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APPROVED BUYERS
FEBRUARY 2019
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
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
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
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
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
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
Unique Bespoke Process
 Strategic review, information platform and
valuation
 Due diligence preparation and investigation
management, legal advice
 ‘Best in class’ transaction documentation
www.evolutioncapital.com
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
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
Evolution Capital
Key transaction advisory services
Business
intelligence
Fund raising Merger &
acquisitions
Business sales
services
www.evolutioncapital.com
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
www.evolutioncapital.com
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
www.evolutioncapital.com
Evolution Capital
Selected track record credentials
www.evolutioncapital.com
Funding
Selected funder relationships
www.evolutioncapital.com
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 )
www.evolutioncapital.com
ACQUISITION TIMELINE AND GROWTH IN MARKET
CAPITALISATION
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
Tools and Dashboards
For Equity Networks
M&A
Modelling Tool
www.evolutioncapital.com
Tools and Dashboards
For Equity Networks
Financial
Dashboard
www.evolutioncapital.com
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
www.evolutioncapital.com
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
Our proposed services
Sample output
2. Business review
Organization Structure
1. Business snapshot
Case Study: Example
www.evolutioncapital.com
Our proposed services
Sample output
4. Illustrative Value projection3. SWOT Analysis
www.evolutioncapital.com
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
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%
Evolution Capital
48 Dover Street
London
W1S 4FF
t 020 3696 2810
e info@evolutioncapital.com
w www.evolutioncapital.com
© 2018 Evolution Capital (UK) Limited
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
www.evolutioncapital.com
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
www.evolutioncapital.com

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sample3

  • 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 www.evolutioncapital.com
  • 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 www.evolutioncapital.com
  • 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 www.evolutioncapital.com
  • 14. Evolution Capital Selected track record credentials www.evolutioncapital.com
  • 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 ) www.evolutioncapital.com 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
  • 18. Tools and Dashboards For Equity Networks M&A Modelling Tool www.evolutioncapital.com
  • 19. Tools and Dashboards For Equity Networks Financial Dashboard 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 www.evolutioncapital.com
  • 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 www.evolutioncapital.com
  • 23. Our proposed services Sample output 4. Illustrative Value projection3. SWOT Analysis www.evolutioncapital.com
  • 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%
  • 26. Evolution Capital 48 Dover Street London W1S 4FF t 020 3696 2810 e info@evolutioncapital.com w www.evolutioncapital.com © 2018 Evolution Capital (UK) Limited
  • 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 www.evolutioncapital.com
  • 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 www.evolutioncapital.com