Online Retail Market Monitor - March 2021 - Hexagon Capital Alliance
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Mergers & Acquisitions Capital Raise Strategic Advisory
Online Retail Market Monitor
March 2021
RECENT HCA TRANSACTION ANNOUNCEMENT Mergers & Acquisitions Capital Raise Strategic Advisory
Quadrant Private Equity (“Quadrant”) has acquired a majority interest in Annex
Products Pty Ltd (“Annex”), the maker of Quad Lock, an innovative, case-based, mobile Transaction
device mounting ecosystem that caters to outdoor enthusiasts. Quadrant is investing Announcement
alongside the founders of the business, Rob Ward and Chris Peters. We acted as
financial advisor to Annex.
“Working with the [HCA] team was great, and, although we did the entire deal Experience
remotely, we were always confident that Tyler and his team understood our needs and
were 100% across all aspects of the deal,” said Rob Ward, co-founder of Annex.
Since its founding in 2011, millions of Quad Lock products have shipped to more than Market Data
100 countries. The Quad Lock brand has grown to be a global leader in smartphone
mounting solutions as a result of its continued focus on high-quality products, global
distribution network and brand position, particularly in the cyclist, motorcycle, and
Transaction
drive and run segments. Data
Annex leveraged its market leading DTC platform to accelerate Quad Lock’s global
growth and enhance profit margins. Its expertise in the DTC distribution channel
differentiated itself, operationally and financially, from other competitors and solidified HCA Overview
its best-in-class position in the segment.
Justin Ryan, managing partner at Quadrant Private Equity, said, “Quad Lock has
experienced very strong growth in recent years due to the company’s global customer Services
reach, market leading direct-to-consumer online business, and ongoing focus on
innovative new product development. We are excited to be partnering with Rob, Chris,
and the Quad Lock team in their next phase of growth.”
Advice
Quadrant Private Equity is a leading, Sydney-based middle market private equity
group. The firm has raised in excess of $5.1 billion and 10 funds since inception. This
represents the sixth investment that Quadrant has made from the $400 million
Quadrant Growth Fund, which was raised in April 2019. Contact Us
2
PROVEN TRACK RECORD OF SUCCESSFUL TRANSACTIONS Mergers & Acquisitions Capital Raise Strategic Advisory
Transaction
Announcement
Experience
Market Data
Transaction
Data
HCA Overview
Services
Advice
Contact Us
3
ONLINE RETAIL SALES POSTING STRONG GROWTH Mergers & Acquisitions Capital Raise Strategic Advisory
Industry Update U.S. Online Sales as a Share of Total Retail Sales
▪ The U.S. Department of Commerce reported that online retail sales $220,000 18.0%
Total Retail Sales ($)
reached $209.5 billion in Q3 2020, an increase of 36.7% as compared to $200,000 Transaction
Total Online Retail Sales ($ in millions)
E-Commerce as a Percent of Total Retail Sales 16.0% Announcement
Q3 2019. While Q4 data has yet to be released, the acceleration is
Percentage of Total Retail Sales
$180,000
expected to have continued with record sales during the holiday $160,000
14.0%
shopping season. $140,000
12.0%
▪ Within the U.S., online sales during the holiday season (Nov. 1 – Dec. $120,000 10.0% Experience
31) grew to a record $188.2 billion, representing a 32.1% YoY increase $100,000 8.0%
from 2019. $80,000
6.0%
$60,000
▪ Since the onset of COVID-19, the frequency of online shopping in the 4.0%
$40,000 Market Data
U.S. has increased across all age demographics. Trends in mobile 2.0%
$20,000
commerce and social media advertising continue to facilitate the shift
$- 0.0%
to online purchases. We anticipate this trend to continue; creating a
pathway for brands to reach new customers while keeping customer Transaction
acquisition costs under control. Data
Online U.S. Holiday Sales ($ in billions) Online Shopping during COVID-19 in the U.S.
HCA Overview
$200.0 $188.2 Once a week or more A few times / month Almost Never
Before 48% 36% 16%
$160.0 Younger
$142.5
than 35
$126.0 During 62% 23% 15% Services
$120.0 $108.2
$94.4
$82.5 Before 36% 38% 26%
$80.0 $70.1 35 - 54
During 44% 28% 28% Advice
$40.0
Before 27% 37% 36%
55 and
$0.0 older Contact Us
During 34% 34% 32%
2014 2015 2016 2017 2018 2019 2020
Source: U.S. Department of Commerce, Adobe Analytics,
4
COMPANIES ADAPTING TO THE COVID-19 ENVIRONMENT Mergers & Acquisitions Capital Raise Strategic Advisory
Changing Business Model
▪ As the long-term impact of COVID-19 continues to develop, short-term disruptions have caused many companies to begin changing their business to
operate in the post-COVID19 world. Transaction
Announcement
▪ While many traditional big box retailers have been able to adapt to a more E-Commerce centric business model, traditional mall retailers continue to
struggle to implement necessary changes to maneuver the current environment. For example, Macy’s recently announced the permanent closure of
nearly one-fifth of their stores, or roughly 125 locations over the coming years, while Nordstrom announced a similar plan to 15% of their total locations.
Experience
▪ Regarding M&A activity, many consumer-focused private equity funds have shifted away from brick-and-mortar assets in favor of companies that have
demonstrated an ability to leverage online platforms to thrive in a post-pandemic environment. Similarly, strategic acquirers who are burdened with
physical locations are seeking E-Commerce focused targets to diversify brands, boost margin, and more easily reach the global online consumer. In this
environment, the key for sellers is to demonstrate that their DTC channel growth is sustainable (not just COVID related) and that they are well positioned
Market Data
for the future of E-Commerce.
Big Box Retailers Recent Stock Performance Mall Retailers Recent Stock Performance
Transaction
Data
80.0% 80.0%
60.0% Target
60.0%
40.0% 40.0% American Eagle HCA Overview
Lowe’s
Walmart
20.0% 20.0%
The Home Depot
The Gap
0.0% 0.0%
Services
80.0%
(20.0%) 80.0%
(20.0%) Nordstrom
Macy’s
60.0%
(40.0%) 60.0%
(40.0%)
40.0%
(60.0%) 40.0%
(60.0%)
Advice
(80.0%)
20.0% (80.0%)
20.0%
(100.0%)
0.0% (100.0%)
0.0%
(20.0%) (20.0%) Contact Us
(40.0%) (40.0%)
Source: CapitalIQ, company filings.
(60.0%) 5(60.0%)
PUBLIC COMPANY VALUATIONS Mergers & Acquisitions Capital Raise Strategic Advisory
$ in millions, except share price 2/16/21 TTM Data NTM Est. Growth EV Multiple
Share Market Enterprise Gross EBITDA TTM TTM NTM NTM
Category Company Name Price Cap Value Sales Gross Profit Margin EBITDA Margin Sales EBITDA Sales EBITDA Sales EBITDA
Amazon.com, Inc. $3,268.95 $1,646,128 $1,662,961 $386,064 $152,757 39.6% $48,150 12.5% 22.6% 49.8% 4.31x 34.5x 3.5x 23.1x
eBay Inc. 62.87 42,776 47,267 10,271 7,798 75.9% 3,326 32.4% 16.4% 25.7% 4.60x 14.2x 4.0x 11.3x
Transaction
Etsy, Inc. 228.32 28,789 28,375 1,378 973 70.6% 328 23.8% 29.2% 53.3% NM NM 15.9x NM Announcement
Wayfair Inc. 277.55 28,571 29,846 13,008 3,625 27.9% 143 1.1% 17.6% 365.2% 2.29x NM 2.0x 44.7x
Online Retailers / Brands
Farfetch Limited 69.75 23,687 23,715 1,516 698 46.0% (337) NA 33.8% (106.7%) NM NA 11.7x NM
Stamps.com Inc. 274.16 5,000 4,697 713 537 75.3% 199 27.9% 4.6% 18.5% 6.59x 23.7x 6.3x 20.0x
Overstock.com, Inc. 104.47 4,468 4,071 2,237 503 22.5% 19 0.8% 19.5% 341.9% 1.82x NM 1.5x 48.6x
Experience
Revolve Group, Inc. 37.65 2,644 2,500 587 305 51.8% 62 10.5% 10.2% 13.3% 4.26x 40.3x 3.9x 35.6x
1-800-FLOWERS.COM, Inc. 31.30 2,030 1,937 1,858 791 42.6% 173 9.3% 12.1% 19.4% 1.04x 11.2x 0.9x 9.4x
CarParts.com, Inc. 21.40 1,026 996 387 135 34.9% 8 2.2% 21.8% 83.6% 2.57x NM 2.1x NM
Lands' End, Inc. 31.06 1,013 1,419 1,439 612 42.5% 89 6.2% 3.8% (0.9%) 0.99x 15.9x 1.0x 16.1x
PetMed Express, Inc. 37.88 761 655 312 91 29.2% 40 12.8% 3.5% 11.4% 2.10x 16.3x 2.0x 14.7x Market Data
Duluth Holdings Inc. 14.07 462 731 642 333 51.8% 54 8.4% 6.4% 22.0% 1.14x 13.5x 1.1x 11.1x
Median $4,468 $4,071 $1,439 $612 42.6% $89 9.9% 16.4% 22.0% 2.29x 16.1x 2.1x 18.0x
Average $137,489 $139,167 $32,339 $13,012 47.0% $4,020 12.3% 15.5% 69.0% 2.88x 21.2x 4.3x 23.4x
E-Commerce Payment
PayPal Holdings, Inc. $304.79 $356,963 $353,649 $21,454 $10,001 46.6% $4,295 20.0% 19.3% 73.6% NM NM 13.8x 47.4x Transaction
Fiserv, Inc. 110.20 73,882 94,659 14,852 7,040 47.4% 4,480 30.2% 7.7% 40.9% 6.37x 21.1x 5.9x 15.0x Data
Processors
Global Payments Inc. 196.70 58,682 66,543 7,424 3,798 51.2% 2,879 38.8% 1.8% 24.7% 8.96x 23.1x 8.8x 18.5x
Afterpay Limited 115.84 33,972 33,860 329 236 71.8% 7 2.0% 126.2% NM NM NM 45.5x NM
Shift4 Payments, Inc. 81.57 3,683 4,041 758 179 23.5% (12) NA 28.3% NM 5.33x NA 4.2x 30.4x
Median $58,682 $66,543 $7,424 $3,798 47.4% $2,879 25.1% 19.3% 40.9% 6.37x 22.1x 8.8x 24.5x HCA Overview
Average $105,436 $110,550 $8,963 $4,251 48.1% $2,330 22.7% 36.7% 46.4% 6.89x 22.1x 15.6x 27.9x
E-Commerce Infrastructure
Shopify Inc. $1,474.00 $181,097 $175,879 $2,457 $1,301 53.0% $59 2.4% 44.9% 820.9% NM NM 49.4x NM
Snowflake Inc. 294.55 83,387 78,839 489 295 60.3% (421) NA 92.0% (35.6%) NM NA NM NA
VeriSign, Inc. 198.15 22,611 23,234 1,265 1,085 85.8% 871 68.8% 3.9% 4.3% NM 26.7x 17.7x 25.6x
Services
Wix.com Ltd. 279.46 15,549 14,924 911 642 70.5% (141) NA 30.6% (206.7%) NM NA 12.5x NM
GoDaddy Inc. 85.01 14,380 16,897 3,317 2,158 65.1% 519 15.6% 11.6% 94.5% 5.09x 32.6x 4.6x 16.8x
BigCommerce Holdings, Inc. 74.81 5,173 5,033 140 108 77.2% (31) NA 18.1% (5.4%) NM NA 30.4x NA
Median $19,080 $20,066 $1,088 $863 67.8% $14 15.6% 24.3% (0.6%) 5.09x 29.6x 17.7x 21.2x
Average $53,700 $52,468 $1,430 $932 68.6% $143 29.0% 33.5% 112.0% 5.09x 29.6x 22.9x 21.2x Advice
Median $19,080 $20,066 $1,408 $670 51.5% $75 12.5% 17.8% 23.3% 4.26x 22.1x 4.6x 19.2x
Overall Online Retail
Average $109,864 $111,530 $19,742 $8,167 52.6% $2,698 17.1% 24.4% 77.6% 3.83x 22.8x 10.8x 24.3x
Contact Us
Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the
median estimate of Wall St. analysts.
Source: CapitalIQ, company filings.
SELECT, RECENT M&A ACTIVITY Mergers & Acquisitions Capital Raise Strategic Advisory
$ in millions
Close EV/ EV/
Date Target Acquirer/Investor Short Description Implied EV Revenue EBITDA
Announced Drizly, Inc. Uber Technologies, Inc. Develops a smart phone application that allows users to get on-demand beer, wine, and liquor deliveries $1,100.0 - -
Announced GunBroker.com, LLC AMMO, Inc. Operates an online firearm auction platform - - -
Announced JM Bullion, Inc. A-Mark Precious Metals, Inc. Operates as an online retailer of precious metals $173.9 0.12x -
Transaction
Announced RuMe Inc. The GEM Group, Inc. Operates as an online store that offers duffel bags, travel accessories, travel apparel, reusable totes, and everyday bags - - - Announcement
Announced ZAGG Inc Evercel, Inc. Designs, manufactures, and distributes mobile tech accessories $226.4 0.48x 6.5x
Announced Boxy Charm Inc. Personalized Beauty Discovery, Inc. Provides monthly beauty box subscription services - - -
Announced 1-800 CONTACTS, Inc. KKR & Co. Inc. Engages in the online retail of lenses - - -
Announced TLA Acquisition Corp. PLBY Group, Inc. Offers adult health and wellness products online $25.0 - -
Experience
Announced Smoke Cartel, Inc. High Tide Inc. Engages in the online retail and wholesale of glass water pipes and related accessories $8.0 - -
Feb-21 Green Garden Products LLC Central Garden & Pet Company Manufactures and sells non-GMO seeds and organic plant food for home gardeners and outdoor hobbyists $532.0 - -
Feb-21 DermStore, LLC THG Holdings plc (nka:THG Plc) Operates as an online retailer of skin care and cosmetic products $350.0 - -
Feb-21 Wholesome Sweeteners, Inc. Whole Earth Brands, Inc. Produces, packages, and supplies sweeteners and honey $240.5 - - Market Data
Feb-21 EcomAutomotive, Inc. The Wheel Group Holdings, LLC Operates an E-commerce platform offering outdoor accessory products - - -
Feb-21 Venice Longboards Sleeping Bear Capital, LLC Manufactures and sells skateboards through their website - - -
Feb-21 Vardise Inc. Fanfiber Merchandise BV Operates an E-commerce website that allows internet creators to design, produce, and sell merchandise - - -
Transaction
Jan-21 recteq, LLC Norwest Equity Partners Designs, markets, and sells pellet grills and accessories online - - -
Data
Jan-21 Double Wood LLC Boyne Capital Partners; SALT Venture Partners Produces dietary supplements and nootropics products which it offers in-store and online - - -
Jan-21 Smith & Vandiver Corporation San Francisco Equity Partners Manufactures bath, body, and skincare products which it sells online - - -
Jan-21 Jade Leaf Matcha WM Partners Operates an online platform through which it sells tea, matcha, latte mix, tools, and gift set - - -
Jan-21 Apolloversity Incorporated Pluralsight, Inc. Operates a platform that enables development of coding and computer programming lessons online - - - HCA Overview
Jan-21 June Life, Inc. Weber-Stephen Products LLC Manufactures countertop ovens that are sold online - - -
Jan-21 The Equine Network Growth Catalyst Partners Provides horse-related services online - - -
Jan-21 Household Essentials, LLC Regent Holding Company, LLC Manufactures, distributes, and retails laundry, storage, organization, and home décor products - - -
Jan-21 NavePoint LLC Infinite Electronics, LLC Engages in online retailing of networking equipment, racks, cabinets, shelves, and accessories - - -
Services
Jan-21 Freshop, Inc. NCR Corporation Provides an E-commerce platform for online shopping and delivery of groceries - - -
Jan-21 Guardian Technologies LLC Lasko Products, LLC Manufactures and sells home and office health and sanitation products - - -
Jan-21 Fresh Direct, LLC Centerbridge Partners Online fresh food grocer, selling groceries, ingredients, and food online - - -
Jan-21 Holden2 LLC Swedencare AB (publ) Retails pet healthcare products through an online platform $21.4 1.35x 8.6x
Advice
Dec-20 Rhapsody International Inc. MelodyVR Group PLC (nka:Napster Group PLC) Provides music and audio streaming services to customers online $70.2 0.62x -
Dec-20 Supreme Holdings, Inc. V.F. Corporation Manufactures and retails skateboarding products and accessories $2,400.0 4.80x -
Dec-20 Furniture Factory Outlet, LLC American Freight Group, Inc. Owns and operates furniture and accessories retail stores - - -
Dec-20 SmartyPants Vitamins, Inc. Unilever United States, Inc. Develops, markets, and distributes GMO-free gummy vitamins and supplements for kids and adults - - -
Contact Us
Dec-20 Custom Personalization Solutions, LLC LiveXLive Media, Inc. Engages in the retail of apparel, home goods, and jewelry online $7.0 0.37x -
Source: CapitalIQ, company filings.
SELECT, RECENT M&A ACTIVITY Mergers & Acquisitions Capital Raise Strategic Advisory
$ in millions
Close EV/ EV/
Date Target Acquirer/Investor Short Description Implied EV Revenue EBITDA
Dec-20 Florence Beauty, LLC Private Investor Engages in online retailing of skincare and makeup products - - -
Dec-20 P & M Solutions, LLC Central Garden & Pet Company Online retails pest control products in the United States - - -
Dec-20 Think Operations, LLC Topix Pharmaceuticals, Inc. Engages in retailing of body care, sun care, and baby care products - - -
Transaction
Dec-20 Ross-Simons, Inc. Nonantum Capital Partners, LLC Offers jewelry in their retail stores and online - - - Announcement
Dec-20 poppin inc. Kimball International, Inc. Manufactures and retails various office products online $180.0 - -
Dec-20 Nutrisystem, Inc. Kainos Capital LP Provides weight management products and services online $575.0 - -
Dec-20 WinCraft, Inc. Fanatics, Inc. Manufactures licensed and promotional products for retailers, professional sports teams, distributors, and schools - - -
Dec-20 Ancestry.com LLC The Blackstone Group Inc. Provides online family history and personal DNA testing $4,700.0 4.70x -
Experience
Dec-20 ProClip USA, LLC Prospect Partners, L.L.C. Designs and manufactures mounting solutions for commercial and consumer electronic devices - - -
Dec-20 Topmost Chemical & Paper Corporation Brady Industries, Inc. Distributes janitorial supplies and equipment online - - -
Dec-20 Beverages & More, Inc. GoBrands, Inc. Engages in the retail of specialty beverages online and in select retail stores $350.0 - -
Nov-20 Juice&I Inc. Puree Juice Bar Produces cold-pressed juices and offers its products through stores and online - - - Market Data
Nov-20 RadioShack.com LLC Retail Ecommerce Ventures LLC Retails electronic gadgets online - - -
Nov-20 Simpson Performance Products, Inc. Holley Performance Products, Inc. Designs and manufactures racing and riding safety equipment for the motor sports industry - - -
Nov-20 RUSTICESCENTUALS.COM, Inc. Wholesale Supplies Plus, Inc. Operates an online fragrance oils, soap, and candle making, and related crafts supplies retail platform - - -
Transaction
Nov-20 Campbell’s Sweets Factory b.a. Sweetie Candy Company, Inc. Produces and retails popcorn, chocolates, cupcakes, and cookies online - - -
Data
Nov-20 ARIIX Holdings, LLC New Age Beverages Corporation (nka:NewAge, Inc.) Manufactures nutritional supplements which it sells online and through representatives $280.3 1.27x 14.0x
Nov-20 ZOE Baby Products, LLC Paladino Capital Produces and engages in the design and manufacture of strollers - - -
Nov-20 MistoBox LLC Clive Coffee, LLC Produces coffee and sells it online - - -
Oct-20 Freshly, Inc. Nestlé USA, Inc. Provides freshly prepared meals online $1,681.0 - - HCA Overview
Oct-20 Incredible Solutions, Inc. Polytek Development Corp. Offers epoxy coating and casting systems through its E-commerce platform - - -
Oct-20 MedOfficeDirect, LLC HealthLynked Corp. Operates an online marketplace that offers medical equipment and supplies to consumers and medical practices $6.0 - -
Oct-20 HARA Flow Inc. Eco-Growth Strategies Inc. Develops and produces a hemp-based CBD products for athletes which it sells through its websites - - -
Oct-20 Shoebuy.com, Inc. CriticalPoint Capital, LLC Engages in the online retail women, men, and kids footwear and apparel - - -
Services
Oct-20 Gentleman's Box LLC Cigar Club, LLC Provides a gift subscription box for men online - - -
Oct-20 SA Company TZP Group Operates as an online retailer of outdoor apparel and other gear - - -
Sep-20 Made in America Company, LLC Made in America Movement Operates an internet based marketplace for products made in America - - -
Sep-20 Webb Collection HPG Offers personal care and health products online - - -
Advice
Sep-20 Naturally Pure Therapy Products Corp. BevCanna Enterprises Inc. Engages in the online retailing of natural health products $5.6 1.54x -
Sep-20 RTIC Outdoors LLC Wind Point Advisors, LLC Engages in online retailing of premium coolers and insulated drinkware for outdoor enthusiasts - - -
Sep-20 Annex Products Pty Ltd Quadrant Private Equity Designs and manufactures a case-based mounting system which it sells online and through select distributors Confidential - -
Sep-20 Assets of CafePress Inc. PlanetArt, LLC Operates as an online retailer of stock and user-customized products - - -
Contact Us
Median $233.5 1.27x 8.6x
Source: CapitalIQ, company filings.
OVERVIEW OF SELECT, NOTABLE TRANSACTIONS Mergers & Acquisitions Capital Raise Strategic Advisory
acquired parent of September 2020
Transaction
Announcement
▪ In September 2020, Quadrant Private Equity (“Quadrant”), a leading, Sydney-based middle market private equity group, acquired Annex Products Pty
Ltd (“Annex”), the maker of Quad Lock, an innovative, case-based, mobile device mounting ecosystem that caters to outdoor enthusiasts.
▪ Annex was founded by Rob Ward and Chris Peters in 2011. Since its founding, millions of Quad Lock products have shipped to more than 100 countries.
Experience
The Quad Lock brand has grown to be a global leader in smartphone mounting solutions as a result of its continued focus on high-quality products,
global distribution network and brand position, particularly in the cyclist, motorcycle, and drive and run segments.
▪ Justin Ryan, managing partner at Quadrant Private Equity, said, “Quad Lock has experienced very strong growth in recent years due to the company’s
global customer reach, market leading direct-to-consumer online business, and ongoing focus on innovative new product development. We are excited Market Data
to be partnering with Rob, Chris, and the Quad Lock team in their next phase of growth.”
▪ “Working with the [HCA] team was great, and, although we did the entire deal remotely, we were always confident that Tyler and his team understood
our needs and were 100% across all aspects of the deal,” said Rob Ward, co-founder of Annex. Transaction
Data
acquired September 2020
HCA Overview
▪ In September 2020, Kohlberg Kravis Roberts (“KKR”), a New York-based private equity firm, announced an acquisition of 1-800 Contacts, the largest
direct-to-consumer (“DTC”) E-Commerce provider of contact lenses and online vision exams.
Services
▪ John Graham CEO of 1-800 Contacts stated, “It’s gratifying that KKR sees such incredible value in our brand and that they will continue to support us in
doing what we do best-delivering the best vision care to consumers with the highest quality customer service.”
▪ “We believe 1-800 Contacts’ singular focus on providing a consistent and high-quality customer experience, fueled by industry-leading capabilities and
telemedicine solutions, positions them well to continue to drive innovation in the category” said Felix Gernburd, KKR Managing Director. Advice
▪ Additionally, Felix Gernburd said in an interview, “When shelter-in-place orders were restricting movement, 1-800 Contacts was one of the few places
you could go to get your contacts.” It has been reported, at the peak of the COVID-19 shutdowns the number of people using the Company’s two online
eye-exam apps at least tripled.
Contact Us
Source: Company press releases, S&P CapitalIQ, Reuters
WHAT WE’RE ABOUT Mergers & Acquisitions Capital Raise Strategic Advisory
Experienced Investment A 20-year firm with professionals with 120 years combined experience in middle market Transaction
Banking Professionals mergers & acquisitions and corporate finance advisory services Announcement
Experience
Real-time pulse of sector activity, corporate, family office & private equity participants and
Industry Expertise
enterprise valuation metrics
Market Data
Meticulously craft a transaction blueprint with steadfast commitment to achieve our clients’
Results Driven
goals
Transaction
Data
Capital is a commodity … the investor behind the capital is targeted based on our clients’
The Right Capital
objectives HCA Overview
We provide frank advice, backed with analysis and perspective, to map out and execute a Services
Objective Advice
process to reach our clients’ transaction objectives
Advice
From engagement inception through post-closing transaction functions, our senior bankers
Senior Banker Immersion
are front and center
Contact Us
10SERVICES & INDUSTRIES Mergers & Acquisitions Capital Raise Strategic Advisory
With more than 250 completed transactions,
HCA’s investment bankers maintain Health &
Paper, Transaction
Plastic &
relationships with key decision-makers Wellness Automotive
Packaging
Announcement
among strategic buyers and investors and
comprehensive coverage of relevant private Apparel & Industrial
Footwear Technology Experience
equity groups and family offices
Food &
Consumer Beverage Industrial
Merger and Acquisition Advisory Market Data
Beauty & Chemicals
Personal &
Equity and Debt Capital Placement Care Ingredients Transaction
Data
Vitamins, Logistics &
Outdoor & Minerals &
Strategic Alternatives Assessment Supply
Recreation Nutrition Chain
HCA Overview
Contract
Exclusive Sales and Divestitures OTC
Packaging
Products
& Mfg.
Strategic Planning Services
Healthcare
Management Buy-outs Dental
Hospital Advice
Products &
Services
Services
Recapitalizations
Physician
& Clinical Contact Us
Services
11SOUND ADVICE Mergers & Acquisitions Capital Raise Strategic Advisory
What are your goals and objectives of the transaction?
Transaction
Announcement
Is the transaction focused on the company, the shareholder(s), or both?
Do management’s goals differ from owners’ goals? How so? Experience
What is the appropriate timing?
Market Data
Client Goals and Objectives
Transaction
Data
HCA Overview
Status Quo Grow & Expand Raise Capital Gradual Transition Partial Sale Complete Sale
Focus on current Organically: Grow larger Growth Capital Sale to insiders or Minority share of Majority of company Services
business as is via internal growth management company purchased by purchased by strategic
strategic or financial or financial buyer
Dividend Recap buyer
Wait, watch, hope Inorganically: Grow Sale to family members
larger via buying Company value realized Advice
(acquisitions) Increase Working Spin-off division by sale of shares or
Capital ESOP assets
Finance an Investment Contact Us
12CONTACT US Mergers & Acquisitions Capital Raise Strategic Advisory
Transaction
Announcement
Experience
Market Data
Transaction
Data
HCA Overview
Rich Anderson Brandon Clewett Bradley Erhart
Managing Director Managing Director Vice President
(949) 221-4006 (949) 517-9426 (949) 517-9452
randerson@hexagoncapitalalliance.com bclewett@hexagoncapitalalliance.com berhart@hexagoncapitalalliance.com
Services
Advice
Contact Us
13Mergers & Acquisitions Capital Raise Strategic Advisory
THANK
The material appearing in this presentation is for informational purposes only and should not
be construed as advice of any kind, including, without limitation, legal, accounting, or
investment advice. This information is not intended to create, and receipt does not constitute, a
YOU
legal relationship, including, but not limited to, an accountant-client relationship. Although
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