2. CONTENT
IMPORTANT NOTICE
This proposal is subject to the agreement and signing of a specific contract. Its contents are confidential and should not be communicated to any other party without the consent of Evolution Capital (UK) Limited.
S.NO TITLE PAGE
01 INTRODUCTION: Journey to Value Maximization 3
02 Our Process of Value Maximization 4
03
Maximizing Value: Advisors in maximizing value
M&A Expertise
Technology Sector Focus
Unique Bespoke Process
Our Track Record
5-9
6
7
8
9
04 Evolution Capital 10-11
05 Strategic M&A 12
06 Maximizing Value 13
07 Selected Track Record Credentials 14
08 Funding 15
09 M&A Case Study 16
S.NO TITLE PAGE
10 Buyers Proposition 17
11 Tools & Dashboard
M&A Modelling Tool
Financial Dashboard
18-19
18
19
12 Our Proposed Services
Primary Objectives
Our Advice Includes
Sample Output: Business Snapshot
Sample Output: Business Review
Sample Output: SWOT Analysis
Sample Output: Illustrative Value Proposition
20-23
20
21
22
22
23
23
13 Pricing 24
14 Arrow Business Communications:
Success Fees Analysis
25
3. The journey to Value Maximization
Purpose Of Document
To introduce Evolution Capital and
indicate how solutions may be
provided to support stated
shareholder objectives
Primary Objectives
- Fully understand and assess key
shareholder objectives and timescales
- Evolve a coherent growth strategy and
plan for Equity Networks
- To achieve maximum value
www.evolutioncapital.com
4. Our process of Value Maximization
Current
position
Funding
Full or partial
sale process
Maximum
realisation
of capital
Relevant services offered
Strategic review
Fundraising and M&A services
Business
planning
Value buildingPreparation
Integration
Strategic
review
Acquisitions and
organic growth
Equity v debt
www.evolutioncapital.com
5. Maximizing value
Advisors in maximizing value
01
02
03
04
M&A
expertise
Technology
sector focus
Unique bespoke
process
Our track
record
www.evolutioncapital.com
6. M&A Expertise
Leading mid-market advisory firm since 2003
End-to-end transaction advice from a multi-
disciplinary
team covering M&A, fund raising, business
sales, tax and legal
Emphasis on strategy, value building and
realisation
www.evolutioncapital.com
7. Technology Sector Focus
Exclusive focus on managed services and
IT
Unparalleled sector knowledge and
benchmarking - Dedicated team delivering
market intelligence and benchmarking
www.evolutioncapital.com
8. Unique Bespoke Process
Strategic review, information platform and
valuation
Due diligence preparation and investigation
management, legal advice
‘Best in class’ transaction documentation
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9. Our track Record
Proven track record of demonstrable
success
100 sector transactions completed
£500+ million transaction value
Developed and implemented £100m+
M&A programs
www.evolutioncapital.com
10. Business
intelligence
Strategic review Value
enhancement
programmes
Business sale Fund raising M&A and organic
growth
programmes
Transaction
support
Research analysts
Deal originators
Transaction advisors/accountants
Dealmakers
Industry experts
Taxation advisors
Solicitors
Other support team members
Evolution Capital
A unique fusion of skills and know-how
Evolution Capital
www.evolutioncapital.com
11. Evolution Capital
Key transaction advisory services
Business
intelligence
Fund raising Merger &
acquisitions
Business sales
services
www.evolutioncapital.com
12. Strategic M&A
How M&A works for our clients
Proposal for the provision of advisory services
INDUSTRY
CONVERGENCE
CONSOLIDATION NEWMARKETS ASSETS/EXPERTISE
Extend service proposition Increased market share
Gained competencies and
presence in new markets
Expanded technology know-
how and people/ skills
• Increased market Cap from
£65m to £85m
• 200% return on investment
on completion
• Increased revenues from
£27m to £54m
• Record return to investors
450% in 18 months
• Increased sales revenue by
30% to £100m
• 50% increase in intrinsic value
over 3 years
• European leader in Microsoft
Dynamics
• Record return to shareholders
circa 4 times sales revenue
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13. Maximizing Value
3 key stages and a proven approach
Stage1: Analyze Stage2: Prepare Stage3: Deal making &
transaction
• Review business and
shareholder objectives
• Assess strategic and funding
options
• Advise on realizing objectives
• Strategic M&A plan/business plan
revision
• Develop funding proposition
• Research and identify targets
• Introduction and negotiation
• Investigation and due diligence
• Corporate finance legal and tax advice
to completion
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16. M&A
Case study
Finalist
Listed
Company CEO
of the Year
TMT Magazine
Winner
UK CEO of
2016
LSE-nominated
AIM Market
Transaction of
the Year
2012 2013 2014 2015 2016 2017 2018
-
10
20
30
40
50
60
70
80
90
100
Marketcapitalisation,£millions
Market Cap Linear ( Market Cap )
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ACQUISITION TIMELINE AND GROWTH IN MARKET
CAPITALISATION
17. Buyers Proposition
Success story SME market
ACQUISITION TIMELINE AND GROWTH IN MARKET
CAPITALISATION
-
2
4
6
8
10
12
Marketcapitalisation,£millions
Market Cap Linear ( Market Cap )
2019 2020 2021 2022 2023 2024 2025
Company
Value £2.0m
Company
Value £3.3m
Company
Value £5.4m
Company
Value £7.2m
Company
Value £9.0m
www.evolutioncapital.com
20. Our proposed services
Strategic review
Detailed operational and financial review of the
business and shareholder objectives
Comprehensive assessment of strategic and
funding options
Advise on how to maximize value and realize
business and shareholder objectives
Primary Objectives
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21. Our proposed services
Strategic review
Review of shareholder objectives
Review of the strategic business plan
Market Positioning
Products & Services analysis
Customer & Contract analysis
Operational review
SWOT & KPI analysis
Financial analysis
Financial analysis
Performance benchmarking
Valuation
Strategic recommendations
Funding proposition/obstacles to funding
Business options and achieving objectives
Our advice includes
www.evolutioncapital.com
22. Our proposed services
Sample output
2. Business review
Organization Structure
1. Business snapshot
Case Study: Example
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24. Buyers proposition - Pricing
FULLY MANAGED
Standard PackageMost Popular Package
18,000
£
PARTNERSHIP
complete
fees
Gold Package
RETAINED
/ 5,000£
Per
month/ 3,000
£
Per
month/
What do you receive for this:
Introduction to value enhancing acquisition
opportunities that match with your target profile
Delivering outstanding transaction outcomes with
full access to our deal making and transactional
team
Delivering insight and uncovering intrinsic value
What do you receive for this:
Introduction to value enhancing acquisition
opportunities that match with your target profile
Access to our deal making & transactional team
Delivering insight and uncovering intrinsic value
Proactive sourcing and target acquisition
Fully managed approach
Achieving target growth
What do you receive for this:
Introduction to value enhancing acquisition
opportunities that match with your target profile
Delivering outstanding transaction outcomes with full
access to our deal making and transactional team
Delivering insight and uncovering intrinsic value
Proactive sourcing and target acquisition
www.evolutioncapital.com
25. Arrow Business Communications
Success fees analysis
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Fees,£
Deal size, £m
FY17 Standard
Proposed
Arrow Legacy
Fees in £k @ £2m £3m £4m £5m £7m £10m
FY17 Standard 90 130 170 210 290 410
Proposed 80 120 160 200 260 350
Arrow Legacy 90 125 155 185 235 310
Proposed structure From To %
First £5m - £5m 4.0%
Second £5m £5m £10m 3.0%
Third £5m £10m £15m 2.0%
Thereafter £15m+ 1.5%
Legacy structure From To %
First £1m - £1m 5.0%
Next £1.5m £1m £2.5m 4.0%
Next £2.5m £2.5m £5m 3.0%
Thereafter £5m+ 2.25%
27. Content
Buyers offering
Buyers quality standards
Advise and assistance with establishing a code of practice
Buyer profiling and market proposition
Advice with developing a compelling profile and winning market proposition
Advice with developing a successful code of conduct and high standards of M&A process
Networking
Active participant in our events program
Exclusive buyer within one our events
Access to advisory services
Market intelligence and benchmarking
Researched opportunities and target profiling
Introductions
Confidentiality and exclusivity
1-2-1 Introductions
Researched opportunities and target profiling
Preliminary due diligence
Advice with deal making and deal structuring
Legal and taxation advice
Negotiation support, obstacle removal and completion report
Assistance with completion
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28. Approved Buyers Proposition
Buyers Challenges
Receiving a lot of information memorandums that don’t meet their target profile
Time wasted in qualification
Receiving IM’s that may not be accurate or lack depth/detail
IM by design are pitched at over inflate the opportunity and short of risk
Receiving IM at the wrong time/where they are not in the market
Sellers expectations can be higher than market expectations/rates
Advisory sale processes create contention which drives up drive up the price
Attracting companies which match their ideal profile and they have identified
Best performing businesses are often onto go to market and are picked off/identified by other
advisors/buyers
Agreeing prices that are fundable/meet the dept. funding ratio’s
Over paying for a company and over stretching your company resources
Advise with transactions and tax/legal
Opportunities failing DD or pulling out late in the process
Rapidly changing sector and valuations
“Build a value enhancing deal flow”
Buyers Objective
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