November 2020 #2

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

As we enter December, we hope you safely enjoying time with your family during the holidays! As we near 2021, we’d like to congratulate all of you for a productive year despite the obvious challenges. Your tenacity and ability to overcome many challenges is to be admired. Thank you for all of your efforts this year! And, may every year be better than the last!

We look forward to supporting you in the years to come and contact us if/when we can be of help. In the meantime, please find a selection of resources below to support your efforts.

KNOWLEDGE-BASE ANNOUNCEMENTS **Available to Red Forest Capital investments Only**

• Training / RFC Industry Prioritization for ETA Clubs has been presented to select university Search Fund clubs in recent months. Video to follow.

• Research / Updates / 2020 Q3 PitchBook PE Quarterly Update and 2020 Q3 Preqin PE & VC Quarterly Update

• Fund Operations / Digital now includes a Search Engine Optimization Checklist to consider when launching or maintaining your website

TIPS AND TRICKS

• Fans of Twitter, consider the following M&A influencers and using tools like TweetDeck to monitor industry or company announcements

• GF Data collects and publishes proprietary valuation, volume, leverage and key deal term data contributed by 200+ firms

• In addition to the Research Resources, consider “search fund opportunities” listed by BizNexus. The 2020 American Business Journals, Book of Lists are commonly placed on sale for $99 each. Visit the relevant Journal(s) for announcements!

INDUSTRY UPDATES

• The US Office of the Comptroller of the Currency sees most bank license and charter applications in a decade

• Cybersecurity spending increased 15% this year and ~2/3rds of financial executives expect cybersecurity spending to increase next year

• Alternative Lenders expect increased demand as borrowers seek flexibility

• Average home prices in urban areas are up 7% YoY in September, up from an annual rate of 5.8% in August, according to Case-Shiller

• COVID-19 expected to boost investment in esports

INDUSTRY IDEAS

• Pet adoption soared yet COVID persists. Consider telemedicine for vets like Televet or wiskerdocs

• Companies that help colleges to build and offer online programs like HotChalk or 2U

• Supply chain and distribution companies positioned to absorb COVID overflow or displacement like Leidos

INDUSTRY IDEAS AND M&A

AEROSPACE & DEFENSE

• Belcan acquired Avista, a provider of software engineering services in aerospace, defense, industrial and medical industries

• CAE acquires TRU Simulation + Training for $40MM

• Janes Acquires Global Platforms and Systems, a defense market analytics provider

• Parsons Corp acquires Braxton Science & Technology, provider of mission critical spacecraft ground control solutions, for $300M

• RKD Group acquires Data Management, a tech company serving nonprofit marketing programs, analysis and modeling

• TransDigm acquires Cobham Aero Connectivity, provider of highly engineered antennas and radios for the aerospace market for $965M

B2B SERVICES

• A.P. Keaton acquired PASK Productions, a diversified creative experiential agency

• Ascent acquired Mango Solutions, a data sciences consulting firm

• Century Technology Group acquired Mutually Human, a custom software developer and application solutions provider

• EbixCash acquires contact center company AssureEdge Global Services

• First Reserve to acquire The Goldfield Corporation, a maintenance services provider for utilities and industrials, for $194MM of EV

• Giegel family acquired Greentree Printing and Sign

• KAR Auction Services, Inc. acquires BacklotCars, an online marketplace for auto dealers

• Kelly Services acquires Greenwood/Asher & Associates, an executive search firm specializing primarily in higher education

• Off Madison Ave acquires Fineman PR

• OutMatch acquired Checkster, a global provider of pre-hire and post-hire talent insights solutions

• Stuart Event Rentals acquires Williams Party Rentals

• Thuzio acquired Robin, a corporate entertainment platform for premium tickets and experiences

• WebSafety to acquire Veridetx, a supplier of a line of proprietary disinfecting booths

CONSUMER

• Ahold Delhaize and Centerbridge acquires online grocer FreshDirect

• Eureka Equity Partners acquired iPEC Coaching, a provider of coach training and certifications

• Gryphon acquired Kano Laboratories, a producer of oils and lubricants sold into industrial maintenance, repair, and operations ("MRO")

• Mister Car Wash acquired Soapbox Car Wash

• Rinse acquired Dryv, an on-demand dry cleaning and laundry provider

• United Flea Markets, acquires Treasure Aisles Flea Market

EDUCATION

• GoGuardian acquired PearDeck, an interactive digital presentation tool used in education

• Kahoot acquired language-learning app developer Drops for $31 MM

• Online Education Services (OES) acquires Construct, a leader in online learning design

ENERGY

• Entergy Louisiana acquires Washington Parish Energy Center

ENVIRONMENT & RELATED

• Gryphon Investors acquired Vessco Holdings, a value-added distributor of wastewater treatment process, flow control, pumps and equipment Ovivo acquires ALAR, an industrial wastewater solutions provider

• Warren Equity Partners acquires Si Environmental, a water/wastewater platform

• Xpansiv acquired Venus Technology Ventures, provider of mobile trading platforms for water, environmental, and energy commodity trading

FINANCE & INSURANCE

• AmeriLife Group acquired American Benefits Exchange, provider of insurance solutions to federal, postal and state employees

• BlackRock acquired Aperio, a provider of wealth management solutions for $1.1 billion

• CI financial acquires RGT Wealth Advisors

• Clearlake Capital Group acquires Zywave"), software-as-a-service (SaaS) providers of front office insurance solutions

• Fulton Financial acquires BenefitWorks retirement services unit

• Goldmatch Capital, a search fund, acquired OneShield Software, a software provider for P&C insurance companies

• Interlapse Technologies acquire LQwD Financial in $6.6MM, equity deal

• Kemper acquires American Access Casualty for $370M, expanding in Hispanic market

• MAI acquires Greenway Family Office

• Payroc acquired Bluestone Payments, a provider of merchant payment solutions

• Sturm, Ruger & Company acquires Marlin Assets for $28MM

• Zywave acquired Insurance Technologies, a provider of marketing, rating, and management software and services to the insurance industry

FOOD

• BevCanna acquires cannabis beverage Naturo Group for a $20M all-stock deal

• De'Longhi acquires Capital Brands for $420MM

• Fortune International buys Neesvig, a seafood and meat processor and distributor

• HelloFresh acquired Factor75, a provider of fully-prepared meals for up to $277MM

• McCormick acquires Cholula Hot Sauce for $800M

• Shore Capital Partners acquired Old World Spices and Seasonings, a manufacturer of custom ingredients

HEALTHCARE

• AccuReg acquired Zenig, a tech company that enables touchless check-in, virtual waiting rooms, patient flow and bi-directional communication

• Arsenal Capital Partners has acquired Best Value Healthcare, a primary care platform focused on Medicare Advantage and Florida

• Aspen Surgical Products acquired Protek Medical Products, a manufacturer of protective covers for medical equipment

• Becton, Dickinson and Company assets of CUBEX, focused on cloud-based software offerings for advanced medication management

• BCT Partners acquires Critical Measures, a corporate training and management consulting firm specializing in healthcare

• Merck acquires OncoImmune, a clinical-stage biopharmaceutical company for $425MM

• Clearlake Capital Group acquires nThrive, a revenue cycle management SaaS business of for $1+ billion

• Covis Group acquires AMAG Pharmaceuticals that provides treatments in women's health and hematology/oncology

• Hospice Source acquired Superior Healthcare, a hospice medical equipment provider

• KKR invests in animal health-pharma services provider Argenta

• Lexitas acquired Marshall's Business Records, a provider of medical record retrieval services

• Medicus IT acquired Clear Choice Telephones, a unified communications and contact centers solution provider

• Physical Rehabilitation Network Acquires Morgan Hill Physical Therapy

• Providence Service Corporation acquires Simplura Health Group, operator of home health and personal care agencies

• Selvita to acquire Fidelta, a contract research organization

• Senseer Health acquired UrLoop, a leading innovator in senior living software solutions

• Signify Health acquired PatientBlox, a technology company with expertise in applying distributed ledger technology in healthcare

• Spiceworks Ziff Davis acquired Aberdeen, a leading global provider of behavioral-based marketing solutions

• STERIS acquires Key Surgical, a patient safety business

• Sun Capital agrees to acquire Miami Beach Medical Group, a primary care provider for $500MM+

• Transaction Data Systems (TDS) acquired KloudScript, a specialty pharmacy care solution

• US Urology Partners acquires Associated Medical Professionals, urology practice

• Volaris Group acquired medaptus, technology company focused on single-specialty, acute care, ambulatory care and cancer care

INDUSTRIALS & MANUFACTURING

• Aptean acquired Lascom, a product lifecycle management (PLM) provider for manufacturing, food and beverage, cosmetics and retail

• Arcline acquires Evans Capacitor, manufacturer of high-reliability, power dense capacitors

• Armstrong World Industries, Inc. to acquire Arktura

• Saw Mill Capital acquired The Hattenbach Company by Climate Pros, a provider of commercial refrigeration and HVAC services

• Creative Foam acquired Aetna Felt, a converter, fabricator, and distributor of felt used in podiatry and foot-care products

• GRITIT acquired NMC Group, a surfacing, engineering and external environment maintenance business

• IES Holdings acquires Wedlake Fabricating

• Gryphon Investors acquired Kano Labs, a maker of branded industrial and consumer oils and lubricants

• Patrick Industries acquired Lake Zurich, a manufacturer of components serving the marine, medical, aerospace, defense, commercial markets

• Phoenix Investors acquires Titan Tire, manufacturer of off-the-road tires and wheels for agriculture, construction, forestry, and mining equipment

• SyBridge Technologies acquires X-Cell Tool and Mold, a manufacturer of injection molds for the medical, consumer and electronics industries

• Symrise acquires Sensient Technologies, a fragrance business

• Synopsys acquires optical software provider Light Tec

• Synopsys acquired Moortec, a provider of in-chip monitoring technology specializing in process, voltage, and temperature (PVT) sensors

• Turnspire Capital Partners acquired the Goodyear Air Springs, a provider of air springs to vehicles

LEGAL & RELATED

• Lexitas acquires CD Photocopy, a records company focused on the defense side of workers' comp and civil liability cases

MEDIA

• Bertelsmann acquired Simon & Schuster, a publisher for $1.5B+

• BuzzFeed acquires HuffPost

REAL ESTATE & RELATED

• Bain Capital Private Equity acquired US LBM, a distributor of specialty building materials

• Clearlake Capital Group acquired Dimora Brands, a designer and manufacturer of hardware for homeowners and builders

• CoStar Group acquired Homesnap, an online real estate platform for home listings, for $250 MM

• Fortune Brands Home & Security acquires Larson Manufacturing for $660M

• GI Partners acquired Valet Living, a full-service amenities provider to the multifamily housing industry

• HomeServe acquires Dukes of Air, an Arizona HVAC company

• Ideanomics acquires Timios Holdings, a nationwide title and settlement solutions provider

• Lowe Capital Management acquired Incorp Holdings, a provider of specialty insulation, scaffolding, and other multi-craft outsourced services

• Service Champions acquired three home service companies: Adeedo, JW Plumbing Heating & Air and A-Avis Home Services

RETAIL & WHOLESALE

• Camping World Holdings acquires Paul Sherry RV in the Greater Dayton, Ohio Market

• OneWater Marine to acquire Tom George Yacht Group, a new and pre-owned yacht brokerage and service & parts provider

• RV Retailer acquires Sierra RV

TECHNOLOGY

• 365 Data Centers acquires Atlantic Metro Communications, provider of colocation, network and cloud services to large and mid-size enterprises

• 1WorldSync acquired CNET Content Solutions, a software service and analytics provider for e-commerce

• Accenture acquires End-to-End Analytics

• Autodesk acquires Spacemaker, urban design software developer for $240 MM

• Baring Private Equity acquires Virtusa, an information tech company

• Billhighway acquired Impexium, a maker of software for managing associations

• Donuts acquired Afilias, a domain registry business with DNS solutions and cyber-security expertise

• Dura Software acquired Lane Data Solutions, provider of integrated messaging platforms within the health care and banking markets

• Electric acquired Sinu, one of New York’s top Managed IT Service Providers (MSP)

• Emerson acquires technology startup 7AC Technologies

• Ernst & Young LLP acquired Zilker Technology, a digital consultancy and systems integrator focused on creating customer experience

• ESE Entertainment acquired K1CK Esports Club, a company that manages esports teams that compete across multiple games and platforms

• Exclusive Networks acquired Nuaware, a distributor at the “DevSecOps” solutions

• Experian acquires Tapad, a leading provider in digital identity resolution for marketers that helps to connect brands to consumers

• FireEye acquires Respond Software for $186M

• i3 Verticals acquired ImageSoft, a provider of document and process management solutions

• IBM acquires Instana, an automated application monitoring company

• Jacobs acquired The Buffalo Group, a leader in advanced cyber and intelligence solutions

• Leonard Green & Partners agreed to buy ECI Software Solutions, a provider of business management software for SMBs

• Lightspeed POS acquired ShopKeep, a leading cloud commerce platform provider

• Lumentum Holdings acquired TriLumina patents and IP covering automotive safety and driver assistance systems

• ManTech acquired Minerva Engineering to expand cyber capabilities

• Near acquires Teemo, a location intelligence platform generating store traffic

• NexTech acquires Map Dynamics, a self-service event software platform

• Paylocity acquires Samepage, an all-in-one team collaboration solution

• PAE acquired Metis Solutions, a provider of intelligence analysis and security, training and education to government and commercial clients

• Snap acquired Voisey, an app to create music tracks overlaying your own vocals

• Sourcerer, provider of software that analyzes abilities, preferences, and habits from engineer's source code acquired by anonymous buyer

• Splunk acquired Flowmill, a network observability startup

• Testimonial Hero acquired Applause Lab, a technology-enabled video testimonial platform

• Tulip acquired Timekit, an API-first appointment scheduling system

• Vantage acquires Hypertec’s data center business

• Visaic, acquires YARE Media, a streaming platform company

• Wavenet acquired Qubic Group, a cloud voice and data supplier

• Wunderkind acquired SmarterHQ, the leading advanced segmentation and orchestration engine for enterprise eCommerce

TRANSPORTATION & LOGISTICS

• AIT Worldwide Logistics acquires Panther Logistics

• Blink Charging acquires EV charging operator U-Go Stations

• Descartes Systems Group acquired ShipTrack, a leading provider of ecommerce final-mile solutions

• Walmart acquired JoyRun, a peer-to-peer delivery app

INTERESTING & FUN

• Who becomes CEO in a pandemic?

• Dealmakers embrace the chaos of COVID

• Overcoming the diseconomies of scale

• How Sound Governance Supports Family Success

• Better conversations: The 7 essential elements of meaningful communication

• Small cap stocks are having their best month ever

• Overcoming pandemic fatigue: How to reenergize organizations for the long run

• ZillowSurfing. During the pandemic, people are dreaming of their next house to buy as an escape

• The examiners is a machine learning-based quiz and flashcard generator for bioscience and medical students

• A study by the University of Utah finds state mask mandates boost consumer confidence

• PCL is Building the Future of Construction With Innovation

• Eight lessons on the rise of the creator economy from the examples of Twitch and Substack

• How To Win the Long Game with an Acquisition

• Practical use of Intellectual Property Insurance in Acquisitions

• Common institutional barriers that hinder student success

• Students and Workers: Shifting Focus From ‘Degrees’ to ‘Skills’

• How Sbarro creates, feeds impulsive pizza cravings

• Gig-economy workers could get paid partially in stock under a rule proposed by the SEC

HOLIDAY GIFT IDEAS

• Consider sending high-value prospects a business book, a gift from their alma mater or a favorite charity

• Gender-Specific. Gifts for women and men

• The Sin Bin. Dylan’s Candy Bar; Gift Tree.com and Beer delivered by Reindeer (It's Not A Joke)

• Miscellaneous. Stonewall Kitchen pancake mixes and jams and Colorado Gift Guide