Transaction Spotlight

Harris Williams & Co. served as the exclusive advisor to Consilio, a provider of eDiscovery and legal services, on its sale to GI Partners and its subsequent merger with Advanced Discovery.

The transaction marks a strategic combination of two respected eDiscovery and risk management platforms and is Harris Williams & Co.’s fourth legal services transaction closed in 27 months.

Read the press release here.

Representative HW&Co. Legal Services Transactions

The Business Services Group has served as a trusted advisor to numerous legal services companies and continues to focus on this growing and innovative sector.

Select legal services transactions include:

garretson.jpginventus.jpgsystem_one.jpgblr.jpg

BPO's Use of Artificial Intelligence and Robotic Process Automation

For years robots have been automating tasks on the factory floor. However, the use of artificial intelligence (“AI”) and robotic process automation (“RPA”) is just starting to make inroads in the world of business process outsourcing (“BPO”).

In particular, BPO firms are looking to AI and RPA to improve operations and financial performance for competitive advantage.

For example, these technologies can handle routine, repeatable tasks, as well as monitor conversations with customers and provide employees with resources they need to fulfill complex requests in real time.

Continued investment in RPA and AI will help BPO companies improve employee efficiency, reduce overhead costs and enhance the customer experience.

To learn more about the BPO and customer care space, please reach out to Derek Lewis.

What We've Been Reading

Jelf to Acquire Clark Thomson

Jelf, an award-winning consultancy specializing in insurance, risk management and employee benefits and part of Marsh, a global leader in insurance broking and innovative risk management solutions, announced that it has reached an agreement to acquire Clark Thomson, Scotland’s largest independent insurance broker. Jelf has 3,000 colleagues serving over 250,000 clients from over 75 locations.

Read more about it here.

IT Staffing Growth Asessment: 2018

Global IT staffing generated $59 billion in revenue, representing more than 15% of the total global temporarily staffing market. About half of IT staffing is derived from the US, where growth is forecasted to maintain a 4% trajectory in 2018. Despite the stable growth forecast, a host of underlying trends are shifting in a market that has become increasingly complex.

Read more about it here.

General Assembly purchased by Adecco Group

Swiss staffing company Adecco Group (ADEN.S) is buying U.S.-based technology education provider General Assembly for $412.5 million including debt. General Assembly is a private school business started in 2011 that provides training in fields such as data science and analysis. Its revenues in 2017 were about $100 million with a strong 2018 booking backlog. Over the last three years General Assembly’s revenue had grown at a CAGR of about 30%.

Read more about it here.

What We've Been Hearing

Excerpts From Recent Earnings Calls

convergys.jpg“I think nothing dramatic has changed in our M&A strategy. We're looking at things that diversify our client base, diversify our geographic footprint, or add capabilities that our clients will value. I think these days you have to add in that capability bucket strength in certain verticals, but also capabilities that enhance digital and also enhance the ability to sell for our clients. So, I do think, as we look to add capabilities, those are things that we'll consider.” – Andre S. Valentine, CEO

 

ajg.jpg“We've been working on [free cash flow improvement] a lot. We said we consolidate our bank accounts, we've improved our international cash flow, in particular, free cash in particular because when we did the four or five larger international acquisitions, we went through a consolidation effort and that's really paid off and generated a lot of cash. Where are we in the U.S., that's pretty mature at this point. So I don't see further working capital generation in the U.S.” – J. Patrick Gallagher, Chairman, President & CEO

 

“All our acquisitions have been small to mid-size. We are extremely thoughtful on what could be our largest acquisition. My friend David will keep me absolutely honest on this because – and I'm not mentioning the very large acquisition. You know that in our industry very large acquisition have not been successful. I mean, zero have been successful.” – Pierre Nanterme, Chairman & CEO

Equity Trading Overview

Key Trading Statistics1,2

chart1_3.jpg

Public Companies Sector Performance1,2

chart2_3.jpg

Economic Trends

A Snapshot of Key Economic Indicators

U.S. GDP Growth3

graph1_5.jpg

Non-Farm Payrolls (1-Month Net Change)5

graph3_3.jpg

Consumer Price Index5

graph5_1.jpg

 

Cons. Confidence and Unemployment Rate4,5

U.S. Initial Jobless Claims6

graph4_2.jpg

 

ISM Non-Manufacturing Index1

graph6_3.jpg

M&A Market Trends

Select Recent M&A Transactions1

Business Services M&A Volume (By Year)1*

ma_volume.jpg

As of April 30th, 2018
* Represents all announced or closed M&A transactions in the United States and Canada
* No transaction value provided for undisclosed deals

Public Comparables

Public Company Performance1,2

comps2_2.jpg

comps3_1.jpg

As of April 30th, 2018

1.FactSet

2.Thomson Reuters

3. U.S. Bureau of Economic Analysis

4. The Conference Board

5. U.S. Bureau of Labor Statistics

6. U.S. Department of Labor

7. PR Web

8. PR Newswire