Presentation - World Services Group

M&A: The Year in Review and a Look AheadOutlook for 2013 – What’s Motivating Buyers?S&P 500 Cash BalancesUninvested PE Capital($ in billions )($ in billions)$2,500$2,000$1,500$1,000$989 $99910%$1,703$1,601$1,49713% 12% 13%$2,06014%25%20%15%10%$600$500$400$300$200$428$501$481$433$373$348$5007%5%$100$02007 2008 2009 2010 2011 2012Cash on Hand Cash as % of Enterprise ValueSource: Capital IQ0%$0Source: Pitchbook2007 2008 2009 2010 2011 2012• Despite recent increased earnings following recession-era cost cutting measures, companies have beenincreasingly challenged to grow revenue organically given the limits of a slowly improving economy• Acquisitions have been tapped to accelerate market share expansion and improve distributionefficiencies• S&P 500 cash balances have reached a ten-year high at over $2.0 trillion, while near zero interest ratesand higher dividend taxation provide incentive for corporate reinvestment• Low leverage and wide availability of capital from financial sponsors and commercial lenders areconducive to increased M&A activityCLEVELAND ● COLUMBUS ● DALLAS10