&A deal size grew to $36.8mm in Q2-16, a five-year high
 Median deal sizes remain elevated compared to the historical median of $20.0mm, which is consistent
with recent trends nationally

17. 2 0 1 6 M & A C O N F E R E N C E
Quarterly Midwest M&A Valuations
17
Source: Bridgepoint Merchant Banking, Capital IQ (07/19/16), Pitchbook
Bridgepoint Midwest M&A Quarterly Update, Q2-16
8.5x
9.7x
10.4x
13.6x
14.6x
10.8x
7.0x
9.1x
8.5x
11.3x
8.4x 8.0x
12.4x
15.0x
13.1x
6.8x
11.3x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
Valuation(TEV/EBITDA)
Quarterly Midwest M&A Median Valuation
 Median TEV/EBITDA valuations of 11.3x in Q2-16 recovered from the Q1-16 low of 6.8x
 Valuations remain above the historical average of 10.4x

18. 2 0 1 6 M & A C O N F E R E N C E
Quarterly Midwest M&A Buyers & Sellers
Bridgepoint Midwest M&A Quarterly Update, Q2-16
18
50
70
90
110
130
150
170
190
210
230
Midwest Buyers Midwest Targets
Source: Bridgepoint Merchant Banking, Capital IQ (07/19/16)
Quarterly Midwest M&A Issuers and Investors
 Transactions with Midwest
buyers increased 15.6% from
115 in Q1-16 to 133 in Q2-16,
the lowest level since Q2-12
 Transactions with Midwest
targets decreased 4.7% from
107 in Q1-16 to 102 in Q2-16
 Available targets decreased only
slightly while volatility forced
buyers to show more discretion
in their acquisition selections
 Midwest buyers continue to
outpace available targets
regionally, a trend persistent
since Q1-14

19. 2 0 1 6 M & A C O N F E R E N C E
Bridgepoint Midwest Capital Raise Indices
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-16
19
Source: Bridgepoint Merchant Banking, Capital IQ (07/20/16), Pitchbook
 On a year-over-year basis, the private equity index increased 4.5% from Q2-15 to Q2-16
 On a quarter-to-quarter basis, the index rose 7.8% from Q1-16 to Q2-16
-50.0
-40.0
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
70.0
80.0
90.0
100.0
110.0
120.0
130.0
Yr/Yr Change PE Index
Bridgepoint Midwest Private Equity Index
(Q1-11 = 100)

20. 2 0 1 6 M & A C O N F E R E N C E
Bridgepoint Midwest Capital Raise Indices
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-16
20
Source: Bridgepoint Merchant Banking, Capital IQ (07/20/16), Pitchbook
 On a year-over-year basis, the venture capital index decreased 22.4% from Q2-15 to Q2-16
 On a quarter-to-quarter basis, the index rose 5.1% from Q1-16 to Q2-16
-50.0
-40.0
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
Yr/Yr Change VC Index
Bridgepoint Midwest Venture Capital Index
(Q1-11 = 100)

21. 2 0 1 6 M & A C O N F E R E N C E
Quarterly Midwest Private Equity Financing
21
Source: Bridgepoint Merchant Banking, Capital IQ (07/20/16), Pitchbook
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-16
41
28
36
42
34
3232
22
4040
37
25
28
25
37
26
31
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
MedianSize($mm)
TransactionVolume
PE Volume PE Median Transaction Size
Quarterly Midwest PE Financing Volume
 Quarterly Midwest Private Equity financing volume increased by 46.4% to 41 transactions in Q2-16 from
28 transactions in Q1-16
 The quarterly median deal size in Q2-16 decreased to $2.0mm, down from $3.5mm in Q1-16, vs. the
historical median of $2.5mm

22. 2 0 1 6 M & A C O N F E R E N C E
Quarterly Midwest Private Equity Financing
22
Source: Bridgepoint Merchant Banking, Capital IQ (07/20/16), Pitchbook
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-16
Healthcare
23.1%
Financials
23.1%
Info Tech
12.8%
Consumer Staples
12.8%
Consumer Discretionary
10.3%
Industrials 7.7%
Materials 5.1%
Energy 2.6%
Utilities
2.6%
Q2-16 Midwest PE Transaction Volume by Sector
 Healthcare and Financials accounted for nearly half of total Midwest private equity financing transaction
volume in Q2-16, consistent on a quarter-over-quarter basis
 Consumer investment increased 10.6% while Information Technology decreased 16.3%

23. 2 0 1 6 M & A C O N F E R E N C E
Quarterly Midwest Venture Capital Financing
23
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-16
Source: Bridgepoint Merchant Banking, Capital IQ (07/20/16), Pitchbook
45
59
40
73
6272
73
91
6869
73
82
70
5857
84
48
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Q2-16Q1-16Q4-15Q3-15Q2-15Q1-15Q4-14Q3-14Q2-14Q1-14Q4-13Q3-13Q2-13Q1-13Q4-12Q3-12Q2-12
MedianSize($mm)
TransactionVolume
VC Volume VC Median Transaction Size
Quarterly Midwest VC Financing Volume
 Quarterly Midwest venture capital volume decreased by 23.7% from 59 transactions in Q1-16 to 45
transactions in Q2-16
 Transaction size has decreased from its Q3-15 peak of $1.6mm, to $1.0mm in Q2-16, in line with the
historical median of $1.0mm

24. 2 0 1 6 M & A C O N F E R E N C E
Quarterly Midwest Venture Capital Financing
24
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-16
Source: Bridgepoint Merchant Banking, Capital IQ (07/20/16), Pitchbook
Info Tech
50.0%
Consumer Discretionary
16.7%
Industrials
13.3%
Healthcare
10.0%
Financials 6.7%
Energy 3.3%
Q2-16 Midwest VC Transaction Volume by Sector
 Information Technology dominated total Midwest venture capital financing in Q2-16 at 50.0%, up from
39.5% in Q1-16
 Additionally, Industrials investment increased 8.0% vs. the prior quarter while Healthcare decreased
sharply by 16.3%

25. 2 0 1 6 M & A C O N F E R E N C E
 Total private equity and
venture capital transactions
with Midwest issuers
decreased 1.1% from 87 in
Q1-16 to 86 in Q2-16
 Transactions with Midwest
investors did not change
quarter-over-quarter, as 28
transactions were recorded in
both Q1-16 and Q2-16
 The demand for investments
in Midwest companies
remains high; however, due
to the inadequate investor
base, local companies
routinely seek out-of-market
capital to meet their financing
needs – “importing capital”
Quarterly Midwest Financing Issuers & Investors
25
Bridgepoint Midwest Capital Raise Quarterly Update, Q2-16
Source: Bridgepoint Merchant Banking, Capital IQ (07/20/16), Pitchbook
0
20
40
60
80
100
120
140
Midwest Issuers Midwest Investors
Quarterly Midwest Financing Issuers and Investors

26. M&A 2016
D E S M O I N E S ▼ A U G U S T 4
CONFERENCE