FLP Experience in R/E Software Market – Strategy and M&A 1

FrontLine Partners Viewpoint Series M&A Experience Summary for Real Estate Software Market

Corporate Strategy Formation Market Potential and Segmentation First and Second Pass Profiles on Acquisition Candidates Go To Market Approach and Strategy Formation of Board Level Investment Package

www.frontlinepartners.net

FLP Experience in R/E Software Market – Strategy and M&A 2

Corporate Development and M&A Experience Summary in Real Estate Software Market

Spent approximately 12 months immersed in the real estate technology and services market for a top 10 financial services software company looking at real estate software as an adjacent industry play.

Conducted detailed market sizing and segmentation analysis to estimate total spend potential by major geographic blocks across the world and across major customer segment groupings.

Built a value chain of activities across the real estate industry to identify high, medium and low pools of value by function as well as major segment groupings.

Reviewed the competitive landscape of technology and service providers (reviewed 210 companies in total), both vertical industry specialists as well as functional specialists, to determine under-served segments of the market.

Interviewed over 50 funds and REITs to gain an informed prospective into the industry requirements, provided a detailed market segmentation, described in detail the functional requirements, and provided additional analysis on the list of acquisition targets.

Examined the characteristics of the major customer segments including their propensity to spend / utilize technology services (looked at pure software play versus services model).

Overall Approach

FLP Experience in R/E Software Market – Strategy and M&A 3

Return on Investment

Worked to identify the right mix of acquisitions, synergies, and cost reductions to

bring the service offering to market.

Delivered unique market analysis and built an investment case to add more than 40% growth to Client in less than a five year time frame.

Identified a “flank” approach to migrate Client’s business into investment/portfolio management that has cross-over opportunities into financial services.

Put rigor and consistency behind the business case and planning process and provided a detailed investment case and ROI to present to the Board.

Positioned Client to acquire one or more real estate software providers and obtain large market share.

Participated in pursuit discussions of primary core acquisition candidates with Client management.

Identification and M&A Strategy for $400 MM Growth Opportunity in Adjacent Market

FLP Experience in R/E Software Market – Strategy and M&A 4

Phase I and II

Our Task: Provide Client with an understanding of the market potential, gauge and size the market opportunity, and identify key market providers within

the real estate software market.

What We Did: Interviewed a dozen industry experts to gain an informed perspective into the industry requirements, provided detailed market

segmentation, described in detail the functional requirements, and provided additional analysis on the list of acquisition targets.

Value to Client:

Reduced analysis time to less than 6 weeks Provided a good understanding of the real estate market in a short period of

time Customized market sizing for Client (this is not available by any other

market research group) Identified high value software/services opportunities and excluded low value

opportunities

Market Potential and Feasibility / Go To Market Approach

FLP Experience in R/E Software Market – Strategy and M&A 5

Phase III

Our Task: At the completion of phase II, we continued into phase III to further explore two primary market segments (capital markets, owner operator) and one secondary (corporate real estate) and within these segments we

identified and ranked seven functional opportunities.

What We Did: As part of this phase we interviewed top real estate CIOs, further analyzed the functional opportunities, and conducted initial due

diligence on the primary acquisition candidates.

Value to Client

Provided focused access to SME industry interviews with top real estate CIOs

Conducted detailed market segmentation analysis Gathered market intelligence on acquisition targets Completed robust acquisition profiles Provided verification of initial market analysis and hypothesis Built a short list of acquisition candidates Designed well defined acquisition scenarios

Drill Down on Three Market Segments and Initial Screening of Acquisition Candidates

FLP Experience in R/E Software Market – Strategy and M&A 6

Phase IV and V

Our Task: At the completion of phase III, we shifted gears from the market analysis and focused on identification of primary and secondary acquisition

targets, as well as, re-defining the market opportunity.

What We Did: Contacted and interviewed 15 potential acquisition candidates, Devised the primary and secondary list of acquisition candidates, Obtained

detailed information about the acquisition candidates financials and technology capabilities, and Designed a business plan for acquisition as

well as supporting financials

Value to Client:

Access (without disclosure of the Client name) to senior members of acquisition candidates

Details about their business, financials, and technology capabilities Well designed investment case and ROI analysis Construction of a very defined market opportunity.

Secondary Screening of Acquisition Candidates Formulation of Final Board / Investment Package

FLP Experience in R/E Software Market – Strategy and M&A 7

FrontLine Partners Overview

FrontLine Partners (www.frontlinepartners.net) is a management consulting firm that works with banks, institutional investors, lenders, owners, intermediaries, and service providers in the commercial real estate and financial services industry to help them accelerate growth of their business or reposition their business model and assets.

FrontLine Partners offers a number of services ranging from strategy formation, corporate and business development, mergers and acquisitions, capital sourcing, loan work-outs and corporate restructuring. Refer to our website at www.frontlinepartners.net for additional information.

For further information on your unique needs, please contact our Managing Partner - Jim Vincent at 214.369.2085 – for a free initial consultation.