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1、Transportation Technology UpdateSector Coverage ReportQ2 2023Introduction2We are pleased to issue our Transportation Technology Update for Q2 2023.With this update,we introduce detailed profiles addressing market sizing and drivers of technology adoption for each of the eight primary transportation
2、sectors we cover:automotive,aviation,maritime,off-road,public transit,rail,supply chain and logistics,and trucking.We remain enthusiastic about the transportation technology sector and the long-term opportunities therein.Generally,demand for and interest in transportation technology assets remain st
3、rong as key secular tailwinds continue to benefit the sector and encourage adoption of technology solutions.M&A and financing activity has stabilized around normalized pre-COVID-19 levels,while publicly traded players have seen a strong rebound in valuations,with our transportation technology index
4、up 30%YTD.As our firm continues to execute transactions in this space,we invite you to contact us to discuss past transactions,future opportunities,or the ecosystem more broadly.Best Regards,Shane KaiserManaging Director,Head of Transportation TechnologyInside the UpdateMarket Overview and Themes Dr
5、iving Investment in Technology Page 61Public Markets Update Page 303M&A and Financing Activity Within Transportation Technology Page 162About Houlihan Lokey Page 354Source:S&P Capital IQ.Market data as of June 30,2023.Transportation tech index constituents shown on page 31.Houlihan Lokeys Transporta
6、tion Technology Practice3Tyler DeckSenior Vice PresidentBostonTDeckHL.com+1 617.316.7106David RiemenschneiderSenior AdvisorLondonDavid.RiemenschneiderHL.com +44(0)79 5047 6702Tomohiko KubotaExecutive DirectorTokyoTomohiko.KubotaHL.com+81 80 9027 3008Transportation Technology TeamTim MacholzDirectorS
7、an FranciscoTMacholzHL.com+1 707.363.5446Featured Transactionshas been acquired bySellside Advisora portfolio company of has been acquired bySellside Advisora portfolio company of has been acquired bySellside Advisorhas merged withFinancial Advisor*has been acquired bySellside Advisor*has acquiredfr
8、omBuyside Advisor*has been acquired via an equity tender and merger agreement byCompany Advisorhas received a minority investment fromSellside AdvisorSector Focus Areas AutomotiveAviationMaritimeOff-RoadPublic TransitRailSupply Chain and LogisticsTruckinga portfolio company ofhas been acquired bySel
9、lside AdvisorTo support our thesis-driven approach,we have developed subsector deep-dives where we have highlighted our views on influential market dynamics,the addressable market,and key participants.Please contact Houlihan Lokeys Transportation Tech practice to connect on recent deep-dive reports.
10、a portfolio company ofhas been acquired bySellside Advisor*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.Tombstones included herein represent transactions closed from
11、 2020 forward.Shane KaiserManaging DirectorNew YorkSKaiserHL.com+1 203.273.0213How We Cover Transportation Technology4Industry ThemesLabor Shortage Asset Management and OperationsAsset Maintenance and Repair Digitization of Physical Operations Energy TransitionApplication SoftwareData and AnalyticsM
12、arketplacesIoTModes/End MarketsAutomotiveAviationMaritimeOff-RoadPublic TransitRailSupply Chain and LogisticsTruckingFOR FULL REPORT ACCESS,PLEASE REACH OUT TO A HOULIHAN LOKEY TEAM MEMBERContact information:(SkaiserHL.com;TdeckHL.com)5Representative Transportation Technology Market MapFOR FULL REPO
13、RT ACCESS,PLEASE REACH OUT TO A HOULIHAN LOKEY TEAM MEMBERContact information:(SkaiserHL.com;TdeckHL.com)01MARKET OVERVIEW AND THEMES DRIVING INVESTMENT IN TECHNOLOGY Themes Driving Tech Investment Across Transportation7AutomotiveSupply Chain and LogisticsTruckingMaritimeRailAviationPublic TransitOf
14、f-RoadConsolidation Driving Scale and Tech Spend ACES(Autonomous,Connected,Electric,Shared)Shortage of Service TechniciansCompetition With Ocean FreightSurge in Business AviationNot Enough Pilots,Mechanics,and Other Aviation WorkersLag in Productivity Requires DigitizationSustainable Job Sites Are E
15、ssential to Lowering GHGRetirements Continue Driving Labor ShortageEmerging Tech Is Key to Achieving ESG GoalsVisibility Is Critical to Reducing CostsDigitization of Outdated ProcessesSmart Cities Revolutionizing Urban MobilityFocus on Environmental and Social BenefitsPassenger Satisfaction Is Key t
16、o Ridership RecoveryDigitization Is Key to Driving DemandGovernment and Investor Focus on SafetyWorker Shortage After Cuts During PSR(1)Go Green or Go Home as ESG Regulations MountE-Commerce and the Rising Need for VisibilityImportance of Inventory ForecastingRising Insurance Costs and the Focus on
17、SafetyACES(Autonomous,Connected,Electric,Shared)Shortage of Truck Drivers(1)PSR(precision scheduled railroading)is a strategy used to increase efficiency and lower costs by reducing staff,increasing train length,and reducing assets such as locomotives.193.9M59.2M253.1MMarket Overview and Themes Driv
18、ing Investment in Technology:Automotive8Market OverviewTotal Addressable Market(1)Key Themes Driving Investment in TechnologySelected TransactionsShort Wheelbase(Passenger vehicles,light trucks,vans,and sport utility vehicles with a wheelbase less than 121 inches)Long Wheelbase(Large passenger vehic
19、les,vans,pickup trucks,and sport/utility vehicles with a wheelbase larger than 121 inches)#of Light Vehicles in the U.S.New Light Vehicle Sales in the U.S.(2)(Millions of Units)Our coverage includes B2B automotive software and broader technology providers that primarily serve new and used vehicle de
20、alers,repair and body shops,and fleet owners such as the large rental groups.New vehicle sales fell in 2022(primarily driven by the microchip shortage),leading to an increase in prices and a surge in demand for used vehicles.While production constraints are expected to diminish over the course of th
21、e year,higher interest rates will dampen sales activity,leading to another year of below-trend new vehicle sales.Consolidation Driving Scale and Tech SpendACES(Autonomous,Connected,Electric,Shared)Shortage of Service TechniciansLarger dealer groups are rapidly consolidating(e.g.,Lithia acquired 31 d
22、ealerships in 2022),gaining scale and the ability to make significant tech investments.With more than 17,000 new dealers,143,000 used dealers,and 364,000 vehicle repair/body shops in the U.S.,the automotive market is ripe for consolidation.These disruptors are fueling the growth of the global automo
23、tive software and electronics market(expected to reach$462 billion by 2030,5.5%CAGR from 2019).As vehicles are becoming more advanced,repair/body shops are also investing in tech,such as AI-powered vehicle inspections that help build trust with customers.The shortage of service technicians is drivin
24、g a need for technology to streamline operations,automate workflows,and improve retention.The U.S.automotive industry needs to replace 76,000 service techs annually;however,only 39,000 new service techs graduate from colleges and training programs.Our CoverageMarket Update37171
25、700620072008200920000022 2023EHistorical 17 Yr.AverageMay 23,2023invested in Dec.19,2022acquiredApr.11,2023acquiredFeb.16,2023acquiredMay 22,2023Sources:IBISWorld,Lithia press release,NADA,McKinsey&Company.(1)Bureau of Transportation Statistics:
26、Number of U.S.Aircraft,Vehicles,Vessels,and Other Conveyances,2020.(2)Auto and Truck Seasonal Adjustment,Bureau of Economic Analysis,Mar.2023;NADA Market Beat,May 2023.Market Overview and Themes Driving Investment in Technology:Aviation9Market OverviewTotal Addressable Market(1)Business Jets(Fixed w
27、ing turbine,turbo jet)Our CoverageMarket UpdateOur coverage includes aviation software and broader technology providers that serve OEMs,commercial passenger airlines,cargo transportation providers,MROs,corporate air travel fleets,charter operations,airports,FBOs,suppliers,and more.Air freight rates
28、skyrocketed during COVID-19 as capacity declined significantly(50%of air freight is transported in passenger planes),and the congestion issues in ocean freight kept rates elevated even as air freight capacity recovered.As ocean shipping has recovered,air rates have begun normalizing;however,fuel and
29、 labor costs are expected to prevent a return to pre-COVID-19 levels.Global Inbound Air Freight Price Index(2)(%change since January 2017)Selected TransactionsKey Themes Driving Investment in Technology#of Active Global AircraftsNot Enough Pilots,Mechanics,and Other Aviation WorkersSurge in Business
30、 AviationCompetition With Ocean FreightCommercial Airplanes(Passenger and freight cargo airplanes)invested inMar.30,2022acquiredJan.27,2023invested inFeb.1,2023acquiredMar.20,2023Over the next several years,it is expected that the shortage of pilots and mechanics in N.A.will grow to 24,000 and 40,00
31、0,respectively,due to early retirements during COVID-19 and baby boomer retirements.Companies will have to invest in recruiting technology tools,autonomous ground support equipment,MRO software,and AI/VR tools for training.Coming off record highs during COVID-19,driven by customers circumventing res
32、trictions,global business aviation is down from peak levels but still up 13%2023 YTD vs.2019.Investment in flight management systems,intelligence and forecasting,and marketplaces to connect industry players has been essential to keep up with demand.Now that ocean freight congestion has moderated,air
33、 freight demand is under pressure as shippers opt for ocean freight that is generally less expensive,less pollutant,and increasingly digitized.The air freight industry will have to invest in automation,visibility,and online booking platforms to remain competitive.Excludes small aircraft such as sing
34、le-engine piston planes27.4K23.4K50.8KSources:Forbes,Oliver Wyman,Aviation Pros,Globalia Logistics Network,Federal Aviation Administration,U.S.Bureau of Labor Statistics,Portside,Stellar,Jetnet,Freightos.(1)“Global Fleet and MRO Market Forecast 20232033,”Oliver Wyman;Jetnet 2023.(2)U.S.Bureau of Lab
35、or Statistics,Inbound Price Index(International Services):Air Freight.9.0%-50%100%Jan-17Aug-17Mar-18Oct-18May-19Dec-19Jul-20Feb-21Sep-21Apr-22Nov-22Jun-23Baltic Dry Index vs.Freightos Baltic Container Freight Index(2)(%change since January 2017)Market Overview and Themes Driving Investment in Techno
36、logy:Maritime10Market OverviewTotal Addressable Market(1)acquiredFeb.15,2023acquiredJan.4,2022invested inApr.13,2022acquiredMay 4,2022General cargo ships(Roll-on/roll-off)Chemical tankersBulk cargo carriersCrude oil tankersContainer shipsLiquefied natural gas tankers#of Global Merchant ShipsOur Cove
37、rageMarket UpdateOur coverage includes maritime software and broader technology providers that serve ship owners and brokers as well as other players in the broader ecosystem such as producers,distributors,trading houses,financial institutions,and end customers.After a historic boom over the pandemi
38、c era,both dry bulk and container freight rates have normalized.Dry bulk rates are expected to increase slightly in the medium term with the recovery of demand from China and limited fleet growth,while container freight rates are expected to remain under pressure given ongoing investment in vessel c
39、apacity and reduced port congestion.Selected TransactionsKey Themes Driving Investment in TechnologyDigitization of Outdated ProcessesVisibility Is Critical to Reducing CostsEmerging Tech Is Key to Achieving ESG GoalsOnly 1%of bills of lading are electronic(eBL)today;however,global carriers are aimi
40、ng for 5%adoption by the end of 2023 and 100%adoption by 2030.Data standardization across the industry enabling 100%eBL is estimated to unlock$50 billion in total value globally through cost savings and trade enablement.The adoption of visibility software for global ocean freight has been much slowe
41、r than for over-the-road shipping(50%vs.73%),with many still relying on manual processes.Ocean freight tracking,with accurate predictive ETAs,can help shippers identify and prevent issues and costs related with demurrage and detention.Emissions from the global maritime industry have tripled over the
42、 past three decades,and shipping is responsible for 2.5%-3.0%of global greenhouse gas(GHG)emissions.Advancements in big data and monitoring systems are reducing emissions(e.g.,route optimization),while robotics and automation can reduce hazardous work.17.8K12.9K8.3K6.1K5.6K2.2K52.9KSources:S&P Globa
43、l,Vassallo Associates,Sinay.ai,McKinsey&Company,FourKites,PYMNTS.(1)ISL;Marine Flottenkommando,2022.(2)Freightos Baltic Index:Global Container Freight Index;Baltic Exchange:Baltic Dry Index.Market data as of June 30,2023.14%(23%)(50%)150%350%550%Jan-17Aug-17Mar-18Oct-18May-19Dec-19Jul-20Feb-21Sep-21
44、Apr-22Nov-22Jun-23Baltic Dry IndexFreightos Baltic Container Freight Index320072008200920000022 2023EConstructionAgricultureConstruction Historical 17 Yr.AverageAgriculture Historical 17 Yr.AverageMarket Overview and Themes Driv
45、ing Investment in Technology:Off-Road11Market OverviewTotal Addressable Market(1)Our CoverageMarket UpdateOur coverage includes software and broader technology providers enabling off-road mobile equipment across a wide range of construction(commercial,residential,industrial,etc.),agriculture,mining,
46、oil and gas,and other heavy-equipment industries.Despite a challenging macroenvironment,construction and agriculture equipment sales in North America remain above the historical average.Delayed COVID-19 infrastructure investments continue to support the construction equipment industry,despite rising
47、 interest rates,while the rising penetration of farm mechanization practices is driving steady farm equipment sales.Total North America Construction and Agriculture Equipment Unit Sales(2)(Thousands)Selected TransactionsKey Themes Driving Investment in Technology242K10Est.North American Construction
48、 and Agriculture Equipment Fleet Size4.0MAverage#of annual construction equipment(vehicle)unit sales(2013A2022A)Average useful lifeacquiredOct.11,2022acquiredSept.14,2022acquiredJune 27,2022acquiredMay 1,2023Retirements Continue Driving Labor ShortageSustainable Job Sites Are Essential to Lowering E
49、missionsLag in Productivity Requires DigitizationThe U.S.construction industry needs to attract 546,000 additional workers on top of the normal hiring pace in 2023 to meet demand.With nearly 1 in 4 construction workers older than 55,retirements will continue.Semi-autonomous machinery and 3D mapping
50、technology can help reduce safety risks,which is a very important criteria for younger generations.The building and construction industry accounts for 37%of global energy and process-related CO2 emissions,and theres significant pressure to reduce this impact.Real-time visibility into machine utiliza
51、tion,diagnostic data,and preventive maintenance solutions can improve asset management and reduce fuel consumption.As one of the least digitized sectors in the economy,the global construction industrys productivity growth has also lagged(1%annually vs.2.8%for the broader economy).Equipment and vehic
52、le tracking devices can minimize late deliveries,reduce idle time,and prevent loss/theft,ultimately driving productivity.105KAverage#of annual agriculture equipment(40 HP tractor/combine)unit sales(2013A2022A)15Average useful lifeSources:Associated Builders and Contractors,For Construction Pros,Asso
53、ciation of Equipment Manufacturers,McKinsey,International Energy Agency,Research and Markets.(1)Off-Highway Research:North American Construction Equipment Market,2023;Thompson Tractor;J.P.Morgan North America Equity Research.(2)J.P.Morgan North America Equity Research;Off-Highway Research.6.05.55.75
54、.55.35.45.55.45.45.25.14.84.84.72.62.53.13.33.84.34.54.44.44.64.74.85.05.04.94.94.74.81.92.12.83.010.010.310.610.310.210.410.510.710.710.610.410.19.99.94.74.86.26.6200620072008200920000022 2023ETrolley and Motor BusHeavy,Light,and Commuter RailOtherMarket
55、Overview and Themes Driving Investment in Technology:Public Transit12Market OverviewTotal Addressable Market(1)acquiredApr.12,2022acquiredFeb.7,2022invested in May 10,2022invested inFeb.2,202363.8K34.6K18.1K13.9K7.5K137.9KMotor busLight and heavy rail carsDemand responsive(Quasi-public form of trans
56、it,where the route and time schedule depends on demand rather than fixed patterns)Other(Trolley,cable car,ferry boat,monorail,vanpool)Commuter rail carsOur CoverageMarket UpdateOur coverage includes public transit software and broader technology providers that serve a wide range of stakeholders,incl
57、uding all levels of government(county,city,state,etc.),transit authorities,transit and paratransit operators,school districts,universities,and more.COVID-19 had an unprecedented effect on public transportation as ridership decreased by more than 50%in 2020 due to stay-at-home orders,workplace closur
58、es,and population losses near significant public transportation systems.Despite some recovery in 2022,ridership and fare revenue are not expected to return to pre-pandemic levels for several years,creating a strain on agency budgets.U.S.Unlinked Transit Passenger Trips by Transit Mode(2)(Billions of
59、 riders)Selected TransactionsKey Themes Driving Investment in Technology#of U.S.Transit AssetsPassenger Satisfaction Is Key to Ridership RecoveryFocus on Environmental and Social BenefitsSmart Cities Revolutionizing Urban MobilityTransit agencies need to keep pace with rider expectations for reliabi
60、lity and efficiency in order to boost utilization following several years of reduced ridership.Investments in real-time optimization,automated scheduling,and self-service mobile apps will be critical.A low footprint and greater public access to transportation are key drivers of increased government
61、investment in public transit,as U.S.federal funding rose to$21 billion in 2022,up$8 billion from prior years.Private innovation in tech should see a flow-through effect as infrastructure and public fleets modernize to improve efficiency and reduce GHG.Smart cities are driving infrastructure upgrades
62、,safety improvements,pollution reduction,and economic development.Transportation tech(e.g.,urban planning simulations,mobility-as-a-service,optimized waste collection routes,and autonomous and smart vehicles)is a key pillar of smart city development.Sources:Congressional Research Service,APTA,Federa
63、l Transit Administration,National Academies,Pitchbook,Premio,Gitnux,Ecolane,Swiftly.(1)Bureau of Transportation Statistics:Number of U.S.Aircraft,Vehicles,Vessels,and Other Conveyances,2020;Freight Analysis Framework.(2)APTA Public Transportation Ridership Report;Unlinked Passenger Trips:The number
64、of times passengers board public transportation vehicles,no matter how many vehicles are used.2023E forecast is based on annualized Q1 2023A ridership data.565K439K206K192K112K101K1.6MMarket Overview and Themes Driving Investment in Technology:Rail13Market OverviewTotal Addressable Market(3)Covered
65、HoppersGondolas#of Freight Cars in North AmericaSelected TransactionsKey Themes Driving Investment in TechnologyOur CoverageMarket UpdateOur coverage includes rail software and broader technology providers that serve class 1,regional,and short-line railroads,rail terminals,shippers/manufacturers,and
66、 rail service providers(switching,railcar manufacturing/leasing,transloading,track and railcar maintenance,etc.).The rail industry has faced challenges,including the long-term decline in coal and,more recently,pressure over safety policies given the Ohio derailment.On the other hand,the industry is
67、efficient,sustainable,and reliable(freight levels bounced back rapidly from COVID-19)and will benefit from the growth of e-commerce as PSR(1)strategies are aligned with the demands of intermodal traffic.Worker Shortage After Cuts During PSRGovernment and Investor Focus on SafetyDigitization Is Key t
68、o Driving DemandSince 2015,the U.S.rail industry laid off roughly one-fifth of its workforce during the shift to PSR.However,there is now a labor shortage,as its proving difficult to rehire workers.Recruiting and retention tools as well as automation and predictive maintenance technology are likely
69、to see investment in response to worker shortage.After the derailment in East Palestine,Ohio,there has been a bipartisan push toward additional safety legislation,including fines that could reach$50 million+.Norfolk Southern announced its own plan to invest in its network of detectors as well as dev
70、elop a next-generation safety inspection technology that uses AI to identify and repair defects.Despite being up to 40%more cost effective and generating up to 75%fewer emissions,the U.S.rail freight market share has declined in favor of trucking,which has adopted technology at a much faster pace.Th
71、e adoption of telematics and software to track location and railcar condition/health should encourage more shippers to choose rail.Rail Freight Carloads in the U.S.(2)(Thousands of carloads,seasonally adjusted)TanksFlatsHoppersBox CarsSources:Association of American Railroads,National Public Radio,W
72、hite House,Norfolk Southern,Draup,SAP,BCG,National Library of Medicine.(1)Precision Scheduled Railroading:A strategy used to increase efficiency and lower costs by reducing staff,increasing train length,and reducing assets such as locomotives.(2)Bureau of Transportation Statistics:“Rail Freight Carl
73、oads,”April 2023;(3)Railinc:“The North American Freight Railcar Review 2023.”acquiredMar.14,2022acquiredMar.9,2023acquiredMay 31,2022acquiredJune 6,20231,4941,0737959822006200720082009200000222023TruckWaterRailroadPipeline14Market OverviewTotal Addressable
74、 Market(1)acquiredFeb.16,2023acquiredDec.12,2022acquiredDec.12,2022invested in Sept.27,2022Air#of U.S.Ton-Miles of Freight2.4T1.4T0.9T0.5T5.4TOur CoverageMarket UpdateOur coverage includes downstream(e.g.,execution)supply chain and logistics software and broader technology providers that serve a ran
75、ge of ecosystem constituents,including carriers(rail,maritime,trucking,aviation),suppliers and manufacturers,and logistics service providers.COVID-19-induced supply constraints coupled with heightened demand,due to a shift in spending from services to e-commerce goods,compounded existing supply chai
76、n challenges(degrading infrastructure,labor shortages,environmental events,etc.)and drove a rapid increase in freight rates.Rates have started moderating as constraints and purchasing patterns are normalizing.Selected TransactionsKey Themes Driving Investment in TechnologyCass Freight Index Inferred
77、 Freight Rates(2)(%change since January 2017)Importance of Inventory ForecastingE-Commerce and the Rising Need for VisibilityGo Green or Go Home as ESG Regulations MountCompanies have struggled to meet unprecedented demand and supply challenges with homegrown,manual,and/or dated planning tools and a
78、pplications.The global adoption rate of inventory optimization technology tools is expected to rise from 28%to 87%over the next five years.U.S.e-commerce retail sales have spiked from$156 billion(11%of total retail sales)in Q4 2019 to$265 billion(15%of total retail sales)in Q4 2022.Companies are inv
79、esting in real-time visibility software in order to better address consumers rising expectations around delivery times and transparency.The EUs Corporate Sustainability Reporting Directive,passed in Nov.2022,will require disclosure on sustainability targets,including plans to ensure compatibility wi
80、th the Paris Agreement 1.5C global warming target.Consumer and regulatory pressure is driving investment in software that helps reduce carbon emissions in the supply chain.Sources:Gartner,Supply Chain 24/7,Council of the EU,White&Case,U.S.Department of Commerce,MHI Annual Industry Report,U.S.Departm
81、ent of Transportation.(1)Bureau of Transportation Statistics:“Number of U.S.Aircraft,Vehicles,Vessels,and Other Conveyances,”2020;Freight Analysis Framework.(2)Inferred freight rates are calculated by dividing freight expenditures by shipment volume.Data is pulled from the entire Cass client base an
82、d updated monthly.37.3%(20%)10%40%70%100%Jan-17Aug-17Mar-18Oct-18May-19Dec-19Jul-20Feb-21Sep-21Apr-22Nov-22Jun-23Market Overview and Themes Driving Investment in Technology:Supply Chain and LogisticsMarket Overview and Themes Driving Investment in Technology:Trucking15Market OverviewTotal Addressabl
83、e Market(1)Selected Transactions10.5M3.0M1.0M14.5MSingle Unit 2-Axle 6-Tire or More(Single frames,two axles,and at least six tires or a gross vehicle weight rating exceeding 10,000 lbs)Combination Truck(Tractor unit with one or more attached trailers)BusNew Commercial Truck Sales in the U.S.(2)(Thou
84、sands of Units)Key Themes Driving Investment in TechnologyOur CoverageMarket UpdateOur coverage includes trucking and fleet software and broader technology providers that focus on fleet management/operations and fleet maintenance.2022 commercial truck sales were up slightly YoY as demand continued t
85、o outpace supply due to the semiconductor microchip shortage and scarcity of other key inputs.Sales are expected to rise just slightly again in 2023,as higher financing rates and tighter lending standards offset most of the benefits of increased supply.#of Trucks in the U.S.Shortage of Truck Drivers
86、ACES(Autonomous,Connected,Electric,Shared)Rising Insurance Costs and the Focus on SafetyThe U.S.trucking industry was short 78,000 drivers in 2022,and the shortage could swell to 160,000+over the next decade due to a high number of retirements,the challenging lifestyle,low pay,etc.Fleets that invest
87、 in software to enhance recruiting efforts and offer younger drivers tech capabilities to improve their experience will have an edge.Despite making up 1%of total truck manufacturing,electric truck production in N.A.is expected to triple in 2023,as charging infrastructure remains the primary constrai
88、nt.Progress with autonomous trucks has stumbled despite massive investment.They should see continued interest given the significant potential benefits(improved reliability and efficiency).As insurance premiums increase to cover rising payout and litigation costs,transport companies of all sizes face
89、 financial uncertainty(especially due to nuclear verdicts).Fleets are complementing current asset tracking capabilities with dash cam and driver safety solutions to protect against fraudulent claims and improve driver training opportunities.54537073463534084494039220
90、0620072008200920000022 2023EHistorical 17 Yr.AverageSources:Bestpass,ACT Research,FleetOwner,Rewire Security,Supply&Demand Chain Executive,Samsara,ATD.(1)Bureau of Transportation Statistics:“Number of U.S.Aircraft,Vehicles,Vessels,and Other Conveyances,”20
91、20.(2)Auto and Truck Seasonal Adjustment,Bureau of Economic Analysis,March 2023;NADA(ATD Truck Beat),December 2022.acquiredJuly 21,2022acquiredJan.5,2023invested inJune 6,2023acquiredOct.25,202202M&A AND FINANCING ACTIVITY WITHIN TRANSPORTATION TECHNOLOGY 2023 YTD M&A and Financing Activity Within T
92、ransportation Technology17 The transportation technology M&A and financing market has normalized in 2023 at levels in line with historical averages.While Q1 23 M&A activity was soft,given macro uncertainty,Q2 23 saw a rebound to a level in line with pre-pandemic activity(Q1 17Q4 19 average number of
93、 deals:29).There has been a balanced appetite for M&A activity thus far in 2023,from both strategic acquirers(48%of transactions)and financial sponsors(52%of transactions).Financing activity,on the other hand,remains below historic averages through 1H23,driven primarily by(1)increased investor focus
94、 on profitable growth,which has largely shut companies with cash burn out of the financing market,forcing them to seek a strategic exit instead;and(2)hesitation by founders of profitable businesses to raise capital at perceived depressed valuations and/or down rounds from their prior financing.M&A T
95、rends Were Seeing Across Transportation Technology Sectors:Large strategics are building out M&A platforms(e.g.,Reynolds&Reynolds has been highly active,with three acquisitions this year:American Guardian Warranty Services,AutoVision,and DealerCorp).Financial sponsors remain eager to put capital to
96、work,with ample dry powder,but generally lack sufficient quality and actionable assets to back,causing them to redouble their proprietary deal sourcing efforts as well as focus on portfolio management and opportunistic add-ons.There has been notable take-private activity as acquirers take advantage
97、of share price declines(e.g.,Coupa acquired by Thoma Bravo,Xpediator acquired by BaltCap,HyreCar acquired by Getaround,and Volaris/Constellation Softwares attempt to acquire ERoad).U.S.M&A and Financing Deal Activity by QuarterM&ASource:PitchBook as of June 30,2023.Target HQ located in United States
98、.FinancingU.S.M&A and Financing Deal Activity by YearM&AFinancing292522245352596554605441332243Q117Q217Q317Q417Q118Q218Q318Q418Q119Q219Q319Q419Q120Q220Q320Q420Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223Historical 24 Quarter Average:38175151 0671281
99、681213159133 126105115Q117Q217Q317Q417Q118Q218Q318Q418Q119Q219Q319Q419Q120Q220Q320Q420Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223Historical 24 Quarter Average:020020202120222023 YTDHistorical 6 Year Average:8627772002120222023
100、 YTDHistorical 6 Year Average:665202020212022acquiredMay 4,202218Transportation Technology Transaction TimelineacquiredJuly 21,2022acquiredOct.11,2022acquiredJune 8,2022invested inMay 18,2023acquiredApr.23,2021acquiredMay 27,2021invested inJune 6,2023acquiredMar.10,2021acquiredMay 1,2023acquiredOct.
101、4,2021acquiredMar.14,2022acquiredNov.2,2021acquiredAug.2,2021acquiredSept.15,2021acquiredMay 17,2021June 2,2021acquiredJune 6,2023invested inApr.13,2022acquiredNov.10,2022CanadaacquiredDec.12,2022acquiredDec.12,2022invested inFeb.2,2023acquiredJuly 25,2022acquiredOct.25,2022acquiredApr.7,2022The tra
102、nsportation technology M&A market has been active and balanced with interest from strategics and financial sponsors.Note:Houlihan Lokey logo indicates a deal closed by Houlihan Lokey or by GCA prior its acquisition by Houlihan Lokey.acquiredFeb.16,2023Order Mgmt.SourcingSupplier Quality&Collaboratio
103、nCarrierGoAsset Mgmt.&Reload Logistics Exec.&TMSPayment&AuditContract Mgmt.Maps&Control TowerOrder&Shipment TrackingDynamic ETA Houlihan Lokey acted as the exclusive financial advisor to Blume Global on its sale to WiseTech Global(ASX:WTC)On February 16,2023,Blume Global announced that it has been a
104、cquired by WiseTech Global(WTC).Blume provides visibility throughout the value chain,from sourcing to delivery,allowing customers to use Blume solutions to navigate disruptions and create agile plans amid supply chain uncertainty.Blume manages intermodal containers and chassis on behalf of six of th
105、e seven Class 1 U.S.railroads,ocean carriers,and global freight forwarders.Houlihan Lokey Advises Blume Global On Its Sale to WiseTech GlobalSelected Transaction CommentaryTransaction OverviewComplete and scalable multimodal digital operating platform transforming the transportation ecosystem status
106、 quoRecognized as a challenger in the 2022 Gartner Magic Quadrant TMTrusted partner to the largest global transportation carriers(rail,ocean,air,and land),LSPs,and shippersCarbon-neutral company with emission-reducing technology solutions aligned with emerging ESG initiativesBlume Digital Operating
107、PlatformBlume Global Highlightsa portfolio company ofhas been acquired bySellside AdvisorWith WTC now having TMS capability in both road and rail logistics,we believe the foundations are in place to drive rapid penetration across the landside logistics market while leveraging WTCs extensive freight-
108、forwarder customer network.Joining the WiseTech Global group means greater scale and resources to make logistics processes more productive,agile,dependable,and sustainable with innovative execution and visibility solutions.We want to thank the team at Apollo for helping to stand up and grow Blume as
109、 a standalone company.”Pervinder Johar,CEO,Blume GlobalThis is another strategically significant acquisition that follows our acquisition of Envase Technologies last month.It further extends our capability in one of our six key CargoWise development priority areas,integrating rail into our landside
110、logistics offering in North America.Richard White,Founder and CEO,WiseTech Global“”“”J.P.Morgan Equity Research19Insight Partners Financing of Bestpass|Announced and Closed on June 6,2023financing ofBestpass is a comprehensive payment platform provider and leader in toll management solutions for com
111、mercial fleets of all shapes and sizes.Bestpass platform facilitates a variety of transponder and toll coverage options,toll passes,weigh station services,and toll customer service to tolling authorities and related organizations,thereby enabling data accuracy,consolidating payments,and facilitating
112、 time and cost savings.“Our mission is to provide solutions for our customers that simplify back-office management,saving time and money and enabling fleets and drivers to focus on their core business.This investment is an endorsement of the Bestpass vision and allows us to continue to innovate,expa
113、nd our reach,and delight our customers.”Tom Fogarty(CEO,Bestpass)Bestpass Profile:Founded in 200130,000+customersIndustries:trucking fleets,auto fleets,tolling authorities,owner-operators,and providers and OEMsGeographies Served:North AmericaPartsTechs Series C Financing Led By OpenView|Announced on
114、 May 5,2023;Closed on May 18,2023financing ofPartsTech provides repair shops with the most connected,accurate,and efficient parts procurement platform designed to help mechanics find and order the right parts.PartsTechs platform has local inventory from preferred part stores,parts geolocation based
115、on availability,and an up-to-date catalog with high-quality images and videos,enabling customers to run their businesses effectively and profitably through e-commerce and data innovation.“Vehicles are staying on the road longer than ever before,and shops are increasingly embracing digital solutions
116、to improve the way they work.PartsTech drastically improves the way repair facilities operate,and were excited to continue providing the resources Greg and his team need to drive market expansion and deliver unmatched value to customers.”Tim Keeble(Partner,OpenView)PartsTech Profile:Founded in 20122
117、,000+repair shops,tire shops,and dealers;30,000+parts storesIndustries:auto repair shops,part distributors,and manufacturersGeographies Served:Global Reache-Emphasys Technologies(TA Associates and True Wind Capital)Acquisition of CDK Global Heavy Equipment|Announced and Closed on May 1,2023acquisiti
118、on ofe-Emphasys Technologies is a global provider of enterprise software for the heavy equipment and industrial machinery industry.e-Emphasys Technologies suite of solutions includes CRM,business intelligence,mobile field service,inspection,and e-commerce customer portal applications plus RFID,artif
119、icial intelligence,IoT,and telematic.The merger brings together the talent,technologies,and partnerships to deliver digital transformation capabilities across heavy equipment and industrial machinery sectors seeking modern solutions for increasing efficiency and profitability.“Adding CDK Global Heav
120、y Equipments talented team of associates,patented intellectual property,and exceptional service and support operations will expand our global footprint,bringing modern solutions and a seamless customer experience to clients who want to grow their businesses based on the latest technology and industr
121、y best practices.”Jeffrey Hart(CEO,e-Emphasys)e-Emphasys Profile:Founded in 20014,200 rooftopsIndustries:construction,material handling,equipment rental,heavy trucks,mining,agriculture,industrialGeographies Served:Global ReachMorgan Stanley Investment and StepStone Groups Financing of Everstream Ana
122、lytics|Announced and Closed on April 4,2023financing of Everstream Analytics risk scores and predictive insights sets the worlds supply chain standard,helping global companies turn supply chains into business-changing,market-shifting,competition-crushing assets.Everstream Analytics,through the appli
123、cation of artificial intelligence and predictive analytics to its vast proprietary dataset,delivers the predictive insights and risk analytics that businesses need for a smarter,more autonomous,and sustainable supply chain.“2023 has already been momentous for Everstream,and were not even through the
124、 first half.This funding comes when we are doubling down on our product innovation and executing rapidly and decisively to advance supply chain sustainability,which is more critical now than ever.”Julie Gerdeman(CEO,Everstream)Everstream Analytics Profile:Founded in 2012200 employeesIndustries:auto,
125、chemicals,energy,heavy equipment,retail,tech,life sciences,and food and beverageGeographies Served:Global ReachOther Notable Transactions2021Active Strategic AcquirersAcquirer#Acquisitions(Since Jan.1,2019)TargetsAmong all transportation modes,strategic buyer rationales mainly include the expansion
126、of transportation networks and diversification of end markets.Sources:Company filings,S&P Capital IQ,and PitchBook.FOR FULL REPORT ACCESS,PLEASE REACH OUT TO A HOULIHAN LOKEY TEAM MEMBERContact information:(SkaiserHL.com;TdeckHL.com)Active Majority Investors22Investor#Investments(Since Jan.1,2019)Ta
127、rgetsFinancial sponsors have been very active,executing new acquisitions as well as supporting their existing portfolio companies.Sources:Company filings,S&P Capital IQ,and PitchBook.Note:Given limited public information,some of the above transactions may be minority investments.FOR FULL REPORT ACCE
128、SS,PLEASE REACH OUT TO A HOULIHAN LOKEY TEAM MEMBERContact information:(SkaiserHL.com;TdeckHL.com)23Active Minority InvestorsInvestor#Investments(Since Jan.1,2019)TargetsMinority investors have provided strategic capital to new best-in-class companies across sectors to execute their growth strategie
129、s.Sources:Company filings,S&P Capital IQ,and PitchBook.Note:Given limited public information,some of the above transactions may be majority investments.FOR FULL REPORT ACCESS,PLEASE REACH OUT TO A HOULIHAN LOKEY TEAM MEMBERContact information:(SkaiserHL.com;TdeckHL.com)DateTransaction TypeAcquirerTa
130、rgetDescriptionEV($M)EV/LTM Rev.6/8/2023AcquisitionOffers an online car marketplace designed to help clients boost efficiency and automate buying,selling,and inventory managementn/an/a6/7/2023FinancingOffers data and software solutions designed to help clients in the rail,aviation,and defense indust
131、ries increase operational efficiency and improve cybersecurity through actionable fleet intelligence n/an/a6/6/2023FinancingOffers a comprehensive payment platform with a focus on toll management for commercial fleets of all sizesn/an/a6/6/2023AcquisitionOffers freight railway management enterprise
132、resource planning software designed to automate core processes across all business domainsn/an/a5/31/2023AcquisitionOffers a supply chain execution and warehouse management platform designed to track labor and transportation in real time,enabling clients to streamline the flow and visibility of inve
133、ntoryn/an/a5/22/2023AcquisitionOffers an AI-driven dealership customer relationship management(CRM)platform designed to help clients streamline their customer tracking,sales,and financingn/an/a5/18/2023FinancingOffers a web-based auto parts ordering platform designed to help mechanics and repair sho
134、ps find and order the right partsn/an/a5/1/2023AcquisitionOffers an integrated dealer management software designed to help heavy equipment and industrial machinery clients optimize their business operationsn/an/a4/17/2023AcquisitionOffers an AI-based traffic control and sensing system,including hard
135、ware and SaaS for businesses in the traffic management industry$107 2.7x4/4/2023FinancingOffers a supply chain risk management platform designed to leverage machine learning and artificial intelligence to predict,assess,and mitigate the risk of supply chain disruptionsn/an/aPrecedent Transactions24S
136、ources:Company filings,S&P Capital IQ,and PitchBook.Note:Houlihan Lokey logo indicates a deal closed by Houlihan Lokey or by GCA prior its acquisition by Houlihan Lokey.DateTransaction TypeAcquirerTargetDescriptionEV($M)EV/LTM Rev.4/3/2023AcquisitionOffers digital retailing software solutions to dea
137、lers such as desking,F&I,and inventory managementn/an/a3/20/2023AcquisitionOffers a web-based enterprise MRO software solution for aircraft maintenance and fleet management$140(1)n/a3/9/2023AcquisitionOffers proprietary software,logistics services,and terminal management solutions to the North Ameri
138、can rail industry$70n/a2/28/2023AcquisitionOffers emergency roadside assistance,mobile truck repair,cost-reduction data,fleet maintenance,towing and recovery,preventive maintenance,and tire repair solutions$100 n/a2/16/2023AcquisitionOffers a multimodal supply chain orchestration platform that unite
139、s end-to-end visibility,supplier management,and logistics execution$414Conf.2/15/2023AcquisitionOffers real-time ship tracking and maritime intelligence to the global maritime industry n/an/a2/14/2023AcquisitionOffers cloud-based final-mile carrier solutions and road safety compliance tools$218(2)n/
140、a2/2/2023FinancingOffers a public mobility platform designed to optimize networks of buses,shuttles,wheelchair accessible vehicles,school buses,autonomous vehicles,and electric vehicles around the globe$3,500n/a2/1/2023FinancingOffers a cloud-based product suite designed to bring modern technology t
141、o the global business aviation industry and supports a diverse range of flight operations in more than 30 countries$150n/a1/31/2023FinancingOffers a supply chain automation and logistics software for freight forwarders,customs brokers,and other international logistics providersn/an/aPrecedent Transa
142、ctions(cont.)25Sources:Company filings,S&P Capital IQ,and PitchBook.(1)Includes$20 million in contingent consideration.(2)Includes$80 million in contingent consideration.Note:Houlihan Lokey logo indicates a deal closed by Houlihan Lokey or by GCA prior its acquisition by Houlihan Lokey.DateTransacti
143、on TypeAcquirerTargetDescriptionEV($M)EV/LTM Rev.1/24/2023AcquisitionOffers a transportation management software designed for intermodal trucking,drayage(container haulage),and landside logistics in North America$2306.6x(1)12/19/2022FinancingOffers auto dealers,wholesalers,OEMs,and marketplaces the
144、industrys most advanced digital engagement platformn/an/a12/12/2022AcquisitionOffers a cloud-based business spend management platform designed to unify processes across supply chain,procurement,and finance functions$8,194 10.0 x12/12/2022AcquisitionOffers a cloud-based transportation management plat
145、form designed to provide sourcing,planning,execution,monitoring,and settlement tools$1,979 12.4x12/12/2022AcquisitionOffers a full-service mobile solution for automotive repair and maintenance,designed to help owners maintain their vehicles and maximize uptime$190 n/a11/10/2022AcquisitionOffers digi
146、tal retailing,financing,dealer reports,and deal management software solutionsn/an/a11/7/2022AcquisitionOffers a global digital marketplace connecting vehicle buyers and sellers;designed to facilitate the marketing and sale of total-loss,damaged,and low-value vehicles$7,300 3.4x11/3/2022FinancingOffe
147、rs a cloud-based supply chain visibility platform for shippers and logistics service providers$2,700 n/a11/1/2022AcquisitionOffers digital sales,service,and customer lifecycle software solutions to automotive dealersn/an/a10/25/2022AcquisitionOffers drive time settlement,telematics,and fleet managem
148、ent software solutions$305(2)7.4x(3)Precedent Transactions(cont.)26CanadaSources:Company filings,S&P Capital IQ,and PitchBook.(1)EV/NTM revenue multiple.(2)Includes 12.5 million in contingent consideration.(3)Based on annualized H1 2022 revenue.DateTransaction TypeAcquirerTargetDescriptionEV($M)EV/L
149、TM Rev.10/11/2022AcquisitionOffers fleet management telematics and global positioning system tracking for auto,trucks,and off-road equipmentn/an/a9/29/2022AcquisitionOffers end-to-end port management,terminal operating,and logistics software solutions for the maritime industryn/an/a9/14/2022Acquisit
150、ionOffers equipment maintenance and repair,resource scheduling and dispatching,and field tracking software solutions for the off-road equipment industry$322 n/a7/25/2022AcquisitionOffers an automotive matchmaking platform connecting in-market car shoppers to their preferred vehicle transactionsConf.
151、Conf.7/21/2022AcquisitionOffers cloud fleet and enterprise asset management and maintenance softwaren/an/a7/11/2022AcquisitionOffers end-to-end dealer management,inventory management,and CRM software solutions for specialty dealershipsn/an/a5/4/2022AcquisitionOffers SaaS-based subscription solutions
152、 and software solutions for chemical tanker ownersn/an/a4/13/2022FinancingOffers a commodity data and analytics platformConf.Conf.4/7/2022AcquisitionOffers integrated data and technology solutions to the automotive,heavy truck,recreation,and off-road equipment industries$8,220 4.7x3/14/2022Acquisiti
153、onOffers rail automation systems and software for freight,transit,and industrial markets$14(1)2.4xPrecedent Transactions(cont.)27Sources:Company filings,S&P Capital IQ,and PitchBook.(1)Includes$2.7 million in contingent consideration.Note:Houlihan Lokey logo indicates a deal closed by Houlihan Lokey
154、 or by GCA prior its acquisition by Houlihan Lokey.DateTransaction TypeAcquirerTargetDescriptionEV($M)EV/LTM Rev.2/1/2022AcquisitionOffers cloud-based GPS vehicle tracking and fleet management solutionsn/an/a12/23/2021AcquisitionOffers a mobile application that connects independent contract drivers
155、to auto sales,rental,and transport businessesConf.Conf.12/22/2021AcquisitionOffers shop and supply chain management software solutions to the automotive collision industryConf.Conf.11/2/2021AcquisitionOffers parking management and intelligent solutions for managing parking,mobility,and transportatio
156、n services$347 n/a10/4/2021AcquisitionOffers driver recruiting software and workflow solutions for the trucking and transportation industryn/an/a9/27/2021AcquisitionOffers a technology platform that supports equipment lifecycle management and integrates parts procurement from OEMs and their dealers$
157、175 Conf.9/15/2021AcquisitionOffers cloud-based driver risk management and motor vehicle records to various industriesConf.Conf.8/2/2021AcquisitionOffers GPS vehicle tracking and road usage charging solutions$391 n/a6/2/2021AcquisitionOffers a patented driver risk management program that helps organ
158、izations reduce collisions,injuries,license violations,and total cost of fleet ownershipConf.Conf.5/27/2021AcquisitionOffers supply chain software and services to retail,manufacturing,and distribution industries$1,700 n/aPrecedent Transactions(cont.)28Project ImpactUndisclosed BuyerProject JayhawkUn
159、disclosed BuyerSources:Company filings,S&P Capital IQ,and PitchBook.Note:Houlihan Lokey logo indicates a deal closed by Houlihan Lokey or by GCA prior its acquisition by Houlihan Lokey.Precedent Transactions(cont.)29DateTransaction TypeAcquirerTargetDescriptionEV($M)EV/LTM Rev.5/17/2021AcquisitionOf
160、fers customer relationship management and dealership training solutions to auto dealersn/an/a5/17/2021AcquisitionOffers a complete fleet intelligence software platformn/an/a4/23/2021AcquisitionOffers end-to-end integrated supply chain and retail management software solutions$8,500 8.5x4/20/2021Acqui
161、sitionOffers automotive retail software and data-driven business intelligence solutionsConf.Conf.3/10/2021AcquisitionOffers a planning platform for public transit,designing streets,and managing new mobility$100 8.0 x2/23/2021AcquisitionOffers vehicle telematics solutions,providing the entire stack o
162、f connected car technology,including a cloud IT platform,mobile and web apps,and hardwareConf.Conf.1/26/2021AcquisitionOffers a cloud-based software application that provides automated task management to simplify the ownership and maintenance of vesselsn/an/a11/17/2020FinancingOffers a digital freig
163、ht forwarding and supply chain platformn/an/a6/16/2020AcquisitionOffers aircraft maintenance tracking and inventory management solutions within business aviationConf.Conf.1/7/2020AcquisitionOffers supply chain management,planning,and logistics software designed to help firms solve their complex orde
164、r management and fulfillment challengesConf.Conf.Sources:Company filings,S&P Capital IQ,and PitchBook.Note:Houlihan Lokey logo indicates a deal closed by Houlihan Lokey or by GCA prior its acquisition by Houlihan Lokey.03PUBLIC MARKETS UPDATE2.7x3.7x9.7x7.6x-5.0 x10.0 x15.0 x20.0 x2002120
165、222023Public Company Valuations:Historical Trends31Recently,transportation technology players have seen their valuations rebound tremendously,while vertical software players have not benefited from the same uplift.Vertical SoftwareTransportation TechAverage EV/NTM Revenue(1)EV/NTM Rev.MetricsS&P 500
166、Nasdaq CompositeTransportation TechVertical Software5 yr.Max 3.2x4.7x12.2x16.3x5 yr.Median 2.6x3.3x8.7x10.3x5 yr.Average2.6x3.6x9.1x10.6xSource:S&P Capital IQ.Market data as of June 30,2023.(1)Calculated based on an equal-weighted average.2023 YTDTransportation TechVertical Software7.7x9.7x7.4x7.6x6
167、.5x7.0 x7.5x8.0 x8.5x9.0 x9.5x10.0 xJan-23Feb-23Mar-23Apr-23May-23Jun-2327.4x 16.4x 15.2x 14.2x 12.9x 12.0 x 10.6x 10.5x 9.6x 8.9x 8.9x 5.2x 4.4x 4.1x 3.7x 3.2x 2.0 x 21.5x 12.8x 13.8x 12.7x 11.2x 10.9x 9.7x 9.6x 8.6x 8.2x 7.4x 4.9x 4.1x 3.8x 3.5x 3.0 x 1.9x 617EV/RevenueEV($B)
168、$17.2$14.0$18.6$12.2$6.8$6.6$7.1$41.6$10.7$7.6$3.8$4.1$2.9$0.4$14.3$0.3$0.2$7.1EV/EBITDA23E55.5x NA45.4x 51.7x 43.5x 27.7x 16.1x 24.5x 22.1x 22.5x 58.1x 11.2x 13.0 x 10.2x 14.4x 15.4x 12.4x 22.3x 24E42.4x NA40.1x 44.4x 36.9x 24.3x 14.7x 22.2x 18.7x 20.4x 42.5x 10.4x 12.0 x 9.0 x 13.1x 14.0 x 11.3x 1
169、9.6x Recurring Revenue%89%98%87%66%92%89%85%NA96%96%77%91%81%96%57%56%63%88%22A24E Rev.CAGR29%31%11%12%16%13%9%9%NA(2)8%18%6%7%8%6%9%1%9%Gross Margin23E87%73%80%56%68%76%63%46%76%77%61%95%69%69%62%64%62%69%24E87%73%80%56%68%77%66%47%79%78%62%95%69%70%63%63%63%69%EBITDA Margin23E49%(4%)33%27%30%43%66
170、%43%43%40%15%46%34%40%26%21%16%34%24E51%1%34%29%30%45%66%43%46%40%18%47%35%42%26%22%17%35%Rule of 40(1)78%28%44%40%46%56%75%51%NA(2)48%34%53%40%48%31%30%17%46%Transportation TechMedianPublic Company Valuations32EV/23E RevenueEV/24E Revenue23E Median:9.6x 24E Median:8.6xSources:Trading multiples and
171、other data are based on share price,other market data,and broker consensus future estimates in each case from S&P Capital IQ as of June 30,2023.(1)Sum of 22A24E Revenue CAGR and 23E EBITDA Margin.(2)Not comparable as AspenTech growth is primarily driven by a combination with Emerson software units.1
172、6.8x 13.1x 12.0 x 9.8x 9.3x 8.2x 7.7x 6.5x 6.5x 6.2x 2.9x 2.4x 1.1x 15.1x 11.3x 10.1x 9.3x 8.5x 7.4x 7.0 x 5.9x 6.1x 5.6x 2.3x 2.4x 0.9x 111213Vertical SoftwarePublic Company Valuations(cont.)33EV($B)$41.2$32.4$28.1$67.1$18.2$44.3$4.0$2.0$192.3$4.3$11.1$1.7$0.4$18.2EV/EBITDA23E27.9x 62.7x
173、 33.6x 25.2x 38.1x 21.9x 19.7x 18.1x 20.2x 18.9x NA8.0 x NA21.9x 24E25.0 x 45.6x 27.2x 23.4x 33.9x 19.1x 17.6x 15.5x 18.4x 16.7x NA7.6x NA19.1x Recurring Revenue%56%93%80%82%55%98%91%87%75%86%95%88%71%86%22A-24E Rev.CAGR10%15%14%4%7%10%10%9%0%10%32%(3%)19%10%Gross Margin23E82%80%73%39%46%91%76%63%60
174、%69%23%73%52%69%24E83%81%74%0%46%92%77%64%60%69%24%73%57%69%EBITDA Margin23E60%21%36%39%24%38%39%36%32%33%0%31%(10%)33%24E61%25%37%40%25%39%40%38%33%33%2%31%1%33%Rule of 40(1)70%36%50%43%32%48%49%45%32%43%32%27%9%43%EV/23E RevenueEV/24E Revenue23E Median:7.7x 24E Median:7.0 xMedianEV/RevenueSources:
175、Trading multiples and other data are based on share price,other market data,and broker consensus future estimates in each case from S&P Capital IQ as of June 30,2023.(1)Sum of 22A-24E Revenue CAGR and 23E EBITDA Margin.Valuations Correlated to Rule of 40 With Emphasis on Profitable Growth34Rule of 4
176、0 vs.EV/2023E Revenue22A24E Rev.CAGR vs.EV/2023E RevenueInvestors continue to reward growth as long as its delivered with an element of profitability.With few exceptions,negative EBITDA margin businesses remain out of favor.Sources:Trading multiples and other data are based on share price,other mark
177、et data,and broker consensus future estimates in each case from S&P Capital IQ as of June 30,2023.Excluded:AspenTech due to transformational M&A driving revenue growth.R=43%-5x10 x15x20 x25x30 x-20%40%60%80%100%R=19%-5x10 x15x20 x25x30 x(10%)(5%)-5%10%15%20%25%30%35%04ABOUT HOULIHAN LOKEY Houlihan L
178、okey Is the Trusted Advisor to More Top Decision-Makers Than Any Other Independent Global Investment BankLeadingCapital Markets AdvisorCORPORATE FINANCENo.1Global Restructuring AdvisorFINANCIAL RESTRUCTURINGNo.1Global M&A Fairness Opinion Advisor Over the Past 25 YearsFINANCIAL AND VALUATION ADVISOR
179、Y1,500+Transactions Completed Valued at More Than$3.0 Trillion Collectively1,000+Annual Valuation Engagements36No.1Global M&A Advisor Under$1 BillionProduct Expertise37Capital AlliancesPrivate Equity FirmsHedge FundsActive Dialogue With a Diverse Group of More Than 1,000 SponsorsFinancial ServicesRe
180、al Estate,Lodging,and LeisureEnergyIndustrialsConsumer,Food,and RetailHealthcareBusiness ServicesFinancial RestructuringPrivate Funds AdvisoryFinancial and Valuation AdvisoryFinTechTechnologyMergers and AcquisitionsCapital MarketsOur Product Knowledge,Industry Expertise,and Global Reach Deliver Supe
181、rior ResultsDedicated Industry GroupFinancial Sponsors38AMERICASAtlantaMiamiBaltimoreMinneapolisBostonNew YorkChicagoSan FranciscoDallasSo PauloHoustonWashington,D.C.Los AngelesEUROPE AND MIDDLE EASTAmsterdamMilanAntwerpMunichDubaiParisFrankfurtStockholmLondonTel AvivMadridZurichManchesterASIA-PACIF
182、ICBeijingNagoyaFukuokaShanghaiGurugramSingaporeHong Kong SARSydneyMumbaiTokyoLocal Technology Team*According to data provided by Refinitiv.13LOCATIONS WORLDWIDE235+TECHNOLOGY BANKERS40+MANAGINGDIRECTORS116TECHNOLOGY DEALS IN CY22No.1TECH M&A ADVISOR*Our Tech M&A Team Is No.1 Globally With Unparallel
183、ed Reach2022 M&A Advisory Rankings All Global Technology TransactionsDealsAdvisor116Houlihan Lokey1106Goldman Sachs&Co279Morgan Stanley376Rothschild&Co475JP Morgan5Source:Refinitiv.Excludes accounting firms and brokers.2022 M&A Advisory Rankings U.S.Technology Transactions Under$1 BillionDealsAdviso
184、r49Houlihan Lokey137Canaccord Genuity Grp Inc237Lincoln International233William Blair&Co432Moelis&Co5Source:Refinitiv.Excludes accounting firms and brokers.39Houlihan Lokey Global Tech Conference 2022MARKETINGCRMHoulihan Lokey Global Tech Conference 2023October 3,2023|Lotte New York PalaceWHAT TO EX
185、PECT AT THE EVENTPanel Discussions From CEOs at High-Growth Companies:A wide range of speakers will share their insights about navigating current market conditions and positioning their companies for future success across a variety of technology sectors.Featured Speakers:The conference will feature
186、high-profile speakers and candid panel discussions with distinguished tech thought leaders discussing a variety of topical themes.Targeted One-on-One Meetings:Houlihan Lokey will arrange targeted one-on-one meetings for presenting companies over the course of the conference,advising on prospects,mee
187、ting structure,and materials and coordinating any follow-up.Networking Opportunities:Join an audience of strategic,financial,and institutional investors as well as other capital providers for lunch and end-of-day cocktails.OCTOBER 2Evening Pre-Conference VIP ReceptionOCTOBER 3CONFERENCE:Panels and 1
188、x1sAGENDAGTC 2022 IN NUMBERSInterested in presenting your company at GTC 2023?Email GTConferenceHL.com 100+PARTICIPATING COMPANIESTARGETEDONE-ON-ONE MEETINGS WITH INVESTORS AND STRATEGIC PARTNERS700+CONFERENCE ATTENDEESHoulihan Lokey Global Technology Group Positioning40 CEO-level relationships with
189、 leading tech companies Large senior team with unparalleled transaction experience Broad network including Fortune 500 relationships Highest-quality client service M&A advisory and capital-raising expertise Unique global access to venture capital,private equity,and strategic investors Growth company
190、 focus Deep sector expertise and domain knowledge Extensive capital markets access Late-stage private through public company orientationLARGE-CAP TRANSACTION EXPERTISEMIDDLE MARKET/GROWTH SECTOR FOCUSHow Houlihan Lokey Can Help41Our firm is extremely well equipped to help our clients navigate uncert
191、ain times.We respond quickly to challenging situations and are constantly helping clients to analyze,structure,negotiate,and execute the best possible solutions from both a strategic and a financial perspective.Superior Work Product/Technical AbilitiesCreativity,Imagination,Tenacity,and PositivityDe
192、ep,Industry-Specific ExpertiseSenior-Level Commitment and DedicationSignificant Experience With Financing MarketsNo.1 for U.S.(1)and Tech M&A(2)Why Were Different Portfolio Valuation and Fund AdvisoryCorporate FinanceTransaction OpinionsCorporate Valuation Advisory ServicesTransaction Advisory Servi
193、cesReal Estate Valuation and Advisory Dispute Resolution ConsultingMergers and AcquisitionsCapital MarketsPrivate Funds AdvisoryBoard Advisory ServicesWe are widely recognized as a leading M&A advisor to the mid-cap and have long-standing relationships with capital providers,including commercial ban
194、ks and other senior credit providers,insurance funds,asset managers,and mezzanine fund investors.Few other investment banks maintain the breadth of relationships and capital markets intelligence that we do.Company AdvisoryCreditor AdvisoryWe have the largest restructuring practice of any global inve
195、stment bank.Since 1988,we have advised on more than 1,500 restructuring transactions(with aggregate debt claims in excess of$3.0 trillion).We served as an advisor in 12 of the largest 15 bankruptcies from 2000 to 2022.Special SituationsDistressed M&ALiability ManagementOver five decades,we have esta
196、blished ourselves as one of the largest financial and valuation advisory firms.Our transaction expertise and leadership in the field of valuation help inspire confidence in the financial executives,boards of directors,special committees,investors,and business owners we serve.1What We OfferFinancial
197、Restructuring2Financial and Valuation Advisory3(1)Source:Refinitiv.(2)Source:Refinitiv.Excludes accounting firms and brokers.Disclaimer42 2023 Houlihan Lokey.All rights reserved.This material may not be reproduced in any format by any means or redistributed without the prior written consent of Houli
198、han Lokey.Houlihan Lokey is a trade name for Houlihan Lokey,Inc.,and its subsidiaries and affiliates,which include the following licensed(or,in the case of Singapore,exempt)entities:in(i)the United States:Houlihan Lokey Capital,Inc.,and Houlihan Lokey Advisors,LLC,each an SEC-registered broker-deale
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200、okey(Europe)GmbH,authorized and regulated by the German Federal Financial Supervisory Authority(Bundesanstalt fr Finanzdienstleistungsaufsicht);(iii)the United Arab Emirates,Dubai International Financial Centre(Dubai):Houlihan Lokey(MEA Financial Advisory)Limited,regulated by the Dubai Financial Ser
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206、 communication.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
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