IMAP Transaction & Pricing survey 2008.pdf

{45%40%35%Percentage 30%of IMAP’s 25%totaltransactions 20%in 2008 15%10%5%0%2008 Quarterly Trends in IMAP Deal Volume1 2 QUARTER 3 4Results in the fourth quarter had a depressing effect on total resultsfor 2008 as the graph above indicates. M&A closing activity wasmuch stronger in the first quarter of 2008 than in the fourthquarter, where there was a noticeable drop-off.Dozens of transactions were put on hold and manyothers collapsed as buyers and funding partners rapidlymodified priorities. Companies abandoned expansion plansin favor of conserving liquidity and reducing financial leverage.I M A P - a d v i s e d t r a n s a c t i o n v a l u e r o s e m o r e t h a n 3 0 % i n 2 0 0 85 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

TRANSACTIONSM & A a c t i v i t y i n t h e A m e r i c a sw a s u p i n 2 0 0 8 o v e r 2 0 0 7Transaction totals were down for IMAP offices in Europe in 2008 while increasing in NorthAmerica and Latin America.Latin America especially benefited from very favorable M&A conditions for much of the year asthe global financial malaise affected this region last.The average transaction size was up sharply in the U.S. in 2008 over 2007 ($61.4 millioncompared to $23.1 million). This is an indication that IMAP advisors continue to penetrate alllevels of middle-market M&A.Additionally, IMAP added strong offices in Chicago and New York in 2008.2 0 0 8 v s 2 0 0 7 T r a n s a c t i o n s b y r e g i o n20082007EMEA*US & CanadaLatin AmericaAsia & AustraliaTotal #133862310Total Value $USD$4.6 billion$5.3 billion$3.0 billion$0.1 billionTotal #158711312Total Value $USD$6.2 billion$1.6 billion$1.9 billion$0.2 billionTOTAL252$13.0 billion254$9.9 billion* EMEA: Europe, the Middle East and Africa7 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

Every business daysomewhere in the worldan IMAP Advisor is closingan M&A transactionIn 2008 IMAP advisors completed more than 250 M&A transactionswith an aggregate value of over $13 billion.www.imap.comI M A P10

MULTIPLESAverage and Median Multiples by QuarterAverageMedian7.5 7.79.68.565.265.2Quarter 1 Quarter 2 Quarter 3 Quarter 4M u l t i p l e s p e a k e d i n t h e t h i r d q u a r t e rIMAP transaction multiples reached their zenith during the third quarter of 2008. The averagetransaction multiple hit a historical record high of 9.6x EBIT in the third quarter. There was somecarry-over of strong valuations in the fourth quarter, but on average the multiple values dippedand were dropping as the year 2008 was concluding.I M A P12

MULTIPLESS e r v i c e m u l t i p l e s h i g h e r i n 2 0 0 8The valuations of service firms were up sharply (9.1x EBIT) versus 2007 (5.5x EBIT). This was likely dueto a mix of more profitable service firms sold in 2008 versus 2007.Multiples for healthcare companies remained high (at 9.1x EBIT) although down from 2007 (when theaverage was 13.2x EBIT).2 0 0 8 v s . 2 0 0 7M e d i a n M u l t i p l eof closed t ransactions for indus t r y sectorsw i t h reasonable IM A P M & A activit yNumber of ev as multiple AVG REV of sellerindustry sector Transactions of ebit revenue in millionsTechnologyHealthcareManufacturingServicesWholesale & Distribution121362232020126434245.49.06.59.16.36.313.26.25.56.02.11.30.80.90.51.31.40.70.90.5$12.8$57.2$284.4$1.9$27.5$15.7$14.2$58.3$17.4$38.2* The table above includes only those transactionsfor which adequate information was provided.** The Technology Sector includesInformation Technology, Software,Electronics, Controls and Instruments.

C a s e S t u d yIMAP’s creative and collaborativeapproach gets the deal done• B u y e r s e e k sa s s i s t a n c et o n e g o t i a t ep u r c h a s e• I M A P p u t sa n e x p e r tc r o s s -b o r d e r t e a mt o g e t h e r t oc o l l a b o r a t eo n t h e d e a l• Thetransactionis completedto thesatisfactionof bothpartiesSITUATIONA leading worldwide manufacturer and servicerof high-productivity mining equipment was inearly negotiations to buy a Chinese manufacturerof shearing machines used in mining.SERVICEThe buyer’s IMAP representative in Milwaukeeintroduced the principals to advisors in IMAP’sChina office, who were able to assist in thenegotiations, conduct due diligence and helpdevelop strategic and tactical plans to reach asuccessful negotiation.SOLUTIONJoy Global Inc.Milwaukee, Wisconsin, USAacquiredWuxi ShengdaWuxi, Chinawith the help of a multi-cultural,collaborative team of M&A expertsI M A P14

ADVISOR SURVEYA d v i s o r s s a w d e c l i n e i n b u y e r a n d s e l l e ri n t e r e s t i n 2 0 0 8According to the opinions of IMAP advisors at the end of 2008, there were noticeably fewerbuyers in the market. This is likely a result of rapidly changed market conditions for M&A.Sellers, especially in the U.S. and Canada, were also in retreat. As the financial crisis tookhold in the fourth quarter, the M&A market was disrupted by funding uncertainties and anexpanding gap between buyer and seller valuation expectations.How did 2008 compare to 2007 in the NUMBER OF BUYERS?100%90%80%70%FEWER BUYERS60%FEWER SELLERS50%40%30%20%10%0%EMEA*US & Canada* EMEA: Europe, Middle East and AfricaThe chart above also reflects how the M&A market declined by region in 2008. The U.S. andCanada experienced adversely altered M&A conditions first, followed by Europe and thenthe rest of the world.The outlook for 2009 is for a continued decline in buyer and seller activity. About half of theIMAP advisors believe buyer and seller activity will be down in 2009 compared to 2008.Less than 25 percent believe buyer activity will increase. Slightly less than a third believeseller activity will increase. Lack of funding and unattractive seller valuations were the mostoftencited reasons for reduced M&A activity expected in 2009.15 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

M&A MARKET FORECASTW h y d i v e s t i n g i n 2 0 0 9w i l l b e g o o d f o r m a n yL owere x itmu lt iplesB etterinvestmentreturnsSITUATIONIt is likely buyers will not pay multiples in 2009that are as high as in 2007. This is likely to betrue for the next three to five years. However,the timing for divestiture may be right fromthe standpoint of business-continuity, firmrationalizationor other personal concerns.Can it be a wise move to sell in 2009?SILVER LININGYes. Private market values for goodcompanies have not dropped as steeply aspublic equity values. While a seller mayexperience a 10- to 20-percent discountfrom 2007 and 2008 highs, the transactionproceeds may be invested into high-qualitypublicly traded and liquid securities evenmore deeply discounted (30 to 50 percent.)Having the cash to take advantage ofexcellent long-term market opportunitiescould be very beneficial in 2009. Talk to yourIMAP adviser about why 2009 may be thebest year ever to consider a business sale.IMAP has more than 60 offices in nearly 40 countries. Combining local expertise withunparalleled global connections, IMAP advisors closed more than 250 M&A transactionsin 2008, with a total value of over $13 billion. Independent advisory offices providestrategic merger, acquisition, divestiture and related corporate finance services.Check the IMAP Web site (www.imap.com) for an advisor near you.17 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

ADVISOR SURVEYT r a n s a c t i o n v a l u a t i o n s e x p e c t e dt o b e l o w e r i n 2 0 0 9IMAP advisors overwhelmingly expect M&AWill M&A transaction pricingtransactions to be completed atbe higher or lower in 2009?lower valuations in 2009. Ninetytwo100%percent of IMAP advisors90%80%forecast lower transactionvaluations for 2009.HIGHER70%60%Many hold the beliefthat most buyers willbe looking for “deals” andnegotiate hard on purchase30%20%10%0%SAME 50%LOWER 40%prices. Alternatively, the IMAPconsensus is for sellers to be* Europe, Middle East and AfricaEMEA* US & LATIN TOTALCANADA AMERICAslow to accept reduced valuations. Financialrealities and pressures were expected to drive more M&A transactions contributing to lowervaluations as a result.Factors that will inhibit the closing of M&A transactions in 2009Lack of FundingUnattractive Valuations to Sellers0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Unattractive Purchase Prices to BuyersInflexible or Difficult Acquisition TermsEMEA (Europe, Middle East and Africa)US & CanadaLatin AmericaNo Compelling Reasons to SellLots of Organic Growth OpportunitiesLack of SellersLack of BuyersI M A P18

IMAP 2008 STATISTICAL REFERENCEThis section of the IMAP Transactionand Pricing Survey provides more data tosupport the summary conclusions containedin the previous pages.In the following pages, supporting detail isprovided for:• Transactions• Multiples• Advisor SurveyIt should be noted that all of the informationis accumulated from IMAP’s own results.While there is no claim that the data are allstatistically valid (in some situations due tosmall sample size), IMAP has attemptedto compile this information in a consistentmanner during the 15 years that IMAP haspublished its statistics.IMAP hopes that this information mayprovide some insight to the global M&Amarkets in 2008, which the reader may finduseful in evaluating M&A opportunitiesin 2009. As is always the case, the past isno guarantee of the future. Likewise,the results provided herein weregenerated from market activitiesthat may or may not berepeated in 2009.I M A P 2 0 0 0 - 2 0 0 8 W O R L D W I D ET R A N S A C T I O N V O L U M E & VA L U EYEAR TOTAL TRANSACTIONS TRANSACTIONS VALUE2008 252 $13,024,000,0002007 254 $9,946,000,0002006 218 $6,341,000,0002005 220 $4,079,000,0002004 190 $5,803,000,0002003 210 $3,470,000.0002002 217 $4,425,000,0002001 199 $2,096,000,0002000 182 $3,151,000,000I M A P20

I M A P 2 0 0 8 v s 2 0 0 7 t r a n s a c t i o n s b y r e g i o n2008 2007# Trans Avg Value Median Total Value # Trans Avg Value Median Total ValueEMEA* 133 $34.6 mm $9.4 mm $4,610 mm 158 $39.2 mm $10.7 mm $6,191 mmUS & Canada 86 $61.4 mm $21.8 mm $5,284 mm 71 $23.1 mm $11.5 mm $1,638 mmLatin America 23 $130.9 mm $25.0 mm $3,012 mm 13 $145.7 mm $70.0 mm $1,893 mmAsia & Australia 10 $11.1 mm $7.3 mm $112 mm 12 $18.6 mm $8.7 mm $223 mmTOTAL 252 $13,024 mm 254 $9,946 mm* Europe, Middle East and Africai m a p 2 0 0 8 V S . 2 0 0 7 T R A N S A C T I O N S b y q u a r t e r2008 2007% Total $ Value % Total # % Total $ Value % Total #of closed deals of closed deals of closed deals of closed dealsJan-Feb-Mar Q1 30.4 23.9 28.1 21.2Apr-May-June Q2 21.6 23.1 26.5 24.2Jul-Aug-Sept Q3 36.6 29.1 27.0 27.9Oct-Nov-Dec Q4 11.3 23.9 18.4 26.8I M A P 2 0 0 2 t o 2 0 0 8 t r a n s a c t i o n s b y s i z e2008#TRANS %2007#TRANS %2006#TRANS %2005#TRANS %2004#TRANS %2003#TRANS %2002#TRANS %Below $10MMAbove $10MMTOTAL115137252465410011513925445551001338521861391001398122063371001048619055451001347621064361001141032175347100I M A P 2 0 0 8 v s 2 0 0 7 t r a n s a c t i o n s b y r e g i o n b y s i z eBelow $10 MM55$10MM-$20MM17$20MM-$50MM 22Above $50MM19TOTAL133* Europe, Middle East and AfricaEMEA*# TRANS %7583158571317141004852100us & canada# TRANS %} } } }2913152986343771341517341004852100latin america#TRANS %5531023N/AN/AN/AN/A22221343100----asia & australia# TRANS %622N/AN/AN/A602020---N/A 0 -10001021 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

IMAP 2008 STATISTICAL REFERENCEThese tables showing multiple medians include only those transactions for whichadequate information was provided. Multiples of Earnings Before Interest and Taxes were usedin the comparisons. EBIT was calculated as trailing 12 months earnings before interest and taxes,adjusted for non-recurring expenses and discretionary owner distributions including compensationin excess of market rates. Seller notes, etc., were discounted to present values. To compute themultiple, one divides the purchase price plus the assumption of any interest bearing debt by theadjusted EBIT.A) Multiple spread within the middle 50 percent of completed transactions.(B) Contract manufacturers (e.g., stampers, molders, production fabricators).(C) IT consulting, integration, software development, IT staffing.EUROPE2008 vs 2007 IMAP TRANSACTION & PRICING SURVEY RESULTSAll Manufacturing Companies by RevenueMedian Inner Quartiles (A)Annual Revenue # of Trans. Multiple Low High$50 Million + 7 3 9.9 8.2 6.9 7.9 10.9 9.1$20 - $ 50 Million 13 11 7.2 8.8 5.3 7.8 9.5 9.8$10 - $ 20 Million 13 15 9.0 5.8 7.7 4.2 12.0 7.8Under $ 10 Million 24 23 6.3 7.5 4.0 5.7 8 .8 10.0Total 57 52All Companies by Product or TypeMedian Inner Quartiles (A)Annual Revenue # of Trans. Multiple Low HighNon-Proprietary Mfg. (B) 13 20 6.8 7.3 4.9 5.0 8.9 8.2Proprietary Consumer Mfg. 8 8 9.3 7.7 8.4 5.9 11.1 10.7Proprietary Industrial Mfg. 28 22 7.1 8.5 4.8 5.8 9.7 9.9Hi-Tech, Nonpropr. Mfg. 1 0 12.0 N/A 12.0 N/A 12.0 N/AHi-Tech, Propr. Mfg. 7 2 6.2 7.8 4.5 7.7 8.2 7.9Distribution 1 20 8.1 8.0 5.0 6.5 12.9 10.1Service, InfoTech (C) 10 17 5.2 7.1 4.1 5.7 8.0 8.2Service, Non-InfoTech 21 52 5.7 8.5 4.3 5.4 7.5 11.1Total 109 141I M A P22

U.S. AND CANADA2008 vs 2007 IMAP TRANSACTION & PRICING SURVEY RESULTSAll Manufacturing Companies by RevenueMedian Inner Quartiles (A)Annual Revenue # of Trans. Multiple Low High$50 Million + 12 4 5.6 7.2 5.3 5.4 9.0 9.2$20 - $ 50 Million 13 12 6.3 6.6 4.6 6.1 7.0 7.8$10 - $ 20 Million 6 6 7.2 5.1 5.9 5.1 8.6 6.7Under $ 10 Million 12 14 4.8 4.9 4.1 3.8 7.3 5.2Total 43 36All Companies by Product or TypeMedian Inner Quartiles (A)Annual Revenue # of Trans. Multiple Low HighNon-Proprietary Mfg. (B) 19 13 5.5 6.1 4.1 4.8 6.3 7.1Proprietary Consumer Mfg. 11 10 6.1 7.1 5.1 5.1 8.0 9.1Proprietary Industrial Mfg. 10 11 5.8 5.1 4.0 4.7 7.2 5.4Hi-Tech, Non-Propr. Mfg. 0 0 N/A N/A N/A N/A N/A N/AHi-Tech, Propr. Mfg. 3 2 14.2 6.5 12.1 6.4 15.9 6.6Distribution 6 12 4.1 4.8 3.3 4.0 5.3 6.2Service, InfoTech (C) 6 7 7.8 6.3 4.7 5.9 9.7 8.3Service, Non-InfoTech 21 18 5.7 6.9 3.8 4.9 10.5 10.4Total 76 732 0 0 8 v s . 2 0 0 7M e d i a n M u l t i p l eof closed transactionsfor indus tr y sectors with mos t M & A activit yNumber of ev as multiple AVG REV of sellerindustry sector Transactions of ebit revenue in millionsTechnologyHealthcareManufacturingServicesWholesale & Distribution121362232020126434245.49.06.59.16.36.313.26.25.56.02.11.30.80.90.51.31.40.70.90.5$12.8$57.2$284.4$1.9$27.5$15.7$14.2$58.3$17.4$38.2* The table above includes only those transactions for which adequate information was provided.** The Technology Sector includes Information Technology, Software, Electronics, Controls and Instruments.23 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

IMAP 2008 STATISTICAL REFERENCEC a s e S t u d yIMAP finds the solutionto reduce risk, increase odds of winning• A c o m p a n yn e e d sa s s i s t a n c et o a c q u i r ea l a r g e ro p e r a t i o nt h a n i t s e l f• I M A P o f f e r sa c r e a t i v es o l u t i o n t h a tm i n i m i z e st h ec o m p a n y ’sr i s k• A privateequity groupinvests inthe companySITUATIONA Danish men’s-clothing retailer wants to acquire aretail chain of men’s clothing much bigger than itself.SERVICERather than advising the client to go ahead with sucha risky venture, IMAP suggests the client partnerwith a private-equity group. A number of privateinvestors are considered and one is selected. Theclient is able to cash in on its existing businessinstead of doubling its risk by acquiring on its own.Also, by teaming with the private equity group, theclient improves its probability of winning the bid.SOLUTIONPolaris Equity GroupCopenhagen, Denmarkinvested inTøjekspertenEksperto, Denmarkthus enabling desired expansionI M A P24

As part of IMAP’s annual transactionand pricing review, an opinion survey is alsoconducted to obtain qualitative information for theyear immediately ended and an outlook for theupcoming year. IMAP advisors are solicited for theirthoughts with respect to:1. Buyer and seller availability and interestactivity2. Availability of transaction funding3. Equity percentages for M&A transactions4. Expected valuations in the upcoming year5. Areas of M&A opportunity for theupcoming year6. Environmental factors expected for theupcoming yearIn 2008, as has been true for the previous 14 years,IMAP advisors provided some additional insight tothe deal market that cannot otherwise be extractedsimply from closed-transaction data.The following table provides a breakdown of theresponses by geography for this year’s survey.2 0 0 8 T r a n s a c t i o n s &P r i c i n g s u r v e yBased on a survey conducted of IMAPPartners and Advisorsduring December 2008Percentage of Total RespondentsEMEAUS & CanadaLatin AmericaAsia & AustraliaTOTAL40.8%51.5%5.8%1.9%100%While IMAP strives to present this information in astandard and consistent manner (so that the resultscan provide meaningful and useful information)IMAP does not represent that the results complywith any measure of rigid scientific or statisticalvalidity.25 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

IMAP 2008 STATISTICAL REFERENCEHow did 2008 compare to 2007 in the NUMBER OF BUYERS?MORESAMEFEWER100%90%80%70%60%50%40%30%20%10%0%EMEA* US & Canada Latin America* Europe, Middle East and AfricaHow did 2008 compare to 2007 in the NUMBER OF SELLERS?MORESAMEFEWER100%90%80%70%60%50%40%30%20%10%0%EMEA* US & Canada Latin America* Europe, Middle East and AfricaI M A P26

C a s e S t u d yKnowledge, commitmentcombine to complete the deal• A c o m p a n yn e e d sa s s i s t a n c et o f o r m u l a t ei t s g r o w t hs t r a t e g y• I M A Pp r o v i d e sl o n g - t e r mc o m m i t t e ds e r v i c e a n di m p o r t a n tf u n d i n gc o n n e c t i o n s• Managementbuy-outcreates thefinancialleverageneeded forgrowthSITUATIONA British manufacturer and distributor of chemicalsused in detergents aspires to grow.SERVICEIn a relationship that began in 2005, IMAP assessedthe company’s specific needs and identified anopportunity for a management buy-out. IMAPintroduced management to a private equity firm, whichbacked the buy-out, with debt provided by five fundinginstitutions. IMAP worked closely with all partiesover a sustained period to help deliver the transactiondespite challenging market conditions. The complexdeal involved many advisors and was made possiblethrough IMAP’s sector experience and strong linkswithin the banking and private-equity community.SOLUTIONWarwick International HoldingsChester, United Kingdomacquired the shares ofWarwick InternationalChester, United Kingdom27 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

IMAP 2008 STATISTICAL REFERENCEG LOBA L M I DDLE MARKET EXPERT SIMAP, the proven experts in middle market activity, helps you connect anywherefrom Warsaw to Milwaukee, New Delhi to Bogotá, Paris to Atlanta, and everywhere in between.IMAP (IMAP.com) represents the global middle market; the bedrock of all our world’s economies.AmsterdamBaltimoreBeijingBelgradeBogotaBolognaBratislavaBrusselsBucharestBudapestBuenos AiresCaracasChicagoClevelandColoradoSpringsCopenhagenDallasDenverDes MoinesDetroitDublinHalmstadHelsinkiIstanbulLondonLos AngelesMannheimMexico CityMilwaukeeMoscowNaplesNew DelhiOsloParisPortlandPragueSalt Lake CitySan JoseSao PauloSeattleShanghaiSofiaSouthportSt. PetersburgSydneyTel AvivTokyoTorontoVancouverViennaWarsawZagrebZurichI M A P28

How do you foresee 2009 regarding NUMBER OF BUYERS?100%90%80%70%MORESAMEFEWER60%50%40%30%20%10%0%EMEA* US & Canada Latin America* Europe, Middle East and AfricaHow do you foresee 2009 regarding NUMBER OF SELLERS?100%90%80%MORE 70%SAME 60%FEWER 50%40%30%20%10%0%EMEA* US & Canada Latin America* Europe, Middle East and Africa29 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

IMAP 2008 STATISTICAL REFERENCEHow did 2008 compare to 2007 regarding BANK FINANCING?EASIER ACCESSSAMESOMEWHATMORE DIFFICULTSUBSTANTIALLYMORE DIFFICULT100%90%80%70%60%50%40%30%20%10%0%EMEA* US & Canada Latin America* Europe, Middle East and AfricaHow do you foresee 2009 regarding BANK FINANCING?EASIER ACCESSSAMESOMEWHATMORE DIFFICULTSUBSTANTIALLYMORE DIFFICULT100%90%80%70%60%50%40%30%20%10%0%EMEA* US & Canada Latin America* Europe, Middle East and AfricaI M A P30

B U Y E R E Q U I T Y : 2 0 0 8 V S . 2 0 0 9Average Buyer Equity in 2008EMEA54.02US & Canada49.45Latin America12.05%Anticipated Buyer Equity in 200964.9856.525%*Buyer equity includes subordinated debt supplied by the buyer. It is a percentage of the total transactionvalue (which is enterprise value and includes all consideration paid, including the value of assumedinterest-bearing debt.)Will M&A transaction pricing be higher or lower in 2009?100%90%80%70%HIGHER 60%SAME 50%LOWER 40%30%20%10%0%EMEA* US & Canada Latin America* Europe, Middle East and Africa31 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

IMAP 2008 STATISTICAL REFERENCEAreas for M&A opportunity in 2009Exit due to age/healthFinancial leverage is too high0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Profitability is too low and inadequate capital reservesBusiness model is nearing obsolescenceEMEA (Europe, Middle East & Africa)US & CanadaLatin AmericaIndustry consolidationMBOsTake private to improve valuation* Percentages are based on number of respondents who rated the area as among the top three opportunities in 2009.Industries that will see the most M&A activity in 2009Consumer Products & ServicesEnergy & Power0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%FinancialsGovernment & AgenciesEMEA (Europe, Middle East & Africa)US & CanadaLatin AmericaHealthcareHigh TechnologyIndustrialsMaterialsMedia & EntertainmentReal EstateRetailConsumer StaplesTelecommunications* Percentages are based on number of respondents who rated the area as among the top three industries that will see the mostM&A activity in 2009.I M A P32

Factors that will help M&A transactions get finalized in 2009Available FundingAttractive Valuations to Sellers0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Attractive Purchase Prices to BuyersFlexible Acquisition TeamsEMEA (Europe, Middle East & Africa)US & CanadaLatin AmericaFinancial Realities and PressuresLess Expensive To Buy Than to Build OrganicallyAbundance of Seller CandidatesAbundance of BuyersFactors that will inhibit the closing of M&A transactions in 2009Lack of FundingUnattractive Valuations to Sellers0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Unattractive Purchase Prices to BuyersInflexible or Difficult Acquisition TermsEMEA (Europe, Middle East & Africa)US & CanadaLatin AmericaNo Compelling Reasons to SellLots of Organic Growth OpportunitiesLack of SellersLack of Buyers33 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

No wonderwe’re rankedsixth in the734world *2210We’re all over the mapWith more than 60 offices in nearly 40 countries, we can providethe local depth and global breadth you need to ensure your M&Atransaction gets the unparalleled expertise and maximum exposureto deal opportunities that your business deserves. For contactinformation for the IMAP office nearest you, visit www.imap.com.*For M&A transactions valued at $200 million or less, as ranked by Thomson Reuters Global League Tables in 2008.I M A P34

24302714133323304 16311532012252917112826632211981810359521ArgentinaBuenos AiresAustraliaSydneyAustriaViennaBelgiumBrusselsBrazilSao PauloBulgariaSofiaCanadaTorontoVancouverChinaBeijingHong KongShanghaiColombiaBogotaCosta RicaSan JoseCroatiaZagrebCzech RepublicPragueDenmarkCopenhagenFinlandHelsinkiFranceParisGermanyMannheimHungaryBudapestIndiaNew DelhiIrelandDUBLINIsraelTel AvivIMAP OFFICE LOCATIONSItalyBolognaJapanTokyoMexicoMexico CityThe NetherlandsAmsterdamNorwayOsloPolandWarsawRomaniaBucharestRussiaSt. PetersburgRepublicof SerbiaBelgradeSlovak RepublicBratislavaSwedenHalmstadSwitzerlandZurichTurkeyIstanbulUnited KingdomBirminghamLondonUnited StatesCaliforniaBerkleyLos AngelesOrange CountySan JoseColoradoColorado SpringsDenverConnecticutSouthportFloridaNaplesIllinoisChicagoIowaDes MoinesMarylandBaltimoreMichiganDetroitnew YORKNEW YORK CITYOhioclevelandOregonPortlandTexasDallasUtahSalt Lake CityWashingtonSeattleWisconsinMilwaukeeVenezuelaCaracas35 T R A N S A C T I O N A N D P R I C I N G S U R V E Y 2 0 0 8

6000 Cattleridge Road, Suite 300Sarasota, FL, 34232 USAPhone: +1 (941) 378-5500Fax: +1 (941) 378-5505info@imap.comwww.imap.com© COPYRIGHT 2009 IMAPTHIS REPORT AND THE INFORMATION HEREIN IS THE EXCLUSIVEDOMAIN OF IMAP AND ITS MEMBER FIRMS AND MAY NOT BE USEDOR REPRINTED WITHOUT PERMISSION. CONTACT info@imap.com.