On your mark, get set, go for the exit - Grant Thornton LLP

DECEMBER 2012
On your mark, get set, go for the exit

Contents
2 Overview: The outlook is rosy
6 Exits by type: Corporate acquisitions,
secondary buyouts and IPOs
9 The big tax change
10 Industry focus
Health care
IT
Financial services
Energy
B2B
B2C
Materials and resources
24 Exits by state and region
25 About the contributors

Fall 2012
Dear Reader:
Despite a slow year for private equity deal flow, the exit market continues to heat up as firms redouble their efforts to exit portfolio
companies and realize investments. After years of gobbling up companies, private equity firms need to start winding down those
investments for a number of reasons. First, firms that want to raise new funds need to be able to show limited partners that they have
delivered on some successful exits. Second, the ever-looming increase in capital gains tax rates is pushing private equity firms to exit
portfolio companies during 2012 rather than face the prospect of paying higher taxes during 2013. And finally, the market is filled
with willing buyers that have lots of capital to spend. Private equity firms, as well as strategic acquirers, have been sitting on capital
that needs to be deployed. These potential buyers are itching to find good acquisition targets.
All of these factors have led private equity firms to the realization that now is the time to exit. The proof is in the numbers: U.S.-
based private equity firms completed 233 exits in H1 2012 and are on track to realize approximately $100 billion in capital by the end of
2012. Of course, not every exit is one to write home about, but there were notable liquidity events during H1 2012, such as 3G Capital’s
$1.4 billion deal to exit 29% of its shares of Burger King Worldwide and the IPO of Caesars Entertainment Corporation.
What’s more, exit activity is expected to increase throughout the remainder of 2012. In addition to the confluence of factors
mentioned above that is making the exit environment hot, the fact of the matter is that, after so much buying during the boom years, the
inventory of private equity-backed companies at the midyear is at a record high of 6,278. Obviously, the Great Recession threw many
companies off their trajectories, and private equity firms held back on selling them until market conditions improved and companies
rebounded. Not surprisingly, this has led to private equity firms holding their portfolio companies for longer than ever before. The
median holding period for a portfolio company rose from 3.49 years in 2007 to 5.33 years in H1 2012 — an increase of 53%.
The good news is that exit opportunities are picking up and private equity firms are taking full advantage of these opportunities.
Private equity firms are exiting portfolio companies at a much quicker pace than they have in the recent past. Consider this: From
2003 through 2008, private equity firms completed 4.1 times more deals than exits. During H1 2012, the number of deals that private
equity firms completed was sitting at just 1.8 times the number of exits. However, while this is a marked improvement, it’s not
enough. Getting the ratio of deals to exits below 1-to-1 is the only way for private equity firms to rein in company inventory. Even
taking into account the accelerated pace at which they are exiting companies, private equity firms will need about nine years to sell
off all of their extra inventory.
As I mentioned, strategics and private equity firms alike are eager buyers. While IPO activity was strong in the first half of the year,
it slowed in Q2. The IPO pipeline does not appear to be as full for the second half, but we could see change as the year draws closer
to the end. Not every IPO has been a grand slam, but there were plenty of solid private equity-backed offerings during the first half of
2012, such as the successful IPOs of transmission company Allison Transmission and organic food company Annie’s Homegrown.
Given the signs of optimism from the private equity market, we thought it was important to give our readers insight into the exit
market and what’s on the horizon. With this in mind, Grant Thornton LLP, in partnership with data provider PitchBook Data, Inc.,
has developed the latest edition of this in-depth report, which contains data, charts and analyses that highlight recent exit activity and
provide insight into the systemic shifts in private equity investing.
Enjoy,
Kevin Hudson
National Managing Director, Private Equity
Grant Thornton LLP
On your mark, get set, go for the exit 1

Overview: The outlook is rosy
Despite — or perhaps because of — the heavy private equity
investing that took place during the boom years, industry
professionals have been predicting heightened exit activity for
several quarters. It appears that the time has finally come; 2012
is charting a course to be one of the most active years ever for
exits. Private equity firms are on track to complete more than
450 exits totaling about $100 billion.
There are several factors that bode well for increased exit
activity. The potential change in tax rates is one of them. Under
current tax law, when a private equity firm sells a business,
the money from that sale is treated as an investment profit,
which is taxed at 15%. Likewise, partners in private equity
firms pay taxes of roughly 15% on profits because those profits
are considered investment returns or capital gains rather than
income. This money could start getting taxed at almost 24% as
early as 2013. (See “The big tax change,” page 9.)
“Historically, the number of exits in the second half of a
given year has been higher than the number of exits in the first
half. In 2009, 2010 and 2011, exits in the second half were at
least 53% of total annual exits. And in any case, we expect to
see an uptick in the number of exits in H2 2012 because of the
likely change in tax laws starting in 2013. That prospect alone
motivated both sellers and buyers to close deals in H1 2012,”
observes Carlos Ferreira, a partner in Grant Thornton LLP’s
Transaction Advisory Services (TAS) group.
Exhibit 1: Exits by quarter
Capital exited ($billions)
Number of exits
Capital exited ($billions)
Number of exits
$45
$40
$35
$30
$25
$20
$15
$10
120 120 127 120
93
74
104
45
29 46
36
67
72
94
85
160
83
115
107
122 123
110
180
160
140
120
100
80
60
40
$5
$0
$28 $28 $27 $24 $21 $10 $29 $5 $13 $3 $6 $17 $16 $25 $23 $38 $22 $35 $22 $28 $27 $23
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2008 2009 2010 2011 2012
Source: PitchBook.
20
0
2 On your mark, get set, go for the exit

In addition to anticipating tax changes, private equity firms
need to start exiting their more than 6,200 portfolio companies
and showing limited partnerships (LPs) wins on the balance
sheet if they plan to raise new funds. And perhaps the most
important consideration is that there are willing buyers.
As Exhibit 4 illustrates, the number of exits is becoming
more consistent with the number of deals private equity firms
are making — and this is proof that the exit market is heating
up. In H1 2012, the number of deals was just 1.8 times the
number of exits, a marked improvement from where the dealexit
discrepancy was before. In 2010, for example, deal volume
was nearly three times exit volume, and the results for 2011 were
much the same, with deal activity outpacing exits 2.7 to 1. Years
of overzealous investing cannot be undone overnight. Even at
today’s more balanced pace, it is going to take almost nine years
just to sell the 4,000 companies that private equity firms acquired
in 2008 or earlier.
Exhibit 3: Median holding period by exit year
Number of years held
6
5
4
3
2
1
4.17
0
3.84 4.24 3.70 3.68 3.49 3.92 3.91 4.72 4.87 5.33
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
Year of exit
* As of June 30, 2012.
Source: PitchBook.
Exhibit 2: Exits by year
Capital exited ($billions) Number of exits
Capital exited ($billions)
Number of exits
$140
$120
$100
$80
$60
$40
$20
$0
440
487
411 427
374
316
304
233
168
$25 $54 $71 $119 $107 $64
178
$39 $103 $107 $49
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: PitchBook.
600
500
400
300
200
100
0
Exhibit 4: U.S. private equity investments and exits
1,218 1,174
Number of deals (excluding add-ons) Number of exits
2,000
1,951
1,708
1,481
1,500
1,374
1,209
948
890
1,000
500
440 487
304 374
316 411 427
168
178
416
233
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
* As of June 30, 2012.
Source: PitchBook.
On your mark, get set, go for the exit 3

“In 2010 and 2011, private equity firms acquired
approximately three companies for every company sold.
In H1 2012, they acquired approximately two companies for
every company sold,” says Ferreira. “The annual exit rate is
clearly increasing.”
Additionally, as a result of depressed market conditions,
private equity firms held on to portfolio companies longer
in hopes of selling them at a higher value when the market
recovered. The median holding period is now longer than five
years — up an astounding 53% from the 3.49-year holding
period recorded in 2007. Retail and automotive investments have
the longest median holding period — more than 5.9 years —
compared with the energy, and aerospace and defense industries,
both of which have a median holding period of 4.3 years.
Until the number of exits begins to outpace the number
of new investments, the median holding period for portfolio
companies can only be expected to increase.
“Overall, holding periods have grown significantly. Private
equity firms have held their investments, hoping to sell when
the recession ended. Although the economy hasn’t totally
recovered, it’s a lot healthier than it was, and private equity firms
are beginning to liquidate their holdings, allowing the number of
exits to begin to catch up with the number of new investments.
Portfolio companies may not be selling at top dollar, but the
climate for exits is much improved from the way it was a few
years ago,” Ferreira says.
Indeed, the reality is that market conditions haven’t
improved as much as private equity firms had hoped, and they
have had to accept lower valuations on exits. The median exit
size-to-EBITDA multiple peaked at 9x in 2007 and 2009 because
private equity firms were willing to pay hefty premiums for
high-performing companies when deal opportunities dried
up after the financial crisis. But with the median exit multiple
currently at 7.4x, it is now a buyer’s market.
Exhibit 5: Median exit values ($M) by exit type
Corporate acquisition IPO Secondary buyout
($millions)
$350
$300
$250
$200
$150
$176 $172
$150
$150 $168 $199
$143
$195
$250
$151
$189 $190
$157
$261
$220
$161
$301
$211 $200
$243
$228
$178
$145
$100
$50
$0
2005 2006 2007 2008 2009
2010 2011 2012*
$78
* As of June 30, 2012.
Source: PitchBook.
4 On your mark, get set, go for the exit

“The exit multiple may not be as high as sellers would like,
but the alternative is holding portfolio companies and thus
expanding the lives of their funds, which doesn’t sit well with
LPs. LPs do not want to pay management fees on a portfolio of
companies that were supposed to be exited years ago,” explains
Sal Fira, a partner in Grant Thornton LLP’s TAS practice.
According to some reports, the amounts tied up in these
so-called zombie funds are increasing. It is estimated that they
account for as much as $100 billion in assets invested in more
than 200 private equity funds. These unrealized funds drain
assets from LPs and leave them with a bad taste when the time
comes to reinvest.
“Of course this is problematic for LPs. Not only are they
upset at having to pay more management fees than expected,
but also the longer the investment is held, the higher the exit
value will need to be in order to match the fund’s target internal
rate of return (IRR). It makes the value proposition all the more
difficult to achieve,” says Fira.
However, it is important to note that not all funds that have
expanded their lives are in this position. Many funds have been
able to realize a significant amount of their original investment
through dividends and fees, thus making the prospect of a lower
multiple less of a concern.
Exhibit 6: Median exit EBITDA multiples
9.5x
9.0x
9.0x
9.0x
8.5x
8.0x
7.5x
7.0x
6.5x
6.0x
8.8x
8.1x
7.9x
7.7x
7.5x 7.2x
7.9x
7.4x
6.9x
6.5x
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
* As of June 30, 2012.
Source: PitchBook.
On your mark, get set, go for the exit 5

Exits by type: Corporate acquisitions,
secondary buyouts and IPOs
Exhibit 7: Exits by type
Corporate acquisition IPO Secondary buyout
Volume of exits
180
160
160
140
120
100
94
85
80
67 72 83
60
46
40 36
29
20
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Source: PitchBook.
115 107
122 123
110
2009 2010 2011 2012
Given the large number of corporations out there, it’s not
surprising that corporations were among the most common
buyers of private equity-backed portfolio companies during
H1 2012. Historically, they almost always have been. During
the first half of 2012, corporate acquirers represented 51%
of exit activity, purchasing more than 119 private equitybacked
portfolio companies. Additionally, they accounted
for approximately $72 billion in exit volume. As noted earlier,
strategic acquirers are flush with capital and are willing to spend
it on solid investment opportunities.
The number of corporate acquisitions has held relatively
steady in recent years, with 220 deals in 2010 and 232 deals
in 2011. 2012 is on track for realizing 288 deals. Corporate
acquisitions amounted to the largest proportion of exit activity;
their distribution by industry closely mirrored that of private
equity. There were 11 corporate acquisitions that brought in
$1 billion or more during H1 2012, compared with 17 such
acquisitions for all of 2011. Twelve of the largest 20 exits in
H1 2012 involved corporate acquisitions.
Exhibit 8: Corporate acquisitions by quarter
Exhibit 9: Corporate acquisitions by industry, H1 2012
Volume of exits
80
70
60
55
50
40 42
30
20
49
74
46
58
64
64
67
52
B2B 29%
B2C 21%
IT 15%
Health care 13%
Energy 12%
Materials and resources 6%
Financial services 4%
6% 4%
12%
13%
15%
21%
29%
10
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
Source: PitchBook.
6 On your mark, get set, go for the exit

“As the macroeconomic environment continues to improve,
corporate acquirers are refocusing on growth, and a nice way to
achieve that growth is to buy a strong company at a good price.
This is viable today because private equity firms are motivated
to offload assets and show LP investors some wins,” says Steve
Brady, a partner in Grant Thornton LLP’s TAS practice.
Secondary buyouts soared during the first half of 2012. With
$432 billion of dry powder available for investment, private
equity firms were looking just about anywhere for a deal.
Secondary buyouts have increased, rising from 20% of all exits in
2009 to 39% in H1 2012. Furthermore, private equity firms are on
track to complete 182 secondary buyouts during 2012 — which
would be the highest such total since 2007. Approximately 40%
of the portfolio companies that were exited during the first half of
2012 were sold to private equity firms.
Since 2009, secondary buyout activity has increased at a rate
that has generally been consistent. After the nadir of 2009, when
just 37 secondary buyouts were completed, activity rose by
311% in 2010, which saw 152 secondary transactions.
“Given the number of portfolio companies that need to be
exited and the amount of capital private equity firms have available,
sponsor-to-sponsor transactions will continue to prevail. Another
driver of sponsor-to-sponsor activity is the thawing of the lending
environment in recent months. This should further prime private
equity firms for deal-making,” Brady notes.
However, the median exit size-to-EBITDA multiple for
secondary buyouts has been declining over the years. While
private equity firms are willing buyers, they are being more
careful about how they spend their capital when making deals.
The median exit size-to-EBITDA multiple for secondary
buyouts fell from 12.4x in 2009 to 7.3x in H1 2012.
“Exit values in corporate acquisitions continue to show
encouraging signs. For H1 2012, the median exit value
in corporate acquisitions was more than $200 million, as
compared with approximately $150 million in prior years.
With improvement in the overall economic outlook, corporate
acquirers are prepared to pay higher acquisition premiums with
a view to boost earnings from synergies and economies of scale,”
observes Ferreira. “Private equity firms, in contrast, are paying
lower multiples, causing the median exit value in secondary
buyouts to decline from $301 million in 2010 to $243 million in
2011 and $145 million in H1 2012.”
Exhibit 10: Secondary buyouts by quarter
Exhibit 11: Secondary buyouts by industry, H1 2012
B2B 42%
B2C 19%
IT 14%
Health care 12%
Energy 5%
Materials and resources 4%
Financial services 4%
5% 4% 4%
12%
14%
19%
42%
Source: PitchBook.
Volume by sector
80
70
70
60
50
53
46
40
43 48
37
30
20 25 28 29 29
10
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
On your mark, get set, go for the exit 7

Saving the best for last
Strategics and sponsors have done their fair share of buying,
but when you’re talking about exit channels, the resurgent IPO
market is the real story — and that market gained strength in
H1 2012. With 23 IPOs completed in the first half, 2012 is on
track to have the largest number of public offerings since 2007.
While the troubles of Facebook and other large IPOs have been
well-documented in the press, smaller private equity-backed
IPOs have had a good run, with the median exit size-to-
EBITDA multiple at 8x, its highest level since 2007. However,
these offerings have been smaller: The IPOs completed in
H1 2012 raised only $5.6 billion in the aggregate — one-third of
the total from the whole of 2011, which saw 30 IPOs.
“These offerings have raised less money,” says Ian Cookson,
managing director, Grant Thornton Corporate Finance LLC.
“While everyone would like to see more robust valuations and
larger offerings, the fact that the IPO market is open at all signals
an improvement. This is the first time in several years that IPOs
have been a viable exit strategy.”
As of June 30, 2012, there were 46 private equity-backed
companies in registration, which is a huge improvement over the
21 that went public during the whole of 2011.
Exhibit 12: IPOs by quarter
Volume by sector
18
16
14
12
10
8
6
4
2
0
5
11
7
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
16
8
11
6
5
13
10
Exhibit 13: IPOs by industry, H1 2012
B2B 26%
B2C 22%
Energy 22%
Financial services 17%
IT 9%
Materials and resources 4%
17%
9% 4%
26%
22%
22%
Source: PitchBook.
8 On your mark, get set, go for the exit

The big tax change
Over the past two years, talk of changes to tax rates has reached
fever pitch. So far, nothing has altered, because during December
2010, lawmakers extended the 2001 and 2003 Bush tax cuts
through the end of 2012. However, because of the pending
fiscal cliff and other factors, as well as public statements made
by prominent members of both political parties, it is likely that
as we enter 2013, there will be an increase in tax rates. And it
remains to be seen how large that increase will be and who will
be most affected by it.
If the Bush tax cuts are allowed to expire, the top longterm
capital gains rate will jump from 15% to 23.8% (this rate
includes the new 3.8% Medicare tax) in 2013. Exclusive of the
new Medicare tax, the income tax rate for individuals earning
between $178,651 and $388,350 annually will increase from 33%
to 36%, and the rate for married couples earning more than
$388,350 will rise from 35% to 39.3%.
Moreover, if the Bush tax cuts expire, 2013 will witness not
only higher individual income tax rates, but also steeper taxes on
dividend income; these taxes will rise from 15% to as much as
43.4% (again, these rates include the new 3.8% Medicare tax on
investment income). Payroll taxes are also scheduled to go up;
the current payroll tax cut is due to expire at the end of 2012.
“We are expecting some amount of tax increase to take
effect in 2013; that’s one of the reasons we have seen so many
business owners, including private equity firms, push to exit
their investments before the end of 2012,” observes Christopher
Schenkenberg, an M&A Tax Services partner with Grant Thornton
LLP. “Tax planning typically involves deferring income and
accelerating deductions. However, the expected tax rate hikes have
turned that approach upside down. It is highly unusual for firms to
want to pay taxes upfront; the usual plan is to defer, but given that
taxes are only expected to rise, firms are trying to pay now.”
Exhibit 14: Individual income tax rates* (projected)
Ordinary income tax brackets (2012 levels)
Rates
Single Joint 2012 2013 †
$0-$8,700 $0-$17,400 10% 15%
$8,701–$35,350 $17,401–$70,700 15% 15%
$35,351–$85,650 $70,701–$142,700 25% 28%
$85,651–$178,650 $142,701–$217,450 28% 31%
$178,651–$388,350 $217,451–$388,350 33% 36%
Over $388,350 Over $388,350 35% 39.6%
Capital gains top rate 15% 20% †
Dividends top rate 15% 39.6%
* Does not include Medicare taxes.
†
Top capital gains rate in 2013 will be 20% for assets held more than one year and 18%
for assets held more than five years; these rates do not include the new 3.8% Medicare tax.
Source: Grant Thornton LLP
Exhibit 15: Combined top rates* (projected)
Type of income 2012 2013 †
Earned income 36.46% 41.95%
Interest 35% 43.4%
Dividends 15% 43.4%
Capital gains 15% 23.8%
* Includes only the employee share of Medicare taxes.
†
Top capital gains rate in 2013 will be 20% for assets held more than one year and 18%
for assets held more than five years; these rates do not include the new 3.8% Medicare tax.
Source: Grant Thornton LLP
Indeed, while there is little that private equity firms can do to
avoid paying the higher rates that are coming down the line, they
can prepare themselves to deal with the changes. For example,
stock buybacks as opposed to dividend recapitalizations may
produce a better overall tax result for investors in portfolio
companies. In addition, because individual tax rates are expected
to rise, it may be advantageous to structure businesses as
C corporations instead of flow-through entities. This type of tax
planning has not been seen since before the Tax Reform Act of
1986, but it may be worth revisiting today.
On your mark, get set, go for the exit 9

Industry focus
The business-to-business (B2B) products and services industry,
historically the most active sector in terms of private equity
deal-making, accounted for 33% of the number of exits in
H1 2012; this percentage was in line with the long-term sector
average. However, B2B accounted for just 16% of capital
exited. Meanwhile, the energy and business-to-consumer (B2C)
consumer products and services sectors saw increases in exit
activity. As a proportion of exit activity, the energy sector rose
from 7% to 13% and the B2C sector expanded from 16%
to 25%. In terms of capital exited, energy also did well,
accounting for $11.1 billion during H1 2012. IT was a hot sector
for large exits. It led the field in terms of exited capital, with
$13.9 billion during H1 2012.
Exhibit 16: Exits (count) by industry*
B2B
B2C
Energy
Financial services
Health care
IT
Materials and
resources
* As of June 30, 2012.
Source: PitchBook.
Percentage by industry
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
44 52 90 124 156 167 107 50 116 142
49 66 101 90
118 129 75 46 95
7 33
31
34 23
27 11
5 19 29 39
26
18
6
17
8 20 19 17
16
13
28 52
4 37
12 11 25 43 42 31
61 27
20 17 34 46 55 69 33 29 57 59 33
5 12 15 29 2
24 27 7 32 20
2002 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12
78
93 47
12
Exhibit 17: Exit amount (capital) by industry* ($millions)
B2B
Percentage capital by industry
B2C
100%
$2
Energy
$3 $10 $21 $14 $21 $29 $15 $18 $27 $8
90%
Financial services
$8
Health care 80%
$4
IT
Materials and 70%
$16 $26 $8
$2 $18
resources
$8
60%
$23 $7
$12
$11
$16
$10 $18
$23
50%
$15 $15
$4
$2
40% $1
$9
$15 $7 $7
$9
$13
$10 $7
30% $2 $3
$3 $8
$18
$1 $2 $7 $4
20% $1
$1
$41 $4
$18
$8 $6
$13
$1
$14
10% $3
$21
$2
$9 $19
$3
$13
0% $1 $2 $3 $11 $4 $6 $5 $0 $4 $3 $1
* As of June 30, 2012.
Source: PitchBook.
2002 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12
10 On your mark, get set, go for the exit

Health care
Not surprisingly, health care exit activity was down in H1 2012
as investors waited for the Supreme Court’s decision on the
constitutionality of the Patient Protection and Affordable Care
Act (PPACA). In June 2012, the Supreme Court upheld the
PPACA as legal, and companies operating in the health care
sector have started to engage in M&A with more certainty. Exit
activity is expected to accelerate during H2 2012. With 27 exits
during H1 2012, the industry accounted for just 11% of private
equity exit activity, down from 14% in 2011.
In recent years, there has been a noticeable shift in where
private equity firms have been focusing their health care exit
activity. As a proportion of the industry’s exit volume, the
services subsector has grown considerably, climbing from
34% in 2009 to 59% in H1 2012. Recent deal-making has been
skewing toward technology systems, and devices and supplies.
Therefore, exit activity in these subsectors will likely rise in the
coming years.
Exhibit 19: Largest health care exits in H1 2012
Company Deal size Type of exit
($ in millions)
Healthspring 3,800 Acquisition (corporate)
EUSA Pharma 650 Acquisition (corporate)
Decision Resources 635 Acquisition (corporate)
Navilyst Medical 355 Acquisition (corporate)
BioReliance 350 Acquisition (corporate)
Synovis Life Technologies 325 Acquisition (corporate)
HealthTrans 250 Acquisition (corporate)
APS Healthcare 228 Acquisition (corporate)
Butler Schein Animal Health 155 Acquisition (corporate)
Airborne 150 Acquisition (corporate)
Source: PitchBook.
Exhibit 18: Health care exits by quarter
Exhibit 20: Health care exits by sector, H1 2012
Percentage by sector
30%
25%
25
Services 59%
Technology systems 19%
Devices and supplies 15%
Pharmaceuticals and biotechnology 7%
15%
7%
20%
15%
10%
5%
11
7
9
16
12
18
15 15
12
Source: PitchBook.
19%
59%
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
On your mark, get set, go for the exit 11

“Innovation in the health care technology sector is driving
growth. There is a lot of opportunity to make this market more
efficient, and investors recognize that,” observes Nicole Durio,
a TAS director with Grant Thornton LLP.
In terms of health care exits, corporate acquirers ruled the
roost. In fact, the 10 largest private equity-backed health care
companies that were exited during H1 2012 were purchased by
corporate acquirers. Health benefits company HealthSpring
was one such company. In January 2012, GTCR Golder Rauner
sold the Nashville-based company to health insurer Cigna for
approximately $4 billion. IMS Health, which completed five
transactions in H1 2012, is another very active strategic acquirer.
“The health care industry is poised for growth as it readies
itself for a transformation. Throughout the past decade, private
equity firms have been buying health care companies that are
waiting for change in the industry. That change is happening.
Both strategics and financial buyers stand ready to provide exits
for these companies as they look to expand their presence in
the marketplace,” says Anne McGeorge, National Health Care
managing partner at Grant Thornton LLP.
12 On your mark, get set, go for the exit

IT
Over the past few years, exit opportunities in the IT space have
fluctuated quite a bit. During the first half of 2011, IT companies
accounted for only 14% of all exits — a total that was part
and parcel of a quiet second quarter for the sector. However,
a strong first quarter put 2012 on track to be one of the best
years on record for IT exits. With $13.9 billion in capital exited
from IT companies during H1 2012, private equity firms had
surpassed 2011’s total of $13.2 billion in realizations from the
industry. Eight exits of $1 billion or more — including Thoma
Bravo’s $1.2 billion exit of IT security company SonicWALL to
Dell, along with Madison Dearborn’s $1 billion sale of wireless
antenna company NextG Networks to Crown Castle —
contributed significantly to the sector’s healthy exit performance
in H1 2012.
Exhibit 22: Largest IT exits in H1 2012
Company Deal size Type of exit
($ in millions)
Insight Communications 3,000 Acquisition (corporate)
SunGard Higher Education 1,775 Secondary buyout
Managed Services
Blue Coat Systems 1,300 Secondary buyout
SonicWALL 1,250 Acquisition (corporate)
Telcordia Technologies 1,150 Acquisition (corporate)
NextG Networks 1,000 Acquisition (corporate)
Endurance International Group 1,000 Secondary buyout
CAMP Systems International 675 Secondary buyout
X-Rite 625 Acquisition (corporate)
Numara Software 300 Acquisition (corporate)
Source: PitchBook.
Exhibit 21: IT exits by quarter
Percentage by sector
25%
20%
15%
13
10%
5%
0%
7
15
22
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
11
18
13
17
23
10
Exhibit 23: IT exits by sector, H1 2012
Software 40%
Communications and networking 24%
6%
Hardware 18%
12%
Services 12%
Semiconductors 6% 40%
18%
Source: PitchBook.
24%
On your mark, get set, go for the exit 13

When it comes to IT exits, the software subsector remains
dominant, even though it continues to lose ground to other parts
of the industry. Software exits have dropped off, falling from
54% of the IT industry’s activity in 2011 to 40% in H1 2012.
Activity in the hardware subsector has filled the void, climbing
from 9% of IT exits in 2011 to 15% in H1 2012. This near
doubling is also evident in the semiconductor subsector, which
jumped from 9% to 15% of IT exits during the same period.
Unlike many other industries, IT did not see a decline in private
equity investment after the boom. And continued investment
will likely keep the sector’s exit pipeline full in the coming years.
“The IT sector continues to be a robust place for investments
as well as exits. PE (private equity) firms that traditionally did
not focus on the IT sector are now investing in the subscription
model that is common in SaaS (software as a service). We see the
IT sector as growing in popularity and becoming progressively
more mainstream within the PE community,” says Marc Chiang,
a partner in the TAS practice at Grant Thornton LLP.
14 On your mark, get set, go for the exit

Financial services
Exit activity in the financial services industry has been anything
but robust. Indeed, as a result of the Great Recession, the
industry has taken a beating. It completed only 13 exits
during H1 2012. The sector is faring better than it did in 2011,
but it remains well below where it should be. Despite that
disappointing showing, the $4.2 billion that the financial services
sector managed to gain during H1 2012 is impressive, accounting
for roughly 8% of total exits during the period.
“Since the recession, the financial services industry has
struggled to regain its footing. Unfortunately, this sector
will likely continue to face challenges until, at the very least,
macroeconomic conditions improve,” says Nichole Jordan,
the national Banking and Securities industry leader at
Grant Thornton LLP.
Exhibit 25: Largest financial services exits in H1 2012
Company Deal size Type of exit
($ in millions)
TransUnion 3,000 Secondary buyout
Mills 1,500 Acquisition (corporate)
AmWINS Group 1,300 Secondary buyout
Vantiv 500 IPO
Dealer Services 351 Acquisition (corporate)
Nationstar Mortgage 233 IPO
EverBank Financial 192 IPO
Highlands Bancshares 71 Acquisition (corporate)
Regional Management 63 IPO
Marshall & Swift/ Boeckh 18 Acquisition (corporate)
(Claims Division)
Souce: PitchBook.
Exhibit 24: Financial services exits by quarter
Exhibit 26: Financial services exits by sector, H1 2012
Percentage by sector
14%
12%
10%
14
Insurance 31%
Other 46%
Commercial banks 15%
Capital markets/institutions 8%
15%
8%
31%
8%
6%
4%
2%
0%
3
6
3
2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
6
4
6
7
6
Source: PitchBook.
46%
Source: PitchBook.
On your mark, get set, go for the exit 15

A handful of major deals helped increase the aggregate
amount of capital exited in the financial services sector.
One of these deals was New Mountain Capital’s $1.3 billion
recapitalization of insurance broker AmWINS Group.
Parthenon Capital Partners, which had bought a majority stake
in AmWins during 2005, was the seller.
The AmWINS deal highlights one of the most significant
exit trends in the financial services sector: the increasing amount
of activity within the insurance subsector. In 2009, insurance
accounted for just 8% of financial services exits, but its share has
been rising steadily since then. In H1 2012, insurance represented
a whopping 31% of the exit volume within financial services.
The capital markets/institutions subsector has been
experiencing the opposite phenomenon, dropping from 26% of
total exit volume in 2010 to just 8% in H1 2012. The financial
crisis was the likely culprit.
16 On your mark, get set, go for the exit

Energy
During H1 2012, the energy industry completed 13% of private
equity exits — its highest proportion of exit activity ever. Even
more impressive is the industry’s $11.1 billion in realizations;
this hefty total made energy No. 2 in terms of capital exited
during H1 2012. This was largely driven by a few very large
exits. In January 2012, Texas oil- and gas-focused private equity
firm EnCap Investments sold Cordillera Energy Partners III to
strategic acquirer Apache Corporation for $2.9 billion. Proving
that at least one strategic acquirer was flush with capital, Apache
paid $2.5 billion of the purchase price in cash. Also during
H1 2012, SCF Partners sold Complete Production Services to
oilfield services company Superior Energy Services for a cashand-stock
deal valued at $2.9 billion.
Exhibit 28: Largest energy exits in H1 2012
Company Deal size Type of exit
($ in millions)
Cordillera Energy Partners III 3,104 Acquisition (corporate)
Complete Production Services 2,900 Acquisition (corporate)
Laser Northeast Gathering 792 Acquisition (corporate)
PetroLogistics 595 IPO
Keystone Midstream Services 512 Acquisition (corporate)
MRC Global 477 IPO
Forum Energy Technologies 379 IPO
Pacific Coast Oil Trust 370 IPO
Midstates Petroleum Company 312 IPO
El Paso (Altamont Gathering 300 Acquisition (corporate)
and Processing Assets)
Source: PitchBook.
Exhibit 27: Energy exits by quarter
Exhibit 29: Energy exits by sector, H1 2012
Percentage by sector
16%
14%
12%
10%
10
8% 9 9
6%
6
8
7
13
9
14
Services 44%
Equipment 30%
Exploration, production and refining 22%
Utilities 4%
22%
30%
4%
44%
4%
5
2%
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
Source: PitchBook.
On your mark, get set, go for the exit 17

Five of the energy industry’s 23 exits during H1 2012 came
via IPOs. Sales to strategics, though, remained the clear favorite,
with 14 such exits taking place during H1 2012.
“Energy is not an easy sector to invest in; however, the
industry is poised for growth in years to come as the world looks
for ways to use oil more efficiently and ramp up reliance on
alternative energy sources,” says Brandon Cradeur, a managing
director in Grant Thornton LLP’s TAS practice. “In the first
half of 2012, private equity firms committed nearly $20 billion
to energy companies. These firms continue to raise capital for
investment in the sector. This should keep the exit pipeline full
for years to come.”
In fact, private equity firms have invested more than $20
billion in the energy sector since the beginning of 2012. In
September 2012, the Blackstone Group raised $2.5 billion for
its first energy-focused fund, while in July 2012, Riverstone
Holdings closed on its fifth energy fund with $4.5 billion.
18 On your mark, get set, go for the exit

B2B
The B2B industry has historically been one of the cornerstones of
private equity deal-making. Not surprisingly, this has translated
into strong exit activity. In H1 2012, the B2B industry represented
an impressive 33% of exit volume. Quarterly exit activity has risen
somewhat steadily, with 2012 on track to post an 10% increase
from 2011 levels. Exit activity will likely remain robust because
37% of portfolio companies operate in the B2B industry.
“There are no surprises here,” says Ferreira. “This sector
represents the largest number of companies; therefore, it usually
sees the most deal-making activity and consequently the most
exit activity. It’s not a mystery. However, it’s interesting to note
the decrease in capital exited. Private equity firms sold more
companies during H1 2012 but generated lower returns.”
Exhibit 31: Largest B2B exits in H1 2012
Company Deal size Type of exit
($ in millions)
Deutsch Engineered 2,041 Acquisition (corporate)
Connecting Devices
Mobilitie 1,093 Acquisition (corporate)
AmSafe 750 Acquisition (corporate)
Allison Transmission 600 IPO
Armstrong World Industries 503 Dividend recapitalization
Rexnord 426 IPO
Walker Group Holdings 360 Acquisition (corporate)
Associated Asphalt 343 Secondary buyout
Quintiles Transnational 335 Dividend recapitalization
Heckmann Environmental 245 Acquisition (corporate)
Services
Source: PitchBook.
Exhibit 30: Industry focus – B2B
Exhibit 32: B2B exits by sector, H1 2012
Percentage exits by sector
60%
50%
40%
49
Products 60%
Services 32%
Transportation 8%
32%
8%
60%
30%
20%
10%
17
27
23
25
36 40 41 45 33
Source: PitchBook.
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
On your mark, get set, go for the exit 19

Indeed, while B2B exit volume was healthy, the amount of
capital exited told a different story. The industry accounted for
just $8.05 billion, or 16%, of capital exited in H1 2012 — only
30% of its total from the whole of 2011. However, H1 2012
still saw some large exits, including Oaktree Capital Group’s
$1.1 billion deal to sell strategic acquirer SBA Communications
Mobilitie, a telecommunications business with 2,300 cell towers.
Within the B2B industry, the commercial products subsector
has steadily grown its share of exit activity in recent years,
expanding from 40% of industry activity in 2010 to 60% in
H1 2012. During the same period, exits in the commercial
services subsector fell from 45% to 32% of B2B exit volume.
Exits in the transportation subsector have been declining as well,
slipping from 13% of activity in 2010 to 8% in H1 2012.
20 On your mark, get set, go for the exit

B2C
Typically another cornerstone of private equity exit activity,
the B2C sector had a strong H1 2012 in terms of exits after
experiencing a lackluster 2011. What’s more, the B2C exit
market is expected to be strong for the remainder of 2012,
especially in the lower middle market. It’s driven by the sheer
number of consumer companies held in private equity portfolios
and the recent improvements in their balance sheets. However,
the total capital exited in the industry during H1 2012 was just
$3.86 billion because most exits were smaller.
These are often the subtle trends that get missed. What tends
to be covered are not the smaller deals that make up the bulk
of exit activity, but rather high-profile liquidity events, such
as Vestar Capital Partners’ $1 billion sale of Solo Cup to Dart
Container or Solera Capital’s IPO of organic food manufacturer
Annie’s Homegrown.
Exhibit 34: Largest B2C exits in H1 2012
Company Deal size Type of exit
($ in millions)
Solo Cup 1,000 Acquisition (corporate)
Augusta Sportswear 367 Secondary buyout
Tumi 338 IPO
Things Remembered 295 Secondary buyout
Guilford Mills 257 Acquisition (corporate)
Earth Fare 240 Secondary buyout
CIBT 215 Secondary buyout
Four Points Media 200 Acquisition (corporate)
Petermann 200 Acquisition (corporate)
Roundy’s Supermarkets 163 IPO
Source: PitchBook.
Exhibit 33: B2C exits by quarter
Exhibit 35: B2C exits by sector, H1 2012
Percentage by sector
30%
30 30
25%
27
20%
20
18
15% 17
21
25
20
27
Consumer nondurables 23%
Retail 17%
Restaurants, hotels and leisure 15%
Apparel and accessories 11%
Services (nonfinancial) 9%
Transportation 9%
Consumer durables 8%
Media 8%
9%
9%
8%
8%
23%
17%
10%
11%
15%
5%
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
Source: PitchBook.
On your mark, get set, go for the exit 21

However, smaller deals — such as Direct Brands’ acquisition
of airline magazine publisher SkyMall in April for an undisclosed
amount and North Castle Partners’ sale of lacrosse company
Cascade Helmets to Bauer Performance Sports for $64 million
— made up the bulk of activity during H1 2012.
The consumer nondurables subsector led B2C activity,
accounting for 23% of the industry’s exits in H1 2012. Notably,
the percentage of consumer nondurables exits has been dropping
since 2010, when it represented 35% of B2C exit volume. There
have been some bright spots, however. The nonfinancial services;
transportation; and restaurants, hotels, and leisure subsectors are all
on track to reach their highest exit levels in more than three years.
22 On your mark, get set, go for the exit

Materials and resources
The materials and resources sector, never a large contributor
to private equity deal flow, represented 5% of exit volume and
just 2% of capital exited in H1 2012. These small percentages
were due in large part to a very slow first quarter. Following a
string of weak quarters, however, exit activity in the materials
and resources sector jumped during Q2 2012 to its highest level
in a year. Combined, the chemicals and gases subsector and the
containers and packaging subsector accounted for two-thirds of
the industry’s exit activity in H1 2012.
Realizations plummeted to $1.2 billion in H1 2012. At the
current rate, capital exited from the materials and resources
industry during 2012 would equal only 67% of the total for
all of 2011.
Exhibit 37: Largest materials and resources exits in H1 2012
Company Deal size Type of exit
($ in millions)
Latrobe Specialty Metals 558 Acquisition (corporate)
US Silica 201 IPO
Doe & Ingalls Management 175 Acquisition (corporate)
MTS Medication Technologies 156 Acquisition (corporate)
Engineered Absorbent Materials 61 Acquisition (corporate)
Source: PitchBook.
Exhibit 36: Materials and resources exits by quarter
Percentage by sector
12%
10%
8%
6%
4%
2%
0%
5
7
9
11
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012
Source: PitchBook.
3
8
4
5
4
8
Exhibit 38: Materials and resources exits by sector, H1 2012
Chemicals and gases 34%
Containers and packaging 33%
8%
Metals, minerals and mining 17%
8%
Textiles 8%
Other 8% 34%
17%
Source: PitchBook.
33%
On your mark, get set, go for the exit 23

Exits by state and region
As one might expect, the states that typically attract the highest
level of private equity investment are those with the strongest exit
numbers. Since 2011, California has led the way with 82 exits,
followed most closely by Texas, which had 71.
Regionally, the Midwest dominated exit activity, accounting
for 25% in H1 2012. Three of the largest exits in the region came
via IPOs:
• Apollo Global Management’s $426 million IPO of industrial
parts maker Rexnord
• The Carlyle Group and Onex’s $600 million IPO of Allison
Transmission, a vehicle transmission systems manufacturer
• The $500 million IPO of payment processor Vantiv, which
was owned by Advent International and Fifth Third Bank
The South’s share expanded, rising from 14% of exit volume
in 2011 to 17% in H2 2012. This increase was fueled by the mega
exits of gas pipeline company Complete Production Services and
petrochemical company PetroLogistics. The Southeast also came
in strong, representing 17% of exit activity.
On the West Coast, which accounted for 13% of the U.S.
total, California saw more than three-quarters of the region’s exit
volume in H1 2012. Exit activity fell in the Northeast and the
mid-Atlantic region to 13% and 10%, respectively.
Exits by state since 2011
0 exits
1-5 exits
11
6-15 exits
82
5
2
0
7
1
0
19
1
1
2
3
20
4
7
18
31
13
14
3
29
4
1
4 5
42 23
12
1
37 16
12 1
21
16-30 exits
31-50 exits
51+ exits
10
3 6
2
10
10
23
0
4 29
71
6
35
Source: PitchBook
24 On your mark, get set, go for the exit

About the contributors
Steve Brady
Steve Brady is a partner with Grant Thornton LLP’s Transaction Advisory Services
(TAS) practice. He leads the TAS practice in the firm’s Midwest Region and has
more than 25 years of experience advising financial buyers, strategics and
lending institutions on M&A and other transactions. Brady’s primary responsibility
is the delivery of M&A advisory services for private equity investors and strategic
acquirers, as well as providers of asset-based, mezzanine and structured financing.
Brady brings extensive transaction and business operations know-how gained from
holding executive positions in the industry. His experience extends beyond due
diligence and advising on M&A and debt transactions to include assistance with
capital raising, M&A strategy creation, business plan development, and financial
and accounting system implementation. Brady has advised clients on numerous
cross-border transactions. He represents Grant Thornton LLP on the global TAS
leadership team with professionals from other Grant Thornton International Ltd
member firms.
Marc Chiang
Marc Chiang is a partner in Grant Thornton LLP’s TAS practice. With specialized
experience in software, SaaS, telecom, IT services, social media and the Internet,
Chiang is highly familiar with M&A transactions in the gateway, enterprise,
competitive local exchange carrier, mobile services, health care, energy and
education sectors. His clients have included many leading technology companies
and technology-focused private equity firms. Chiang has more than 17 years of
financial experience, almost all of which is in the technology sector. Prior to joining
Grant Thornton LLP, Chiang was a member of the M&A transaction services team
at a Big Four accounting firm. He also has experience in investment banking,
corporate development and public accounting. Chiang is a member of
Grant Thornton LLP’s national software committee.
Ian Cookson
Ian Cookson is a managing director with Grant Thornton Corporate Finance
LLC (Grant Thornton Corporate Finance), the investment banking subsidiary of
Grant Thornton LLP. He advises clients on M&A, capital raising and the sale of
businesses. In his 20 years of corporate finance experience, Cookson has advised
on more than $5 billion of transactions such as acquisitions, divestitures and
refinancings. He has represented an array of clients from leading multinationals to
privately held companies and has advised on transactions with companies such
as Compaq, General Electric and Deutsche Post. Prior to joining Grant Thornton
Corporate Finance, Cookson was employed in investment banking in the United
States and Europe. He is a registered principal with FINRA.
Brandon Cradeur
Brandon Cradeur leads Grant Thornton LLP’s TAS practice in Houston. He is
a seasoned transaction executive with more than 16 years of financial and
strategic management experience assisting leading institutions and privately held
companies. His industry experience primarily includes oil and gas, engineering and
construction, manufacturing, and health care. Prior to joining Grant Thornton LLP,
Cradeur served as a director at Denham Capital, an energy-focused private equity
firm with $4.5 billion of invested and committed capital. While at Denham Capital,
he oversaw strategy, corporate governance and operational improvement for 14
portfolio companies with an aggregate enterprise value exceeding $750 million.
Most of these companies were engaged in midstream and oilfield services, and
chemical processing.
As an experienced senior manager with a Big Four accounting firm, Cradeur
performed financial and operational due diligence for strategic and financial buyers
on more than 100 transactions with an aggregate value of $22 billion. As the
director of corporate development at ChaseCom, a Top 50 sales and marketing
outsourcer that was ultimately sold to AT&T, he helped grow the company from a
business plan to an entity with more than $30 million in annual revenues. Cradeur
also has extensive corporate governance experience; he has served on the boards
of 15 for-profit companies.
On your mark, get set, go for the exit 25

Carlos Ferreira
Carlos Ferreira is a partner in Grant Thornton LLP’s TAS practice. He has more than
17 years of public accounting and corporate finance experience in South Africa and
the United States. Ferreira has extensive experience serving private equity firms as
well as public and private companies, and he has helped them perform a variety of
M&A due diligence and purchase price allocation projects. He has also taken part
in specialized audit engagements such as royalty audits and licensing compliance
examinations. His industry experience includes business services, manufacturing,
automotive, wholesale/distribution, health care, pharmaceuticals, and technology.
He has assisted many U.S.- and foreign-based companies that have global
operations. Prior to joining Grant Thornton LLP, Ferreira worked at Grant Thornton
South Africa in Pretoria, where he was responsible for the GAAP audits of large
private and public companies in a variety of industries. Ferreira is a Chartered
Accountant (South Africa) and a CPA (New York, New Jersey).
Sal Fira
Sal Fira is a partner in Grant Thornton LLP’s TAS practice and has more than 20
years of experience in accounting/finance, transaction due diligence, and merger
integration. He is responsible for executing the overall TAS go-to-market strategy in
the private equity sector as well as for leading service delivery for the TAS practice
in the firm’s Central Region. Before coming to Grant Thornton LLP, Fira was the
managing director and practice leader of the transaction advisory group at Sirius
Solutions, a firm with 300-plus employees providing a broad range of advisory
services. Prior to that, he was a partner in Ernst & Young’s transaction advisory
services practice in Dallas, where he led engagements involving prominent strategic
and private equity buyers and sellers in a variety of industries such as energy,
chemicals, technology, airlines, manufacturing, print media, broadcasting, hospitality
and retail. Fira also spent two years in London gaining valuable experience in crossborder
transactions and three years in New York serving the transaction needs of
some of the largest private equity firms. He is a CPA licensed in Texas.
Danielle Fugazy
Danielle Fugazy is a freelance journalist covering the private equity industry.
Since beginning her freelance career in 2006, Fugazy has written for numerous
publications and websites, including Mergers & Acquisitions, Investment Dealers’
Digest, Private Equity Professional Digest, Dealmaker Magazine, and Portfolio.com.
Prior to pursuing a freelance career, Fugazy was the editor of Buyouts Magazine,
a Thomson Reuters publication. She previously served as the managing editor of
sister publication Private Equity Week and was a periodic contributor to Buyouts.
Fugazy has also written for Venture Capital Journal. She began her financial
journalism career with WebFinance, where she covered the online financial services
beat. Fugazy has served as a moderator and panelist at several industry events,
and she is a graduate of the University of Massachusetts Amherst.
Kevin Hudson
Kevin Hudson is the national managing director of Grant Thornton LLP’s Private
Equity practice and the Northeast Region’s Private Equity practice leader. Hudson
has overall responsibility for the development and implementation of Grant Thornton
LLP’s go-to-market strategy in the private equity sector. Part of this strategy involves
confirming that the firm’s approach and services remain aligned with the needs of
clients and prospective clients. In addition to carrying out his national duties, Hudson
serves as a key relationship leader for several priority private equity clients. Hudson
has more than 19 years of professional experience in a variety of roles with leading
national accounting firms, including Ernst & Young and Deloitte, as well as with
Fortune 500 companies. Prior to joining Grant Thornton LLP in 2012, Hudson was
the national director of McGladrey’s private equity services group and the regional
private equity leader for its Northeast and Southeast regions.
26 On your mark, get set, go for the exit

Nichole Jordan
Nichole Jordan is the national Banking and Securities industry leader at
Grant Thornton LLP. In addition to serving and advising banks, mortgage banks
and broker-dealers, she works extensively with registered investment advisors,
private equity funds, specialty finance companies, hedge funds, common trust
funds, business development companies, small business investment companies
and minority enterprise small business investment companies. Jordan is active
in the community and serves on the boards of the American Heart Association
and the YWCA, along with the Department of Accounting Advisory Council at The
University of Texas at Austin. At Grant Thornton LLP, she serves on the national
Client Experience Council, which is focused on consistently delivering an experience
for our clients that is exceptional and distinctive.
Chris Schenkenberg
Chris Schenkenberg is a partner in Grant Thornton LLP’s Federal Tax practice. In
his 17 years of public accounting experience, he has worked extensively within the
M&A arena, assisting various financial and strategic buyers by helping conduct tax
due diligence reviews and advising on acquisition structuring, divestiture planning
and tax accounting methodologies. Schenkenberg has assisted clients during a
wide variety of transactions across numerous industries; these transactions have
ranged from $10 million acquisitions of privately held businesses to multibilliondollar
transactions involving public companies.
Anne McGeorge
Anne McGeorge is the national managing partner for Grant Thornton LLP’s
Health Care practice. She has served health care clients for almost 25 years
working extensively with large health systems, academic medical centers,
community hospitals, managed care organizations, Blue Cross Blue Shield
organizations, coalitions and purchasing organizations, and physician practices.
McGeorge has helped clients address a wide variety of financial issues relevant to
health care organizations, including M&A, joint ventures, corporate restructurings,
physician contracting, executive compensation, risk assessments, regulatory
compliance and IRS matters.
On your mark, get set, go for the exit 27

About Grant Thornton LLP
The people in the independent firms of Grant Thornton International Ltd provide
personalized attention and the highest quality service to public and private clients
in more than 100 countries. Grant Thornton LLP is the U.S. member firm of
Grant Thornton International Ltd, one of the six global audit, tax and advisory
organizations. Grant Thornton International Ltd and its member firms are not a
worldwide partnership, as each member firm is a separate and distinct legal entity.
In the U.S., visit Grant Thornton LLP at www.GrantThornton.com.
About Grant Thornton Corporate Finance LLC
Grant Thornton Corporate Finance LLC provides advisory services to middle-market
businesses in the United States and around the world. As a recognized M&A
advisor, we provide buy-side and sell-side advisory services and assist companies
with restructurings, management buyouts and capital raising. Grant Thornton
Corporate Finance LLC is a broker-dealer registered with FINRA and SIPC, and a
wholly owned subsidiary of Grant Thornton LLP.
About PitchBook
PitchBook Data is an independent research firm providing superior intelligence
and data on the private equity and venture capital industries. PitchBook is focused
on providing the private equity and venture capital communities with high-quality,
in-depth data through a simple, intuitive platform providing clients with all the tools
they need to make better investing and business decisions. We strive not only to
procure the most comprehensive private equity and venture capital data, but also
to present that information in a way that facilitates the translation of data points
into actionable information. The PitchBook Platform looks at every stage of a
transaction and incorporates tools to meet the diverse needs of general partners,
limited partners, lenders, advisors, and other deal participants.
Since PitchBook was founded in 2007, we have built the PitchBook Platform
following a simple rule: combine the best data with cutting edge technology to
create a winning product. The formula, which has been our secret sauce, has
proven effective and helped us garner three CodiE Awards in the last two years.
To ensure the most reliable and comprehensive data is gathered, PitchBook has
instituted a Six Sigma-based proprietary research process that includes a rigorous
and meticulous review of publicly available sources, direct primary research with all
of the parties involved in deal flow, online surveys, and ongoing quality assurance.
Learn more about PitchBook at www.pitchbook.com.
28 On your mark, get set, go for the exit

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Chicago, IL 60604
312.856.0200
National Tax Office
1250 Connecticut Ave. NW, Suite 400
Washington, DC 20036-3531
202.296.7800
Alaska
Anchorage 907.264.6620
Arizona
Phoenix 602.474.3400
California
Irvine 949.553.1600
Los Angeles 213.627.1717
Sacramento 916.449.3991
San Diego 858.704.8000
San Francisco 415.986.3900
San Jose 408.275.9000
Colorado
Denver 303.813.4000
Connecticut
Glastonbury 860.781.6700
Georgia
Atlanta 404.330.2000
Illinois
Chicago 312.856.0200
Oakbrook Terrace 630.873.2500
Schaumburg 847.884.0123
Kansas
Wichita 316.265.3231
Maryland
Baltimore 410.685.4000
Massachusetts
Boston – North Station 617.723.7900
Boston – Financial 617.226.7000
District
Westborough 508.926.2200
Michigan
Detroit 248.262.1950
Minnesota
Minneapolis 612.332.0001
Missouri
Kansas City 816.412.2400
St. Louis 314.735.2200
Nevada
Reno 775.786.1520
New Jersey
Edison 732.516.5500
New York
Albany 518.427.5197
Long Island 631.249.6001
Downtown 212.422.1000
Midtown 212.599.0100
North Carolina
Charlotte 704.632.3500
Raleigh 919.881.2700
Ohio
Cincinnati 513.762.5000
Cleveland 216.771.1400
Oklahoma
Oklahoma City 405.218.2800
Tulsa 918.877.0800
Oregon
Portland 503.222.3562
Pennsylvania
Philadelphia 215.561.4200
Rhode Island
Providence 401.274.1200
South Carolina
Columbia 803.231.3100
Texas
Austin 512.391.6821
Dallas 214.561.2300
Houston 832.476.3600
San Antonio 210.881.1800
Utah
Salt Lake City 801.415.1000
Virginia
Alexandria 703.837.4400
McLean 703.847.7500
Washington
Seattle 206.623.1121
Washington, D.C.
Washington, D.C. 202.296.7800
Wisconsin
Appleton 920.968.6700
Madison 608.257.6761
Milwaukee 414.289.8200
Florida
Fort Lauderdale 954.768.9900
Miami 305.341.8040
Orlando 407.481.5100
Tampa 813.229.7201
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