THE PREMIER PROVIDER OF M&A SERVICES TO

TECHNOLOGY COMPANIES WORLDWIDE.

M&A 2004: A Mid-Year Review

Corum Group Quarterly Webinar

www.corumgroup.com
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

Topics

M&A Review – 1st Half 2004

M&A Activity by Sector

Deal Making Environment

Positioning for Maximum Value

 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

Corum Group
• M&A specialists since 1985
• Software and IT experts
• Offices in USA, Canada, and Europe
• 25% of transactions international
• Recognized industry leaders/experts
• Sponsor of Selling Up Selling Out Conferences
• Sponsor of World Financial Symposium Conferences
• Publisher of Merge newsletter
• Publisher of industry leading M&A research
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

Corum’s 2004 Transactions

NetNanny
Tombstone to
be Placed here
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

Companies in LOI
1. Leading product design and logistics software
company serving the consumer goods, food &
beverage, and pharmaceutical industries
2. High-end engineering simulation software company
3. Leading legal office automation software company
4. Leading ERP software supplier for the plastics
manufacturing industry
5. Industry leading storage management and
recovery solutions
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

YTD M&A Activity by Sector

Supp l y C ha i n M a na ge me n t

C onne c t i vi t y

Ga mi ng

De v e l opme nt T ool s

IT Se r vi c e

Ve r t i c a l Ma r ke t - Fi na nc i a l Se r vi c e s

B us i n e s s In t e l l i g e nc e

Ve r t i c a l M a r ke t - He a l t hc a r e

Ve r t i c a l M a r ke t

E ng i ne e r i ng

E nt e r pr i s e C ont e nt M a na ge me nt

Di gi t a l M e d i a

Int e r n e t P ur e P l a ys

St or a ge

Ve r t i c a l Ma r ke t - T e l e c om

E nt e r pr i s e Inf r a s t r uc t u r e

E nt e r pr i s e Appl i c a t i ons

Wi r e l e s s

Se c u r i t y
Number of
Int e r ne t Inf r a s t r uc t u r e
Announcements
0 100 200 300 400 500 600 700
T o t a l A mo u n t R a i s e d
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

Distribution of M&A Revenue Multiples

35

30

25

20

15

10

0
Unde r 1. 0x - 1. 5x - 2. 0x - 2. 5x - 3. 0x - 3. 5x - 4. 0x - 4. 5x - 5. 0x - 5. 5x - 6. 0x - 6. 5x - 7. 0x+
1. 0x 1. 5x 2. 0x 2. 5x 3. 0x 3. 5x 4. 0x 4. 5x 5. 0x 5. 5x 6. 0x 6. 5x 7. 0x
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

Median Valuation Multiples

Trailing Multiple Forward Multiple
P/E EV/EBITDA EV/S P/E EV/S
Business Intelligence 79.25 x 34.76 x 2.52 x 21.77 x 1.86 x
Connectivity 61.63 x 32.50 x 1.72 x 26.50 x 1.27 x
Digital Media 33.49 x 19.56 x 3.11 x 26.39 x 2.37 x
Enterprise Applications 85.71 x 21.29 x 2.41 x 25.35 x 2.05 x
Enterprise Content Management 71.30 x 21.30 x 2.12 x 24.93 x 1.42 x
Enterprise Infrastructure 39.47 x 25.27 x 3.02 x 26.37 x 2.39 x
Engineering 33.15 x 24.91 x 3.18 x 18.25 x 2.21 x
Gaming 28.36 x 9.85 x 1.69 x 19.37 x 1.39 x
Internet Infrastructure 33.49 x 25.27 x 5.03 x 25.27 x 4.14 x
Internet Pure Plays 97.37 x 61.73 x 4.13 x 37.54 x 2.83 x
IT Services 21.04 x 9.63 x 0.96 x 17.28 x 0.75 x
Software Development Tools 59.10 x 24.15 x 4.40 x 26.84 x 2.60 x
Security 39.97 x 23.03 x 4.61 x 24.22 x 3.22 x
Storage 19.77 x 14.13 x 3.32 x 19.03 x 2.72 x
Supply Chain Management 36.96 x 12.77 x 1.94 x 26.39 x 2.52 x
Vertical Market - Financial Services 22.28 x 12.95 x 2.79 x 24.63 x 2.35 x
Vertical Market - Healthcare 26.36 x 9.84 x 2.44 x 18.27 x 1.91 x
Vertical Market - Telecom 24.26 x 14.72 x 2.53 x 17.69 x 2.07 x
Vertical Market Software Index 33.51 x 12.42 x 1.43 x 20.38 x 1.17 x
Wireless - - 2.23 x 33.63 x 2.63 x
* Median Sector Multiples
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

M&A Activity: Sector Spotlight

IT Services
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

M&A Activity: Sector Spotlight

Internet Pure Plays
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

M&A Activity: Sector Spotlight

Enterprise Applications
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

M&A Activity: Sector Spotlight

Vertical Market – Financial Services
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

M&A Activity: Sector Spotlight

Internet Infrastructure
 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

M&A Deal Making Environment

 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

Positioning for Maximum Value

 THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.

Contact Information
Corum Group Ltd.
10500 NE 8th Street, Suite 1500
Bellevue, WA 98004
USA
(425) 455-8281

Corum Group International

Hottingerstrasse 21
CH-8032 Zurich
Switzerland
+41 1 251 82 65

www.corumgroup.com