Social Media Marketing & Management Tools Market Update - April 2021
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Social Media Marketing & Management Tools Market Update April 2021 1000 S ECON D A V EN UE S UITE 1200 S EA TTL E, W A 98104 M EM BER FIN R A / S IPC
Agenda
I. State of the Industry
II. Cascadia Capital Overview
1
SECTION I
State of the
Industry
2
Social Media Marketing Will Continue to
Dominate Digital Ad Spending In 2021
Social Media Dominates Consumer Attention During Pandemic… …Helping Digital Ad Spend Hold Steady
While consumers tried to curb their social media usage pre-pandemic, COVID-19 has While global ad spend declined by 4.9%, largely because of the pandemic, global digital
temporarily caused consumers to spend more time on social media at home ad spend achieved ~2.4% growth in 2020
Average Daily Minutes Spent by U.S. Adults on Social Media Full Year Internet Ad Revenues in $USD Billions $526.2
90 $600.0 100.0%
$485.3 90.0%
85
82 $500.0
$441.1
80
80.0%
78 79 $389.3 70.0%
76 $325.0 $332.8
80 $400.0
75 60.0%
75
73 $300.0 50.0%
40.0%
66
70 $200.0
15.9% 17.0%
30.0%
13.3% 10.0% 8.4% 20.0%
2.4%
65 $100.0
10.0%
60 $0.0 0.0%
2015 2016 2017 2018 2019 2020 2021 2022 2019 2020 2021 2022 2023 2024
Digital Ad Spend % Change
Source: eMartker, Uptick in US Adults’ Social Media Usage Will Likely Normalize Post- Pandemic Source: eMartker, Global Digital Ad Spend Update 2020
Social Media Will Continue to Lead Digital Advertising… …And Businesses Have Adjusted Budgets Accordingly
Google Search, YouTube, Facebook, and Youtube Display Facebook/Instagram Search (Google + Bing) Other*
12% 15% Instagram account for at least 66% of
digital advertising spend
Last
10% 17% 24% 33% 16%
Year
15% Salesforce cites the ability to target
30% consumers directly based on their identity
as the main reason Google and Next
11% 16% 26% 34% 14%
Facebook/Instagram attract the lion’s share Year
28% of ad spend
Of those surveyed by Salesforce, more and more advertisers will rely on Social Media
and video content than ever before
Youtube Display Facebook/Instagram Search (Google/Bing) Other*
Source: Salesforce Research, “Digital Advertising 2020” Source: Salesforce Research, “Digital Advertising 2020”
* Other includes Snapchat, LinkedIn, Pinterest, and other
3
Accelerated Digitalization Due to Pandemic
Stimulating Social Media Ad Use
Digital Adoption Rising Across Industries Companies Recognize Social Media as a Critical Lead Source
With consumers accelerating the adoption of digital channels, and brands suffering Enterprise Sales Lead Sources
through traditional retail channels with uncertainties surrounding COVID, businesses
can no longer treat digital channels as a luxury and must learn to go digital to remain Companies today
Digital or Online Ads 44%
relevant, or risk losing to competition that does recognizing Social
Media as a reliable
Digital Adoption, Percent of Digital Access Regular Users First-Time Users tool to drive
72% Social Media 37%
revenue
64% 61%
21% In a recent survey
24% 44% Website 25%
31% 39% 38% 37% 35% conducted by
13% Zendesk, customers
9% 11% 6% 8%
51% Referrals / Word-of-Mouth 19% cited digital ads and
40% social media as the
30% 31% 30% 27% 31% 27%
two best sources for
Email / Content Marketing 12% sales leads
Banking Ent. Grocery Apparel Utilities Telcom Travel Insurance
Source: Mckinsey COVID-19 US Digital Sentiment Survey, Apr 25-28, 2020 Source: Zendesk Customer Survey, “Where do you get your Best Sales Leads”, 07/27/20
Content Quality Drives Consumption Humanizing Digital Brand Communications Through Ads
“Interesting content matters more As lockdowns magnify the need for people to seek out higher quality connections
Fun or Entertaining 55% online, brands have ramped social ad spend in attempts to humanize customer
than big names”
experiences through intimate in-feed formats.
Real or Authentic 53%
In a recent survey conducted by Social network spending
Facebook for Business, consumers $57
Creative 53% estimated to spike to 21% in 2021 $49
were less interested in who was
$40
posting the content and more Informative 51% $36
interested in what the content was $29
Personally Relevant 46% 26% 21%
This trend highlights the need for 11% 16%
34%
tools meant to aid in generating Inspiring or Uplifting 45%
creative content for brands,
regardless of business size Beautifully Produced 36% 2018 2019 2020 2021 2022
U.S. Social Network Ad Spending % Change
Source: Facebook for Business, Survey Responses to “Top types of content people surveyed say Source: eMarketer, Oct 2020.
they want to see from Brands”
4
Social Media Marketing & Management Tools
Evolving to Serve Growing Number of Users
Upswing in Social Media eCommerce Penetration… …Across Multiple Platforms Requiring Scalability to Manage
Online purchases through social media channels are predicted to reach $101M, Total social media users around the world has grown by 490 million people over the
growing from 3% total retail penetration to an expected 5% in 2023 last 12 months to reach 4.2+ billion users, roughly equivalent to 53% of the world’s
$101 population
$96
($ in millions) $90
$80
$64 353M users 442M users
$53
$46 8.4 average number of
social media accounts
4% 5% 5% 498M users per internet user
3% 2,291M users
3% 3% 3%
2017 2018 2019 2020 2021 2022 2023
2,740M users 430M users 689M users 1,221M users
U.S. Social Commerce Buyers % of Total Retail eCommerce Sales
Source: eMarketer, Jan 2021. Source: Globalwebindex (Q3, 2020); Hootsuite & Wearesocial, Digital 2021 Global Report
A Call-to-Arms For Cross-Social Platform Management AI Integration Increasing to Assist with Management Scalability
As the use of multiple social platforms continues to grow, the ability to create unified AI will become pervasive in social media tools, allowing marketers to create smarter
messaging and branding becomes increasingly difficult. Platform management plays social campaigns and better engage with consumers by understanding and predicting
are steadily maturing and driving sophistication in the market their thoughts and needs
CRMs Chatbots
Many CRMs already have built-in AI tools to Chatbots today are increasingly employing AI
easily connect to customer data touchpoints software to automate conversations
Personalize; an AI-powered recommendation AI-based social media analytics platform that
engine to track customer top interests in real-time provides thoughtful recommendations and insights
Uses AI to analyze how ads can attain better ROI Helps organizations set up and maintain company
profiles across multiple websites
5
The Modern Customer Journey
S C A L I N G U P T H E P U R C H A S E P E A K , T H E N C R U I S I N G D OW N A S L OYA L A DVO C AT E S
Proper social media marketing is critical to influencing consumers during this phase Social media marketing is critical to maintaining
consumer engagement during this phase
Awareness Findability Reputation Conversion Advocacy Loyalty
Contributes To The Current Consumer’s Decision Contributes to the next consumer’s decision
Interest & Search Research Purchase Experience Influence
Awareness Interested in learning Knowing the brand Convinced of the Assessment of the Both positive and negative
more, the consumer exists, an on-the-fence brand’s value and purchased product / brand advocates help
Consumer is made aware of a does an initial search consumer will dive costs, a consumer service after initial and validate and further grow
new brand / product / service to validate the brand deeper into the brand’s converts from a long-term use brand identity, attracting
reputation, conducting potential buyer to a generates both positive and retaining more
Social / search advertising Organic search research to help first-time buyer and negative brand consumers
Email / text marketing PPC validate or clarify their advocates
Loyalty programs SEO questions Website Repeat purchases
YouTube / video ads Maps Online booking Post-purchase Referral program
Television Directories Blogs & articles Purchase via app Expectations VS Affiliate Links
Billboard Apps Reviews In-store purchase reality Blogs & articles
Online display advertising “Near me” Social Media Salesperson Social posting Social Media
Newspaper / magazine GPS Organic search Call center Writing reviews Online and offline reviews
Radio Word of mouth Blogs Word of mouth
Word of mouth Word of mouth Growth of brand and
advocate influence 6
Brands Rely on UGC to Create Digital
Authenticity with Consumers
With the sheer volume of corporate ads in market today, consumers are turning to user-generated content and
influencers to find their own truth
Rise of Consumer Judgement Toward Corporate Ads The Role of Brand Advocates and Influencers
As companies become more responsive to the need for personalized ad content, Successful advertising Consumers Want More Information When Shopping Digitally
consumers are equally becoming more discerning towards corporate messaging campaigns today must To highlight something that wasn’t obvious
=
connect with consumers on 24%
92% 51% 84% a deeper level; purchasing
goods and services is no
To see a product in action before they buy
21%
of marketers believe most of consumers actually of consumers agree that longer a one-stop process To feel more confident that the reviews are accurate
or all the content their believe less than half of negative ad experiences 17%
brands creates resonates as brands create content that create a poor opinion of the
authentic with consumers resonates as authentic brand being advertised “Influencers” have To see the quality of a product easier
become the new litmus 17%
Consumers value brands that advertise with high levels of test for success and low- To see the size, fit, or color of a product easier
cost marketing tool to 11%
engage target audiences To see the material of a product easier
Relevance Clarity Distinctiveness
7%
Source: Stackla, “Bridging the Gap: Consumer & Marketing Perspectives on Content in the Digital Age”; Hubspot, Source: Bazaarvoice, “How Visual and Social Content Increase Online Sales”, 1/26/21
“Why People Block Ads”
Building Consumer Loyalty With User-Generated Content In a Digital Age
With the proliferation and growing volume of digital commerce and advertising sources, UGC takes influencer and word-of-mouth marketing to the next level-- helping to
authenticate brands to their target audience with a more personalized and informal view; relatability and trustworthiness are keys to winning consumer loyalty
Negative UGC creates the Video UGC formats are UGC puts consumers at ease
Brands can easily share and UGC acts as social proof paired
opportunity to build rapport increasing conversion, with 92% with their purchasing decision,
utilize existing UGC with little with real life experiences that
with promise of brand of users sharing what they have with 60% of those more likely
to no cost organically promotes brands
improvement seen with others to buy a recommendation
UGC can be helpful in UGC is engaging, with UGC is highly influential with People trust UGC reviews,
UGC has high levels of visibility
uncovering fake reviews or consumers spending an average the hard to penetrate millennial almost as much as
amongst relevant and engaged
censorship when finding only of 5 hours a day with UGC market through social media recommendations from friends
audiences
positive comments platforms (e.g. IG, YouTube) hashtags or family
Source: Annex Cloud.
7
The Customer Voice
P O S I T I V E C O N S U M E R E X P E R I E N C E S G E N E R AT E H U G E C O M P E T I T I V E A DVA N T AG E S
Vital to understanding customers and making more informed decisions that align with their needs, Voice of the
Customer (VoC) processes are critical in improving the overall customer experience of any product or service
Customer Reputation Brand Market Product Marketing
Experience Management Awareness Intelligence Management Strategy
Positive and Negative VoC Directly Impacts Every Aspect of a Brand
Collecting VoC Data Notable Performance Improvements
Collecting customer feedback helps brands understand customer expectations, and identify Proven correlation between feedback and achieving higher business growth
ways to deliver on those expectations
Customer Social Customer Focus Net Promoter Increased satisfaction / NPS / similar measures 61%
Surveys Listening Interviews Groups Score
Increased retention 38%
Increased referrals / positive word of mouth 33%
The most scalable way Posts, forums, blogs, Directly interacting Controlled Simplest way to Decreased customer retention spend 25%
to gather structured review sites – anything with a customer gathering a small uncover customer
customer feedback; that might describe a can help uncover a group of people loyalty; “On a scale
Increased spend or share of wallet 21%
able to target any positive interaction or particular with a moderator of 0 to 10, how
stage in the buying complaint provides experience to discuss a likely are you to
cycle, from first great insight into what through body specific issue, recommend us to a Increased upsell and cross-sell success rates 20%
contact to purchase consumers would want language and product feature, or friend or
improved verbal cues topic colleague?” Decreased cost to serve 17%
Source: SuperOffice, Voice of Customer 2/8/21.
8
Macro M&A Trends Altering Process Dynamics
M AC R O M & A M A R K E T S A R E E X P E R I E N C I N G F L I G H T T O Q UA L I T Y
United States M&A Activity Declined Through 2020…
While middle market deal volume declined in Q2 and Q3 2020, estimated deal activity increased to record highs by Q4 2020 and is expected to continue into 2021
3,498 3,553
$350 4,000
3,351 3,257
3,113 3,173 3,209
3,003 2,975 3,056 3,017
3,500
2,906 2,930 2,864 2,967
$300
2,805 2,817 2,763 2,805 2,734 2,808 2,796 2,808 2,795 2,815
2,573 2,641 2,731 $22
3,000
$250
2,464 2,376 2,458 $100
2,321
2,126 2,233 2,018 2,039
2,500
$200
$43
2,000
$150 $22
1,500
$100
1,000
$50
500
$168 $158 $161 $228 $160 $136 $171 $187 $236 $220 $237 $228 $238 $213 $228 $229 $240 $217 $215 $216 $256 $223 $228 $257 $294 $243 $265 $259 $253 $243 $246 $255 $243 $147 $181 $221
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016 2017 2018 2019 2020
Deal Value ($B) Estimated Deal value ($B) # of Deals Closed Estimated Deal count
...With Multiples Enduring at Near Historic Highs… … Underpinned by Private Equity Dry Powder
U.S. M&A multiples remain elevated and are trading at near all-time highs, and are expected to Record levels of dry powder, coupled with definite fund lives necessitate PE funds to deploy capital
remain so in the near distant future which will drive M&A activity
(U.S. M&A Multiples) (U.S. PE Fundraising)
$1,850 $1,903
10.7x 11.1x
10.6x $1,664
9.8x 10.2x 9.8x
9.1x 9.3x 9.3x $1,493
$1,331
$1,182
$1,118
$1,211
$1,139 $1,151
6.1x $1,070
$969
5.4x
3.9x 4.6x 4.9x 4.9x 5.6x $997 $1,032
$894
4.4x 4.4x $881 $927
$805
$746
$752
$737
$729
$686
$651
$549
$488
5.5x
$732
5.3x
$721
5.3x 5.3x
$695
4.7x 5.0x 4.9x 5.0x 5.0x
$599
$526
$465
$402
$399
$393
$378
$346
$346
$341
2012 2013 2014 2015 2016 2017 2018 2019 2020* 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Debt/EBITDA Equity / EBITDA EV/EBITDA Dry Powder ($B) Deployed Value ($B)
1) U.S. M&A multiples and U.S. PE fundraising as of 12/31/20
9Broader Market Considerations
U.S. Equity Markets Rally to All-Time High and Appetite for Transactions Remain Strong
S&P500 Index Value in $USD, Three Years
$4,500
$3,750
$3,000
$2,250
$1,500
Mar 18 May 18 Jul 18 Sep 18 Nov 18 Jan 19 Mar 19 May 19 Jul 19 Sep 19 Nov 19 Jan 20 Mar 20 May 20 Jul 20 Sep 20 Nov 20 Jan 21
• While public equity markets have rallied to near all-time highs from last March, market sentiments remain mixed. The risk of rising interest rates and record global
debts offset by early signs of strong economic recovery, are sending mixed signals to investors that remains positive, albeit weary
• The US exited the recession late last year almost as quickly as it entered it in March. Most already expected the downturn to “be briefer than previous
contractions” – especially with the March 2021 round of fiscal stimulus that supplements the $3 trillion already injected last year
• Private Equity acquirers have remained active in the market and are eager to deploy their record levels of overhang capital, maintaining a valuation floor for
transactions
• While stock fluctuations may have affected strategic buyer’s willingness to commit to transaction strategies in Q1 and Q2, Strategic acquirers who have fared
well and have weathered operational challenges have continued acquisition activities
• Since the beginning of 2019, Strategic and Private Equity acquirers have shifted from volume-oriented acquisition strategies to paying premiums to acquire
higher-quality assets; this trend has been exacerbated by the pandemic in 2020, with attention and premiums placed on companies that have overperformed
during the pandemic
Source: The Wall Street Journal; Financial Times
10
Source: CapIQ as of 3/17/21Notable Market Activity
S O C I A L M E D I A M A R K E T I N G & M A N AG E M E N T T O O L S
2019 – Q1 2021 Notable M&A Activity
$USD in millions
13 12
11
14
10
9 9 9
12
7
10
6 8
6
Julun Network
4
No values No values
$120 $47 $80 $258 publicly disclosed $181 publicly$0
disclosed
2
$35 $54 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021
Deal Value Deal Volume
2019 – Q1 2021 Notable Fundraising Activity
$USD in millions
51 49 59 56 64
47
40
60
29
50
26 40
30
20
10
0
$189 $79 $134 $107 $120 $75 $85 $97 $354 -10
-20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021
Deal Value Deal Volume
Source: Pitchbook as of 3/7/21.
11
Note: Total Deal Volume may understate actual market volume as figures in chart include only those deals with disclosed total round sizes and
total transaction sizesSelected Transaction Comparables
Historically, social media marketing and management tools have traded in the 4.0x – 5.0x range, with buyers
stretching upwards of 6.0x – 8.0x for assets with proprietary or automated analytics and optimization features
Jul 2018 Oct 2018 Jan 2019 May 2019 Dec 2019 Apr 2020 Jul 2020 Feb 2021 Mar 2021
Selected
Market Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by
Activity
Median
Transaction $180M
$182M $540M $120M $22M $237M $158M $180M $450M $85M
Size
Revenue 4.6x
4.6x 6.0x 4.7x 4.4x 2.8x 4.9x 4.0x 4.5x 7.7x
Multiple
Main Street Hub Spredfast Falcon.io Brand Embassy Smartly.io is a Simpleview ‘s 4C provides Brandwatch Stamped
creates and provides a offers a unified is a developer platform platform planning, provides AI- provides AI-
manages social platform that SaaS platform of a digital designed to integrates creative, based social based e-
media presence processes for social customer automate content reporting, and media commerce
of local social content, media engagement content creation, management, optimization monitoring marketing and
businesses, giving brands listening, platform campaign customer tools for TV and analytics reviews
Target helping to build the visibility, engagement, designed to management, relationship and social software management
Description mobile-friendly context, and publishing, and answer and analytics for management media
software to
landing pages tools they need managing customer social media and interactive advertising in a
build social
that to make better customer data inquiries advertising marketing unified
communicates consumer through social services platform
trust and
directly with touchpoints media power
customers channels engagement
Source: Pitchbook Data, CapIQ, 451 Research, Mergermarket
12Trading Comparables Analysis
S O C I A L M E D I A & S O C I A L M E D I A M A N AG E M E N T
($USD in millions) Equity Net Debt/ Enterprise LTM 3-Year Gross LTM EBITDA EV / Revenue EV / EBITDA
Company Value EBITDA Value Revenue CAGR Margin EBITDA Margin LTM NTM LTM NTM
Alphabet Inc. $1,512,900.7 -2.0x $1,403,649.7 $182,527.0 18.1% 53.6% $54,903.0 30.1% 7.7x 10.3x 25.6x 16.9x
Facebook, Inc. 891,577.0 -1.3x 840,800.0 85,965.0 28.4% 80.6% 39,533.0 46.0% 9.8x 15.2x 21.3x 15.4x
Microsoft Corporation 1,884,799.7 -0.7x 1,835,592.7 153,284.0 14.4% 68.4% 71,687.0 46.8% 12.0x 16.8x 25.6x 22.6x
Netccentric Limited 38.8 -44.5x 36.9 6.0 (12.2%) 47.8% 0.1 0.9% 6.1x - NM 0.0x
Pinterest, Inc. 52,669.5 98.5x 51,092.2 1,692.7 53.0% 73.5% (16.0) (0.9%) 30.2x - NM 84.9x
Snap Inc. 90,845.2 0.7x 90,311.2 2,506.6 44.8% 52.8% (765.3) (30.5%) 36.0x 77.3x NM 273.2x
Sprout Social, Inc. 3,078.2 5.0x 2,940.2 132.9 43.7% 73.7% (27.8) (20.9%) 22.1x - NM NM
Mean $603,489 27.2% 64.3% 10.2% 17.7x 29.9x 24.1x 68.8x
Median $90,311 28.4% 68.4% 0.9% 12.0x 16.0x 25.6x 19.7x
Social Media & Social Media Mgmt Multiples Over Time
TEV/Revenue TEV/EBITDA
18.0x 30.0x
24.3x 26.3x
23.1x
20.1x
13.5x 22.5x
18.6x 18.4x 17.7x
16.3x
18.8x
15.4x
13.4x
12.3x
9.0x 15.0x
11.3x
4.5x 7.5x
3.8x
4.1x 5.7x 4.5x 5.4x 5.2x 9.9x 5.9x 8.8x 10.2x 10.9x
0.0x 0.0x
2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021E
Source: S&P Capital IQ
13Trading Comparables Analysis (Cont’d)
D I G I T A L M A R K E T I N G & E N T E R P R I S E A P P L I C AT I O N S
($USD in millions) Equity Net Debt/ Enterprise LTM 3-Year Gross LTM EBITDA EV / Revenue EV / EBITDA
Company Value EBITDA Value Revenue CAGR Margin EBITDA Margin LTM NTM LTM NTM
Adobe Inc. $236,504.0 0.0x $236,248.0 $13,682.0 21.1% 87.5% $5,333.0 39.0% 17.3x 26.2x 44.3x 30.1x
salesforce.com, inc. 203,347.6 -1.8x 197,794.6 21,252.0 26.3% 74.4% 3,123.0 14.7% 9.3x 18.9x 63.3x 25.9x
Oracle Corporation 213,583.4 1.9x 247,745.4 39,691.0 0.4% 80.6% 17,649.0 44.5% 6.2x 6.2x 14.0x 12.0x
SAP SE 153,423.9 1.1x 163,899.6 33,441.0 5.2% 71.2% 9,251.4 27.7% 4.9x 5.8x 17.7x 14.5x
HubSpot, Inc. 22,472.6 15.5x 22,010.0 883.0 33.0% 81.1% (29.8) (3.4%) 24.9x 43.5x NM 148.8x
Zendesk, Inc. 16,287.8 -1.9x 16,064.9 1,029.6 33.8% 75.7% (106.7) (10.4%) 15.6x 27.1x NM 113.8x
GoDaddy Inc. 14,073.2 5.4x 16,830.3 3,316.7 14.1% 65.1% 508.5 15.3% 5.1x 6.3x 33.1x 16.5x
Pegasystems Inc. 9,567.3 -1.1x 9,620.3 1,017.5 4.6% 69.4% (122.2) (12.0%) 9.5x 10.8x NM 150.7x
Nielsen Holdings plc 8,977.0 7.1x 17,338.0 6,290.0 (1.5%) 56.1% 1,145.0 18.2% 2.8x 2.7x 15.1x 11.8x
Criteo S.A. 2,164.9 -1.7x 1,805.3 2,072.6 (3.4%) 33.2% 203.3 9.8% 0.9x 1.9x 8.9x 6.7x
Yellow Pages Limited 267.1 0.0x 267.5 261.8 (22.9%) 38.8% 85.6 32.7% 1.0x 0.6x 3.1x 3.3x
Fluent, Inc. 327.5 0.9x 357.3 310.7 13.6% 30.8% 34.0 10.9% 1.1x 1.5x 10.5x 10.4x
comScore, Inc. 381.6 13.6x 616.7 356.0 (4.1%) 50.2% 17.2 4.8% 1.7x 1.5x 35.8x 24.0x
Mean $71,584 9.3% 62.6% 14.8% 7.7x 11.8x 24.6x 43.7x
Median $16,830 5.2% 69.4% 14.7% 5.1x 6.2x 16.4x 16.5x
Digital Marketing & Enterprise Applications Multiples Over Time
30.0x
TEV/Revenue TEV/EBITDA
13.5x
26.3x
22.3x
22.5x
18.5x 19.1x
17.2x 17.6x
15.8x 15.7x
18.8x
15.4x
9.0x
12.7x 15.0x
11.7x
11.3x
4.5x
7.5x
3.8x
3.8x 4.1x 4.8x 4.1x 4.1x 4.3x 4.3x 5.0x 5.2x 5.1x
0.0x 0.0x
2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021E
Source: S&P Capital IQ
14SECTION II
Cascadia Capital
Overview
15Our Firm
Founded in 1999
Cascadia has a successful 20 year history
INDUSTRY
EXPERTISE
60 investment banking
professionals
DEAL
VOLUME
RESULTS
FOCUS
19 Managing Directors
385 transactions completed, Headquartered in Seattle, with
with more than $13.5 billion offices in Los Angeles, Minneapolis
in aggregate value and New York
Leading diversified Experienced team with
investment bank successful track record
• M&A, private placements, advisory services • Cascadia is the investment bank of choice for
entrepreneurs and family-owned companies
• Specialized in-depth expertise across multiple
industry verticals • Decades of investment banking and operational
expertise
• Representing clients in the US and globally,
including Europe, Asia and Australia • Deep capital markets expertise
16Providing a Full Suite of Banking Services
We have completed hundreds of M&A transactions ranging in
size from $20-$500 million. Our thorough and disciplined
MERG ERS & process, in combination with our deep industry expertise, has ENGAGEMENTS INCLUDE:
AC QUI S IT ION S resulted in a proven track record of delivering successful
outcomes for our clients. • Mergers & Acquisitions (Buy & Sell Side)
• Corporate Divestitures
• Management Buyouts
• Leveraged Buyouts
We have extensive experience placing equity and debt • Recapitalizations
capital ranging from $10-$250 million. We leverage our
C ORP ORAT E deep relationships with institutional investors; including
• Partial Liquidity Events
F I N AN C E private equity, growth equity, venture capital, family office, • Private Equity Capital Raises
mezzanine and venture debt, hedge funds and BDCs. • Public Company Capital Raises
• Debt Financings & Restructurings
• Project Finance
• Valuations
S T RAT E G I C We provide our clients with analytical data and insights to
• Fairness Opinions
facilitate strategic decision-making. We advise our clients on
ADVI S ORY how to maximize shareholder value and then provide support • Shareholder Rights Planning
S ERVI C ES for transaction implementation. • Shareholder Value Analysis
• Strategic Alternatives Reviews
• Strategic Partnerships & Joint Ventures
• Special Situations
We listen carefully to business owners and managers and then
P RI VAT E work closely with them to custom design long-term and
C AP I TAL flexible capital solutions. Our approach resonates particularly
well with family-owned and closely-held companies.
17Process and Experience Deliver Results
We Differentiate Each Team Members Our Experience and
Process With a Have Approach
Customized Deep Industry Drive
Approach Expertise Results
• We are thoughtful advisors who • With bankers across multiple • We have experience, industry
deliver a tailored process to suit the industry verticals, we have the focus and a differentiated
needs of our clients experience to offer industry process that drives success
breadth while maintaining sector
• We understand the strategies of the depth • Our transactions are built upon
counterparties, enabling us to tell delivering the best quantitative
them why they should be interested • Dedicated resource model with and qualitative terms with the
– allowing Cascadia to drive the comprehensive vertical expertise most desirable counterparty
transaction and maximize results from Managing Director to Analyst
$10.5+ billion in total M&A transactions closed in the firm’s history
$3+ billion in total capital raised in the firm’s history
18A Local Firm with International Reach
Cascadia’s International Reach Is Proven by Its Track Record of Closing Deals with International Buyers
March 2016
Additional relationships
through close ties with
Note: Dark shading represents countries where Cascadia
maintains active strategic relationships
19Proven Results
M O S T R E C E N T T R A N S AC T I O N S
20Proven Results
M O S T R E C E N T T R A N S AC T I O N S
21Cascadia Value Drivers for Clients
TRUST
Our long-term relationship
WALL STREET AND
approach provides ability to be a INTERNATIONAL EXPERIENCE
trusted advisor and we are WITH SUPERIOR COVERAGE
motivated to optimize the
Cascadia brings a unique
outcomes for clients
combination of Wall Street class
investment banking and broad
international reach to deliver
optimal client outcomes
EXPERIENCED AND
COMMITTED TEAM
We have the broadest and most
senior team focused on our
engagements, bringing an
integrated experience and all the
firm’s resources to effectively PROVEN CLOSERS
execute a successful transaction
Cascadia has completed over 385
transactions worth over $13.5
CUSTOMIZED APPROACH billion since our founding in 1999
We will deliver a thoughtful and
creative custom approach to execution
that helps you break paradigms in
driving valuation
22Technology Practice
Principal Sector Focus
• Compliance and eLearning
Business Services • Security
• Infrastructure Software
• Software Development and IT
• Human Capital Management / HR Tech
Consumer & Retail Operations Management (“DevOps”)
• Legal and Tax Solutions
• Storage Management
• Public Safety
Digital Health & Healthcare • Sales, Marketing & Support
• Retail & Commerce Technology
Services
Overview
Energy & Applied Technology We have over 80 years of collective experience in M&A and Financing transactions within the
Technology sector, and extensive prior operational and corporate development expertise. We
are domain experts, which enables us to uniquely position our clients in terms of their people,
Food, Beverage & Agribusiness business models and technology, to the most appropriate strategic acquirers or private equity
investors.
Industrials
Representative Transactions
Technology
23Cascadia’s Extensive Sales and Marketing
Technology Transaction Experience
Project Indigo
(leading B2B video
automation and marketing
software)
Has been acquired by
A SMB Website
Building and
Hosting Company
24Cascadia’s Technology Team Continues to be
Active in the Market
Team Performance (2016 – 2021 YTD) Cascadia Has Regular Dialogue with Key Industry Players
Financial Sponsors Strategic Buyers
In Transaction
$2.0B Value since
2016
45
Closed
Transactions
since 2016
12 Current Live
Engagements
Core Technology Sector Coverage
Sales and Marketing Technology
Customer Experience Management
Software
Retail & Commerce Technology
Digital Media
25The Technology and Services Banking Team
Teague Collins Nicodemo Esposito Hugh Campbell Matthew Riendeau Andrew Kim
Managing Director, Managing Director, Managing Director, Managing Director, Vice President,
Technology Business Services, Technology Business Services, Technology Technology Technology
Experience: Experience: Experience: Experience: Experience:
14+ years banking 19+ years banking 14+ years banking 12+ years banking, 8+ years banking
9 years with Cascadia 1 year with Cascadia 13 years with Cascadia with Cascadia 3 years with Cascadia
Matthew Martin Alan Cai Kyle Aleinikoff Laura Zhao Alex Azera
Associate Associate Associate Analyst Analyst
Experience: Experience: Experience: Experience: Experience:
4+ years banking, 4+ years banking, 4+ years banking, 3+ years banking, 2+ years banking,
1 year with Cascadia with Cascadia with Cascadia 1 year with Cascadia with Cascadia
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