What We’ve Been Doing

Recent Harris Williams Professional Services Transactions

The Business Services group has served as a trusted advisor to numerous professional services companies and continues to focus on this growing and innovative industry.

Select professional services transactions include:

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What We’ve Been Reading

Increased Transparency Could Make Your Customers Appreciate Your Services More

Conventional wisdom holds that the more contact an operation has with its customers, the less efficiently it will run. But when customers are partitioned away from the operation, they are less likely to fully understand and appreciate the work going on behind the scenes, causing them to place a lower value on the product or service being offered.

Read more here.

Digital Workplaces Are The Future of The Legal Industry

Digital transformation is accelerating business across the legal industry. Both law firms and corporate legal departments are looking to leverage data to drive faster decision making and keep pace with the changing client expectations.

Read more here.

Tapping Into The Aging Workforce in Financial Services

Majority of financial institutions (FIs) across the globe are faced with two key challenges: talent gap and high number of baby boomers. The older workforce is the fastest growing demographic in the US, as they are more skilled than younger employees. Baby boomers are the wealthiest cohort in the US and are likely to remain so until 2030, making it an important customer segment for wealth managers. FIs have the opportunity to leverage their aging workforce to better engage with this customer segment.

Read more here.

KLDiscovery to be Acquired by Pivotal Acquisition

Pivotal Acquisition Corp. (NYSE: PVT) (“Pivotal”), a public investment vehicle, and KLDiscovery (“KLD” or the “Company”), a global provider of electronic discovery and information governance services to Fortune 500 companies and top law firms, today announced that they have entered into a definitive agreement in which KLD and Pivotal will merge. As a result of the transaction, valued at approximately $800 million in enterprise value, KLD will become a publicly listed company.

Read more here.

Excerpts from Recent Earnings Calls1

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“There are numerous macro forces accelerating our growth. Omnichannel cloud investment is expected to continue its exponential growth. The market is growing near 25% a year, yet remains in its infancy with only 15% of companies using cloud-based solutions today. Our clients are embracing all cloud-based CX technology solutions in a similar way as they seek a cost-effective, scalable architecture and rapid deployment model. Mega industries, which historically have not embraced CX as a top priority are now required to engage proven partners to improve outcomes across acquisition, growth, retention and service.” – Kenneth Tuchman, Founder, Chairman & CEO, TTEC Holdings (5/8/19)

 

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"I wouldn't say there's been an increase in the tightness of the labor market. It's been tight for the last several quarters, both for full-time positions and for contingent labor. So it's been steady the last couple of quarters, which when we look at historical -- look at this in historical terms, it's clearly a tight labor market, but we haven't seen it tighten anymore from the last couple of quarters.” – A. Patrick Beharelle, CEO& Director, TrueBlue (4/29/19)

 

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“We continue to believe that it's important to invest in both organic growth and in acquisitions. From an organic perspective, embedded in our results are significant investments in people, technology, marketing and processes that we believe will fuel the short- and long-term growth of the company. […] From an acquisition perspective, our balance sheet remains strong and we have approximately $210 million of unused borrowing capacity on our credit facility at the end of the first quarter. This provides us with the capacity and the flexibility to continue with our strategic acquisition program. In 2018, we closed 3 transactions that are expected to contribute approximately $11 million to annualized revenue. So far this year, we've closed 1 additional acquisition that is expected to contribute an additional $2.4 million to annualized revenue” – Jerome Grisko, President, CEO & Director, CBIZ (4/25/19)

 

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“With regard to acquisitions in general, we did mention in the press release that there was a bit of a slowdown in continuing education. However, we are continuing to be very positive in the LDI business. I will say that in the aggregate, our acquisitions over the last several years, we still have confidence that they will reach the return on invested capital exceeding the WACC in years 3 to 5, so we're committed. I will say that several of the acquisitions, we are delighted with their performance. We see double-digit growth in Tagetik. We've seen double-digit growth in Enablon. We're very happy to be combining Enablon with the most recent acquisition, eVision, we think that will help us to be a very strong player in a very attractive market. So all in all, we do believe that the acquisitions have helped strengthen the portfolio.” – Kevin Entricken, CFO & Member of the Executive Board, Wolters Kluwer (2/20/19)

Equity Trading Overview

Key Trading Statistics1,2

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Public Company Sector Performance1,2

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Economic Trends

A Snapshot of Key Economic Indicators

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M&A Market Trends

Select Recent M&A Transactions2

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Business Services M&A Volume (By Year)4*

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As of July 17, 2019

* 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

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1. Thomson Reuters

2. FactSet

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. Institute for Supply Management

 

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