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1、Q2 2024Circular TechMarket Update2023 M&A Advisory RankingsAll Global TransactionsDealsAdvisor352Houlihan Lokey1349Rothschild&Co2300Goldman Sachs&Co3300JP Morgan3253Morgan Stanley5Source:LSEG(formerly Refinitiv).Excludes accounting firms and brokers.2023 Global Distressed Debt&Bankruptcy Restructuri

2、ng RankingsDealsAdvisor73Houlihan Lokey164PJT Partners Inc251Rothschild&Co337Lazard427Evercore Partners5Source:LSEG(formerly Refinitiv).19992023 Global M&A Fairness Advisory RankingsDealsAdvisor1,247Houlihan Lokey11,035JP Morgan2977Duff&Phelps,A Kroll Business3884UBS4716Morgan Stanley5Source:LSEG(fo

3、rmerly Refinitiv).Announced or completed transactions.Houlihan Lokey,Inc.(NYSE:HLI)is a leading global investment bank with expertise in mergers and acquisitions,capital markets,financial restructuring,and financial and valuation advisory.Our firm is the trusted advisor to more top decision-makers t

4、han any other independent global investment bank.Leading Capital Markets AdvisorCORPORATE FINANCENo.1Global Restructuring AdvisorFINANCIAL RESTRUCTURINGNo.1Global M&A Fairness Opinion Advisor Over the Past 25 YearsFINANCIAL AND VALUATION ADVISORY1,700+Transactions Completed Valued at More Than$3.5 T

5、rillion Collectively2,000+Annual Valuation EngagementsNo.1Global M&A AdvisorAbout Our Firm2Learn more about how our advisors can serve your needs:Corporate FinanceFinancial andValuation AdvisoryFinancial RestructuringOur Industry CoverageOur clients benefit from our local presence and global reach.A

6、MERICASAtlantaLos AngelesBaltimoreMiamiBostonMinneapolisCharlotteNew YorkChicagoSan FranciscoDallasSo PauloHoustonWashington,D.C.EUROPE AND MIDDLE EASTAmsterdamMilanAntwerpMunichDubaiParisFrankfurtStockholm LondonTel AvivMadridZurichManchesterASIA-PACIFICBeijingShanghaiFukuokaSingaporeGurugramSydney

7、Hong Kong SARTokyoMumbai29 Senior officers dedicated to the sponsor community in the Americas and Europe.1,300+Sponsors covered,providing market insights and knowledge of buyer behavior.800+Companies sold to financial sponsors over the past five years.Fully Integrated Financial Sponsor Coverage3(1)A

8、s of June 30,2024;excludes corporate MDs.(2)As of July 31,2024.(3)LTM ended June 30,2024.36 Locations Worldwide2,000 Total Financial Professionals$10.3B Market Cap(2)2,000+Clients Served Annually328Managing Directors(1)$2.0B Annual Revenue(3)4The circular tech team,situated within Houlihan Lokeys Co

9、rporate Finance business,is a dedicated and highly skilled group of professionals committed to delivering exceptional services in the realms of M&A and capital raising.The focus extends specifically to companies operating within the circular economy,showcasing distinctive expertise in navigating the

10、 intricacies of this sustainable business model.This specialized team brings unparalleled experience to the table,particularly in collaborating with recommerce platforms,product-as-a-service ventures,value recovery enterprises,and other circular enablers.Its extensive track record demonstrates a con

11、sistent ability to generate outstanding returns for investors while simultaneously fostering positive impacts for both people and the planet.By aligning its efforts with businesses entrenched in the circular economy,the circular tech team positions itself at the forefront of financial innovation,rec

12、ognizing the importance of sustainable practices in todays dynamic market.Tombstones included herein represent transactions closed from 2016 forward.*Selected transactions were executed by Houlihan Lokey professionals while at other firms acquired by Houlihan Lokey or by professionals from a Houliha

13、n Lokey joint venture company.Featured Transactionshas acquiredBuyside Advisorhas acquiredBuyside Advisorhas acquiredBuyside Advisor*has acquiredBuyside Advisor*has acquiredBuyside Advisor*has been sold toSellside Advisor*has acquiredBuyside Advisor*has acquiredBuyside Advisor*has been acquired bySe

14、llside Advisor*About Our Circular Tech Teamhas acquiredBuyside&Financing Advisora portfolio company ofhas acquiredBuyside Advisorhas been acquired bySellside Advisora portfolio company ofand majority owned by management and founders has entered into a partnership withSellside Advisorhas been acquire

15、d bySellside Advisora portfolio company ofhas been acquired bySellside Advisora portfolio company ofhas acquiredBuyside Advisorhas acquiredBuyside Advisorhas received a majority investment fromSellside AdvisorLeadershipSigurd SolheimManaging DirectorSigurd.SolheimHL.com+41(0)79 309 40 74Tripp DavisM

16、anaging DirectorTripp.DavisHL.com+1 704.303.8117John KlimDirectorJohn.KlimHL.com+1 703.832.9261Dr.Jules WurlodDirectorJules.WurlodHL.com+41(0)79 448 02 36Steven van ReethVice PresidentSteven.VanReethHL.com+41(0)79 601 86 74Sydney ScaddenVice PresidentSydney.ScaddenHL.com+1 704.247.1673Request a Meet

17、ingRequest Market Insights ReportPlease reach out to us to schedule a call to discuss this quarters market update or to explore how we can serve your business needs.Contact Us5According to Gartner,worldwide IT spending is expected to total USD 5.5 trillion in 2024,an increase of 8.0%from 2023.This p

18、uts worldwide IT spending on track to surpass USD 8.7 trillion well before the end of the decade.Moreover,IT services will continue to see an increase in growth in 2024,becoming the largest segment of IT spending(after communication services)for the first time.IT services spend is expected to grow i

19、n 2024 by 9.7%,compared to 6.1%growth in 2023.With positive tailwinds from the global IT services market and a rebound in IT spend,the landscape of the circular tech sector continues to evolve,with both financial and strategic investors particularly looking for high-quality assets with strong circul

20、ar competencies.Currently,the following dynamics shape the landscape:OEMs are starting to feel more and more pressure from EU regulation to offer refurbished devices in their RFP;however,they are still reluctant to move into ITAD directly.Device-as-a-service(DaaS),or device leasing,is a preferred op

21、tion for OEMs to keep control over devices and then work with ITAD partners to handle returning devices.Leasing providers such as CHG and Econocom intend to increase their capabilities for value recovery;however,they are not very active in terms of M&A yet.U.S.players are looking at Europe and recog

22、nize that the market is more advanced,which makes these companies more of a target than an acquirer.There is increasing interest from private equity in the circular tech market.The circular tech industry is currently very dynamic and being consolidated not only by various OEMs,IT distributors,and VA

23、R but also by private-equity-backed platforms.Various evolving dynamics are currently shaping the circular tech landscape,driving the demand for IT asset management,IT asset disposal(ITAD),trade-in,and recommerce services.These dynamics include,among others,the increasing awareness of environmental

24、sustainability,regulatory pressures for responsible IT equipment and disposal of electronic waste,and the growing emphasis on circular economy principles within corporate strategies.As a result,organizations are seeking comprehensive solutions for managing their IT assets throughout their lifecycles

25、,from procurement to disposal,and are turning to specialized providers for efficient and ethical handling of these resources.Note:Data as of June 30,2024.Circular Tech Market Update An Introduction6Circular Tech Market UpdateRecent Challenges for Brokers and Light RefurbishersTECHNOLOGICAL ADVANCEME

26、NTSThe rapid pace of technological advancements challenges brokers and refurbishers to stay current with standards,upgrade equipment,and balance costs while ensuring competitive performance and compatibility.INCREASINGCOMPETITIONSmaller brokers and refurbishers face intense competition,compelling th

27、em to innovate and uphold product quality to retain customer trust.As a result,a natural selection process occurs,allowing only the most adaptable and quality-focused to survive.PRICE PRESSUREPrice drops for new devices are significantly affecting the resale value of used phones.For instance,the int

28、roduction of the iPhone 15 and corresponding price decreases in 2023 led to a decline in the resale value of other models,substantially impacting refurbishers.EFFICIENCY AND SCALABILITYScaling circular solutions from niche markets to mainstream adoption presents several challenges,such as high capit

29、al intensity,and the need for increased market acceptance as well as regulatory support and clarity.FINANCIAL ATTRACTIVENESSIT refurbishers must demonstrate long-term economic and financial benefits and manage their net working capital carefully,as the initial investment,low margins,and business cyc

30、les(e.g.,the introduction of new devices)can strain cash flow and impede growth.REGULATORY COMPLIANCEBrokers and refurbishers face challenges in maintaining regulatory compliance due to the rapidly evolving standards for e-waste and refurbishment.These standards necessitate continuous adaptation,tho

31、rough documentation,and the retention of certifications.Created by Wagiman 7Circular tech encompasses a comprehensive range of services that approach IT lifecycle management holistically,integrating circular thinking.It includes all aspects of the IT journey,starting from procurement and encompassin

32、g services related to IT assets,all the way through responsible disposal to companies(ITADs)within the circular tech space that provide secure data wiping and value recovery of utilized devices,which are ultimately resold into the markets in their second and third lives before secure and responsible

33、 recycling.One of the key pillars to enable a circular economy and reduce e-waste.Rising practice and increasing adoption over the past four to five years.Sizable market supported by strong underlying ITAM/ITAD/recommerce trends.Numerous(consolidation)opportunities at hand,yet to be properly assesse

34、d.More stringent regulations were and are being introduced to drive circular tech.Corporates have realized the importance of a sustainable IT lifecycle and are implementing strategies.Circular TechRapid AdoptionLarge and Growing MarketUntapped OpportunitiesRegulatory TailwindIncreasing AwarenessWhy

35、Are We So Excited About Circular Tech?A Circular Economy Eliminates Waste Through Circularity Products,With Circular Tech Being a Cornerstone8DistributorsDistributors work with high volumes from vendors/OEMs and usually have large warehouses to store assets.They are selling either directly to end cu

36、stomers or through VARs and are frequently educating resellers about new products.VARVARs resell software,hardware,and networking products to end clients along with added services,including consulting,design,implementation,and training.VARs source directly from distributors and,in some rare cases,di

37、rectly from IT vendors.1Circular Tech CompaniesOffer full lifecycle from procurement to disposal and remarketing/refurbishing of IT devices.Enable circularity and sustainability with complete end-of-life solutions.23Direct Procurement to Large ClientsNo Direct Distribution to SMEsIT DistributorOpen

38、LoopTraditional VARDirect SalesCircular Tech Companies Covering the Entire CircleHardware FlowClosed LoopVendors/OEMCustomers,Including Institutions,Corporates,and SMEsHardware Flow123Circular Tech Is a Cornerstone of the Circular Economy ModelThe Circular Tech Offering Covers ITAM,ITAD,and Recommer

39、ce 9213ITAD(1)Driven by Regulations and Sustainability Only a few sizable assets are available in a few key markets.Assets usually available for 9.0 x EV/EBITDA.Critical to evaluate the supply side.Recommerce Entails Purchasing,Inspecting,and Repricing Only a few sizable assets are available in a fe

40、w key markets.Assets usually available for 10.0 x EV/EBITDA.Critical to evaluate the supply and demand side.ITAM Strongly Driven by Device-as-Service Trend Numerous assets are available in almost every market.Assets usually available for 8.0 x EV/EBITDA.Critical to pick the right asset and make the

41、right combinations.Full Circular Tech Platforms Critical to work on positioning to secure a premium valuation.Very scarce assets,trading at a significantly higher valuation than players focused on single services.9 Positioning around sustainability implies several conditions:Proper reporting of inte

42、rnal ESG KPIs.Quantification of external impact of stakeholders(e.g.,clients).Implementation of ESG programs(e.g.,carbon neutral program).3.24.12.11.11.11.121A1.11.125E6.28.3+33.3%Mobile:RecommerceMobile:C2CWorkspace:RecommerceWorkspace:C2C1.42.12.51.41.31.10.50.521A1.025E4.16.3+52.5%Mobile:Refurbis

43、hingMobile:RecyclingWorkspace:Refurbishing(2)Workspace:Recycling(2)58.258.285.1130.869.596.521A25E212.8285.5+34.1%HardwareSoftwareServicesThe“Specialist”Circular Tech Market Is Highly FragmentedIt Is a Market With Players Focused on Single Services and an Opportunity to Build Circular Tech Platforms

44、Source:Boston Consulting Group.Estimates based on source material.Note:European market figures in USD Billions.(1)ITAD market figures,excluding server,storage,and network;(2)Workspace refers to computers and laptops.10Multiple Regulations and Policies Are a Tailwind for Circular TechA Combination of

45、 Stringent Legislation in Europe and Voluntary Sustainability Initiatives Drive Circular TechDirect Procurement Rules and Increased Government RegulationStringent Initiatives Generic Initiatives In August 2021,the Netherlands,Belgium,Germany,Norway,the U.K.,Australia,and China signed an internationa

46、l Circular and Fair ICT Pact,committing to work together on making laptop and smartphone procurement more sustainable,circular,and fair.Although specific targets are not elaborated,the initiative has developed a framework to secure and codify governmental commitment.France implemented additional str

47、ategies in 2021,inter alia,that public services must procure a minimum of 20%IT from refurbished,reused,or recycled sources.The U.K.committed through the IT and Digital Services Strategy to use 100%renewable energy and/or carbon neutral suppliers,produce no landfill and increase reuse,and promote tr

48、ansparency with traceability of IT end-of-life.Nordic countries implemented strategies for sustainable,circular public procurement to accelerate the transition toward repairing IT.ETS(1)DIRECTIVECornerstone of the EUs policy to achieve objectives of climate neutrality by 2050 and c.55%by 2030,with a

49、 system of GHG emission trading.In Application Since 2003Cap and trade system principle,with a cap set on the total amount of certain GHG emissions in installations covered by the system in the EU,EEA,(2)and EFTA via threat of heavy fines.Implementation1ECODESIGN DIRECTIVEIn Application Since 2009Le

50、gal framework for design standards and labels for energy-consuming products to verify the materials and energy consumed,expected emissions,and waste.ImplementationFramework directive,i.e.,minimum ecological requirements are defined and adopted through specific measures for each product type.2WEEE(3)

51、DIRECTIVESeries of EU rules,including mandatory EPR,(4)to prevent and reduce the adverse impacts of the production,consumption,and end-of-life management of WEEE.In Application Since 2012Targets for collection,recovery,and recycling of WEEE with responsibility put on producers for items end-of-life

52、collection.Implementation3SUSTAINABLE PRODUCTS INITIATIVE Commission Adoption in Q2 2022Proposed revision of Ecodesign Directive with additional legal measures and widening product scope,making products more durable and reusable.ImplementationEstablishment of common LCA(5)methodologies and improved

53、data collection,applied to any company placing products on the European market.4CIRCULAR ELECTRONICS INITIATIVEUpdated in 2023As part of CEAP,(6)the CEI addresses shortcomings in electronics circular design,durability,hazardous substances,e-waste,repair,recycling,reuse,and more.ImplementationImprove

54、d PLC(7)with specific regulatory measures under the Ecodesign Directive,such as“right to repair,”improved collection,and waste treatment and restrictions.5Voluntary Sustainability InitiativesMarket-wide megatrend pushing companies to formulate net-zero targets by abating CO2 emissions from operation

55、s and their supply chains with timelines.ICT equipment is an important contributor to upstream scope 3 emissions of most service companies.Scope 3 emissions are typically hard to abate as they lie outside of the companies boundaries.PUSH TO NET ZERO7,000 Companies Committing to Net-Zero Emissions Fo

56、llowing SBTiConsumers are increasingly shifting to as-a-service models to optimize budgets while benefitting from guaranteed quality and reduced complexity.As a response,industry organizations have identified circular offerings as a key to becoming more sustainable.For example,GSMA has predicted tha

57、t the refurbished mobile market will grow 300%in 10 years.SHIFT TO CIRCULAR AND“AS-A-SERVICE”Megatrend Hitting Consumers and CorporatesSources:Anthesis Group,EU Commission,EUR-Lex,Recycling Magazine,Repair EU,and Tech Crunch.(1)Emissions trading system;(2)Iceland,Liechtenstein,and Norway;(3)Waste fr

58、om electrical and electronic equipment;(4)Extended producer responsibility;(5)Lifecycle assessment;(6)EUs circular economy action plan;(7)Product lifecycle.11Multiple Regulations and Policies Are a Tailwind for Circular TechDeep Dive on Circular Electronics Initiatives:Right to RepairSources:CEP and

59、 Kepler Cheuvreux.New Right to Repair InitiativeImpact on Circular TechOn April 23,2024,the European Parliament adopted the Right to Repair Directive(R2RD),mandating that manufacturers design products for easier repair,provide spare parts and repair manuals,and offer extended software updates.Pendin

60、g final approval from the European Council,the directive aims to reduce waste and support the circular economy by encouraging repairs over replacements.The R2RD introduces new consumer rights and business obligations to streamline repairs;sellers must repair defective products during the warranty pe

61、riod,and after it,they must provide repair options and self-repair information for technically repairable items.The directive includes an online platform to connect consumers with local repairers,a European Repair Information Form for transparency,and a new quality standard to improve repair service

62、 quality across the EU.The legislation requires manufacturers to adapt their design and production processes,potentially incurring initial costs.It also creates opportunities for innovation in product design and repair services,opening new markets and new opportunities for the circular tech industry

63、.Independent repair shops and third-party service providers are likely to experience growth due to increased demand for their services.What Is It About?Key FeaturesImplicationsReplacing viable consumer goods in the EU generates 35m tonnes of waste and costs USD 13.1 billion annually.The legislation

64、aims to reduce electronic waste and support a cleaner environment by extending product lifespans and facilitating repairs.It enhances resource efficiency and aligns with the EUs circular economy goals by promoting reuse,repair,and recycling.The R2RD is expected to drive innovation by requiring manuf

65、acturers to design more durable and repair-friendly products,leading to advancements in design and engineering.Mandatory software and firmware updates will improve how these updates are delivered and managed,enhancing product functionality and security.The focus on repairability and ongoing support

66、is likely to foster new technologies and methods,improving overall product longevity and user experience.The R2RD boosts demand for repair services,benefiting brokers and refurbishers by stabilizing inventory and creating new business opportunities.It drives innovation in repair technologies and mar

67、ket differentiation while incentivizing OEMs to enhance product design and spare parts availability.The directive strengthens the second-hand tech ecosystem and increases consumer acceptance of second-hand products,despite introducing new compliance costs.Environmental ImpactTechnology ImpactImpact

68、on Circular TechISO 9000/9001Quality Management SystemIdentifying and Eliminating InefficienciesReduces waste,improves customer expectations,and streamlines operational results in a cost-saving manner,driving better outcomes.ISO 14001Environmental Management SystemPromoting Environmentally Responsib

69、le PracticesProvides a framework for organizations to design and implement environmental management systems and continually improve their environmental performance.ISO/IEC 27001Information Security ManagementProtecting and Ensuring Secure Technology AdoptionDemonstrates robust information security p

70、ractices and builds trust with stakeholders.12Sources:National Conference of State Legislation,Electronics Recycling Coordination Clearing House,U.S.Environmental Protection Agency,Federal Trade Commission,Wisconsin Department of Natural Resources,and ERI.No.3National Strategy for Electronics Stewar

71、dshipIN APPLICATION SINCE 2011A federal initiative aimed at improving the management of used electronics and promoting greener designs.IMPACTPromotes greener electronics,enhances e-waste recycling,and supports the development of recycling technologies.No.1Extended Producer Responsibility Programs.IN

72、 APPLICATION SINCE 2004Policies requiring manufacturers to take responsibility for the disposal of their products.IMPACTEncourages eco-friendly product design and responsible end-of-life management by manufacturers,promoting circularity.No.4Bipartisan Infrastructure LawIN APPLICATION SINCE 2021This

73、federal law includes provisions to enhance infrastructure,including technology-related initiatives.IMPACTProvides funding and support for technology-related projects aimed at improving sustainability and innovation in various sectors.No.2Electronics Recycling Coordination ClearinghouseIN APPLICATION

74、 SINCE 2010The ERCC is a forum for coordination among state agencies implementing electronics recycling laws.IMPACTSupports harmonization of state e-waste recycling laws and facilitates efficient e-waste management practices.No.5Greening Government InitiativeIN APPLICATION SINCE 2021The Greening Gov

75、ernment Initiative,launched by the U.S.and Canada,facilitates information exchange,innovation promotion,and best practice sharing among countries.Its goal is to support global efforts and meet Paris Agreement commitments on climate change.U.S.ISO CertificationsState Rules and Regulations25 States Wi

76、th Electronic Recycling LawsStricter Disposal and Recycling Requirements:Many states are enacting stricter laws that mandate proper disposal and recycling of e-waste.This includes requiring manufacturers to take back their products at the end of their lifecycle and ensuring that e-waste is processed

77、 by certified recyclers to prevent environmental contamination.Multiple Regulations and Policies Are a Tailwind for Circular TechLaws,Regulations,and Policies in the U.S.13Software Implementation Makes All Processes of Circular Tech More EfficientCombination of Hardware and Software as a Key Competi

78、tive AdvantageITADAutomated wiping:Software ensures secure data erasure,complying with data protection regulations,and preventing data breaches.Certification and reporting:Generates certificates of data destruction and detailed reports for audit trails.Chain of custody:Maintains a documented chain o

79、f custody for assets,ensuring traceability and security.RecommercePlatform integration:Integrates with online marketplaces for selling refurbished or surplus assets.Automated listings:Automates the creation of product listings,including detailed descriptions and pricing.Inventory syncing:Keeps inven

80、tory levels synchronized across multiple sales channels.ITAMAutomated tracking:Software enables automated tracking of assets,providing real-time visibility into asset locations,status,and usage.Inventory management:Facilitates the management of hardware and software inventory,ensuring accurate recor

81、ds.Sustainability reporting:Provides tools for generating sustainability reports,demonstrating compliance with green initiatives.Vendor management:Manages relationships with certified e-waste disposal vendors,ensuring environmentally responsible disposal.Dynamic pricing:Utilizes algorithms to set co

82、mpetitive prices based on market demand and condition of assets.Valuation tools:Provides tools for assessing the value of used assets,ensuring fair pricing for both customers and sellers.Historical data analysis:Analyzes historical sales data to inform pricing strategies and maximize the reselling v

83、alue.Depreciation tracking:Manages depreciation schedules to ensure accurate financial records and aid in budget planning.Maintenance scheduling:Automates maintenance schedules,reducing downtime and extending asset life.Forecasting maintenance and lifetime value:Software can help predict maintenance

84、 cycles and estimate the lifetime value of devices well in advance.Resale and recycling:Software identifies assets with resale value or components that can be recycled,optimizing value recovery.Asset valuation:Assesses the residual value of assets,aiding in decision-making for disposal or redeployme

85、nt.Customer insights:Tracks customer preferences and purchasing history,enabling targeted marketing and offers.Order management:Manages the entire order lifecycle from purchase to delivery,enhancing customer satisfaction.Feedback and reviews:Collects and analyzes customer feedback and reviews,aiding

86、 in quality control and service improvement.Secure Data ErasureAsset Tracking and Inventory ManagementMarketplaces IntegrationEnvironmental ComplianceLifecycle ManagementPricing and ValuationValue RecoveryCost ManagementCustomer Relationship ManagementCost analysis:Provides tools for analyzing the t

87、otal cost of ownership,helping with budgeting and financial planning.Optimization:Identifies underused or obsolete assets,allowing for optimization and cost-saving opportunities.License management:Ensures efficient use of software licenses,preventing over-licensing and associated costs.“The global s

88、tartup ecosystem plays a pivotal role in creating a sustainable future for everyone.Our Startups for Sustainable Development program lends direct and lasting support to some of the best and brightest startups working on sustainability.”“In support of The Climate Pledge,we are fully committed to our

89、partners that help us to reach our goal to be net-zero carbon across our operations by 2040.”“Rather than considering sustainability in isolation,we view it as an interdisciplinary function that interacts with other sub-strategies.Each department,country,and employee implements the sustainability st

90、rategy through operational measures,ensuring that these are compatible with the existing corporate and function-specific strategies.”“Dustin has been investing in circular business models.Over the past five years,Dustin has taken back over 200,000 end-of-life electronic products as a service.Of thes

91、e products,90%could be reused,and Dustin is currently 16%circular;the goal is to have a fully circular offering by 2030.”“As an IT company,we are always looking for ways to extend the value of hardware,in particular.By extension,this means we have to give priority to information security,data protec

92、tion,and a responsible use of resources even at the end of a products life.”“The proof of Apples commitment to climate action is in our progress:We have slashed emissions by more than half,all while serving more users than ever before.More hard work is ahead of us,and we are focused on harnessing th

93、e power of innovation and collaboration to maximize our impact.”“The company unveiled a new Device Life Extension Service that maximizes device performance and the life of existing HP computers.The company also introduced a Partner Certified Refurbishment program,and the company is expanding its com

94、puter refurbishment program to the U.S.”“I am very proud to see the concrete actions we have taken to reduce our environmental footprint and that of our clients.So I am especially pleased about the launch of our site Impact as a leading witness of our responsible commitments.”“Companies such as Amaz

95、on and Microsoft,as well as government departments,shred millions of data-storing devices each year despite a growing chorus of industry insiders who say there is another,better option.”“Samsung has committed to a number of goals,including achieving net zero by 2050,maximizing resource circularity a

96、cross the entire product life cycles.Samsung plans to double down on efforts to improve the resource circularity of electronics over the entire lifecycle of a product.”14April 2024November 2023February 2024February 2024July 2023October 2023March 2024April 2024August 2023Sources:Company websites and

97、press releases.Tech Giants Prioritize Sustainability:Circular Models RiseEstablished Players Are Seeking M&A to Acquire“Specialist”Circular Tech CapabilitiesMarch 2024has received a majority investment fromSellside Advisor15Headquartered in Germany,TKD is a leading player within the circular tech in

98、dustry in Germany.The company was founded in 2014,employs more than 100 people,and offers an easy-to-use,fully integrated,and sustainability-promoting full-service device lifecycle management platform to corporate customers.TKD provides comprehensive solutions in contract and hardware management,inc

99、luding device rental,provision,registration,repair,maintenance,and customer support throughout the entire device lifecycle.This helps companies reduce the workload for their IT and administrative departments and ensures that circular economy and device longevity remain at the core.By using their own

100、 software-as-a-service platform,TKD.360,customers employees can order end devices themselves and can manage and flexibly replace them with the latest models after a fixed term.The successful expansion of TKDs business in recent years has led to the acquisition of major customers in Germany and inter

101、nationally.TKD Group manages over 60,000 devices in its fleet and serves more than 400 customers across various industries.With DPE as a strong partner,TKD will benefit from its recognition and appreciation of the potential to collaborate with key players in the DaaS market.DPE will significantly co

102、ntribute to TKDs technological development,driving the expansion of its platform.Houlihan Lokey served as the exclusive financial sellside advisor to the management and shareholders of TKD,supporting all aspects of the transaction,including preparation of marketing materials,structuring and managing

103、 a competitive deal process,coordination of due diligence,and negotiating key deal terms.In addition,Houlihan Lokey played a crucial role in aligning the interests of all parties involved and in finding a strong partner that will make a significant contribution to promoting TKDs technological develo

104、pment and thus drive the expansion of the platform.Based in the Netherlands,The Rent Company is a fast-growing European company with operational footprints extending to Belgium and the United Kingdom.Its mission revolves around providing DaaS solutions that specifically target the education market,e

105、nabling schools to enhance accessibility to digital education for every student.Currently,The Rent Company serves an impressive installed base of approximately 325,000 devices distributed across approximately 700 partner schools throughout Europe.In 2024 alone,the company plans to deliver approximat

106、ely 127,000 new devices to students.The comprehensive service proposition,which encompasses insurance,maintenance,repair,and customer support,ensures a seamless and hassle-free digital education solution for parents,students,and schools alike.Supported by Ambienta,The Rent Company will aim to capita

107、lize on the surging demand for sustainability and digitalization within the education sector.It is strategically positioned to leverage the growing economies of scale,driving both expansion and a sustained positive impact.Recent high-profile customer partnerships,coupled with the strategic acquisiti

108、on and market entry in the United Kingdom,underscore Ambientas confidence in The Rent Companys robust business model and long-term strategy.Houlihan Lokey served as the exclusive buyside and financing advisor to Ambienta on its acquisition of The Rent Company and assisted in structuring and negotiat

109、ing the transaction,as well as providing debt advisory services that allowed Ambienta to raise the desired debt capital structure.The close collaboration between the Corporate Finance and Capital Markets teams facilitated a strong outcome for both Ambienta and The Rent Company.TKDAmbientaFeatured Tr

110、ansactionsExecuted by Houlihan Lokeys Circular Tech Teamhas acquiredBuyside&Financing Advisora portfolio company ofand majority owned by management and founders has entered into a partnership withSellside Advisor16Foxway is a fast-growing European company based in Sweden,with offices in Europe,Asia,

111、and the U.S.By providing circular IT services in more than 100 countries,Foxway has supported its customers to make sustainability an integral part of its businesses.Foxway helps its customers increase efficiency and business success and reduce their tech footprints by recovering and remarketing IT

112、devices and providing the infrastructure necessary to ensure a sustainable lifecycle.With circularity inherent to the business model,Foxway sources,finances,and refurbishes more than 1.5 million devices annually in the circular flow,avoiding 120,948 tons of CO2 emissions in 2022.Foxway is uniquely p

113、ositioned to benefit from secular tailwinds of increasing sustainability demands from customers,digitalization trends,and the increasing economies of scale to drive growth and make a lasting positive impact.Several recent high-profile customer partnerships,together with acquisitions completed in Spa

114、in,Germany,and the U.K.,reinforce Nordic Capitals belief in Foxways business model and long-term strategy.Houlihan Lokey previously advised the founders of Foxway on the partnership with Norvestor and played a major role in initiating the buy-and-build strategy.This transaction marks the 10th deal t

115、he Houlihan Lokey circular tech team has advised Foxway or its shareholders on since 2018.Houlihan Lokey served as the exclusive sellside advisor and assisted in marketing,structuring,and negotiating the transaction as well as performing lender education on behalf of the shareholders.The close colla

116、boration with the Capital Markets team facilitated strong and comprehensive nonbinding offers and provided prospective buyers with an indication of the financing options early in the process.Headquartered in the U.K.,TXO has a physical presence in Continental Europe,North America,South America,and A

117、ustralia and is able to service customers globally.The company operates four primary lines of business:(i)telecom hardware sourcing,recovery,and resale;(ii)support solutions and services for telecom operators and critical communications clients,including testing,repair,infrastructure decommissioning

118、,warehousing and inventory management,and logistics;(iii)recycling of telecom equipment and precious metal recovery;and(iv)distribution of complementary multi-vendor compatible accessories.TXO is differentiated through its ability to address customers pain points on the back of its capacity to aggre

119、gate market supply and offer a large and diverse breadth of inventory.TowerBrook has been actively pursuing a thesis in the circular economy.The team has been seeking to build a leader in the ITAD and asset management(practice built around reusing,recycling,repurposing,repairing,or disposing of unwa

120、nted equipment in a safe and environmentally responsible way)or recommerce spaces with the ambition of contributing significantly to reducing the carbon footprint of the IT and telecommunications industry and supporting its commitment to a more circular model.The acquisition of TXO represents TowerB

121、rooks first investment from the impact-focused TowerBrook Delta fund.As part of the growth and value creation plan,TowerBrook further intends to support TXOs ambitious business model transformation into a more sustainable and recurring-revenue-driven product-as-a-service provider,assist with the ope

122、rational improvement of the business,and accelerate TXOs international expansionHoulihan Lokey served as the exclusive M&A and capital markets advisor to the TXO shareholders.FoxwayTXOhas been acquired bySellside AdvisorFeatured Transactions(cont.)Executed by Houlihan Lokeys Circular Tech Team17The

123、circular tech peer group universe is divided into two main peer groups.This is simply because there are currently no publicly traded and purely focused circular tech players.We consider the selected peer groups as the best proxies for a still-nascent industry.The relatively large valuation gap betwe

124、en these peer groups arises from the fact that ITAM/ITAD players offer comprehensive and value-added services to customers,whereas IT distributors mainly provide substitutable/less value-added services.Involves strategic management of IT assets,including hardware and software.Aims to optimize asset

125、lifecycle,reduce costs,and ensureregulatory compliance.Includes responsible disposal practices to minimize environmental impact and data risks.Facilitates the distribution of IT hardware and software devices.Acts as a crucial link between manufacturers and end users,streamlining the supply chain.Off

126、ers a wide range of products,services,and support to meet diverse technological needs.RationaleOverall ConsiderationsPublic CompaniesPeer GroupsITAM/ITADIT DistributionPeer Companies Overview and RationalePeer Groups Comprise ITAM/ITAD and IT Distribution CompaniesEquity Market Index PerformanceCirc

127、ular Tech18Key Takeaways90100110120130Jun-23Aug-23Oct-23Nov-23Jan-24Mar-24Apr-24Jun-2490100110Apr-24May-24Jun-24LTM June 2024 PerformanceAprilJune 2024 Performance22.5%S&P 50022.2%Houlihan Lokey Circular Tech Index(1)4.1%S&P 5003.2%Houlihan Lokey Circular Tech Index(1)Source:S&P Capital IQ.Notes:Dat

128、a as of June 30,2024.All share prices rebased to 100.(1)The Houlihan Lokey Circular Tech Index consists of a diversified set of companies across the circular tech sector.See pages 21 and 22 for a complete list.In the second half of 2023,the Houlihan Lokey Circular Tech Index overperformed the S&P 50

129、0.However,in the first half of 2024,the gains vs.the S&P 500 were erased,and the Houlihan Lokey Circular Tech Index currently shows a 0.3%lower performance.The Poland-based AB significantly outperformed the S&P 500 with a gain of 65.1%,followed by ALSO Holding(+47.8%),Insight Enterprises(+35.5%),and

130、 Computacenter(+27.2%).These companies were the only ones finishing above the S&P as of June 2024.As in 2023,Dustin underperformed significantly(-60.9%)but recovered slightly in Q1 and Q2.Similarly,Econocom,another ITAM/ITAD company,underperformed the market notably,with a decline of 21.6%.Q1 underp

131、erformance of the Houlihan Lokey Circular Tech Index was primarily driven by CDW Corporation(-11.6%),ASBISc Enterprises(-10.5%),Bechtle(-8.1%),Kontron(-7.1%),and Arrow Electronics(-6.5%).ALSO Holding and Atea were both up(+18.6%),followed by Cancom(+16.0)and AB(+15.6%).Other peers remained relativel

132、y flat in comparison.Equity Market Index PerformanceCircular Tech:ITAM/ITAD and IT Distribution CompaniesLTM June 2024 Performance by Subsector1990100110120130140Jun-23Sep-23Dec-23Mar-24Jun-2423.7%ITAM/ITAD20.5%IT Distribution17.0%9.6%4.8%5.3%YTD PerformanceThree-Year PerformanceSource:S&P Capital I

133、Q.Notes:Data as of June 30,2024.All share prices rebased to 100.Key Takeaways During the LTM,the ITAM/ITAD and IT distribution peer groups exhibited robust returns of+23.7%and+20.5%,respectively.Over a three-year span,the ITAM/ITAD peer group recorded a solid performance,with returns standing at 17.

134、0%,whereas IT distribution only provided a return of 9.6%.None of the peer groups outperformed the market.However,the gap may narrow in the future,particularly for the ITAM/ITAD peer group,as the market benefits from favorable tailwinds such as the following:Asset lifecycle management focus Sustaina

135、ble practices and environmental responsibility Risk mitigation and compliance Revenue diversification Long-term cost savings for clients Adaptation to technology trends Recurring revenue potentialPublic Company ValuationsCircular Tech:ITAM/ITAD and IT Distribution Companies20EV/LTM RevenueEV/LTM EBI

136、TDAITAM/ITADIT Distribution0.6x0.3x10.8x6.2xEV/2024E RevenueEV/2024E EBITDAITAM/ITADIT Distribution2024E Valuations0.6x0.3x8.7x8.2xLTM June 2024 ValuationsSource:S&P Capital IQ.Note:Data as of June 30,2024.Trading multiples are based on share price,other market data,and broker consensus future reven

137、ue and earnings estimates from S&P Capital IQ as of June 30,2024.($in Millions,Except per-Share Prices)Market CapUSDmEVUSDmNet DebtUSDmNet Debt/LTM EBITDALTMForward P/ETEV/As of 6/30/24RevenueUSDmEBITDAUSDmEBITDA MarginEPSLTM EBITDALTM RevenueITAM/ITADCDW Corporation$30,083.6$35,464.4$5,213.3 2.5x$2

138、1,145.6$2,067.0 9.8%$8.0 21.1x 17.2x 1.7x Insight Enterprises6,457.8 7,187.3 729.5 1.3x 9,231.4 549.2 5.9%7.9 18.3x 13.1x 0.8x Bechtle5,932.1 6,160.8 230.2 0.4x 6,891.4 542.1 7.9%2.3 19.3x 11.4x 0.9x Computacenter4,096.6 3,672.1(437.7)N/M 8,818.0 424.5 4.8%2.2 16.3x 8.6x 0.4x Atea1,600.6 1,760.0 156

139、.9 0.9x 3,104.1 172.1 5.5%0.7 16.4x 10.2x 0.6x Kontron1,270.5 1,515.3 190.6 1.6x 1,454.3 121.4 8.4%1.2 11.7x 12.5x 1.0 x Cancom1,210.4 1,143.4(67.8)N/M 1,778.6 105.4 5.9%1.1 20.7x 10.8x 0.6x Dustin Group502.9 784.9 261.7 3.2x 2,048.8 81.2 4.0%0.0 13.1x 9.7x 0.4x Econocom Group392.1 711.0 261.9 1.7x

140、2,963.6 150.7 5.1%0.4 4.8x 4.7x 0.2x Median$230.2 1.6x$3,104.1$172.1 5.9%$1.2 16.4x 10.8x 0.6x Mean$726.5 1.7x$6,381.7$468.2 6.4%$2.7 15.8x 10.9x 0.7x IT DistributionArrow Electronics$6,428.0$9,833.4$3,335.1 2.0 x$31,295.0$1,661.5 5.3%$12.8 10.7x 5.9x 0.3x Avnet4,653.7 7,628.6 2,736.5 2.3x 24,748.8

141、1,169.4 4.7%6.2 11.7x 6.5x 0.3x ALSO Holding3,776.8 3,434.3(366.9)N/M 11,008.8 282.3 2.6%11.1 24.3x 12.2x 0.3x ASBISc Enterprises345.1 495.1 151.1 1.3x 3,052.4 114.7 3.8%0.9 5.0 x 4.3x 0.2x AB413.3 450.7 37.8 0.5x 3,804.6 72.8 1.9%2.5 9.4x 6.2x 0.1x Median$151.1 1.7x$11,008.8$282.3 3.8%$6.2 10.7x 6.

142、2x 0.3x Mean$1,178.7 1.5x$14,781.9$660.2 3.7%$6.7 12.2x 7.0 x 0.2x Overall Median$210.4 1.6x$5,348.0$227.2 5.2%$2.2 14.7x 9.9x 0.4x Overall Mean$888.0 1.6x$9,381.8$536.7 5.4%$4.1 14.5x 9.5x 0.6x Public Company Valuations Comparables(LTM June 2024)Circular Tech:ITAM/ITAD and IT Distribution Companies

143、21Source:S&P Capital IQ.Note:Data as of June 30,2024.Trading multiples are based on share price,other market data,and broker consensus future revenue and earnings estimates from S&P Capital IQ as of June 30,2024.Net Debt/2023 EBITDAEV/RevenueEV/EBITDAP/E2022-24E CAGREBITDA MarginForward P/EAs of 6/3

144、0/2420232024E20232024E20232024ERevenueEBITDA20232024E20232024EITAM/ITADCDW Corporation2.6x 1.7x 1.6x 17.0 x 16.2x 27.6x 22.1x(4.4%)1.4%9.8%10.1%21.5x 21.1x Insight Enterprises1.4x 0.8x 0.7x 13.8x 11.7x 26.3x 18.4x(2.5%)10.7%5.7%6.2%18.4x 18.3x Bechtle0.4x 0.9x 0.8x 11.2x 10.7x 20.2x 19.4x 6.2%8.7%7.

145、7%7.9%20.0 x 19.4x ComputacenterN/M 0.4x 0.4x 8.6x 8.2x 16.5x 16.3x 4.5%4.6%4.8%5.3%16.0 x 16.1x Atea0.9x 0.5x 0.5x 9.7x 8.7x 20.4x 17.0 x 2.6%7.5%5.3%5.9%16.5x 16.3x Kontron1.7x 1.1x 0.8x 13.6x 8.0 x 16.2x 12.7x 29.5%72.7%8.0%9.7%14.1x 11.7x CancomN/M 0.7x 0.6x 11.2x 7.7x 30.4x 21.3x 19.7%35.0%6.0%

146、7.5%23.0 x 20.0 x Dustin Group3.0 x 0.4x 0.4x 9.1x 9.0 x 9.4x 13.5x(7.1%)(4.8%)4.0%4.4%2.8x 12.9x Econocom Group1.7x 0.2x 0.2x 4.7x 4.2x 6.1x 4.8x 4.9%12.2%5.1%5.6%4.2x 4.7x Median1.7x 0.7x 0.6x 11.2x 8.7x 20.2x 17.0 x 4.5%8.7%5.7%6.2%16.5x 16.3x Mean1.7x 0.7x 0.7x 11.0 x 9.4x 19.2x 16.2x 5.9%16.4%6

147、.3%6.9%15.2x 15.6x IT DistributionArrow Electronics1.8x 0.3x 0.4x 5.3x 8.2x 7.6x 11.2x(14.1%)(28.8%)5.6%4.4%8.9x 10.7x Avnet2.3x 0.3x 0.3x 6.0 x 8.8x 7.1x 12.4x(8.3%)(20.7%)5.0%3.9%9.0 x 11.7x ALSO HoldingN/M 0.3x 0.3x 12.2x 11.5x 27.7x 24.3x(4.4%)2.6%2.6%2.6%21.4x 24.0 x ASBISc Enterprises1.3x 0.2x

148、 0.2x 4.1x 6.5x 6.5x 5.2x(13.3%)(19.0%)3.9%3.8%3.9x 5.0 x AB0.5x 0.1x 0.1x 6.1x 6.0 x 10.7x 9.4x 9.0%10.1%1.9%1.8%9.2x 9.2x Median1.5x 0.3x 0.3x 6.0 x 8.2x 7.6x 11.2x(8.3%)(19.0%)3.9%3.8%9.0 x 10.7x Mean1.5x 0.2x 0.3x 6.7x 8.2x 11.9x 12.5x(6.2%)(11.2%)3.8%3.3%10.5x 12.1x Overall Median1.7x 0.4x 0.4x

149、 9.4x 8.5x 16.3x 14.9x 0.0%6.0%5.2%5.4%15.1x 14.5x Overall Mean1.6x 0.6x 0.5x 9.5x 9.0 x 16.6x 14.9x 1.6%6.6%5.4%5.6%13.5x 14.4x Public Company Valuations Comparables(2024E)Circular Tech:ITAM/ITAD and IT Distribution Companies22Source:S&P Capital IQ.Note:Data as of June 30,2024.Trading multiples are

150、 based on share price,other market data,and broker consensus future revenue and earnings estimates from S&P Capital IQ as of June 30,2024.23“Demand remains weak as the IT industry continues to exhibit caution with elongation of sales cycle and delayed spend.We think CDW shares are fairly valued,and

151、we anticipate that the market is already pricing in some modest IT spend recovery in 2024.We forecast modestly slower revenue CAGR in future years vs.8%top line CAGR it had in recent years by our estimates,partly impacted by the netted down revenues.There could also be margin normalization near term

152、 as the mix shifts to endpoint/PC as networking weakens.Overall,we think tangible IT recovery should take longer than anticipated.“May 2024“Q3 surprised negatively with a margin miss,partly driven by new public contracts with low initial profitability and inventory clear-out activities from PC vendo

153、rs.The current margin miss will also hamper Q4 somewhat but should lead to a quite quick recovery as soon as new products reach the market.With a balance sheet in better shape,the market trough behind it,and trimmed opex,Dustin is ready for the upcoming PC replacement cycle and improved IT hardware

154、investments after two tough years.”July 2024“Bechtle reiterated its outlook for 2024,guiding to business volume/revenue growth of 5-10%and a more or less flat margin.The company continues to expect a gradual improvement throughout the year.Geographically in Q1,Germany was weak,declining 7%year-over-

155、year,while International growth at 4%was more resilient,aided by inorganic growth.The weak German growth was related to a delayed release of the German budget,impacting public sector contracts.”May 2024Latest Business Performance and Market UpdatesSlightly Pessimistic to Resilient Top-Line Growth Co

156、ntradicted by Price Pressure for the New IT Devices Market“Windows 10 will reach end-of-life in October 2025.We expect this to lead to a strong replacement cycle for PCs,as many of the current enterprise PCs will face difficulties in migrating to Windows 11 due to compatibility issues/hardware requi

157、rements.This should subsequently also lead to strong growth in services in 2025 as there is a 70%correlation between hardware and services gross profit growth with a 2-3 quarter lag.The PC refresh cycle comes on top of strong tailwinds from the Defense sector.Norway,Sweden,and Denmark plan to increa

158、se their defense budgets at CAGRs of 10%,12%and 18%,respectively,until 2028-2030.”June 2024DateJun-24Jan-24Jan-24Nov-23Nov-23Jun-23Jun-23Apr-23Feb-23Dec-22Nov-22Feb-22EV(USD M)n/dn/dn/dn/d205n/dn/dn/dn/an/dn/d1000EBITDA(USD M)n/dn/dn/dn/d27n/dn/dn/dn/an/dn/d50EBITDA Margin(%)n/dn/dn/dn/d26.5%n/dn/dn

159、/dn/an/dn/dn/aTargetTarget CountryDEDENENEUSFRTarget DescriptionProvider of rental services for mobile devices.Provider of specialized asset recovery services.Provider of educational technology devices through DaaS offering.Provider of IT/tech lifecycle management solutions and services.Provider of

160、IT/tech recycling services.Full circular tech provider of sourcing,financing,and refurbishment solutions.Refurbisher and online marketer of Apple products.Provider of telecom asset management and asset disposal services.Provider of IT/tech products trade-in services.Supplier of refurbished and used

161、IT/tech hardware intended for data centers.Provider of IT/tech lifecycle management solutions.Provider of IT/tech lifecycle management solutions.AcquirerAcquirer CountryHoulihan Lokey Transactions7,5x20,0 x24Sources:S&P Capital IQ,Mergermarket,and PitchBook Data as of June 30,2024.Note:Confidential

162、Houlihan Lokey transactions are not disclosed(n/d)but are included in the median calculations.(1)Excluding performance-based earn-out,which would be payable in 2027,if earned.*Selected transactions were executed by Houlihan Lokey professionals while at other firms acquired by Houlihan Lokey or by pr

163、ofessionals from a Houlihan Lokey joint venture company.ITAM/ITADKey Transaction MultiplesCircular Tech:ITAM/ITAD*(1)EV/EBITDAMedian:10.4x12,0 x15,8x15,2x9,9x13,0 x11,8xDateDec-21Jul-21Jun-21Apr-21Apr-21Oct-20Oct-19Aug-19Jul-19May-19Sep-18Jun-18EV(USD M)875434n/d464n/dn/an/d513437n/d74n/dEBITDA(USD

164、M)7327n/d31n/dn/an/d5234n/d7n/dEBITDA Margin(%)n/a16.3%n/d4.0%n/dn/an/d2.5%16.0%n/d30.0%n/dTargetRedeemHoldingTarget CountryTarget DescriptionProvider of IT/tech lifecycle management solutions.Provider of managed services in advanced IT,cybersecurity,and multi-cloud solutions.Provider of IT assets r

165、efurbishment and replacement services.Online retailer of technology products.Operator of an e-commerce platform intended to serve as an online marketplace.Provider of recycling and recommerce solutions for mobile phones and tech.Provider of refurbished mobile and IT equipment.Marketer and supplier o

166、f technology products for businesses.Provider of maintenance services for computer equipment.Provider of IT hardware and digital services.Provider of technology financing services.Provider of IT service and lifecycle management services.AcquirerAcquirer CountryHoulihan Lokey Transactions25Sources:S&

167、P Capital IQ,Mergermarket,and PitchBook Data as of June 30,2024.Note:Confidential Houlihan Lokey transactions are not disclosed(n/d)but are included in the median calculations.*Selected transactions were executed by Houlihan Lokey professionals while at other firms acquired by Houlihan Lokey or by p

168、rofessionals from a Houlihan Lokey joint venture company.ITAM/ITADKey Transaction Multiples(cont.)Circular Tech:ITAM/ITAD*EV/EBITDAMedian:10.4x4,6x7,2x6,5x8,6xDateJul-22Apr-22Apr-22Jun-20Jun-19Jul-18EV(USD M)6,493221n/d5,54671n/dEBITDA(USD M)90234n/d64715n/dEBITDA Margin(%)2.1%2.1%n/d1.8%1.3%n/dTarg

169、etVicis New Investments(formerly ABC Data)Target CountryTarget DescriptionCompany engaged in distribution of IT products and supply chain solutions.Electronic components distributor that provides components,engineering design services,and supply chain management.Distributor of surplus products of la

170、ptops,desktop,servers,storage,and spare parts.Distributor of IT software and hardware products and provider of logistics management and other value-added services.Distributor of IT hardware,software,and consumer electronics.Distributor of a broad range of information and communication technology equ

171、ipment.AcquirerAcquirer CountryHoulihan Lokey TransactionsEV/EBITDAMedian:6.5x26IT DistributionKey Transaction MultiplesCircular Tech:IT Distribution*Sources:S&P Capital IQ,Mergermarket,and PitchBook Data as of December 31,2023.Note:Confidential Houlihan Lokey transactions are not disclosed(n/d)but

172、are included in the median calculations.*Selected transactions were executed by Houlihan Lokey professionals while at other firms acquired by Houlihan Lokey or by professionals from a Houlihan Lokey joint venture company.*Disclaimer27 2024 Houlihan Lokey.All rights reserved.This material may not be

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175、FG Advisory Limited(FRN 725267),authorized and regulated by the U.K.Financial Conduct Authority;Houlihan Lokey(Europe)GmbH,authorized and regulated by the German Federal Financial Supervisory Authority(Bundesanstalt fr Finanzdienstleistungsaufsicht);Houlihan Lokey Private Funds Advisory S.A.,a membe

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179、incorporated in Australia and licensed by the Australian Securities and Investments Commission(AFSL number 474953)in respect of financial services provided to wholesale clients only.In the United Kingdom,European Economic Area(EEA),Dubai,Singapore,Hong Kong,India,and Australia,this communication is

180、directed to intended recipients,including actual or potential professional clients(UK,EEA,and Dubai),accredited investors(Singapore),professional investors(Hong Kong),and wholesale clients(Australia),respectively.No entity affiliated with Houlihan Lokey,Inc.,provides banking or securities brokerage

181、services,nor is any such affiliate subject to FINMA supervision in Switzerland or similar regulatory authorities regarding such activities in other jurisdictions.Other persons,such as retail clients,are NOT the intended recipients of our communications or services and should not act upon this commun

182、ication.Houlihan Lokey gathers its data from sources it considers reliable;however,it does not guarantee the accuracy or completeness of the information provided within this presentation.The material presented reflects information known to the authors at the time this presentation was written,and th

183、is information is subject to change.Any forward-looking information and statements contained herein are subject to various risks and uncertainties,many of which are difficult to predict,that could cause actual results and developments to differ materially from those expressed in,or implied or projec

184、ted by,the forward-looking information and statements.In addition,past performance should not be taken as an indication or guarantee of future performance,and information contained herein may be subject to variation as a result of currency fluctuations.Houlihan Lokey makes no representations or warr

185、anties,expressed or implied,regarding the accuracy of this material.The views expressed in this material accurately reflect the personal views of the authors regarding the subject securities and issuers and do not necessarily coincide with those of Houlihan Lokey.Officers,directors,and partners in t

186、he Houlihan Lokey group of companies may have positions in the securities of the companies discussed.This presentation does not constitute advice or a recommendation,offer,or solicitation with respect to the securities of any company discussed herein,is not intended to provide information upon which

187、 to base an investment decision,and should not be construed as such.Houlihan Lokey or its affiliates may from time to time provide financial or related services to these companies.Like all Houlihan Lokey employees,the authors of this presentation receive compensation that is affected by overall firm profitability.Corporate Finance Financial Restructuring Financial and Valuation AdvisoryHL.com