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M&A Market Analysis December 2015

Global M&A Monthly A Middle-Market Perspective on the Global Mergers & Acquisitions Environment

Global Mergers & Acquisitions European

Investment Banking Asia Investment Banking Christopher C. McMahon Managing Director Head of Global M&A +1.312.609.4983 [email protected]

Brian P. McDonagh Managing Director Co-Head of Global M&A +1.704.553.6611 [email protected]

Howard P. Lanser Managing Director Head of Debt Advisory +1.312.609.5478 [email protected]

David M. Silver Managing Director Head of European Investment Banking +44.207.667.8216 [email protected]

Anthony Siu Managing Director Head of Asia Investment Banking +86.21.6182.0980 [email protected]

Owen L. Hart Managing Director +1.415.627.3273 [email protected]

J. David Cumberland, CFA Director, M&A Research +1.312.609.5429 [email protected]

Andrew C. Eckert M&A Market Analyst +1.312.609.7065 [email protected]

Nicholas R. Sealy Managing Director European Investment Banking +44.207.667.8370 [email protected]

Satoshi Matsumoto Managing Director Director of Japan M&A +1.646.557.3201 [email protected]

In This Issue Page

Please refer to Appendix – Disclaimers and Other Disclosures on page 31.

Global M&A Commentary and Deal Statistics ...................................................... 1 Due to increased large deal activity throughout 2015, the global M&A market has posted a new single-year record for dollar volume. Through November, reported dollar volume climbed 39.4% to $3.68 trillion, in spite of a 3.1% decrease for the deal count.

U.S. M&A Commentary and Deal Statistics ......................................................... 5 The U.S. M&A market established a record for dollar volume in November. Reported dollar volume jumped 97.8% to $369.4 billion, topping the previous monthly peak by almost 40%. Peak volume reflected mega-deal activity (e.g., Pfizer / Allergan), as the number of transactions declined 6.6% to 834, below the LTM average of 965.

Europe M&A Commentary and Deal Statistics ................................................... 10 In November, Europe’s M&A market registered higher dollar volume in spite of fewer transactions, continuing a recent trend. The deal total dropped 22.6% to 768, which lagged the LTM mean of 917. However, dollar volume rose 16.3% to $115.3 billion, exceeding the LTM average of $94.1 billion.

U.K. Cross-Border M&A Activity ........................................................................ 14 Through November, the transaction count in the U.K. was up 5.4% to 2,885, reflecting growth in inbound and domestic M&A. Reported dollar volume soared 89.2% to $515.5 billion, mainly due to much higher inbound volume.

Germany Cross-Border M&A Activity ................................................................ 15 Year to date in Germany, the number of deals declined 5.5% to 1,518, due mostly to reduced domestic activity. Dollar volume contracted 27.7% to $112.1 billion, with dramatically lower outbound volume outweighing higher domestic and inbound volume.

Asia Commentary and Deal Statistics ............................................................... 16 The M&A market in Asia (ex. Japan) generated higher dollar volume for the ninth straight month. In November, announced dollar volume rose 11.2% to $53.0 billion, trailing the LTM mean of $63.4 billion. The transaction count dipped 2.8% to 454, which was below the LTM average of 559.

China M&A Activity and Deal Statistics ............................................................. 17 Through November, the transaction count for China increased 25.3% to 3,314 on significantly higher domestic and outbound activity. Dollar volume expanded 84.4% to $492.2 billion, fueled by substantial growth for domestic and outbound volume.

India M&A Activity and Deal Statistics ............................................................. 19 In India, the year-to-date M&A transaction total increased 32.4% to 985, reflecting more domestic and cross-border activity. Announced dollar volume decreased 10.5% to $33.3 billion due to contraction for domestic volume.

Japan M&A Activity .......................................................................................... 21 Year-to-date M&A metrics for Japan were varied. The number of deals edged down 2.7% to 2,151, with lower domestic activity outweighing increased outbound M&A. However, reported dollar volume rose 54.9% to $135.9 billion, powered by greater domestic and cross-border volume.

Transaction Spotlight – Sale of The Results Companies, LLC to One Equity Partners ........................................................................................................... 22 The Results Companies, LLC, a portfolio company of Clearview Capital, was recently acquired by One Equity Partners.

Recent Baird M&A Transactions ....................................................................... 23 A summary of Baird’s recently announced M&A transactions.

Baird U.S. Equity Research Coverage ............................................................... 25 In November, Baird added 8 companies to coverage and now covers 730 companies. These companies have a median and average market capitalization of $3.7 billion and $15.5 billion, respectively.

Global Investment Banking Contact List ........................................................... 30

Global M&A Commentary

Robert W. Baird & Co. 1

Due to increased large deal activity throughout 2015, the global M&A market has posted a new single-year record for dollar volume. Through November, reported dollar volume climbed 39.4% to $3.68 trillion, in spite of a 3.1% decrease for the deal count. In the global middle market, the transaction total in the first 11 months of 2015 was up 5.6%, and dollar value rose 5.7%.

In November, the global deal total was down 11.7% to 2,237, trailing the last 12 month (LTM) average of 2,670. However, reported dollar volume rose 45.9% to $503.1 billion, setting a single-month record for the second consecutive month. In the middle market, the number of transactions increased 0.6%, and dollar value was 17.6% above the year-ago figure.

Although the global economy remains sluggish, forward indicators suggest stabilizing conditions. After posting a nine-month low in September, the global all-industry purchasing managers index (PMI) has increased in each of the past two months. Accelerated growth reflected a four-month high for services, an eight-month peak for manufacturing, a three-month high for new orders, and solid growth in developed markets. The latest composite leading indicator of the Organisation of Economic Co-operation and Development also benefited from stable growth momentum in advanced economies in matching the prior month’s level following a series of declines. In addition, the latest quarterly Manpower survey of hiring intentions pointed to better labor market trends in revealing that employers in 39 of 42 countries anticipated workforce additions in Q1 2016, up from employers in 36 countries in the prior survey. In view of lower M&A deal counts over the past three months, further signs of firmer footing for the global economy may be needed for a broad-based pickup in M&A activity.

Despite a slowdown for issuance in the global leveraged finance markets, lenders continue to search for opportunities to deploy capital to high quality credits. With credit quality increasingly important, global leveraged loan issuance in November was moderately below the LTM mean, as U.S. activity declined from recent levels while volume in Europe held up well. In both the U.S. and Europe, leverage ratios have dipped from levels seen in the first half of the year; lower leverage reflects reduced 2nd lien issuance, although strength in the unitranche market has been a mitigating factor. In the high yield market, global issuance in November was above October levels while remaining modestly under the LTM average. Near-term conditions are likely to be challenging as markets contend with lackluster economic growth, divergent monetary policies, and geopolitical instability, with the backdrop favoring issuers with stable revenue and margin profiles.

The five major indices depicted below averaged a 1.1% gain in November, lifting the mean year-to-date increase to 4.1%. Greater confidence in the economic picture may be required for stock offering activity to return to robust levels.

Year to date, the number of M&A transactions valued above $500 million increased 10.8%, and dollar volume for this group rose 49.3%. Large transaction activity has been supported by investor approval of the announcement of major M&A deals. The post-announcement stock moves of U.S. acquirors in $500+ million deals remained positive in the first 11 months of 2015, although increases have fallen short of the record first-day returns of 2014. Evidence of investor approval for large deals could motivate more management teams to pursue M&A targets of various sizes in 2016. Note: See pages 5, 10, and 16 for specific U.S., Europe, and Asia commentary

Relative Performance of Global Market Indices

80%

90%

100%

110%

120%

130%

140%

12/31/13 2/27/14 4/26/14 6/23/14 8/21/14 10/18/14 12/15/14 2/11/15 4/11/15 6/8/15 8/5/15 10/2/15 11/30/15

S&P 500 FTSE 100 DAX Hang Seng Nikkei 225

(5.8%)

12.6%

19.2%21.2%

(5.6%)

_____________________ Source: Capital IQ.

Global M&A Activity


Global M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

Total 24,513 28,780 32,875 30,187 25,948 30,673 33,769 33,404 28,638 32,971 30,255 29,329

# of Deals – >$1B 377 503 615 320 241 377 332 358 354 482 437 499

# of Deals – Middle-Market 12,035 13,290 14,710 13,397 11,302 14,209 14,093 13,240 11,174 13,283 12,002 12,676

# of Deals – Undisclosed 12,101 14,987 17,550 16,470 14,405 16,087 19,344 19,806 17,110 19,206 17,816 16,154

Deal Value $2,345 $3,099 $3,383 $2,002 $1,601 $2,029 $1,911 $1,852 $1,843 $2,938 $2,642 $3,682

24,51328,780

32,87530,187

25,94830,673

33,769 33,40428,638

32,97130,255 29,329

$0

$1,000

$2,000

$3,000

$4,000

0

10,000

20,000

30,000

40,000

Deal Value#

of D

eals

# of Deals – Undisclosed # of Deals – Middle-Market # of Deals – >$1B Deal Value

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Middle-market transactions defined as those with a disclosed transaction value of less than $1 billion. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Global Middle-Market M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

# of Transactions – Middle-Market 12,035 13,290 14,710 13,397 11,302 14,209 14,093 13,240 11,174 13,283 12,002 12,676

# of Transactions – $500M – $1B 313 448 536 306 221 340 346 359 371 417 381 407

# of Transactions – $100M – $499M 1,856 2,152 2,406 1,694 1,242 1,721 1,874 1,754 1,817 2,196 1,972 2,090

# of Transactions – <$100M 9,866 10,690 11,768 11,397 9,839 12,148 11,873 11,127 8,986 10,670 9,649 10,179

Deal Value $821 $1,006 $1,145 $779 $573 $799 $861 $822 $817 $965 $867 $917

12,03513,290

14,71013,397

11,302

14,209 14,09313,240

11,174

13,28312,002 12,676

$0

$500

$1,000

$1,500

0

5,000

10,000

15,000

Deal Value#

of D

eals

# of Transactions – <$100M # of Transactions – $100M – $499M # of Transactions – $500M – $1B Deal Value ($ in billions)


($ in billions)

Global M&A Deal Statistics


($ in millions) Number of Deals – November Deal Value – November 2014 2015 % Change 2014 2015 % Change

North America 1,001 961 (4.0%) $198,085 $380,195 91.9% – U.S. 893 834 (6.6%) $186,756 $369,378 97.8% Central / South America 69 81 17.4% $13,486 $10,101 (25.1%) Europe 992 768 (22.6%) $99,140 $115,346 16.3% – U.K. 244 279 14.3% $37,588 $58,615 55.9% – Germany 132 119 (9.8%) $16,723 $4,562 (72.7%) Africa / Middle East 67 96 43.3% $24,219 $3,619 (85.1%) Asia-Pacific (ex. Japan) 467 454 (2.8%) $47,692 $53,031 11.2% – China 234 255 9.0% $36,321 $41,217 13.5% – India 60 55 (8.3%) $4,725 $2,200 (53.4%) Japan 152 143 (5.9%) $7,378 $18,134 145.8% Global Total 2,533 2,237 (11.7%) $344,788 $503,094 45.9% _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Global Total will not equal the sum of the individual regions listed above, as cross-border transactions are reflected in both the target’s and acquiror’s respective regions. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

($ in millions) Number of Deals – YTD Deal Value – YTD 2014 2015 % Change 2014 2015 % Change

North America 12,321 12,152 (1.4%) $1,554,169 $2,303,457 48.2% – U.S. 10,981 10,769 (1.9%) $1,462,068 $2,192,810 50.0% Central / South America 1,010 976 (3.4%) $94,193 $51,183 (45.7%) Europe 11,295 10,002 (11.4%) $872,985 $1,042,336 19.4% – U.K. 2,737 2,885 5.4% $272,481 $515,525 89.2% – Germany 1,606 1,518 (5.5%) $155,049 $112,071 (27.7%) Africa / Middle East 790 825 4.4% $61,263 $92,367 50.8% Asia-Pacific (ex. Japan) 5,266 6,109 16.0% $408,299 $648,331 58.8% – China 2,644 3,314 25.3% $266,935 $492,202 84.4% – India 744 985 32.4% $37,248 $33,348 (10.5%) Japan 2,211 2,151 (2.7%) $87,700 $135,851 54.9% Global Total 30,255 29,329 (3.1%) $2,642,108 $3,682,474 39.4% _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD as of November 30. Note: Global Total will not equal the sum of the individual regions listed above, as cross-border transactions are reflected in both the target’s and acquiror’s respective regions. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Global Middle-Market M&A Deal Statistics


($ in millions) Number of Deals – November Deal Value – November 2014 2015 % Change 2014 2015 % Change

North America 329 376 14.3% $36,340 $38,353 5.5% – U.S. 271 308 13.7% $31,362 $36,371 16.0% Central / South America 24 36 50.0% $2,337 $3,596 53.8% Europe 323 272 (15.8%) $25,506 $30,024 17.7% – U.K. 93 100 7.5% $10,749 $8,598 (20.0%) – Germany 27 36 33.3% $1,415 $3,545 150.6% Africa / Middle East 36 48 33.3% $3,015 $3,619 20.0% Asia-Pacific (ex. Japan) 333 352 5.7% $23,501 $32,171 36.9% – China 195 225 15.4% $15,166 $23,025 51.8% – India 28 25 (10.7%) $1,689 $2,200 30.3% Japan 68 63 (7.4%) $4,410 $3,093 (29.9%) Global Total 1,054 1,060 0.6% $81,191 $95,483 17.6% _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Global Total will not equal the sum of the individual regions listed above, as cross-border transactions are reflected in both the target’s and acquiror’s respective regions. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs. ($ in millions) Number of Deals – YTD Deal Value – YTD 2014 2015 % Change 2014 2015 % Change

North America 4,076 4,406 8.1% $399,885 $389,255 (2.7%) – U.S. 3,402 3,733 9.7% $359,413 $352,794 (1.8%) Central / South America 396 321 (18.9%) $36,042 $23,520 (34.7%) Europe 3,358 3,167 (5.7%) $275,472 $271,817 (1.3%) – U.K. 1,020 1,072 5.1% $91,766 $102,614 11.8% – Germany 294 375 27.6% $33,558 $42,398 26.3% Africa / Middle East 415 442 6.5% $22,500 $31,060 38.0% Asia-Pacific (ex. Japan) 3,644 4,368 19.9% $210,656 $296,904 40.9% – China 2,098 2,680 27.7% $126,200 $221,598 75.6% – India 380 527 38.7% $14,292 $20,903 46.3% Japan 894 846 (5.4%) $47,914 $41,260 (13.9%) Global Total 12,002 12,676 5.6% $866,835 $916,512 5.7% _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD as of November 30. Note: Global Total will not equal the sum of the individual regions listed above, as cross-border transactions are reflected in both the target’s and acquiror’s respective regions. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

U.S. M&A Commentary


RECORD MONTH FOR DOLLAR VOLUME

The U.S. M&A market established a record for dollar volume in November. Reported dollar volume jumped 97.8% to $369.4 billion, topping the previous monthly peak by almost 40%. Peak volume reflected mega-deal activity (e.g., Pfizer / Allergan), as the number of transactions declined 6.6% to 834, below the LTM average of 965. In the U.S. middle market, the number of deals increased 13.7%, and dollar value was up 16.0%. Recent updates were a mixed bag regarding the state of the U.S. economy. The Institute for Supply Management (ISM) manufacturing index for November contracted for the first time in three years, with manufacturers attributing weakness to the strong dollar, slower growth for overseas trading partners, and lower oil prices. The ISM services index remained solidly in growth territory but decelerated to a six-month low. News was more encouraging in the labor market: November payroll additions above expectations, positive revisions to September-October data, the lowest unemployment rate in seven years, and a 14-month low for planned layoffs. In its latest beige book for economic activity into November, the Federal Reserve noted a modest pace of growth, including increased consumer spending in nearly all districts. The Fed is widely expected to raise benchmark interest rates with its mid-December meeting based on greater confidence in the health of the U.S. economy. The current theme of the U.S. leveraged finance market is that credit quality matters. A flight to credit quality is underway with the market facing issues ranging from Fed rate hikes, mixed economic indicators, and geopolitical instability, as lower quality credits struggle to complete deals while high quality credits are still getting done at relatively solid spreads and terms. New issue activity in the leveraged loan market during November was 24% below the LTM mean. Cracks have appeared in the 2nd lien market, where pricing has spiked 150+ bps since the summer. With 2nd lien acting as the backbone of many LBOs over the past three years, higher rates and a disappearing institutional investor base have started to impact leverage levels; most 2nd lien deals are being clubbed. The U.S. high yield market perked up on a relative basis in November, which registered a six-month high for volume after weak issuance in the prior four months. After higher spreads/yields helped pull $6.8 billion into leveraged finance funds in October, funds experienced negative flows of $3.3 billion in November, bringing year-to-date net outflows to $10.4 billion and underscoring the importance of fund flows for M&A financings. Overall, the high yield market is expected to struggle to remain on firm ground through the balance of the year.

The U.S. equity markets ended November slightly higher for the month, including the S&P 500 up 0.1%. With the year-to-date return (+1.0%) still near flat, IPO and follow-on offering activity in November remained below 2015’s monthly average. U.S. M&A Activity In the U.S. M&A market, the deal count for

November was 834, 6.6% below the year-ago figure and under the LTM average of 965. Dollar volume of $369.4 billion registered a new monthly record, spiking 97.8% on a year-over-year basis and nearly doubling the LTM average of $191.4 billion.

On a year-to-date basis, the number of deals decreased 1.9% to 10,769. Transactions valued below $100 million represented the highest-growth segment, with deal count up 15.6%. Dollar volume rose 50.0% to an all-time high of $2.19 trillion, fueled by billion-dollar-plus deal volume (+66.9%).

For the LTM period, the number of announced transactions was down 1.9% to 11,581. Dollar volume expanded 48.7% to $2.30 trillion.

U.S. Middle-Market Activity In the U.S. middle market, the number of

transactions announced in November rose 13.7% to 308, which lagged the LTM average of 336. Dollar volume was up 16.0% to $36.4 billion, above the LTM mean of $32.4 billion.

In the first 11 months of 2015, the deal count grew 9.7% to 3,733. Dollar volume edged down 1.8% to $352.8 billion.

For the LTM period, the number of transactions increased 10.0% to 4,027. Dollar volume dipped 0.7% to $388.7 billion.

In the middle market, the median EBITDA transaction multiple for the LTM period ended in November was 8.5x. The median valuation during the last six months (June through November) was 9.7x, above the median of 8.5x during the prior six months (December 2014 through May 2015).

U.S. M&A Activity


U.S. M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

Total 8,938 11,116 11,721 9,608 7,960 11,198 11,892 13,272 10,345 11,793 10,981 10,769

# of Deals – >$1B 181 235 292 115 92 176 157 190 175 251 227 273



Deal Value $1,159 $1,457 $1,494 $776 $767 $947 $992 $894 $865 $1,567 $1,462 $2,193

8,938

11,116 11,721

9,6087,960

11,19811,892

13,272

10,34511,793

10,981 10,769

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

$2,800

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Deal Value#

of D

eals

# of Deals – Undisclosed # of Deals – Middle-Market # of Deals – >$1B Deal Value ($ in billions)


U.S. Middle-Market M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

# of Transactions – Middle-Market 3,850 3,867 3,636 3,596 3,313 5,399 4,567 4,427 3,012 3,696 3,402 3,733

# of Transactions – $500M – $1B 143 177 225 120 78 174 152 170 167 186 173 168

# of Transactions – $100M – $499M 793 864 854 596 425 690 759 720 707 894 815 774

# of Transactions – <$100M 2,914 2,826 2,557 2,880 2,810 4,535 3,656 3,537 2,138 2,616 2,414 2,791

Deal Value $350 $401 $421 $277 $194 $342 $347 $346 $326 $395 $359 $353

3,8503,867 3,636 3,596 3,313

5,399

4,567 4,427

3,0123,696

3,402

3,733

$0

$100

$200

$300

$400

$500

0

1,500

3,000

4,500

6,000

Deal Value#

of D

eals

# of Transactions – <$100M # of Transactions – $100M – $499M # of Transactions – $500M – $1B Deal Value ($ in billions)


($ in billions)

($ in billions)

U.S. Middle-Market M&A Deal Statistics


Number of Deals Deal Value 2014 2015 % Change ($ in millions) 2014 2015 % Change

November November <$100M 186 211 13.4% <$100M $4,353 $5,066 16.4% $100M-$499M 69 79 14.5% $100M-$499M $15,633 $19,188 22.7% $500M-$1,000M 16 18 12.5% $500M-$1,000M $11,376 $12,116 6.5% Total Middle Market 271 308 13.7% Total Middle Market $31,362 $36,371 16.0% Monthly Average 305 336 10.0% Monthly Average $32,590 $32,392 (0.6%) >$1,000M 19 28 47.4% >$1,000M $155,394 $333,007 114.3% Undisclosed 603 498 (17.4%) Undisclosed ** ** ** Total 893 834 (6.6%) Total $186,756 $369,378 97.8% Monthly Average 984 965 (1.9%) Monthly Average $128,733 $191,439 48.7% YTD YTD <$100M 2,414 2,791 15.6% <$100M $56,412 $65,490 16.1% $100M-$499M 815 774 (5.0%) $100M-$499M $182,689 $172,526 (5.6%) $500M-$1,000M 173 168 (2.9%) $500M-$1,000M $120,313 $114,778 (4.6%) Total Middle Market 3,402 3,733 9.7% Total Middle Market $359,413 $352,794 (1.8%) >$1,000M 227 273 20.3% >$1,000M $1,102,654 $1,840,016 66.9% Undisclosed 7,352 6,763 (8.0%) Undisclosed ** ** ** Total 10,981 10,769 (1.9%) Total $1,462,068 $2,192,810 50.0% LTM LTM <$100M 2,589 2,993 15.6% <$100M $61,408 $71,572 16.6% $100M-$499M 885 853 (3.6%) $100M-$499M $199,181 $191,286 (4.0%) $500M-$1,000M 188 181 (3.7%) $500M-$1,000M $130,493 $125,846 (3.6%) Total Middle Market 3,662 4,027 10.0% Total Middle Market $391,082 $388,705 (0.6%) >$1,000M 246 297 20.7% >$1,000M $1,153,709 $1,908,560 65.4% Undisclosed 7,902 7,257 (8.2%) Undisclosed ** ** ** Total 11,810 11,581 (1.9%) Total $1,544,791 $2,297,265 48.7% _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD and LTM as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD and LTM as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

U.S. Middle-Market Enterprise Value to Median EBITDA, EBIT, and Revenue Multiples

Transaction Size 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015

EV/EBITDA <$100M 9.2x 8.1x 8.5x 7.8x 7.0x 7.0x 8.3x 7.0x 7.4x 8.1x 6.7x $100M-$499M 9.9x 9.2x 11.2x 11.1x 8.1x 10.1x 9.3x 9.3x 9.9x 9.9x 9.8x $500M-$1B 10.1x 12.0x 10.8x 10.6x 7.8x 9.0x 9.9x 10.5x 8.4x 9.9x 10.7x Middle-Market 9.7x 9.2x 9.9x 9.5x 7.6x 8.6x 9.2x 8.4x 8.7x 9.2x 8.5x EV/EBIT <$100M 10.8x 10.0x 10.8x 10.1x 7.8x 10.3x 11.3x 10.3x 12.5x 11.4x 11.1x $100M-$499M 13.5x 13.3x 14.5x 13.7x 11.0x 12.2x 12.8x 13.0x 13.7x 13.1x 12.9x $500M-$1B 13.8x 17.0x 16.1x 13.7x 13.6x 13.4x 12.9x 13.8x 13.6x 13.0x 17.1x Middle-Market 12.4x 12.5x 12.8x 11.6x 9.7x 11.3x 12.1x 11.9x 12.5x 12.5x 12.3x EV/Revenue <$100M 0.95x 0.96x 0.92x 0.91x 0.80x 0.94x 1.00x 0.81x 0.83x 0.88x 1.04x $100M-$499M 1.31x 1.24x 1.27x 1.30x 1.22x 1.24x 1.39x 1.36x 1.43x 1.40x 1.48x $500M-$1B 1.55x 1.69x 1.51x 1.42x 1.46x 1.56x 1.04x 1.23x 1.36x 1.59x 1.72x Middle-Market 1.10x 1.08x 1.01x 1.00x 0.90x 1.07x 1.14x 1.00x 1.01x 1.10x 1.18x _____________________ Source: Capital IQ and Robert W. Baird & Co. Incorporated M&A Market Analysis. Median multiples are calculated using deals for which meaningful data is available. LTM as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

U.S. Middle-Market M&A Deal Statistics


U.S. Middle-Market Median Acquisition Premiums

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 20151-Week Premium 24.7% 25.0% 23.8% 30.6% 36.4% 32.9% 34.1% 37.2% 25.7% 29.1% 28.9%

4-Week Premium 32.3% 28.6% 25.7% 31.1% 37.1% 36.9% 34.3% 37.5% 30.3% 30.4% 29.7%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%1-Week Premium 4-Week Premium

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. LTM as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

U.S. Middle-Market Transaction Composition – Strategic vs. Sponsor Deal Value

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTDSponsor 23.3% 23.7% 24.7% 22.5% 19.6% 20.3% 18.3% 19.8% 19.4% 20.2% 21.2% 19.5%

Strategic 76.7% 76.3% 75.3% 77.5% 80.4% 79.7% 81.7% 80.2% 80.6% 79.8% 78.8% 80.5%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

% o

f Dea

l Val

ue

Strategic Sponsor

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

U.S. Middle-Market M&A Payment Method by Number of Deals

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTDCash/Stock 7.6% 5.3% 7.4% 5.0% 3.7% 2.8% 4.8% 3.9% 5.5% 6.3% 6.4% 6.3%

Stock 6.7% 4.6% 4.7% 4.8% 5.4% 3.2% 3.6% 3.1% 3.7% 4.3% 4.2% 4.2%

Cash 85.7% 90.1% 87.9% 90.1% 90.9% 93.9% 91.6% 92.9% 90.8% 89.4% 89.5% 89.6%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

% o

f Dea

ls

Cash Stock Cash/Stock


U.S. Cross-Border M&A Activity


U.S. – Inbound and Outbound M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015

Inbound M&A 1,023 1,247 1,424 1,291 918 1,137 1,314 1,320 1,037 1,258 1,401

Outbound M&A 1,048 1,292 1,528 1,506 1,044 1,565 1,875 1,550 1,373 1,552 1,678

Inbound Deal Value $120 $196 $327 $177 $81 $189 $138 $168 $122 $248 $425

Outbound Deal Value $98 $109 $176 $93 $79 $113 $159 $111 $138 $183 $198

1,023

1,2471,424

1,291

918

1,1371,314 1,320

1,037

1,2581,401

1,048

1,292

1,528 1,506

1,044

1,565

1,875

1,5501,373

1,5521,678

$0

$75

$150

$225

$300

$375

$450

0

500

1,000

1,500

2,000

Deal Value#

of D

eals

Inbound M&A Outbound M&A Inbound Deal Value Outbound Deal Value ($ in billions)

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. LTM as of November 30. Note: Inbound M&A represents U.S. target/non-U.S. acquiror; Outbound M&A represents non-U.S. target/U.S. acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Top 10 U.S.

Target Industries Acquired by Non-U.S. Companies -

YTD

Top 10 Non-U.S. Acquirors of U.S. Targets -

YTD

Top 10 Non-U.S. Target Industries Acquired by U.S.

Companies – YTD

Industry # of

Deals Country # of

Deals Industry # of

Deals

1. Technology 348 1. Canada 383 1. Technology 444 2. Healthcare 152 2. United Kingdom 174 2. Professional Services 229 3. Professional Services 144 3. Japan 119 3. Healthcare 133 4. Real Estate/Property 52 4. China 82 4. Finance 61 5. Mining 51 5. Germany 61 5. Machinery 57 6. Food & Beverage 46 6. France 60 6. Real Estate/Property 56 7. Construction/Building 43 7. Australia 47 7. Consumer Products 52 8. Consumer Products 40 8. Switzerland 41 8. Telecommunications 51 9. Finance 39 9. India 40 9. Chemicals 44 10. Machinery 38 10. Singapore 25 10. Transportation 39 _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Europe M&A Commentary


In November, Europe’s M&A market registered higher dollar volume in spite of fewer transactions, continuing a recent trend. The deal total dropped 22.6% to 768, which lagged the LTM mean of 917. However, dollar volume rose 16.3% to $115.3 billion, exceeding the LTM average of $94.1 billion. In Europe’s middle market, the number of transactions fell 15.8%, while dollar value increased 17.7%.

Year to date, the transaction total dropped 11.4%, reflecting year-over-year declines in each of the past eight months. Dollar volume climbed 19.4% through November. In the middle market, the number of deals was down 5.7% in the first 11 months of the year, and dollar value dipped 1.3%.

The latest economic news demonstrated evidence of the ongoing economic recovery in Europe despite continued headwinds. The composite PMI for euro zone activity increased for the second consecutive month, with November’s reading nearly the highest in the past four-plus years, reflecting growth throughout the euro zone. In the U.K. during November, the manufacturing PMI decelerated from the 17-month high of October, while the services PMI showed the fastest growth in four months. Also of note, the Economic Sentiment Indicator of the European Union for November significantly exceeded the LTM average and was just below the four-year peak attained in October. Furthermore, euro area unemployment fell for the fourth straight month in dropping to the lowest rate since January 2012. The European Central Bank noted a broader base for the economic rebound in keeping much of its monetary policy powder dry when recently announcing relatively modest stimulus measures.

In Europe, the median EBITDA transaction multiple was 8.6x for the LTM period ended in November. The median valuation during the last six months (June through November) was 9.1x, above the 8.1x median figure during the preceding six months (December 2014 through May 2015).

Through November, the transaction count in the U.K. was up 5.4% to 2,885, reflecting growth in inbound and domestic M&A. Reported dollar volume soared 89.2% to $515.5 billion, mainly due to much higher inbound volume.

In the first 11 months of 2015, the middle-market deal count in the U.K. increased 5.1% to 1,072, and dollar volume was up 11.8% to $102.6 billion.

Year to date in Germany, the number of deals declined 5.5% to 1,518, due mostly to reduced domestic activity. Dollar volume contracted 27.7% to $112.1 billion, with dramatically lower outbound volume outweighing higher domestic and inbound volume.

In Germany’s middle market, the transaction count for January-November was up 27.6% to 375. Dollar volume over this period increased 26.3% to $42.4 billion.

Europe M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

Total 9,803 10,719 12,170 11,966 10,330 10,932 12,461 11,299 9,905 12,300 11,295 10,002

# of Deals – >$1B 176 203 282 172 91 135 132 121 132 169 155 148



Deal Value $954 $1,333 $1,631 $974 $489 $686 $629 $605 $619 $960 $873 $1,042

9,80310,719

12,170 11,96610,330 10,932

12,46111,299

9,905

12,30011,295

10,002

$0

$500

$1,000

$1,500

$2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Deal Value#

of D

eals



($ in billions)

Europe Middle-Market M&A Deal Statistics


Number of Deals Deal Value 2014 2015 % Change ($ in millions) 2014 2015 % Change

November November <$100M 253 197 (22.1%) <$100M $3,789 $3,872 2.2% $100M-$499M 62 57 (8.1%) $100M-$499M $15,821 $13,546 (14.4%) $500M-$1,000M 8 18 125.0% $500M-$1,000M $5,896 $12,606 113.8% Total Middle Market 323 272 (15.8%) Total Middle Market $25,506 $30,024 17.7% Monthly Average 300 296 (1.4%) Monthly Average $25,121 $25,246 0.5% >$1,000M 17 13 (23.5%) >$1,000M $73,634 $85,322 15.9% Undisclosed 652 483 (25.9%) Undisclosed ** ** ** Total 992 768 (22.6%) Total $99,140 $115,346 16.3% Monthly Average 1,003 917 (8.6%) Monthly Average $77,502 $94,145 21.5% YTD YTD <$100M 2,616 2,431 (7.1%) <$100M $42,050 $42,811 1.8% $100M-$499M 612 592 (3.3%) $100M-$499M $140,406 $131,005 (6.7%) $500M-$1,000M 130 144 10.8% $500M-$1,000M $93,016 $98,000 5.4% Total Middle Market 3,358 3,167 (5.7%) Total Middle Market $275,472 $271,817 (1.3%) >$1,000M 155 148 (4.5%) >$1,000M $597,513 $770,519 29.0% Undisclosed 7,782 6,687 (14.1%) Undisclosed ** ** ** Total 11,295 10,002 (11.4%) Total $872,985 $1,042,336 19.4% LTM LTM <$100M 2,787 2,729 (2.1%) <$100M $45,540 $49,189 8.0% $100M-$499M 666 662 (0.6%) $100M-$499M $153,473 $147,952 (3.6%) $500M-$1,000M 143 155 8.4% $500M-$1,000M $102,434 $105,811 3.3% Total Middle Market 3,596 3,546 (1.4%) Total Middle Market $301,447 $302,952 0.5% >$1,000M 165 162 (1.8%) >$1,000M $628,583 $826,794 31.5% Undisclosed 8,277 7,299 (11.8%) Undisclosed ** ** ** Total 12,038 11,007 (8.6%) Total $930,030 $1,129,746 21.5% _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD and LTM as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD and LTM as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Europe Middle-Market Enterprise Value to Median EBITDA, EBIT, and Revenue Multiples

Transaction Size 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015

EV/EBITDA <$100M 7.4x 7.4x 8.2x 6.8x 6.2x 6.6x 7.3x 6.8x 6.7x 7.8x 7.5x $100M-$499M 10.0x 10.0x 11.0x 9.6x 7.7x 8.1x 8.7x 9.2x 8.3x 9.3x 9.9x $500M-$1B 10.2x 10.2x 10.8x 9.6x 11.2x 8.9x 9.5x 8.1x 9.4x 9.6x 11.0x Middle-Market 8.5x 8.8x 9.5x 7.8x 7.4x 7.5x 8.0x 7.7x 7.5x 8.2x 8.6x EV/EBIT <$100M 9.2x 8.5x 9.2x 8.1x 7.6x 7.4x 9.0x 7.7x 7.8x 9.4x 8.6x $100M-$499M 13.4x 13.8x 13.5x 11.1x 10.2x 10.6x 11.5x 13.1x 12.0x 12.4x 13.6x $500M-$1B 15.6x 15.1x 12.4x 12.4x 15.7x 12.8x 13.3x 10.3x 12.0x 12.7x 15.6x Middle-Market 11.6x 10.7x 10.9x 9.3x 9.1x 8.6x 10.8x 9.5x 10.0x 10.6x 11.4x EV/Revenue <$100M 0.74x 0.81x 0.78x 0.78x 0.63x 0.71x 0.74x 0.73x 0.73x 0.87x 0.92x $100M-$499M 1.18x 1.29x 1.32x 1.12x 0.92x 1.09x 1.21x 1.29x 1.33x 1.34x 1.42x $500M-$1B 1.29x 1.74x 1.37x 1.63x 1.68x 1.43x 1.44x 1.33x 1.60x 1.30x 1.35x Middle-Market 0.89x 0.92x 0.87x 0.86x 0.69x 0.82x 0.85x 0.87x 0.92x 0.98x 1.00x _____________________ Source: Capital IQ and Robert W. Baird & Co. Incorporated M&A Market Analysis. Median multiples are calculated using deals for which meaningful data is available. LTM as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Europe Middle-Market M&A Deal Statistics


Europe Middle-Market Median Acquisition Premiums

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 20151-Week Premium 17.7% 18.4% 15.9% 23.1% 31.2% 23.7% 27.4% 30.5% 28.2% 28.3% 23.9% 26.9%

4-Week Premium 21.9% 23.5% 21.4% 27.6% 33.3% 30.9% 30.5% 33.3% 36.7% 30.6% 26.9% 30.8%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%1-Week Premium 4-Week Premium

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. LTM as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Europe Middle-Market Transaction Composition – Strategic vs. Sponsor Deal Value

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTDSponsor 21.1% 18.7% 19.4% 19.1% 13.7% 20.3% 19.6% 17.8% 23.6% 21.3% 21.6% 21.7%

Strategic 78.9% 81.3% 80.6% 80.9% 86.3% 79.7% 80.4% 82.2% 76.4% 78.7% 78.4% 78.3%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

% o

f Dea

l Val

ue

Strategic Sponsor


Europe Middle-Market M&A Payment Method by Number of Deals

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTDCash/Stock 4.6% 3.9% 4.7% 3.6% 3.3% 3.5% 3.1% 2.7% 3.1% 2.4% 2.4% 2.5%

Stock 4.3% 3.8% 3.3% 3.1% 5.6% 4.9% 3.7% 2.8% 2.8% 2.1% 2.2% 2.4%

Cash 91.1% 92.3% 92.0% 93.4% 91.1% 91.5% 93.2% 94.4% 94.2% 95.5% 95.4% 95.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

% o

f Dea

ls

Cash Stock Cash/Stock


Europe Cross-Border M&A Activity


Europe – Inbound and Outbound M&A

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015

Inbound M&A 900 1,066 1,190 1,154 827 1,157 1,355 1,244 1,118 1,399 1,495

Outbound M&A 933 1,149 1,328 1,247 825 983 1,220 1,230 1,057 1,188 1,172

Inbound Deal Value $119 $160 $188 $107 $92 $110 $181 $129 $159 $200 $296

Outbound Deal Value $119 $173 $344 $176 $89 $162 $103 $136 $79 $201 $231

900

1,0661,190 1,154

827

1,157

1,3551,244

1,118

1,3991,495

933

1,149

1,3281,247

825

983

1,220 1,230

1,0571,188 1,172

$0

$100

$200

$300

$400

0

500

1,000

1,500

Deal Value#

of D

eals

Inbound M&A Outbound M&A Inbound Deal Value Outbound Deal Value

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. LTM as of November 30. Note: Inbound M&A represents European target/non-European acquiror; Outbound M&A represents non-European target/European acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Top 10 European Target Countries Acquired

by Non-European Companies – YTD Top 10 European Target Industries Acquired

by Non-European Companies – YTD Country # of Deals Industry # of Deals

1. United Kingdom 461 1. Technology 354 2. Germany 186 2. Professional Services 157 3. France 113 3. Healthcare 120 4. Spain 85 4. Real Estate/Property 90 5. Italy 78 5. Machinery 55 6. Netherlands 75 6. Transportation 54 7. Switzerland 44 7. Finance 47 8. Sweden 40 8. Telecommunications 46 9. Ireland 34 9. Dining & Lodging 42 10. Belgium 30 10. Food & Beverage 40

Top 10 Non-European Target Countries Acquired by European Companies – YTD

Top 10 Non-European Target Industries Acquired by European Companies – YTD

Country # of Deals Industry # of Deals

1. United States 480 1. Technology 214 2. Canada 89 2. Professional Services 183 3. Brazil 88 3. Healthcare 106 4. Australia 82 4. Food & Beverage 62 5. India 46 5. Construction/Building 44 6. South Africa 36 6. Machinery 39 7. Israel 20 7. Chemicals 37 8. Chile 17 7. Consumer Products 37 8. Mexico 17 9. Finance 33 10. China 15 9. Mining 33 _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD as of November 30. Note: Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

U.K. Cross-Border M&A Activity


U.K. Number of Deals (Domestic/Outbound/Inbound)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTD

Total 3,324 3,410 3,766 3,319 2,666 2,738 2,997 2,917 2,612 2,989 2,737 2,885

Inbound M&A 556 617 696 679 439 569 621 623 566 628 582 672

Outbound M&A 740 764 876 716 451 582 742 631 586 736 677 629

Domestic M&A 2,028 2,029 2,194 1,924 1,776 1,587 1,634 1,663 1,460 1,625 1,478 1,584

3,324 3,4103,766

3,319

2,666 2,7382,997 2,917

2,6122,989

2,737 2,885

0

1,000

2,000

3,000

4,000

# of

Dea

ls

Domestic M&A Outbound M&A Inbound M&A

_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Domestic M&A represents U.K. target/U.K. acquiror; Outbound M&A represents non-U.K. target/U.K. acquiror; Inbound M&A represents U.K. target/non-U.K. acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

U.K. Deal Value (Domestic/Outbound/Inbound)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTD

Total $359 $398 $666 $280 $126 $198 $180 $139 $166 $311 $272 $516

Inbound M&A $133 $166 $178 $81 $51 $56 $74 $61 $73 $117 $108 $347

Outbound M&A $83 $70 $279 $62 $25 $69 $58 $34 $40 $98 $95 $98

Domestic M&A $143 $162 $209 $137 $50 $73 $48 $44 $53 $96 $69 $71

$359$398

$666

$280

$126$198 $180

$139 $166

$311$272

$516

$0

$250

$500

$750

Dea

l Val

ue


_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Domestic M&A represents U.K. target/U.K. acquiror; Outbound M&A represents non-U.K. target/U.K. acquiror; Inbound M&A represents U.K. target/non-U.K. acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

($ in billions)

Germany Cross-Border M&A Activity


Germany Number of Deals (Domestic/Outbound/Inbound)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTD

Total 1,135 1,351 2,020 1,647 1,269 1,284 1,767 1,560 1,398 1,749 1,606 1,518

Inbound M&A 389 449 677 470 292 368 502 410 369 464 421 413

Outbound M&A 312 353 481 465 333 304 416 440 344 409 374 373

Domestic M&A 434 549 862 712 644 612 849 710 685 876 811 732

1,1351,351

2,020

1,647

1,269 1,284

1,7671,560

1,398

1,7491,606 1,518

0

500

1,000

1,500

2,000

2,500

# of

Dea

ls


_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Domestic M&A represents Germany target/Germany acquiror; Outbound M&A represents non-Germany target/Germany acquiror; Inbound M&A represents Germany target/non-Germany acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Germany Deal Value (Domestic/Outbound/Inbound)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTD

Total $134 $179 $253 $159 $66 $71 $54 $95 $108 $160 $155 $112

Inbound M&A $49 $58 $65 $23 $16 $23 $21 $28 $49 $27 $24 $39

Outbound M&A $38 $57 $118 $36 $25 $33 $19 $36 $15 $89 $88 $23

Domestic M&A $47 $64 $71 $100 $24 $15 $14 $32 $43 $44 $43 $50

$134

$179

$253

$159

$66 $71$54

$95$108

$160 $155

$112

$0

$50

$100

$150

$200

$250

$300

Dea

l Val

ue


_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Domestic M&A represents Germany target/Germany acquiror; Outbound M&A represents non-Germany target/Germany acquiror; Inbound M&A represents Germany target/non-Germany acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

($ in billions)

Asia M&A Commentary


The M&A market in Asia (ex. Japan) generated higher dollar volume for the ninth straight month. In November, announced dollar volume rose 11.2% to $53.0 billion, trailing the LTM mean of $63.4 billion. The transaction count dipped 2.8% to 454, which was below the LTM average of 559. In the middle market, the deal total increased 5.7%, and dollar value expanded 36.9%.

Year to date through November, the transaction count for Asia (ex. Japan) increased 16.0%, and dollar volume climbed 58.8%. In the middle market, the year-to-date transaction total advanced 19.9%, while dollar value was up 40.9%.

Anxiety about the global economy remains centered on conditions in China, which accounts for almost half of M&A deals in Asia (ex. Japan). In November, the official manufacturing PMI for China showed contraction for the fourth consecutive month in falling to the lowest reading in more than three years. The official non-manufacturing index for November was slightly above October’s seven-year low. China’s trade activity continued to contract in November, when exports declined for the fifth straight month, and imports fell for a record thirteenth consecutive month. Of note, domestic demand may be stabilizing, as suggested by a lower decline for imports as well as an 11-month high for retail sales growth. Inflation remained subdued at 1.5% in November, leaving China’s government the opportunity to announce additional fiscal and monetary stimulus efforts.

In China’s M&A market, the deal total in November was up 9.0% to 255, which trailed the LTM average of 301. Announced dollar volume increased 13.5% to $41.2 billion, below the LTM mean of $48.4 billion.

Through November, the transaction count for China increased 25.3% to 3,314 on significantly higher domestic and outbound activity. Dollar volume expanded 84.4% to $492.2 billion, fueled by substantial growth for domestic and outbound volume.

On a year-to-date basis, the deal count in China’s middle market was up 27.7% to 2,680. Dollar volume jumped 75.6% to $221.6 billion.

In India, the year-to-date M&A transaction total increased 32.4% to 985, reflecting more domestic and cross-border activity. Announced dollar volume decreased 10.5% to $33.3 billion due to contraction for domestic volume.

In the first 11 months of 2015, the deal count in India’s middle market rose 38.7% to 527. Dollar volume expanded 46.3% to $20.9 billion.

Year-to-date M&A metrics for Japan were varied. The number of deals edged down 2.7% to 2,151, with lower domestic activity outweighing increased outbound M&A. However, reported dollar volume rose 54.9% to $135.9 billion, powered by greater domestic and cross-border volume.

Asia (ex. Japan) M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

Total 3,015 3,982 5,292 5,486 4,722 5,459 6,055 5,239 5,290 5,867 5,266 6,109

# of Deals – >$1B 19 41 39 37 31 54 44 41 49 74 62 100


# of Deals – Undisclosed 872 1,126 1,479 1,731 1,408 1,715 1,904 1,589 1,632 1,697 1,560 1,641

Deal Value $126 $220 $263 $248 $225 $300 $258 $286 $303 $521 $408 $648

3,015

3,982

5,292 5,4864,722

5,4596,055

5,239 5,2905,867

5,2666,109

$0

$200

$400

$600

$800

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Deal Value#

of D

eals



China M&A Activity


China M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

Total 1,278 1,709 2,370 2,488 2,336 2,725 2,946 2,418 2,631 2,940 2,644 3,314

# of Deals – >$1B 9 17 12 18 15 19 25 21 32 47 39 81

# of Deals – Middle-Market 957 1,341 1,897 1,951 1,867 2,147 2,343 1,954 2,090 2,351 2,098 2,680

# of Deals – Undisclosed 312 351 461 519 454 559 578 443 509 542 507 553

Deal Value $56 $87 $107 $143 $139 $142 $142 $158 $183 $356 $267 $492

1,2781,709

2,370 2,488 2,3362,725

2,946

2,4182,631

2,9402,644

3,314

$0

$150

$300

$450

$600

0

1,000

2,000

3,000

4,000

Deal Value#

of D

eals



China Number of Deals (Domestic/Outbound/Inbound)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTD

Total 1,278 1,709 2,370 2,488 2,336 2,725 2,946 2,418 2,631 2,940 2,644 3,314

Inbound M&A 366 432 488 478 329 377 366 233 226 206 186 164

Outbound M&A 92 125 181 180 213 252 325 291 271 321 288 387

Domestic M&A 820 1,152 1,701 1,830 1,794 2,096 2,255 1,894 2,134 2,413 2,170 2,763

1,278

1,709

2,370 2,488 2,3362,725

2,946

2,4182,631

2,9402,644

3,314

0

1,000

2,000

3,000

4,000

# of

Dea

ls


_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Domestic M&A represents China target/China acquiror; Outbound M&A represents non-China target/China acquiror; Inbound M&A represents China target/non-China acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

China M&A Deal Statistics


China Number of Deals Domestic Outbound Inbound Total

2014 2015 2014 2015 2014 2015 2014 2015

November Middle Market 165 189 21 26 9 10 195 225 >$1B 4 5 2 4 0 0 6 9 Undisclosed 22 5 10 14 1 2 33 21 Total 191 199 33 44 10 12 234 255 YTD Middle Market 1,826 2,352 174 245 98 83 2,098 2,680 >$1B 24 61 14 20 1 0 39 81 Undisclosed 320 350 100 122 87 81 507 553 Total 2,170 2,763 288 387 186 164 2,644 3,314 LTM Middle Market 2,055 2,572 191 267 113 94 2,359 2,933 >$1B 26 68 14 21 2 0 42 89 Undisclosed 349 366 111 132 94 90 554 588 Total 2,430 3,006 316 420 209 184 2,955 3,610 _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD and LTM as of November 30. Note: Domestic M&A represents China target/China acquiror; Outbound M&A represents non-China target/China acquiror; Inbound M&A represents China target/non-China acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

China Deal Value ($ in millions) Domestic Outbound Inbound Total

2014 2015 2014 2015 2014 2015 2014 2015

November Middle-Market $8,936 $19,701 $4,915 $1,664 $1,315 $1,660 $15,166 $23,025 >$1B $17,804 $9,501 $3,351 $8,690 $0 $0 $21,155 $18,192 Total $26,740 $29,202 $8,266 $10,355 $1,315 $1,660 $36,321 $41,217 YTD Middle-Market $97,750 $188,175 $21,898 $27,143 $6,552 $6,279 $126,200 $221,598 >$1B $103,524 $200,493 $32,224 $70,111 $4,987 $0 $140,735 $270,604 Total $201,274 $388,668 $54,123 $97,254 $11,539 $6,279 $266,935 $492,202 LTM Middle-Market $108,739 $202,275 $25,136 $31,063 $7,982 $8,004 $141,858 $241,342 >$1B $107,001 $268,683 $32,224 $71,310 $7,878 $0 $147,103 $339,994 Total $215,740 $470,959 $57,360 $102,373 $15,860 $8,004 $288,961 $581,336 _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD and LTM as of November 30. Note: Domestic M&A represents China target/China acquiror; Outbound M&A represents non-China target/China acquiror; Inbound M&A represents China target/non-China acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

India M&A Activity


India M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

Total 414 635 895 958 596 888 916 826 712 812 744 985

# of Deals – >$1B 1 5 5 7 0 13 4 5 1 9 9 4

# of Deals – Middle-Market 223 306 430 464 276 426 491 433 340 416 380 527

# of Deals – Undisclosed 190 324 460 487 320 449 421 388 371 387 355 454

Deal Value $14 $34 $47 $34 $9 $56 $22 $27 $15 $40 $37 $33

414

635

895958

596

888 916826

712812

744

985

$0

$15

$30

$45

$60

0

250

500

750

1,000

Deal Value#

of D

eals



India Number of Deals (Domestic, Outbound, Inbound)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTD

Total 414 635 895 958 596 888 916 826 712 812 744 985

Inbound M&A 94 134 173 174 101 151 233 148 167 167 152 187

Outbound M&A 118 166 207 219 98 205 148 122 86 104 95 118

Domestic M&A 202 335 515 565 397 532 535 556 459 541 497 680

414

635

895958

596

888 916826

712812

744

985

0

250

500

750

1,000

# of

Dea

ls


_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Domestic M&A represents India target/India acquiror; Outbound M&A represents non-India target/India acquiror; Inbound M&A represents India target/non-India acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

($ in billions)

India M&A Deal Statistics


India Number of Deals Domestic Outbound Inbound Total

2014 2015 2014 2015 2014 2015 2014 2015

November Middle-Market 22 19 3 3 3 3 28 25 >$1B 1 0 0 0 0 0 1 0 Undisclosed 20 18 4 5 7 7 31 30 Total 43 37 7 8 10 10 60 55 YTD Middle-Market 270 385 31 36 79 106 380 527 >$1B 8 3 0 0 1 1 9 4 Undisclosed 219 292 64 82 72 80 355 454 Total 497 680 95 118 152 187 744 985 LTM Middle-Market 285 407 34 39 86 117 405 563 >$1B 8 3 0 0 1 1 9 4 Undisclosed 238 314 68 88 77 84 383 486 Total 531 724 102 127 164 202 797 1,053 _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD and LTM as of November 30. Note: Domestic M&A represents India target/India acquiror; Outbound M&A represents non-India target/India acquiror; Inbound M&A represents India target/non-India acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

India Deal Value ($ in millions) Domestic Outbound Inbound Total

2014 2015 2014 2015 2014 2015 2014 2015

November Middle-Market $1,118 $1,820 $378 $59 $193 $321 $1,689 $2,200 >$1B $3,036 $0 $0 $0 $0 $0 $3,036 $0 Total $4,154 $1,820 $378 $59 $193 $321 $4,725 $2,200 YTD Middle-Market $8,610 $9,571 $1,715 $3,113 $3,967 $8,220 $14,292 $20,903 >$1B $19,782 $10,381 $0 $0 $3,175 $2,064 $22,956 $12,445 Total $28,392 $19,952 $1,715 $3,113 $7,141 $10,283 $37,248 $33,348 LTM Middle-Market $9,122 $10,607 $1,859 $3,186 $4,290 $9,410 $15,271 $23,203 >$1B $19,782 $10,381 $0 $0 $3,175 $2,064 $22,956 $12,445 Total $28,903 $20,988 $1,859 $3,186 $7,465 $11,473 $38,227 $35,648 _____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. YTD and LTM as of November 30. Note: Domestic M&A represents India target/India acquiror; Outbound M&A represents non-India target/India acquiror; Inbound M&A represents India target/non-India acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

Japan M&A Activity


Japan M&A Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD

11/15 YTD

Total 2,262 2,741 2,920 2,490 2,259 2,097 2,424 2,645 2,305 2,438 2,211 2,151

# of Deals – >$1B 20 24 27 20 25 16 22 28 18 15 13 31

# of Deals – Middle-Market 1,214 1,502 1,566 1,328 1,165 994 1,027 1,109 1,026 991 894 846


Deal Value $165 $140 $117 $112 $118 $81 $132 $166 $99 $95 $88 $136

2,262

2,7412,920

2,4902,259

2,0972,424

2,6452,305 2,438

2,211 2,151

$0

$50

$100

$150

$200

0

500

1,000

1,500

2,000

2,500

3,000

Deal Value#

of D

eals



Japan Number of Deals (Domestic/Outbound/Inbound)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11/14 YTD 11/15 YTD

Total 2,262 2,741 2,920 2,490 2,259 2,097 2,424 2,645 2,305 2,438 2,211 2,151

Inbound M&A 55 86 136 87 85 117 91 96 77 79 68 66

Outbound M&A 175 214 252 257 223 272 381 454 359 413 364 422

Domestic M&A 2,032 2,441 2,532 2,146 1,951 1,708 1,952 2,095 1,869 1,946 1,779 1,663

2,262

2,7412,920

2,4902,259

2,097

2,4242,645

2,3052,438

2,211 2,151

0

500

1,000

1,500

2,000

2,500

3,000

# of

Dea

ls


_____________________ Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. Note: Domestic M&A represents Japan target/Japan acquiror; Outbound M&A represents non-Japan target/Japan acquiror; Inbound M&A represents Japan target/non-Japan acquiror. Figures exclude transactions involving minority stakes, stock repurchases, and spin-offs.

($ in billions)

Transaction Spotlight – Sale of The Results Companies, LLC to One Equity Partners


Target Company Headquarters

The Results Companies, LLC Fort Lauderdale, Florida

Acquiring Company Headquarters

One Equity Partners New York, New York

Industry Sector Technology and Services

Transaction Overview The Results Companies, LLC (“Results”), a portfolio company of Clearview Capital (“Clearview”), was recently acquired by One Equity Partners (“OEP”). The terms of the transaction were not disclosed.

Target Company Description

Results is a premier global customer experience provider for Fortune 500 companies that uniquely designs, builds, and operates award-winning call centers that have set the standard for innovative customer-focused contact solutions. Results offers a full range of services that include customer service, acquisition, enrollment, retention, membership support, and transaction processing to outbound sales and retention campaigns. With over 11,000 employees in 18 locations in the United States, Philippines, and Latin America, Results is an expert in analytical technologies, brand fulfillment, and in creating strategic advantages for its customers.

Financial Sponsor Description

Clearview is a private equity investment firm that specializes in the acquisition and recapitalization of lower middle market North American companies. Clearview has completed nearly 100 transactions in a wide variety of industries since its founding in 1999. Clearview is headquartered in Old Greenwich, Connecticut.

Acquiring Company Description

OEP is a private equity investment firm that acts as a lead investor both as majority and minority owner in acquisitions and growth capital financings. With offices in in New York, Chicago, Frankfurt, and São Paulo, OEP is a global firm that has invested over $11 billion in over 70 companies since its founding in 2001.

Advisory Role Baird served as the exclusive financial advisor to Results. For additional information about this transaction, please contact Baird’s Investment Banking team:

Kiran Paruchuru Brian Cole Managing Director Vice President +1.312.609.4926 +1.414.298.1702 [email protected] [email protected] Les Cheek Brian McDonagh Managing Director Managing Director +1.617.426.5789 Co-Head of Global Investment Banking [email protected] +1.704.553.6611 [email protected] David Silver Managing Director

Head of European Investment Banking

+44.207.667.8216 [email protected]

Recent Baird M&A Transactions


Date Announced Baird Client Client Description Transaction Description

Deal Value ($mil) Industry

12/8/15 Array Marketing Custom merchandising solutions Sale to The Carlyle Group ** Technology and Services

12/2/15 Coating Excellence International

Flexibile packaging and technical products

Sale to ProAmpac Intermediate Inc.

*** Industrial

12/2/15 PetroChoice Holdings, Inc.

A leading value-added distributor of petroleum lubricant solutions

Sale to Golden Gate Capital ** Industrial

11/20/15 Icebreaker New Zealand Ltd.

Clothing company Sale to Pencarrow Private Equity

** Consumer

11/17/15 Power Tool Invest B.V. Electric power tools Sale to Hitchaki Koki Co., Ltd. $292.8* Industrial

11/12/15 GRW Bearing GmbH Develops and manufactures high-precision miniature ball bearings for manufacturing operations

Sale to Kaman Corporation ** Industrial

11/4/15 The Results Companies, LLC

Contact center customer service and sales solutions

Sale to One Equity Partners

** Technology and Services

11/2/15 Team, Inc.

Provides a range specialty services related to the maintenance, inspection, and construction of mechanical and piping systems

Acquisition of Furmanite Corporation

$336.0* Technology and Services

10/29/15 Aesynt, Inc.

Offers integrated pharmacy automation solutions for hospitals and health systems

Sale to Omnicell, Inc.

$275.0* Healthcare

10/23/15 JLA Equityco Limited

Laundry equipment

Sale to Institutional Investors *** Technology and Services

10/22/15 Navient Corporation

Provides financial products and services

Acquisition of Xtend Healthcare LLC

** Healthcare

10/22/15 Phoenix Energy Technologies, Inc.

Provides enterprise energy management software and services

Sale to Duke Energy Corporation

** Technology and Services

10/12/15 DNA Diagnostics Center DNA laboratory testing services

Sale to GHO Capital $110.0 Healthcare

10/9/15 Spinrite LP

Manufactures and distributes craft yarn products

Sale to TorQuest Partners ** Consumer

10/8/15 POC

Designs and markets sporting gear and equipment

Sale to Investcorp $65.0 Consumer

10/7/15 Excelsior Medical Corporation

Medical products

Sale to ICU Medical $59.5 Healthcare

10/6/15 Ohio Transmission Corporation

Distributor of motion control and related products

Sale to Irving Place Capital ** Industrial

10/5/15 Universal Fiber Systems

Solution-dyed synthetic filament-based fibers

Sale to H.I.G. Capital ** Industrial

10/5/15 Elmer’s Products, Inc.

Manufactures consumer adhesives

Sale to Newell Rubbermaid Inc.

$600.0 Consumer

10/1/15 Truck Bodies and Equipment International, Inc.

Manufactures truck bodies and other related truck equipment and accessories

Sale to GenNx360 Capital Partners

** Industrial

9/29/15 Heritage Food Service Group, Inc

Distributor of replacement parts for commercial kitchen equipment manufacturers

Sale to Windjammer Capital Investors, LLC

** Industrial

9/25/15 Truck-Lite Co.,

Manufactures and distributes vehicular safety lighting products and accessories

Sale to Koch Equity Development LLC and BDT Capital Partners, LLC

*** Industrial

9/24/15 Middleburg Real Estate Partners - 4 apartment complexes

Multi-family apartment complexes

Sale to Federal Capital Partners

$90.0 Real Estate

9/24/15 Harbinger Fitness

Manufactures fitness accessories

Sale to Implus Corporation

** Consumer

9/17/15 OMRON Corporation Manufacturer of automation components

Acquisition of Adept Technology, Inc.

$200.0 Industrial

9/9/15 RF IDeas, Inc. Provider of proprietary identification card technology solutions

Sale to Roper Technologies, Inc.

** Industrial

8/27/15 Valet Waste Holdings, Inc.

Doorstep trash and recycling collection services

Sale to Ares Management L.P. ** Technology and Services

8/18/15 Swisher International, Inc.

Hygiene and sanitizing solutions Sale to Ecolab Inc. $40.0 Technology and Services

8/17/15 Drive Medical Manufactures medical equipment Acquisition of DeVilbiss Healthcare

** Healthcare

8/17/15 Affinia Group Inc. Aftermarket filtration products for heavy-duty and light-duty applications

Sale to MANN+HUMMEL *** Industrial

8/17/15 Learner’s Digest International

Provider of independent (non-pharma funded) continuing medical education

Sale to Wolters Kluwer’s Health Division

$150.0 Technology and Services

8/7/15 Theorem Clinical Research Holdings Inc.

Clinical trial management and monitoring services

Sale to Chilltern International Inc.

** Healthcare

8/3/15 Country Home Products, Inc.

Engine-powered equipment used in maintenance applications

Sale to Generac Holdings, Inc. ** Industrial

_____________________ Source: Robert W. Baird & Co. Incorporated M&A Market Analysis. * Announced and pending transactions with disclosed value; **Closed transactions with undisclosed value; *** Announced and pending transactions with undisclosed value.

Recent Baird M&A Transactions


Date Announced Baird Client Client Description Transaction Description

Deal Value ($mil) Industry

7/31/15 Reward Gateway Employee engagement SaaS services firm

Sale to Great Hill Partners, L.P.


7/28/15 Universal Services of America

Security services firm Sale to Warburg Pincus ** Technology and Services

7/9/15 The Coast Distribution System, Inc.

Aftermarket supplier of replacement parts, supplies and accessories for the recreational vehicle (RV) and outdoor recreation markets

Sale to LKQ Corporation $47.2 Industrial

7/1/15 Metalmark Capital, LLC Private equity firm Acquisition of Camin Cargo Control, Inc.

** Industrial

6/30/15 Purafil, Inc. and Kaydon Custom Filtration Corporation (AB SKF)

Filtration systems and solutions Sale to Filtration Group Corporation

$90.0 Industrial

6/29/15 SimonsVoss Technologies GmbH

Electronic locks Sale to Allegion, plc $235.0 Industrial

6/25/15 Affinia South America (Affinia Group Inc.)

Design, manufacture, distribution and marketing of industrial grade products and services, including extensive offerings of aftermarket parts for automotive and heavy-duty vehicles

Sale to Distribuidora Automotiva S.A.; Car Central De Autopecas e Rolamentos Ltda.; etc.

$116.0 Industrial

6/22/15 PAS Management Holding GmbH

Control panel and cable systems Sale to Prettl Group ** Industrial

6/9/15 Surface Inspection Systems Division (Cognex Corporation)

Develops and manufactures automated, software-enabled vision systems

Sale to AMETEK, Inc. $160.0 Industrial

6/4/15 3i Group plc Private equity firm Acquisition of Weener Plastik $281.1 Industrial

6/1/15 FL Archery Holdings, LLC (aka Field Logic)

Archery and bowhunting targets and accessories

Sale to FeraDyne Outdoors, LLC

** Consumer

5/20/15 One Distribution, SARL Footwear and apparel products Sale to K-Swiss, Inc. ** Consumer

5/12/15 Radiant Research (fka Clinical Research Advantage)

Clinical research and development company

Sale to Pharmaceutical Product Development

** Healthcare

4/30/15 Implus Corporation Provider of insoles, performance socks, shoe laces, shoe care products, traction aids, hand / foot warmers, and fitness accessories

Sale to Berkshire Partners ** Consumer

4/28/15 Bad Daddy's International, LLC

Owns and operates burger bar restaurant chain

Sale to Good Times Restaurants Inc.

$21.0 Consumer

4/17/15 Boyd Corporation Manufacturer of sealing solutions for OEMs

Sale to Genstar Capital ** Industrial

4/17/15 Urnex Brands, Inc. Cleaning products for the coffee industry

Sale to Cortec Group ** Consumer

4/15/15 Protective Industries (Caplugs)

Manufactures plastic molded, injection-molded, and vinyl dip-molded and extruded products

Sale to Berwind Consolidated Holdings

** Industrial

4/8/15 Kiwa N.V. (ACTA* Holding BV)

Provider of certification, testing, inspection, and research services

Acquisition of Inspecta Holding Oy

** Industrial

3/30/15 Bendon, Inc. Licensed brand activity and early development products

Sale to Irving Place Capital ** Consumer

3/24/15 Endicia E-commerce shipping software and services

Sale to Stamps.com $215.0 Technology and Services

3/23/15 Louisville Slugger (Hillerich & Bradsby Co.)

Sporting goods equipment Sale to Wilson Sporting Goods $70.0 Consumer

3/23/15 Digi-Star Investments Manufacturer of electronic weighing systems

Sale to Topcon Positioning Group

$133.0 Industrial

3/17/15 SCAN COIN Holding AB Provider of cash handling equipment and services

Sale to SuzoHapp ** Industrial

3/17/15 Phillips & Temro Industries

Supplier of thermal technology systems

Sale to Harbour Group ** Industrial

2/23/15 3i Group plc Private equity firm Acquisition of Aspen Pumps Limited

$162.2 Industrial

2/18/15 Diversified Foodservice Supply, Inc.

Distributor of maintenance, repair, and operations parts, supplies, and equipment to the foodservice industry

Sale to New Mountain Capital ** Industrial

2/10/15 IPS Corporation Manufacturer of adhesives, cements, plumbing items, etc.

Sale to Nautic Partners ** Industrial

2/6/15 SC Johnson & Son, Inc. Manufacturer of household products Acquisition of Deb Group ** Consumer

2/4/15 avocis Group Provider of outsourced customer care services

Sale to Capita plc $239.1 Technology and Services

12/30/14 New State Capital Partners, LLC

Private equity firm Investment in Central Conveyor Company

** Industrial

12/18/14 Onward Healthcare, Locum Leaders, & Medefis (OGH, LLC)

Healthcare and technology workforce solutions holding company

Sale to AMN Healthcare Services, Inc.


_____________________ Source: Robert W. Baird & Co. Incorporated M&A Market Analysis. * Announced and pending transactions with disclosed value; **Closed transactions with undisclosed value; *** Announced and pending transactions with undisclosed value.

Baird U.S. Equity Research Coverage


BAIRD U.S. EQUITY RESEARCH COVERAGE INVESTMENT BANKING MONTHLY & QUARTERLY REPORTS

In November, Baird added 8 companies to coverage and now covers 730 companies. These companies have a median and average market capitalization of $3.7 billion and $15.5 billion, respectively.

In November, there were 274 upward and 227 downward adjustments to current-year earnings estimates (generally calendar-year 2015). There were 208 upward and 299 downward revisions to forward-year (generally calendar-year 2016) earnings estimates.

Sector: Consumer Products Contact Andrew Eckert at [email protected] Sector: Energy Technology Contact Mathew Kessler at [email protected] Sector: Facility, Industrial & Rental Services Contact Kevin Overby at [email protected] Sector: Food & Beverage Contact Andrew Eckert at [email protected] Sector: Global Leveraged Loan and High Yield Quarterly Contact Andrew Eckert at [email protected] Sector: Healthy Lifestyle Quarterly Contact Andrew Eckert at [email protected] Sector: Packaging Contact Andrew Eckert at [email protected] Sector: Retail, Restaurants, Apparel & Footwear Contact Andrew Eckert at [email protected] Sector: Software Contact Andrew Eckert at [email protected] Sector: Test & Measurement Contact Andrew Eckert at [email protected] Sector: Transportation & Logistics Services Contact Kelsey Neal at [email protected]



Business Services Business Process Outsourcing

Atento, SA ATTO Convergys Corporation CVG DST Systems, Inc. DST ExlService Holdings, Inc. EXLS First Data Corporation FDC Fidelity National Information Services FIS Fiserv, Inc. FISV Genpact Limited G Global Payments, Inc. GPN Heartland Payment Systems, Inc. HPY Jack Henry & Associates JKHY MasterCard Incorporated MA Net 1 UEPS Technologies Inc. UEPS CPI Card Group Inc. PMTS StarTek, Inc. SRT Sykes Enterprises, Inc. SYKE Total System Services, Inc. TSS Vantiv, Inc. VNTV Visa Inc. V West Corporation WSTC WNS (Holdings) Limited WNS

Information & Education Solutions 2U, Inc. TWOU Alliance Data Systems Corporation ADS Apollo Education Group, Inc. APOL Bright Horizons Family Solutions, Inc. BFAM CoreLogic, Inc. CLGX DeVry Education Group, Inc. DV The Dun & Bradstreet Corp. DNB Equifax Inc. EFX Gartner Inc. IT Grand Canyon Education, Inc. LOPE IHS Inc. IHS Nielsen Holdings N.V. NLSN RPX Corporation RPXC Solera Holdings, Inc. SLH Verisk Analytics, Inc. VRSK

Facility Services ABM Industries Inc. ABM ARAMARK Holdings Corporation ARMK Cintas Corporation CTAS Ecolab, Inc. ECL G&K Services, Inc. GK Iron Mountain Incorporated IRM MasTec, Inc. MTZ ServiceMaster Global Holding, Inc. SERV UniFirst Corporation UNF

Human Capital Services Insperity, Inc. NSP AMN Healthcare Service, Inc. AHS Automatic Data Processing ADP HealthEquity, Inc. HQY Kforce Inc. KFRC Korn/Ferry International KFY LinkedIn Corporation LNKD Manpower Inc. MAN Monster Worldwide, Inc. MWW On Assignment, Inc. ASGN Paychex Inc. PAYX Resources Connection, Inc. RECN Robert Half International RHI TrueBlue, Inc. TBI The Ultimate Software Group Inc. ULTI Towers Watson & Co. TW

Industrial Services AECOM Technology Corporation ACM Chicago Bridge & Iron Company N.V. CBI Clean Harbors, Inc. CLHB Fluor Corporation FLR Heritage Crystal Clean, Inc. HCCI Jacobs Engineering Group Inc. JEC Mobile Mini, Inc. MINI MYR Group Inc. MYRG Pike Electric Corporation PEC Quanta Services Inc. PWR Stericycle, Inc. SRCL

Mobile Media Communications Services - Carriers

AT&T, Inc. T Sprint Nextel Corporation S T-Mobile US, Inc. TMUS Verizon Communications, Inc. VZ

Cable

Charter Communications, Inc. CHTR Comcast Corporation CMCSA Time Warner Cable Inc. TWC

Network Technology CDW Corporation CDW Cisco Systems, Inc. CSCO F5 Networks, Inc. FFIV Fortinet, Inc. FTNT Hewlett Packard Enterprise Company HPE Juniper Networks, Inc. JNPR

Mobile Devices Apple, Inc. AAPL Garmin Ltd. GRMN

Services Akamai Technologies, Inc. AKAM Amdocs Limited DOX Fitbit, Inc. FIT GoPro, Inc. GPRO Netflix, Inc. NFLX NeuStar, Inc. NSR

Consumer Automotive Services

CarMax, Inc. KMX Copart, Inc. CPRT Fox Factory Holding Company FOXF KAR Auction Services, Inc. KAR LKQ Corporation LKQX Ritchie Bros. Auctioneers, Inc. RBA

Consumer Leisure Advance Auto Parts, Inc. AAP Arctic Cat, Inc. ACAT AutoZone, Inc. AZO Briggs & Stratton Corp. BGG BRP, Inc. DOO.CN Brunswick Corporation BC Harley-Davidson, Inc. HOG MCBC Holdings, Inc. MCFT O’Reilly Automotive, Inc. ORLY Polaris Industries, Inc. PII Thor Industries THO Winnebago Industries, Inc. WGO

Footwear, Apparel & Accessories adidas AG ADS GR Boot Barn Holdings, Inc. BOOT Columbia Sportswear COLM Crocs, Inc. CROX Deckers Outdoors DECK Foot Locker, Inc. FL The Finish Line, Inc. FINL Genesco, Inc. GCO Nike Inc. NKE Rocky Brands, Inc RCKY Under Armour Inc. UA VF Corporation VFC Wolverine World Wide WWW

Restaurant BJ’s Restaurant, Inc. BJRI Buffalo Wild Wings, Inc. BWLD The Cheesecake Factory Inc. CAKE Chipotle Mexican Grill, Inc. CMG Chuy’s Holdings Inc. CHUY Dunkin’ Brands Group, Inc. DNKN El Pollo Loco Holdings, Inc. LOCO Freshpet, Inc. FRPT The Habit Restaurants, Inc. HABT Jack in the Box Inc. JACK McDonald’s Corporation MCD Noodles & Company NDLS Panera Bread Company PNRA Papa Murphy’s Holdings, Inc. FRSH Potbelly Corporation PBPB Starbucks Corporation SBUX Texas Roadhouse, Inc. TXRH Wingstop, Inc. WING YUM! Brands, Inc. YUM Zoe’s Kitchen, Inc. ZOES

Retail Abercrombie & Fitch ANF Bed Bath & Beyond, Inc. BBBY Coach, Inc. COH Costco Wholesale Corp. COST Dick’s Sporting Goods, Inc. DKS GNC Holdings, Inc. GNC The Gap Inc. GPS Gordmans Stores, Inc. GMAN Hibbett Sports, Inc. HIBB The Home Depot, Inc. HD J.C. Penney Company, Inc. JCP Kohl’s Corporation KSS

Retail (cont’d)

Limited Brands, Inc. LTD Lowe’s Companies, Inc LOW Lululemon athletic inc. LULU Michael Kors Holdings Ltd. KORS Nordstrom, Inc. JWN Restoration Hardware Holdings, Inc. RH Sally Beauty Holdings, Inc. SBH Sportsman’s Warehouse Holdings, Inc. SPWH Target Corporation TGT Tractor Supply Company TSCO Vitamin Shoppe, Inc. VSI Ulta Salon, Cosmetics & Fragrance, Inc. ULTA Urban Outfitters, Inc. URBN Vera Bradley, Inc. VRA Vince Holding Corp. VNCE Wal-Mart Stores, Inc. WMT Williams-Sonoma, Inc. WSM Planet Fitness, Inc. PLNT Zumiez, Inc. ZUMZ

Energy Exploration & Production

Abraxas Petroleum Corporation AXAS Antero Resources Corporation AR Approach Resources Inc. AREX Cabot Oil & Gas Corporation COG Carrizo Oil & Gas Inc. CRZO Comstock Resources, Inc. CRK Continental Resources, Inc. CLR Denbury Resources Inc. DNR Earthstone Energy ESTE EOG Resources, Inc. EOG EQT Corporation EQT Halcon Resources Corporation HK Laredo Petroleum, Inc. LPI Noble Energy, Inc. NBL Oasis Petroleum Inc. OAS Pioneer Natural Resources PXD Rex Energy REXX Range Resources Corporation RRC Rosetta Resources Inc. ROSE Sandridge Energy, Inc. SD SM Energy Co. SM Southwestern Energy Company SWN Triangle Petroleum Corporation TPLM Whiting Petroleum Corporation WLL WPX Energy, Inc. WPX Cimarex Energy XEC

Master Limited Partnerships Antero Midstream Partners, LP AM Cypress Energy Partners, L.P. CELP Energy Transfer Equity, LP ETE Energy Transfer Partners, LP ETP CONE Midstream Partners LP CNNX Crosstex Energy, LP XTEX Crosstex Energy, Inc. XTXI Genesis Energy, LP GEL Green Plains Partners LP GPP Emerge Energy Services, LP EMES Hi-Crush Partners, LP HCLP Inergy, LP NRGY Inergy Midstream, LP NRGM JP Energy Partners LP JPEP Lehigh Gas Partners LP LGP Martin Midstream Partners, LP MMLP NGL Energy Partners, LP NGL ONEOK Partners, L.P. OKS ONEOK Inc. OKE PennTex Midstream Partners, LP PTXP Plains All American Pipeline LP PAA Plains GP Holdings, LP PAGP Rose Rock Midstream L.P. RRMS Southcross Energy Partners LP SXE Summit Midstream Partners, LP SMLP Sunoco Logistics Partners LP SXL Tallgrass Energy GP, LP TEGP Tallgrass Energy Partners, LP TEP Susser Petroleum Partners LP SUSP Targa Resources Corp TRGP Targa Resources Partners LP NGLS Viper Energy Partners LP VNOM



Utilities ALLETE ALE Alliant Energy Corporation LNT American States Water Company AWR American Water Works Company, Inc. AWK Aqua America, Inc. WTR Artesian Resources Corp. ARTNA California Water Service Group CWT Chesapeake Utilities Corp. CPK CMS Energy CMS Connecticut Water Service Inc. CTWS Hawaiian Electric Industries HE MDU Resources Group Inc. MDU MGE Energy Inc. MGEE Middlesex Water Company Inc. MSEX NextEra Energy, Inc. NEE NextEra Energy Partners, LP NEP NorthWestern Corporation NWE Otter Tail Corporation OTTR Piedmont Natural Gas Company, Inc. PNY PNM Resources, Inc. PNM SJW Corporation SJW Spark Energy, Inc. SPKE TECO Energy, Inc. TE UIL Holdings Corporation UIL Unitil Corporation UTL Vectren Corporation VVC Wisconsin Energy Corporation WEC Xcel Energy Inc. XEL The York Water Company YORW

Oilfield Services Baker Hughes Incorporated BHI Basic Energy Services, Inc. BAS Cameron International Corp CAM Dril-Quip, Inc. DRQ FMC Technologies, Inc. FTI Forum Energy Technologies, Inc. FET Halliburton Company HAL Key Energy Services, Inc. KEG National Oilwell Varco, Inc. NOV Oceaneering International, Inc. OII Oil States International, Inc. OIS Schlumberger Limited SLB Superior Energy Services, Inc. SPN Weatherford International Ltd. WFT

Energy Technology 8Point3 Energy Partners, LP CAFD Albemarle Corporation ALB Aspen Aerogels, Inc. ASPN Calgon Carbon Corp. CCC Chemtura Corporation CHMT Covanta Holding Corp. CVA EnerNOC, Inc. ENOC First Solar, Inc. FSLR Glori Energy, Inc. GLRI Hannon Armstrong Sustainable Infrastructure HASI Itron, Inc. ITRI Opower, Inc. OPWR PolyOne Corporation POL PowerSecure International, Inc. POWR SolarCity Corporation SCTY SunEdison Inc. SUNE Silver Spring Networks Inc. SSNI SunPower Corporation SPWRA TerraForm Power Inc. TERP Tesla Motors Inc. TSLA W.R. Grace & Co. GRA

Industrial Automotive and Truck Supplies

AB Volvo VOLV.B Allison Transmission Holdings Inc. ALSN ArvinMeritor, Inc. ARM Autoliv, Inc. ALV BorgWarner, Inc. BWA Cummins Inc. CMI Delphi Automotive PLC DLPH Gentex Corporation GNTX Harman International Industries, Inc. HAR Johnson Controls, Inc. JCI Metaldyne Performance Group, Inc. MPG Methode Electronics Inc. MEI Mobileye, N.V. MBLY Modine Manufacturing Co. MODI Navistar International Corporation NAV PACCAR, Inc. PCAR Visteon Corporation VC WABCO Holdings Inc. WBC

Consumer Building Products Acuity Brands, Inc. AYI Allegion plc ALLE American Woodmark Corporation AMWD

Consumer Building Products (cont’d) Fortune Brands Home & Security, Inc. FBHS Ingersoll-Rand Company IR Lennox International Inc. LII Masco Corporation MAS Mohawk Industries, Inc. MHK Simpson Manufacturing SSD USG Corporation USG

Containers & Packaging AptarGroup, Inc. ATR Avery Dennison Corporation AVY Axalta Coating Systems AXTA Ball Corporation BLL Bemis Company BMS Crown Holdings, Inc. CCK Graphic Packaging Holding Co. GPK Greif, Inc. GEF Multi-Color Corp. LABL Multi Packaging Solutions International Ltd. MPSX Owens-Illinois, Inc. OI PPG Industries, Inc. PPG Rexam PLC REX.L RPM International Inc. RPM Sealed Air Corporation SEE Sherwin-Williams Co. SHW Silgan Holdings Inc. SLGN Sonoco Products Co. SON Valspar Corp. VAL

Diversified Industrial & Machinery Actuant Corporation ATU Astec Industries, Inc. ASTE Brady Corporation BRC Berry Plastics Group, Inc. BERY Caterpillar Inc. CAT Deere & Company DE Dover Corporation DOV Eaton Corporation ETN Hyster-Yale Materials Handling, Inc. HY Illinois Tool Works Inc. ITW Jason Industries JASN Joy Global Inc. JOY Lincoln Electric Holdings, Inc. LECO Manitowoc Company Inc. MTW Oshkosh Corporation OSK Parker Hannifin Corporation PH Rexnord Corporation RXN Snap-on Incorporated SNA Sun Hydraulics Corporation SNHY Terex Corporation TEX Titan Machinery Inc. TITN

General Industrial Barnes Group, Inc. B Carlisle Companies, Inc. CLS Douglas Dynamics, Inc. PLOW Middleby Corporation MIDD The Stanley Works SWK Twin Disc, Inc. TWIN

Industrial Distribution Air Products and Chemicals, Inc. APD Airgas, Inc. ARG Anixter International, Inc. AXE Beacon Roofing Supply, Inc. BECN Fastenal Company FAST Grainger, W.W., Inc. GWW HD Supply Holdings, Inc. HDS Houston Wire & Cable Company HWCC MRC Global Inc. MRC MSC Industrial Direct Co. MSM NOW Inc. DNOW Pool Corporation POOL Praxair, Inc. PX Stock Building Supply Holdings, Inc. STCK Watsco, Inc. WSO WESCO International, Inc. WCC

Process Controls ABB Ltd. ABB Advanced Drainage Systems, Inc. WMS Altra Holdings, Inc. AIMC A.O. Smith Corporation AOS Colfax Corporation CFX Emerson Electric Co. EMR Flowserve Corporation FLS Franklin Electric Co., Inc. FELE Generac Holdings Inc. GNRC Graco Inc. GGG IDEX Corporation IEX ITT Industries, Inc. ITT Milacron Holdings Corp. MCRN Mueller Water Products, Inc. MWA Nordson Corporation NDSN Pentair, Inc. PNR Regal-Beloit Corporation RBC

Process Controls (cont’d)

SPX FLOW, Inc. FLOW Watts Water Technologies, Inc. WTS Xylem Inc. XYL

Transportation/Logistics Arkansas Best Corp. ABFS CSX Corporation CSX C.H. Robinson Worldwide Inc. CHRW Expeditors International of Washington EXPD FedEx Corporation FDX Forward Air Corporation FWRD Heartland Express, Inc. HTLD Hub Group, Inc. HUBG JB Hunt Transport Services Inc. JBHT Knight Transportation, Inc. KNX Landstar Systems Inc. LSTR Norfolk Southern Corporation NSC Old Dominion Freight Line ODFL UTi Worldwide, Inc. UTIW Werner Enterprises WERN Roadrunner Transportation Systems RRTS Ryder System, Inc. R Swift Transportation Co. Inc. SWFT UPS UPS Union Pacific Corporation UNP

Technology

Computer Hardware & Storage Brocade Communications BRCD EMC Corporation EMC NetApp Inc. NTAP Palo Alto Networks, Inc. PANW Seagate Technology STX VMware VMW Western Digital Corporation WDC

Software & Services Adobe Systems Inc. ADB ANSYS, Inc. ANSS Autodesk, Inc. ADSK Citrix Systems, Inc. CTXS Exa Corporation EXA Qlik Technologies, Inc. QLIK Qualys, Inc. QLYS Red Hat, Inc. RHT Salesforce.com, Inc. CRM ServiceNow, Inc. NOW Solar Winds, Inc. SWI Splunk, Inc. SPLK Symantec Corp. SYMC Tableau Software Inc. DATA VeriSign Inc. VRSN Workday, Inc. WDAY Workiva, Inc. WK

EMS & Electronics Littelfuse Inc. LFUS Plexus Corp. PLXS

Internet / Interactive Entertainment Activision Blizzard, Inc. ATVI Amazon.com AMZN ChannelAdvisor Corporation ECOM eBay Inc. EBAY Electronic Arts, Inc. ERTS Facebook, Inc. FB Gamestop Corp. GME Alphabet Inc. GOOG Google, Inc. (A) GOOGL Liquidity Services, Inc. LQDT PayPal Holdings, Inc. PYPL Shutterfly, Inc SFLY Take-Two Interactive Software, Inc. TTWO Twitter, Inc. TWTR ValueClick, Inc. VCLK Yelp, Inc. YELP Zynga, Inc. ZNGA

IT Services Accenture ACN CIBER, Inc. CBR Cognizant Technology Solutions CTSH Infosys Technology Ltd. INFY Syntel Inc. SYNT

Advanced Industrial Equipment

AMETEK, Inc. AME Badger Meter, Inc. BMI CLARCOR, Inc. CLC Cognex Corporation CGNX Danaher Corporation DHR



Advanced Industrial Equipment (cont’d) Donaldson Company, Inc. DCI FARO Technologies, Inc. FARO Keysight Technologies, Inc. KEYS Landauer, Inc. LDR Mettler-Toledo Int’l, Inc. MTD Mine Safety Appliances Company MSA Mistras Group, Inc. MG National Instruments Corp. NATI Rockwell Automation Inc. ROK Roper Technologies ROP Trimble Navigation Limited TRMB Zebra Technologies Corporation ZBRA

Semiconductor Components Analog Devices, Inc. ADI Diodes Incorporated DIOD Fairchild Semiconductor Int’l, Inc. FCS Himax Technologies, Inc. HIMX Intel Corporation INTC InvenSense Inc. INVN Knowles Corporation KN Lattice Semiconductor Corp. LSCC Micron Technology, Inc. MU ON Semiconductor ONNN SanDisk Corporation SNDK Sigma Designs, Inc. SIGM STMicroelectronics NV STM Texas Instruments, Inc. TXN Xilinx Inc. XLNX

Supply Chain Technology Checkpoint Systems, Inc. CKP Garmin Ltd. GRMN Intermec, Inc. IN NCR Corporation NCR Plantronics, Inc. PLT ScanSource, Inc. SCSC Zebra Technologies Corporation ZBRA

Healthcare/Life Sciences Biotechnology

Alexion Pharmaceuticals, Inc. ALXN AMAG Pharmaceuticals, Inc. AMAG Amgen, Inc. AMGN Axovant Sciences Ltd. AXON Biogen Idec Inc. BIIB BioMarin Pharmaceutical, Inc. BMRN Celgene Corporation CELG Cempra Pharmaceuticals CEMP Cerus Corporation CERS Curis, Inc. CRIS Dicerna Pharmaceuticals, Inc. DRNA Enata Pharmaceuticals, Inc. ENTA Endocyte, Inc. ECYT Gilead Sciences, Inc. GILD Intercept Pharmaceuticals, Inc. ICPT Minerva Neurosciences, Inc. NERV Neurocrine Biosciences, Inc. NBIX NewLink Genetics Corporation NLNK Niavalis Therapeutics, Inc. NVLS Proteon Therapeutics, Inc. PRTO Sarepta Therapeutics SRPT Regeneron Pharmaceuticals REGN Tesaro, Inc. TSRO Tetraphase Pharmaceuticals TTPH Theravance Biopharma TBPH Theravance, Inc. THRX Ultragenyx Pharmaceutical Inc. RARE Vertex Pharmaceuticals, Inc. VRTX

Distribution & Services AmerisourceBergen Corporation ABC Cardinal Health, Inc. CAH Charles River Laboratories CRL Diplomat Pharmacy, Inc. DPLO Express Scripts Holding Company ESRX ICON plc ICLR INC Research Holdings, Inc. INCR McKesson Corporation MCK MedAssets, Inc. MDAS Owens & Minor, Inc. OMI PAREXEL International Corp. PRXL PRA Health Sciences, Inc. PRAH Premier, Inc. PINC Quintiles Transnational Holdings Inc. Q

Facilities & Services Acadia Healthcare Co., Inc. ACHC Addus HomeCare Corp. ADUS Almost Family, Inc. AFAM

Facilities & Services (cont’d) Amedisys, Inc. AMED AmSurg Corporation AMSG Community Health Systems, Inc. CYH DaVita, Inc. DVA Envision Healthcare Holdings, Inc. EVHC Fresenius Medical Care AG & Co. KGaA FMS HCA Holdings, Inc. HCA Health Management Associates, Inc. HMA HealthSouth Corporation HLS Laboratory Corporation of America Holdings LH LHC Group, Inc. LHCG LifePoint Hospitals, Inc. LPNT MEDNAX, Inc. MD Quest Diagnostics, Inc. DGX Select Medical Holdings Corporation SEM Team Health Holdings, Inc. TMH Tenet Healthcare Corp. THC Tetra Tech, Inc. TTEK Triangle Capital Corp. TCAP Universal Health Services, Inc. UHS

Information Technology Accretive Health, Inc. ACHI The Advisory Board Company ABCO Allscripts Healthcare Solutions, Inc. MDRX Athenahealth Inc. ATHN Cerner Corporation CERN Computer Programs & Systems, Inc. CPSI Healthstream Inc. HSTM HMS Holdings Corp. HMSY IMS Health Holdings, Inc. IMS Inovalon Holdings Inc. INOV Press Ganey Holdings, Inc. PGND Quality Systems, Inc. QSII

Life Sciences & Diagnostics Affymetrix, Inc. AFFX Agilent Technologies, Inc. A Cepheid CPHD Clarient, Inc. CLRT Exact Sciences Corp. EXAS Illumina, Inc. ILMN Meridian Bioscience, Inc. VIVO NanoString Technologies, Inc. NSTG Natera, Inc. NTRA Oxford Immunotec Global PLC OXFD PerkinElmer, Inc. PKI QIAGEN N.V. QGENF TECHNE Corp. TECH Thermo Fisher Scientific TMO Waters Corporation WAT

Medical Technology Align Technology, Inc. ALGN The Cooper Companies COO DENTSPLY International Inc. XRAY DexCom, Inc. DXCM Exactech, Inc. EXAC Henry Schein, Inc. HSIC Insulet Corporation PODD Lantheus Holdings, Inc. LNTH Patterson Companies, Inc. PDCO Sirona Dental Systems, Inc. SIRO Stryker Corporation SYK Tandem Diabetes Care, Inc. TNDM Varian Medical Systems, Inc. VAR Wright Medical Group, Inc. WMGI Zimmer Holdings, Inc. ZMH

Specialty Pharmaceuticals Acorda Therapeutics ACOR Achillion Pharmaceuticals Inc. ACHN

Financials Community Banks

Alcentra Capital Corporation ABDC Allegiance Bancshares, Inc. ABTX Associated Banc-Corp ASBC Cardinal Financial Corp. CFNL County Bancorp, Inc. ICBK Fidelity Southern Corporation LION Fidus Investment Corp. FDUS First Bank FRBA Garrison Capital Inc. GARS First Financial Bancorp FFBC IBERIABANK Corporation IBKC Independent Bank Corp. INDB Main Street Capital Corporation MAIN Monroe Capital Corporation MRCC New Mountain Finance Corporation NMFC Old Line Bancshares, Inc. OLBK PennantPark Investment Corp. PNNT PrivateBancorp, Inc. PVTB Prosperity Bancshares Inc. PRSP

Community Banks (cont’d) Regions Financial Corp. RF Sandy Spring Bancorp, Inc. SASR Stellus Capital Investment Corporation SCM StoneCastle Financial Corp. BANX TriState Capital Holdings, Inc. TSC Union First Market Bankshares UBSH Whitehorse Finance, Inc. WHF

Regional Banks Bank of America BAC BB&T Corp. BBT Capital One Financial Corporation COF Citizens Financial Group, Inc. CFG Comerica, Inc. CMA Fifth Third Bancorp FITB Huntington Bancshares Inc. HBAN JP Morgan Chase & Co. JPM KeyCorp KEY M&T Bank Corp. MTB PNC Financial Services PNC SunTrust Banks Inc. STI Synovus Financial Corp. SNV U.S. Bancorp USB Wells Fargo & Company WFC Zions Bancorporation ZION

Real Estate Real Estate

Agree Realty Corporation ADC Alexandria Real Estate ARE Apartment Investment and Management Company AIV Ashford Hospitality Trust Inc. AHT BioMed Realty Trust, Inc. BMR Armada Hoffler Properties Inc. AHH Cedar Realty Trust CDR Chesapeake Lodging Trust CHSP Cousins Properties, Inc. CUZ DDR Corporation DDR Digital Realty Trust, Inc. DLR DiamondRock Hospitality Co. DRH Duke Realty Corp. DRE DuPont Fabros Technology, Inc. DFT Equity Lifestyle Properties ELS mland Partners Inc. FPI First Industrial Realty Trust Inc. FR Franklin Street Properties Corp. FSP Hersha Hospitality Trust HT Hilton Worldwide Holdings Inc. HLT Host Hotels & Resorts HST Hyatt Hotels Corporation H Intercontinental Hotels Group PLC IHG Kilroy Realty Corporation KRC Kimco Realty Corporation KIM Kite Realty Group Trust KRG Landmark Infrastructure Partners LP LMRK LaSalle Hotel Properties LHO RLJ Lodging Trust RLJ Marcus Corporation MCS Marriott International, Inc. MAR Parkway Properties, Inc. PKY Peak Resorts, Inc. SKIS Pebblebrook Hotel Trust PEB Piedmont Office Realty Trust Inc. PDM Prologis Inc. PLD Ramco-Gershenson Properties Trust RPT Retail Opportunities Investments Corp. ROIC SL Green Realty Corp. SLG Spirit Realty Capital, Inc. SRC STAG Industrial Inc. STAG Starwood Hotels & Resorts Worldwide HOT STORE Capital Corporation STOR Sunstone Hotel Investors, Inc. SHO Sun Communities SUI Terreno Realty Corporation TRNO UMH Properties UMH

REITs American Campus Communities, Inc. ACC American Realty Capital Properties, Inc. ARCP Apple Hospitality REIT, Inc. APLE Ashford Hospitality Prime, Inc. AHP AvalonBay Communities, Inc. AVB Boston Properties, Inc. BXP Brixmor Property Group Inc. BRX Camden Property Trust CPT CatchMark Timber Trust, Inc. CTT Corporate Office Properties Trust OFC CoreSite Realty Corp. COR Education Realty Trust, Inc. EDR Equity Residential EQR Essex Property Trust, Inc. ESS



REITs (cont’d)

Extended Stay America, Inc. STAY Extra Space Storage Inc. EXR Highwoods Properties, Inc. HIW Home Properties, Inc. HME Investor Real Estate Trust IRET Jernigan Capital, Inc. JCAP Mid-America Apartment Communities MAA National Retail Properties Inc. NNN Post Properties, Inc. PPS Public Storage, Inc. PSA Realty Income Corporation O Regency Centers Corporation REG Saul Centers, Inc. BFS Sovran Self Storage, Inc. SSS Summit Hotel Properties, Inc. INN U-Store-It Trust YSI UDR, Inc. UDR Washington Real Estate Invst. Trust WRE Weingarten Realty Investors WRI Whiteside REIT WSR Note: Coverage list is as of November 30, 2015.

Global Investment Banking Contact List


Brian S. Doyal Co-Head of Global

Investment Banking +1.312.609.4916

[email protected]

Brian P. McDonagh Co-Head of Global

Investment Banking +1.704.553.6611

[email protected]

Rodney L. Jones-Tyson Managing Director

Chief Operating Officer +1.312.609.4984

[email protected]

Richard F. Waid Vice Chairman


C.H. Randolph Lyon Vice Chairman


Technology & Services Peter S. Kies Managing Director Head of Technology & Services Investment Banking +1.414.765.7262 [email protected] Christopher W. Hildreth Managing Director +1.312.609.4937 [email protected] Michael Horwitz Managing Director +1.415.627.3284 [email protected] John R. Lanza Managing Director +1.414.298.7669 [email protected] Mike Magluilo Managing Director +1.303.551.4673 [email protected] John Moriarty Managing Director +1.650.424.3811 [email protected]

Kiran Paruchuru Managing Director +1.414.298.7642 [email protected] Chase J. Sanders Managing Director +1.202.303.1807 [email protected] Breton A. Schoch Managing Director +1.312.609.4965 [email protected] Andrew K. Snow Managing Director +1.312.609.4972 [email protected] Ross W. Williams Managing Director +1.414.298.6235 [email protected] Daniel M. Alfe Director +1.312.609.4922 [email protected] Peter Augar Director +44.207.667.8263 [email protected] Jordan Klein Director +1.312.609.4978 [email protected] John Sun Director +44.207.667.8224 [email protected]

.

Industrial Paul T. Rogalski Managing Director Head of Global Industrial Investment Banking +1.312.609.4912 [email protected] Joel A. Cohen Managing Director Deputy Head of Global Industrial Investment Banking +1.312.609.4924 [email protected] Joseph T. Packee Managing Director Deputy Head of Global Industrial Investment Banking +1.414.298.7644 [email protected] Christopher C. McMahon Managing Director Head of Global M&A +1.312.609.4983 [email protected] Brian P. McDonagh Managing Director Co-Head of Global M&A +1.704.553.6611 [email protected] Justin T. Albert Managing Director +1.303.270.6381 [email protected] Christopher R. Cooper Managing Director +1.704.553.6610 [email protected] Adam W. Czaia Managing Director +1.414.298.7358 [email protected] Stephen B. Guy Managing Director +1.414.765.7247 [email protected] Jason P. Kliewer Managing Director +1.813.273.8242 [email protected] Thomas E. Lange Managing Director +1.813.273.8248 [email protected] Michael Lindemann Managing Director +1.414.298.7408 [email protected] Trisha K. Renner Managing Director +1.303.270.6347 [email protected] Christian Colucci Director +1.312.609.4475 [email protected] Yong-Jae Kim Director +1.312.609.4939 [email protected]

Consumer Brian P. McDonagh Managing Director Head of Consumer Investment Banking +1.704.553.6611 [email protected] Andrew Martin Managing Director +1.704.553.6615 [email protected]

Nicholas Pavlidis Managing Director +1.312.609.4977 [email protected] Joe Pellegrini Managing Director +1.704.553.6612 [email protected]

Christopher J. Sciortino Managing Director +1.312.609.4923 [email protected] Katie J. Melzer Director +1.415.627.3272 [email protected] Robert Rosenfeld Director +1.312.609.4971 [email protected] Matt Tingler Director +1.312.609.4470 [email protected] Maria Watts Director +1.312.609.4743 [email protected]

Real Estate Steven Goldberg Managing Director +1.703.918.7808 [email protected] James O’Brien Managing Director +1.703.918.7814 [email protected] Jeff Rogatz Managing Director +1.703.918.7823 [email protected] Adam Lefkowitz Director +1.703.918.7817 [email protected] Tom O’Hare Director +1.202.303.1811 [email protected]

Financial Services Mark C. Micklem Managing Director +1.703.821.5787 [email protected]

Healthcare Brian S. Doyal Managing Director Head of Healthcare Investment Banking +1.312.609.4916 [email protected] Rob Andrews Managing Director +1.312.609.5489 [email protected]

Benjamin A. Brown Managing Director +1.414.298.7013 [email protected]

Ryan Mausehund Managing Director +1.650.858.3817 [email protected]

Chase J. Sanders Managing Director +1.202.303.1807 [email protected]

David S. Schechner Managing Director +1.617.426.5424 [email protected] Bill Suddath Managing Director +1.404.264.2222 [email protected] Manish Gupta Director +1.414.765.3802 [email protected]

Energy Richard F. Waid Vice Chairman +1.404.264.2210 [email protected] Curtis Goot Managing Director +1.314.445.6540 [email protected] John R. Lanza Managing Director +1.414.298.7669 [email protected] Frank Murphy Managing Director +1.314.445.6532 [email protected] Nick Alfermann Director +1.314.445.6531 [email protected] Kjell Lundal Director +1.314.445.6533 [email protected]

Debt Advisory Howard P. Lanser Managing Director Head of Debt Advisory +1.312.609.5478 [email protected] Paul Bail Managing Director +44.207.667.8271 [email protected]

Financial Sponsors C. Christopher Coetzee Managing Director +1.312.609.4913 [email protected] Leslie Cheek IV Managing Director +1.617.426.5789 [email protected] Vinay Ghai Managing Director +44.207.667.8225 [email protected] Thomas W. Lacy Managing Director +1.414.298.7648 [email protected]

John Moriarty Managing Director +1.650.424.3811 [email protected] Jeffrey M. Seaman Managing Director +1.312.609.4687 [email protected] David M. Wierman Managing Director +1.404.264.2211 [email protected] Mergers & Acquisitions

Christopher C. McMahon Managing Director Head of Global M&A +1.312.609.4983 [email protected] Brian P. McDonagh Managing Director Co-Head of Global M&A +1.704.553.6611 [email protected] Owen L. Hart Managing Director +1.415.627.3273 [email protected] Howard P. Lanser Managing Director +1.312.609.5478 [email protected] Satoshi Matsumoto Managing Director Director of Japan M&A +1.646.557.3201 [email protected] J. David Cumberland, CFA Director, M&A Research +1.312.609.5429 [email protected]

Equity Capital Markets

Peter S. Kies Managing Director +1.414.765.7262 [email protected] Lance R. Lange Managing Director +1.414.765.7079 [email protected] Gary R. Placek Managing Director +1.414.765.3611 [email protected] Ryan Engelhardt Director +1.414.298.2637 [email protected]

Europe London†

David M. Silver Managing Director Head of European Investment Banking +44.207.667.8216 [email protected] John A. Fordham Chairman of Baird International +44.207.667.8438 [email protected] Paul Bail Managing Director +44.207.667.8271 [email protected] Julien Darmon Managing Director +44.207.667.8415 [email protected] Vincenzo di Nicola Managing Director +44.207.667.8532 [email protected] Vinay Ghai Managing Director +44.207.667.8225 [email protected] Jonathan Harrison Managing Director +44.207.667.8414 [email protected] Terry Huffine Managing Director +44.207.667.8430 [email protected] Nicholas R. Sealy Managing Director +44.207.667.8370 [email protected] Martin Luen Director +44.207.667.8381 [email protected] Frankfurt Thomas Fetzer Managing Director Head of DACH Investment Banking +49.691.301.4920 [email protected] Joachim Beickler Managing Director +49.69.13.01.49.51 [email protected] Michael Wolff Managing Director +49.69.13.01.49.49 [email protected] Sven Harmsen Director +49.69.13.01.49.56 [email protected]

Asia Shanghai

Anthony Siu Managing Director Head of Asia Investment Banking +86.21.6182.0980 [email protected]

_____________________ † Robert W. Baird Limited is authorized and regulated by the Financial Conduct Authority.

Appendix – Disclaimers and Other Disclosures


DISCLAIMERS This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy.

ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST

The Dow Jones Industrial Average, S&P 500, S&P 400, Russell 2000, FTSE 100, DAX, Hang Seng, and Nikkei 225 are unmanaged common stock indices used to measure and report performance of various sectors of the stock market; direct investment in indices is not available. Past performance is not indicative of future results.

Baird is exempt from the requirement to hold an Australian financial services license. Baird is regulated by the United States Securities and Exchange Commission, FINRA, and various other self-regulatory organizations and those laws and regulations may differ from Australian laws. This report has been prepared in accordance with the laws and regulations governing United States broker-dealers and not Australian laws.

Copyright 2015 Robert W. Baird & Co. Incorporated. No part of this publication may be reproduced or distributed in any form or by any means without our prior written approval. However, you may download one copy of the information for your personal, non-commercial viewing only, provided that you do not remove or alter any trade mark, copyright or other proprietary notice.

OTHER DISCLOSURES UK disclosure requirements for the purpose of distributing this report into the UK and other countries for which Robert W Baird Limited holds an ISD passport.

This report is for distribution into the United Kingdom only to persons who fall within Article 19 or Article 49(2) of the Financial Services and Markets Act 2000 (financial promotion) order 2001 being persons who are investment professionals and may not be distributed to private clients. Issued in the United Kingdom by Robert W Baird Limited, which has offices at Finsbury Circus House 15 Finsbury Circus, London, EC2M 7EB, and is a company authorized and regulated by the Financial Conduct Authority.

Robert W Baird Limited ("RWBL") is exempt from the requirement to hold an Australian financial services license. RWBL is regulated by the Financial Conduct Authority ("FCA") under UK laws and those laws may differ from Australian laws. This document has been prepared in accordance with FCA requirements and not Australian laws.

*Baird and its operating affiliates have offices in the United States, Europe and Asia. Robert W. Baird & Co. Incorporated. Member SIPC. Robert W. Baird Ltd. and Baird Capital Partners Europe are authorized and regulated in the UK by the Financial Conduct Authority. ©2015 Robert W. Baird & Co. Incorporated.

Robert W. Baird & Co. www.rwbaird.com

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