1、ENGINEERING, INDUSTRIAL, AND INFRASTRUCTURE SERVICESINDUSTRY UPDATE | Q2 2021Dear Clients and Friends,Houlihan Lokey is pleased to present its Engineering, Industrial, and Infrastructure (EI&I) Services Industry Update for Q2 2021.We have included important news stories, transaction announcements, a

2、 public markets overview, and other industry insights to help you stay ahead in our dynamic and constantly evolving industry. We are available to discuss our perspectives on the state of the market and opportunities for your business. Please feel free to reach out to us at our contact information li

3、sted below. We look forward to staying in touch.Regards,Houlihan Lokey EI&I Services UpdateSelect Additional Team MembersCasey SchwartzDirectorDisha MehtaDirectorMs. Wang is a member of Houlihan Lokeys Industrial Services Group. Her responsibilities include sellside and buyside M&A advisory, financi

4、ngs, valuation, and strategic advisory engagements.Prior to joining Houlihan Lokey, Ms. Wang was a Summer Financial Analyst in the firms Los Angeles office.Ms. Wang grew up in Northern China and moved to the San Francisco Bay Area in high school. When not working, she enjoys spending her time readin

5、g, doing yoga, meditating, and exploring cuisines around the world.Sidong WangBachelor of Science, Applied Mathematics and Statistics Financial Analyst, Los AngelesHoulihan Lokey EI&I Team Member SpotlightShane MurrishSenior Vice PresidentScott KolbrennerManaging Director and Co-Head, Industrial Ser

6、vicesSKolbrennerHL.com310.712.6524Ranon KentManaging Director and Co-Head, Industrial ServicesRKentHL.com310.712.6523Scott SergeantManaging Director and Co-Head, Industrial ServicesSSergeantHL.com212.497.4275Jon HarrisonManaging Director,EuropeJHarrisonHL.com+44 (0) 20 7747 7564Larry DeAngeloManagin

7、g Director andHead of Business ServicesLDeAngeloHL.com404.495.70192Alex HeikaliVice PresidentJordan MendelVice PresidentElena StratigakesVice President3Houlihan Lokey is the trusted advisor to more top decision makers than any other independent global investment bank.Houlihan Lokey is the trusted ad

8、visor to more top decision-makers than any other independent global investment bank.No. 1 U.S. M&A AdvisorTop 5 Global M&A AdvisorLeading Capital Markets AdvisorNo. 1 Global M&A Fairness Opinion Advisor Over the Past 20 Years1,000+ Annual Valuation EngagementsNo. 1 Global Investment Banking Restruct

9、uring Advisor1,400+ Transactions Completed Valued at More Than$3.0 Trillion CollectivelyHoulihan Lokey Financial ResultsRecent Houlihan Lokey Transactions2020 M&A Advisory Rankings All U.S. TransactionsAdvisorDeals1Houlihan Lokey2102Goldman Sachs & Co1723JP Morgan1324Evercore Partners1265Morgan Stan

10、ley123Source: Refinitiv(formerly known as Thomson Reuters)2020 Global Distressed Debt & BankruptcyRestructuring RankingsAdvisorDeals1Houlihan Lokey1062PJT Partners Inc633Lazard504Rothschild & Co465Moelis & Co39Source: Refinitiv(formerly known as Thomson Reuters)2001 to 2020 Global M&A Fairness Advis

11、ory RankingsAdvisorDeals1Houlihan Lokey9562JP Morgan8763Duff & Phelps8024Morgan Stanley5995BofA Securities Inc542Refinitiv(formerly known as Thomson Reuters). Announced or completed transactions.Fiscal Year 2021 ResultsRecord Fiscal Year 2021 Revenues of $1.53 BillionFiscal Year 2021 Diluted EPS of

12、$4.55Adjusted Fiscal Year 2021 Diluted EPS of $4.62Fourth Quarter 2021 ResultsFourth Quarter Fiscal 2021 Revenues of $501 MillionFourth Quarter Fiscal 2021 Diluted EPS of $1.44Adjusted Fourth Quarter Fiscal 2021 Diluted EPS of $1.51Announces a 30% Increase in the Quarterly Dividend to $0.43 per Shar

13、e“Fiscal 2021 was a roller coaster year, with the first half led by restructuring and then followed by a very robust market for our M&A and valuation businesses. Houlihan Lokeys employees, once again, rose to the challenge and achieved record revenues for the ninth consecutive fiscal year. Our busin

14、ess performed exceptionally well, and all three product lines did as they were designed to do. We remain committed to building upon a business model that will continue to provide growth and stability to our stakeholders.”Scott Beiser, Chief Executive Officer of Houlihan Lokeyhas recapitalizedBuyside

15、 Advisora portfolio company ofhas been acquired bySellside Advisora portfolio company ofhas been recapitalized bySellside Advisora portfolio company ofhas been acquired bySellside Advisor4Recently Concluded and Upcoming ConferencesOver the past 12 months, Houlihan Lokey has continued to host confere

16、nces that have brought together (virtually) thousands of attendees to hear from our CEO presenters. Highlights include:Conference AttendeesSenior executives from leading companiesPrivate equity and hedge fund investors with relevant industry experience and knowledgeMezzanine and senior debt provider

17、sEI&I Presenters:1,000+ Industry Leaders/ Capital Providers Featured SpeakerFrank LuntzNew York Times Best-Selling Author39 Presenting Companies2020 Virtual Business Services Conference OverviewEI&I Presenters:2021 Virtual Technology, Media, and Telecom Conference OverviewEI&I Presenters:2021 Virtua

18、l Business Services Spring Summit Overview1,000+ Industry Leaders/ Capital ProvidersKeynote SpeakerErika NardiniCEO, Barstool Sports50 Presenting CompaniesTargetedOne-on-One Meetings Conducted1,000+ Industry Leaders/ Capital Providers30Presenting CompaniesTargetedOne-on-One Meetings ConductedTargete

19、dOne-on-One Meetings ConductedUpcoming Conferences/WebinarsGlobal Industrials Conference June 23, 2021Secrets to M&A Success in 2021 Webinar Summer 2021Business Services ConferenceFall 2021For any questions, please email Events.HL.com.5EI&I Public CompaniesOperations, Markets, and Valuation Overview

20、Engineering ServicesNote: Multiples from 2016 to 2020 calculated as of year-end (December 31) of each respective year.Source: S&P Capital IQ.Infrastructure ServicesIndustrial ServicesMean LTM EV/EBITDA: 14.5xMean LTM EV/EBIT: 16.9xMean LTM EV/EBITDA: 11.7xMean LTM EV/EBIT: 17.5xMean LTM EV/EBITDA: 9

21、.4xMean LTM EV/EBIT: 14.1x12.4x14.5x12.7x16.4x16.9x14.6x2016-2020LTM2021EV/EBITDAEV/EBIT9.6x11.7x9.4x13.4x17.5x16.2x2016-2020LTM2021EV/EBITDAEV/EBIT7.5x9.4x7.6x13.4x14.1x13.0x2016-2020LTM2021EV/EBITDAEV/EBIT7%6%10%6%3%9%2016-2020LTM2021MarginsEBITDA MarginEBIT Margin6%7%8%5%4%6%2016-2020LTM2021Margi

22、nsEBITDA MarginEBIT Margin9%10%11%5%5%7%2016-2020LTM2021MarginsEBITDA MarginEBIT Margin5%4%11%EngineeringIndustrialInfrastructure16-20 Revenue CAGRFinancial PerformanceInd.S&P Eng.Inf.-50%0%50%100%150%200%Jan-16Jan-17Jan-18Jan-19Jan-20Jan-2116-20 Index PerformanceIndustrial ServicesEngineering Servi

23、cesS&P 500Infrastructure Services6Significant Infrastructure-Related News StoriesMcConnell Ups Acceptable Price Tag for Infrastructure Package(CBS News, May 10, 2021)“Senate Minority Leader Mitch McConnell on Sunday suggested the cost of an infrastructure package he is willing to accept is between $

24、600 and $800 billion, a price range that is higher than a counterproposal to President Bidens sweeping plan put forth by fellow Senate Republicans.”Biden Wants Trillions for Infrastructure, But a Big Hurdle Will Remain: Spending the Cash(NBC News, May 8, 2021)“The federal government has struggled in

25、 recent history to quickly translate cash from Congress into actual shovels in the ground. And for Democrats, deriving a political benefit would require that voters see and feel the impact before the 2022 midterm elections. President Joe Biden will have to figure out how to spend the money on time,

26、on budget, and with the intended impact.”Biden, Republicans Set Talks Over Competing Infrastructure Plans(The Wall Street Journal, May 2, 2021)“Democrats have an expansive view of infrastructure, including such things as home-care services, that Republicans deride as not real infrastructure, such as

27、 roads and bridges. Meanwhile, Democrats want to add spending on top of existing appropriations, while Republicans include existing spending in their numbers, which make their budget proposals look bigger.”Bipartisan Talks on Infrastructure Heat Up as Biden Prepares for Big Push(CNN, April 27, 2021)

28、“Two senatorsa Republican and a Democratwarned the talks are in their infancy but could provide a framework if they were actually successful to charting a path forward that could win bipartisan support on areas like transportation infrastructure, broadband, and water infrastructure.”Strong U.S. Infr

29、astructure Bill Needed to Move Climate Goals Forward: Experts(S&P Global, April 26, 2021)“The most significant thing to come out of the climate summit held by the White House on April 22 and 23 was the optimistic framing about how climate change mitigation solutions can lead to job creation, domesti

30、c economic growth, and better environmental quality, Jonathan Pershing, senior advisor to the special presidential envoy for climate at the U.S. Department of State, said during a webinar hosted by the Society of Environmental Journalists.”Pivotal U.S. Senate Democrat Wants More Targeted Infrastruct

31、ure Bill(Reuters, April 25, 2021)“Bidens sweeping proposals in his infrastructure proposal also include $400 billion for in-home and community-based care for the elderly and disabled as well as $100 billion for school and child care facilitiestwo areas left out of a $568 billion Republican counterof

32、fer introduced last week.”Republicans Unveil $568 Bln Infrastructure Package to Counter Biden(Reuters, April 22, 2021)“The proposal, which falls below even the range of $600 billion to $800 billion that Republicans floated earlier in the week, focuses narrowly on traditional infrastructure projects

33、and broadband access.”All eyes are on Washington, D.C., as President Biden proposes a $2 trillion infrastructure plan.7Recent M&A TransactionsAnnounced DateAcquirerTargetTarget DescriptionTransaction Value ($M)Sources: S&P Capital IQ, Mergermarket, PitchB.May 21Ardurra GroupInfrastructure Engineerin

34、g CorporationMultidisciplined engineering and construction management firm specializing in the water, wastewater, and public works marketsNAMay 21MasTecINTRENUtility specialty contractor primarily providing electrical distribution network services under various multi-year master service agreements t

35、o the nations largest utilities, municipalities, and cooperatives$420Apr. 21Sentinel CapitalTranSystemsPlans, inspects, designs, and provides related services to some of the most complex transportation infrastructure projects in the U.S.NAMar. 21MSD PartnersWoolpertProvider of geospatial, architectu

36、ral, engineering, and strategic consulting services to a wide variety of public, private, and government clientsNAMar. 21Sterling InvestmentPartnersAnser AdvisoryFirm specializing in capital program advisory and consulting services, which include strategy, funding, process development, and organizat

37、ion preparedness as well as project, program and agency construction management, and controlsNAFeb. 21MasTecFNF ConstructionVertically integrated provider of heavy civil construction services in the Southwestern region of the United StatesNAFeb. 21New Mountain CapitalAegion CorporationProvides pipel

38、ine services, including the protection, rehabilitation, engineering, and design of infrastructure projects for a wide range of industries$1,100Jan. 21WSPkW Mission CriticalEngineeringEngineering and consulting services for data centers and buildings with a continuous uptime requirement NAJan. 21WSPT

39、K1SCProvides mechanical, electrical, plumbing, structural, technology, low voltage, and security systems for office campuses, hospitals, schools, and civic buildingsNADec. 20WSPGolder AssociatesEngineering and consulting firm in the geosciences sector with a nichefocus on earth and environmental con

40、ditions$1,500Dec. 20StantecAGELMultidiscipline engineering firm specializing in environmental services, spatial development, infrastructure, and GIS servicesNANov. 20Ardurra GroupPigeon-Roberts & AssociatesEngineering consulting firm that serves local and regional agencies with services focused on t

41、he water and wastewater marketsNANov. 20TRC1Source Safety and Health Provides management consulting services in areas such as indoor air quality, asbestos management, industrial hygiene, and safety management systemsNAOct. 20WoolpertJviationA planning, engineering, architecture, survey, and construc

42、tion administration firm that focuses on aviation-related projectsNAOct. 20KleinfelderGas Transmission SystemsProvides pipeline engineering, consulting, and program management services to gas utilities and pipeline operators with a focus on infrastructure integrity management and rehabilitationNASep

43、t. 20Anser AdvisoryAscentProvides service delivery, including capital program advisory and consulting services, program/project controls, and project management across the U.S.NASept. 20Ardurra GroupConstantine EngineeringMultidiscipline engineering firm specializing in the water, wastewater, and pu

44、blic works marketsNAAug. 20KleinfelderGarcia and AssociatesProvides environmental planning and permitting services related to the operation and maintenance of critical infrastructure throughout the Western United StatesNAAug. 20Court Square CapitalRailProsProvides outsourced services for rail operat

45、ors, state DOTS, and contractors working adjacent to rail infrastructure NAMay 20Anser AdvisoryH.R. GrayProvides responsive, cost-effective construction management and construction dispute resolution services for public agenciesNAJuly 20NV5 GlobalMediatech Design GroupProvides award-winning independ

46、ent consulting services and specializes in technology design for the built environmentNAJune 20Kohlberg & CompanyGPRSProvides subsurface detection services to the construction industry, including detection of underground utilities and the scanning of concrete structuresNAJan. 20CHA ConsultingCME Ass

47、ociatesTransportation engineering firm with a focus on complex highway and bridge projects; national expertise in accelerated bridge constructionNAOct. 19Tower Engineering Professionals P-SecProvides engineering and inspection services for telecommunications and broadcast clients across Canada and t

48、he U.S.NASelect Team Members8Debt Capital Markets in 2021U.S. Leveraged Loans: Average S&P/LSTA Leveraged Loan Index Bid and Yield(1)U.S. High Yield: Average S&P Corporate Bond Index Average Bid and Yield(1)Sources: S&P LCD, LFI Weekly, Lipper Weekly.Sources: S&P LCD, LFI Weekly, Lipper Weekly.(1)Da

49、ily data, as of May 9, 2021.Sources: S&P LCD, LFI Weekly, Lipper Weekly. The leveraged loan market exhibited record performance in the first quarter of 2021, driven by positive COVID-19 vaccination rollout, economic stimulus, and strong market technical. Strong market technicals drove the highest mo

50、nthly issuance on record with $60 billion of volume in March.Chris HebbleManaging DirectorCapital MarketsChris SweetManaging Director Capital MarketsAcquisition Financing and Dividend Recap: LINC Systems, Inc. (LINC) is a leading value-addeddistributor of fasteners, packaging equipment, and related

51、tools as well as maintenance, repair, andoperations (MRO) supplies. Houlihan Lokey was retained by LINC to serve as exclusive placementagent in connection with raising a new, more flexible credit facility to support an acquisition and ameaningful shareholder distribution.Acquisition Financing: Komli

52、ne develops, designs, and manufactures equipment to treat industrialand municipal wastewater. Barnes is a leading manufacturer and supplier of branded, highlyengineered fluid filtration systems for industrial applications. Sunny River Management and SatoriCapital acquired Komline and Barnes to creat

53、e a platform in the manufacturing of equipment forwastewater and industrial applications. Houlihan Lokey served as exclusive placement agent to SunnyRiver and Satori, assisting in arranging, structuring, and negotiating the financing.Select Recent Capital Markets Transactions105.34.7%97.94.3%4.0%6.0

54、%8.0%10.0%12.0%14.0%7580859095100105110PriceYield4.0%6.0%8.0%10.0%12.0%14.0%7580859095100PriceYieldand completed a strategic investment inandRevolver, Term Loan, Delayed-Draw Term LoanAcquisition FinancingExclusive Placement Agenta portfolio company of Acquisition Financing &Dividend Recapitalizatio

55、nRevolver & Term LoanExclusive Placement AgentHoulihan Lokey (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United St

56、ates, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firms commitment to client success across its advisory services. Houlihan Lokey is the No. 1 M&A advisor for the past six consecutive years in the U.S., the No. 1 global restruc

57、turing advisor for the past seven consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 20 years, all based on number of transactions and according to data provided by Refinitiv. About Houlihan LokeyLocationsIndustry ExpertiseNorth AmericaEurope and Middle EastAsia-Pacif

58、icAtlantaBostonChicagoDallasHoustonLos AngelesMiamiMinneapolisNew YorkSan FranciscoWashington, D.C.BeijingHong KongSingaporeSydneyTokyoAmsterdamDubai FrankfurtLondonMadridMilanParisProduct ExpertiseMergers and AcquisitionsCapital MarketsFinancial RestructuringFinancial and Valuation AdvisoryDedicate

59、d Industry GroupsBusiness Services Consumer, Food, and Retail Data and AnalyticsEnergy Financial Institutions Healthcare Industrials Real Estate, Lodging, and Leisure Technology, Media, and Telecom Financial SponsorsActive Dialogue With a Diverse Group of 1,000+ SponsorsPrivate Equity Firms Hedge Fu

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68、gapore, Hong Kong, and Australia, this communication is directed to intended recipients, including actual or potential professional clients (EEA and Dubai), accredited investors (Singapore), professional investors (Hong Kong), and wholesale clients (Australia), respectively. Other persons, such as r

69、etail clients, are NOT the intended recipients of our communications or services and should not act upon this 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 presenta

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72、 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 to base an investment decision, and should not be construed as such. Houlihan Lokey o

73、r its affiliates may from time to time provide investment banking 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.10CORPORATE FINANCEFINANCIAL RESTRUCTURINGFINANCIAL AND VALUATION ADVISORYHL.com