November 2020 #1

Access to some materials included in this newsletter may be limited to Red Forest Capital funds.

Happy (US) Election Day!

Congratulations to all of you who are progressing well through your pipeline and diligence. If we can be of help, you know where to find us.

We appreciate all of the interest in the RFC Newsletter. In an effort to maintain focus toward supporting RFC search funds and portfolio companies, the newsletter will be published monthly, with the next edition scheduled for the first week of December. We are thankful for all of your feedback and delighted that so many of you have found value in the newsletter’s content.

In the meantime, please find a selection of resources below to support your efforts.

TIPS & TRICKS

• Evaluate members of the Referral List, a property that performs background checks and continually monitors advertisers

• Evaluate members of Lawn & Landscape’s Top 100 or Managed Security Service Provider Top 250

INDUSTRY UPDATES

• 2020 Stanford Search Fund Study and a Review of the Findings Hosted by IESE

• Business Valuation Resources 3Q M&A Digest. EBITDA multiples rise to 4.0x (median of 4.4x) with Revenue multiples at 0.61x

• Leveraged Buyouts Come Roaring Back After Coronavirus-Related Lull

• Technology M&A. Hot Sectors include AI, Automation, Ecommerce, Infrared Software, Media Streaming, Telemedicine

• September Reveals Mixed News on Recovery from PNC Bank

• Providers of online courses (MOOCs) aim to help colleges transition to digital with safeguards against cheating

• The College Board is reeling from a drop in test takers for its SAT exams

• Early childhood educators have always endured challenges, but COVID-19 has pushed them into a full-on crisis

• Consumers stay cautious on spending yet IHS Markit (a business-activity index) climbs in October

INDUSTRY IDEAS

• Vertically focused satellite analytics like AiDash (vegetation management)

• Environmental viral surveillance solutions including COVID surface testing like Enviral Tech

• Bioremediation focused on waste management like Allonnia

• MSPs with migration and deployment solutions like Render that make it easier for SMBs to transition to a private and/or public cloud

INDUSTRY IDEAS AND M&A

AEROSPACE & DEFENSE

• Belcan acquired Telesis Corp., a technology services and solutions firm serving defense and civilian federal government customers

• FDH acquired Societe AHE, a distributor of aerospace hardware focused on the rotorcraft market

• Granicus acquired Calytera, a data platform for government agencies

• KBR, Inc. to acquire Centauri, a leading provider of space, directed energy, and other advanced technology solutions

B2B SERVICES

• Achievers acquired TemboSocial, an employee feedback tool

• Accenture acquired N3, a B2B sales firm

• CapVest Partners acquired Datasite, a SaaS provider of the M&A industry

• COIT acquires the carpet and tile cleaning division of Cintas

• Graphite Capital acquires Ten10, a leading independent quality engineering and software testing consultancy

• Riverside acquired Starfire Systems Inc. and Starfire Extinguisher Inc., providers of inspection, installation, repair and maintenance services

CONSUMER

• FullSpeed Automotive acquired Uncle Ed’s Oil Shoppe, a provider of preventative maintenance and car wash services

• Inspire Brands to buy Dunkin’ Brands Group for about $8.8 billion not including debt

• IPSY to acquire BoxyCharm, a provider of full-size beauty product subscriptions

EDUCATION

• Course Hero acquired Symbolab, an artificial intelligence-powered calculator that helps students answer and understand complex math questions

• Next Gen acquires TrepStart Independent Youth, a social enterprise that provides entrepreneurship programs and resources for teens

ENERGY

• Polytek acquired Incredible Solutions, a provider of epoxy coating and casting systems

• The Kleinfelder Group acquired Gas Transmission Systems, a gas utilities and pipeline consulting firm

• RLDatix acquired Verge Health, a credentialing software provider

• SER Capital Partners acquired three project companies from HGP and its distributed storage resources to achieve a decarbonized energy future

ENVIRONMENT & RELATED

• Continental Mapping Consultants acquired TSG Solutions, a provider of situational awareness and geospatial services

• FactSet acquired Truvalue Labs, a provider of Environmental, Social and Governance (ESG) data

• Landmark Information acquired RiskHorizon an Environmental, Social and Governance (ESG) due diligence platform

FINANCE & INSURANCE

• Celero Commerce Acquires TransNational Payments

• First Citizens Bank acquires CIT Group

• Housatonic Partners acquired Maxitransfers, a money service business serving the Latin American community

• Insurity acquires Bill It Now a payments solution for property and casualty insurance carriers and MGAs

• Lexitas acquired Registered Agent Solutions Inc., a provider of outsourced Registered Agent and corporate compliance services

• Lightyear Capital acquired Allworth Financial, a provider of retirement and wealth management solutions

• McGowan Companies acquires M.P. Caplice Insurance, writers of Accountants ("E&O") and Lawyers Professional Liability ("E&O") insurance

• Millichap acquired capital markets advisor Mission Capital

• NerdWallet acquired Fundera

• NFP Corp. acquired Insurance Specialty Group LLC, a managing general agent that specializes in construction coverage

• PaymentCloud acquires Paysley, digital payment processor known for its QR code tech

• Sun Life to Acquire Majority Stake in Crescent Capital Group

• Syncapay acquired the North American unit of Wirecard, a payments firm

• Visa acquire YellowPepper, a fintech pioneer with proprietary technology to enable issuers, processors to access multiple payment rails

FOOD

• Clearspring Capital acquires Regal Confections, a maker of confectionery and premium chocolate products

• Kainos Capital acquired Nutrisystem, a direct-to-consumer nutrition and weight management brand, for $575 million

• Next Glass acquired Oznr, a craft beverage marketplace

• Nestlé acquired Freshly, a prepared meal delivery service

• TPG Growth has acquired SmartSweets, a low-sugar candy brand

HEALTHCARE

• Bayer acquires gene therapy company AskBio

• Centerbridge Partners acquires Help at Home, a provider of home care and community-based services

• Cerberus acquired National Dentex Labs, a network of fully-owned dental labs providing restorative dentistry solutions

• Complete Health acquired Northside Medical Associates and Adamsville Family Medicine

• Ensign acquired the Medical Lodge of Amarillo, a skilled nursing facility

• Exact Sciences acquired Thrive Earlier Detection, a liquid biopsy company

• Havencrest Capital Management acquired ThermoTek, a provider of medical and industrial temperature management solutions

• H.I.G. Capital acquired St. Croix Hospice, a provider of end-of-life care in six states

• Medtronic acquired Ai Biomed, a developer of parathyroid detection systems

• Morgan Stanley Capital Partners acquires US HealthConnect

• Ridgemont Equity Partners acquired Anne Arundel Dermatology Management, provider of surgical and cosmetic dermatological services

• Sanofi acquired Kiadis, a developer of a natural killer cell platform

• Southern Ear Nose Throat & Allergy Partners acquired Valdosta Ent, an allergy practice

• Symplr acquires TractManager, provider of sourcing, contract lifecycle management, provider management and evidence-based data technology

• Teleperformance to acquire Health Advocate, a consumer health management business services and digital solutions provider

INDUSTRIALS & MANUFACTURING

• ATIF Holdings acquired Xi'an Green Fun Technology manufacturer of illuminated air purifiers

• Atkore International Group Acquires Queen City Plastics, a manufacturer of PVC conduit, elbows and fittings for the electrical market

• Bansk Group acquires Woodstream, a maker of various products focused on pest control, animal containment and lawn care

• Barentz acquires Maroon Group, distributor of life science ingredients and specialty chemicals

• Brook & Whittle acquired Tri Print, a packaging solutions company

• ICP Group acquired Leeson Polyurethanes, maker of polyurethane adhesives and coatings

• Katena Products acquired Micro-Select Instruments, a maker of high precision ophthalmic instruments

• Machine Solutions acquired Beahm Designs, a maker of thermal processing machines for catheter manufacturing

• Ocado acquired two robotics companies: Kindred Systems for $262 million, and Haddington Dynamics for $25 million

• Resource Label Group Acquires McDowell Label, a provider of pressure sensitive labels, shrink sleeve and RFID/NFC technology

• Sandvik acquires CGTech, a CAD/CAM, machining simulation and optimization software provider

• SureWerx acquired Geroline, manufacturer of K1 Series® brand of winter traction aids

• TechPrecision acquired STADCO, an aerospace precision parts manufacturer

LEGAL & RELATED

• Caravel Law Professional Corporation acquired MyLegalBriefcase, a developer of legal software aimed to streamline the client experience

MEDIA

• Colorado Community Media acquires seven Colorado weekly newspapers

• iHeartMedia to Acquire Voxnest, a podcast marketplace and provider of analytics, publishing, integration and targeted ad tools

• Luminary acquired Declare, a premier leadership platform transforming how women learn, work and succeed

• Moody’s buys Acquire Media (AM), an aggregator and distributor of curated real-time news, multimedia, data, and alerts

REAL ESTATE & RELATED

• BrightView acquires WLE, a commercial landscape firm

• Centre Partners partnered with LP First Capital to form United Land Services Holdings, a platform for landscape services

• CoConstruct acquired CBUSA, the US’s largest group purchase organization for custom and semi-custom builders

• Finastra’s Filogix acquired Doorr, a provider of point-of-sale mortgage software

• HB Global acquires W.R. Nash, a commercial plumbing, HVAC, medical gas, and fire protection system provider

• Pretium and Ares Management acquired Front Yard Residential, a provider of rental homes

• Renin Holdings Acquires Colonial Elegance, supplier of building products, including barn doors, closet doors, and stair parts

• Selzer-Ornst Construction Co. acquired Wisconsin Redevelopment, a real-estate firm and consultant

RETAIL & WHOLESALE

• Alibaba Group acquires Sun Art Retail Group

• GrowGeneration acquired Big Green Tomato, a hydroponic equipment retail chain

• Rite Aid acquires Bartell Drugs

• Rx Drug Mart acquired Forewest Holdings, an operator of 35 pharmacies

• Sheridan Capital Partners acquires Long’s Drugs and Adler’s Pharmacy

TELECOMMUNICATIONS

• Akamai acquired Asavie, mobile and 5G cybersecurity provider

• Assurant acquires HYLA Mobile, a leading provider of smartphone software, trade-in and upgrade services

• Comlinkdata acquired ShareTracker, a telecom research and analytics firm

• GTCR acquires Consumer Cellular

• GI Partners acquired Vast Broadband, a provider of gigabit-speed broadband, video and phone

• I Squared Capital acquires GTT Communications, a specialist in the provision of cloud networking services

• Stonepeak Infrastructure Partners to acquire Astound Broadband, the sixth largest cable operator in the United States

• Verizon acquired Bluegrass Cellular

TECHNOLOGY

• Ansys acquired Analytical Graphics Inc. a provider of simulation, modeling, testing and analysis software for aerospace, defense and intelligence

• Appfirre acquired AIO apps, including the portfolio of BI apps Tableau and Confluence

• Atos acquired SEC Consult Group, a cybersecurity consulting firm that offers penetration testing, red teaming and technical assessment services

• Anexinet to acquire SereneIT, an engineering and IT solutions firm

• BitTorrent acquired live streaming platform DLive.tv

• Clearlake Capital Group to acquire Endurance International Group Holdings, a provider of cloud-based platform solutions

• CM Group acquired Selligent Marketing Cloud, developer of an intelligent omnichannel marketing cloud platform

• CoveHill acquires SecureLink a provider of vendor privileged access management (VPAM)

• Curve Digital acquires IronOak Games

• DartPoints acquires Metro Data Centers (MDC), a provider of interconnection and data center solutions

• EcoDigital acquired Telestream, a software provider focused on video streaming and delivery

• Francisco Partners to acquire MyFitnessPal, a food-tracking and fitness app

• Loop Media acquires audio discovery platform Spkr

• Juniper Networks acquires 128 Technology for $450M

• MRI Software acquires CheckpointID, an ID verification and fraud prevention technology solutions provider

• Phoenix Capital Ventures aquires Ghost Gaming, a gaming lifestyle brand focused on cultivating the talent

• Splunk acquires Plumbr and Rigor, an application performance monitoring (APM) and auto-instrumentation firms

• Symphonic Software acquired Ping Identity today, a company focused on protecting APIs, data, apps and resources through identity

• TIBCO Software acquired Information Builders, a data and analytics software company

• Turnitin acquired ExamSoft, a software-based assessment platform

• Vector Capital acquired MarkLogic, a provider of enterprise data integration and data management solutions

• Versapay acquired Solupay, an AR automation and integrated payment solution

• Wipro to Acquire Encore Theme Technologies, a specialist in providing SaaS and Cloud solutions in financial services

TRANSPORTATION & LOGISTICS

• H.I.G. Capital acquired Capstone Logistics, a provider of outsourced supply chain solutions to distribution centers

• TorQuest to acquire VersaCold Holdings Corp, a provider of cold storage

WASTE MANAGEMENT & RECYCLING

• Quest acquired Green Remedies Waste and Recycling

INTERESTING & FUN

• Templates That Help Finance Teams Automate Processes

• ETA Videos from Carnegie Mellon and True North

• A Cold Email Strategy

• 21 Things to Avoid When Running a Company

• Hotels adjust to wedding trends of 2020

• The Fastest Way to Earn Your Earnout

• Growth Strategies During COVID

• Flavors of SaaS from Allied Advisers

• Google Debuts Mortgage Evaluation Technology DocAI

• Viral Effects Are Not Network Effects

• NASA plans first cellular network on the moon

• Improve SEO and Engagement during COVID with Content Marketing

• Pet Insurance’s Newest Entrant. Dodo

• Fed's Powell: Digital currencies promising, need study

• Mastercard, Stride Partner for Gig Worker Benefits

• Shopping, finance apps show strongest growth among Gen Z

• Sustainability in packaging: Inside the minds of US consumers

• DeepMind’s Journey from Games to Fundamental Science

• What to Do When Your Coworker Brings Up Politics

• White House Nears New Rules on Artificial Intelligence

• Clearview AI, the controversial startup that provides facial-recognition technology to law enforcement, is rolling out new compliance features

• Intel sees new business opportunities from a bifurcation of tech supply chains amid growing tensions between the U.S. and China

• An all-electric Hummer @ $79,995 already sold out of the first-year production run

• The impact of COVID-19 on the global petrochemical industry

Be well,

Jason Kania | Operating Partner | o. 978.776.6148 | linkedin | my online calendar