Post on 31-Jan-2020
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Managing Director
2
JEGI | CLARITY Core Sectors
▪ B2B marketing, events and conferences▪ Agency, research and consulting services▪ Business information and info services
B2B Media, Marketing & Information
▪ B2C media and digital publishing▪ Commerce-enabled content and lead gen ▪ Entertainment, video and social content
Consumer Media &Entertainment Content
▪ eCommerce software and solutions▪ Digital advertising & marketing automation▪ Media measurement and marketing analytics
AdTech, MarTech & eCommerce
▪ Talent management▪ Governance, risk and compliance solutions▪ HR and legal data and analytics
RegTech, Legal Tech & Human Capital Management
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Managing Director Managing Director
2
New Solutions
Evolved Business Models
Vertical Marketplaces
Active & Decisive Portfolio ManagementScaled
Positioning
Active Pruning
Large Corporate Consolidators
Private Equity Platforms
3
acquisition
revenue
“Combining Thomson Financial with Reuters will create one of the two top providers of financial information in the world. Thomson Reuters will be a world leader in electronically delivered critical information and decision support tools for businesses and professionals”
Tom Glocer, CEO Thomson Reuters
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Sales & Trading
Major brands & categories
Healthcare
Enterprise
Tax & Accounting
Media
Legal
Scientific
Investment & Advisory
Source: Thomson Reuters filings
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$7.3 $7.2
$6.6 $6.5
$6.1 $6.1 $6.1
2011 2012 2013 2014 2015 2016 2017
(1.0%) (1.0%)
2.0%
0.0%
(1.0%)
0.5%
2.0%
(0.8%)
1.0%
average In four out of nine years over the
period
Source: Thomson Reuters filings
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“
Shift from product focus to customer focus
Target growing customer verticals in which they can
be market leadersDrive deeper into customer
channels/ solutions
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Sold Healthcare (Oct 2016)
sale
Focus on growth not scale$12bn revenue in 2015 $5.5bn revenue in 2018
Become smaller to grow faster
revenue
Sold 55% of Finance & Risk (Oct 2018)
cash proceeds revenue
Source: Thomson Reuters filings
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43%
22%
14%
7%
13%
Focus on key verticalsHigh growth underlying markets
Customers where there is a strong channel buyer overlap
80% revenue from professionals at the intersection of commerce
and regulationTax
Corporate
Legal
Source: Thomson Reuters filings
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October 2019
July 2019
November 2018
Global events platform
Legal SaaS
GTM SaaS
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(2.0%)
(1.0%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 2019 2020 2021
average revenue growth
average revenue growth
average revenue growth
Source: Thomson Reuters filings
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40
50
60
70
80
90
100
Source: S&P Capital IQ
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13
Sir Richard Winfrey Acquires Local English Newspapers1887
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East Midland Allied Press (EMAP)
Expanded Consumer Reach With Consumer Publications1960-90
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Entered B2B And Became A $2bn+ Revenue Media Powerhouse1995
16Source: S&P Capital IQ
+B2B Media Assets
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Duncan PainterCEO
2016 IPO$1.1bn
16x
EBITDA Multiple
Events
4.8x
EBITDA Multiple
+
2011 2014 2016 20172008 2018 Today
▪ eCommerce data analytics
▪ Driving sales through e-tailers
▪ Subscription model
▪ eCommerce optimization & performance measurement solutions
▪ Going deeper into the solutions set for sales enablement
▪ Consultancy – Deepening the product suite
▪ Marketing effectiveness insights
▪ Digital subscription information
Source: S&P Capital IQ
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Ascential Today: Enabling Consumer Products Companies to Maximize the Product Journey
Sales Product Design
Marketing
Consumer Behavior
Data
✓ Performance & Measurement
✓ Digital Shelf Optimization
✓ Pricing & Promotion
✓ Retail Strategy
25%Revenue Growth H1’ 19
✓ Influencers & Communities
✓ Consumer Motivations
✓ Product & Packaging
✓ Best Practice
✓ Media Strategy & Management
✓ Effectiveness Measurement
✓ Media Optimization
✓ Partnerships
21%EBITDA GrowthH1 ‘19
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… for sharper focus on markets served
… targeting best growth sectors with defensible market leadership potential
… to expand wallet share and ecosystem relevance
… to transform models and margins
… to outperform the category and drive premium valuation in the marketplace
Acquisitions 140Divestitures 61
*Since 2007 Reuters Deal
Acquisitions 17Divestitures 9
*Since 2008 Apax/Guardian Deal
Source: S&P Capital IQ
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Managing Director Managing Director
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1,290 1,282
2010 2019 2010 2019
# Corporate Divestitures (US) Value Corporate Divestitures (US)
2019
234% Increase
2010
$297 mm$89 mm
Average Deal Size – Corporate Divestitures (US)
$115 B$380 B
Source: Pitchbook
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$181
$212$235
$252
Inactives Focused Divestors Frequent M&A Frequent andMaterial M&A
Annual Shareholder
Return6.1% 7.8% 8.9% 9.7%
Focused Divestors
+39%
What $100 Invested In 2005 Returned At The End Of 2015
Source: Bain Capital
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S&P 500 Shareholder Return Since 2010 = 190%
10 Year Return = 450%Acquisitions
Tech
Health
10 Year Return = 308%Acquisitions Divestitures
Assets
10 Year Return = 754%Acquisitions
TALENT ASSESSMENT
METRICS THAT MATTERCHALLENGER
WORKFORCE SURVEYS & ANALYTICS
Divestitures10 Year Return = 484%
Acquisitions Divestitures
Source: S&P Capital IQ
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1.7x
0.9x
2019
2010
Median Revenue Multiples (US)
11.1x
5.6x
2019
2010
Median EBITDA Multiples (US)
Entire M&A market –Revenue multiples increased 73%
89% Increase 98% Increase
Entire M&A market –EBITDA multiples increased 31%
Source: Pitchbook
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Private equity has raised $4.5T in the
past decade$614 $594 $557
$669 $681 $744 $829$1,026
$1,213
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Global PE Dry Powder ($B)
5,111
2019
4,034
2010
Number of firms increasing nearly
30% across the decade
Global # PE Firms
$1,500
$614
Sources: Pitchbook, Prequin
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# M&A Deals With PE Buyer (US) # Corporate Divestitures With PE Buyer (US)
2,7843,883
2010 2019
286
409
2010 2019PE accounts for 62% of all
US M&A DealsPE accounts for 33% of allUS Corporate Divestitures
Source: Pitchbook
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Failure To Understand Future Value
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Action Driven By Short Term Financial Need Instead Of Strategy
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$181
$212$235
$252
Inactives Focused Divestors Frequent M&A Frequent andMaterial M&A
Annual Shareholder
Return6.1% 7.8% 8.9% 9.7%
Focused Divestors
+39%
What $100 Invested In 2005 Returned At The End Of 2015
Source: Bain Capital
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More rigorous approach to portfolio management1
Buyer universe continues to evolve (i.e., PE and cross-border/multi-national)2
PE evolution in divestitures – messy/challenging to value creation/opportunity3
Increasing use of technology, data and analytics in making acquisitions/investment decisions
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Sellers more sophisticated and buyers more demanding in their approach to divestitures (i.e., QofE, Market Study)
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45 corporate divestitures over the past 10 years
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Managing Director Director
2
Consumer expectation for engagement is radically redefining digital marketing and raising the bar for technology and marketing services providers.
Identity Graph & CDP
Global Content Workflow & Creation
Performance Marketing Orchestration
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First transaction facilitated online?
First secure retail transaction on the Internet?
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Global eCommerce Growth & Retail Share($ trillions)
$1.1 $1.3 $1.7 $1.9$2.4
$2.8$3.4 $4.0
$4.8
$5.8
5.10%6.30%
7.40%8.60%
10.40% 10.2%
11.7%
13.5%15.3%
17.3%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
0
1
2
3
4
5
6
7
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Global eCommerce Sales
% of Total Global Retail Sales
17% Retail
Share in 2022
Source: eMarketer
20.29% Growth (CAGR)
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Digital Marketing & Commerce Tech Stack
Over $75 BN in Stack M&A in Last 5 Years
6Source: Acute Market Reports, JEGI
Global Digital Commerce Software Market($ billions)
$5.3 $6.3 $7.5 $8.9$10.6
$12.7$15.1
$18.0$21.4
2018 2019 2020 2021 2022 2023 2024 2025 2026
19.1% CAGR
19% Growth (CAGR)
$21+ BN Software Spend per
Year
7Source: MarketsandMarkets, Zion Market Research and JEGI
Global Digital Transformation Industry($ billions)
$151$290
$404$665
$927
2015 2018 2020 2023 2025
18.1% CAGR
The Transaction is the Experience
8Source: eMarketer
US Advertising Spend by Category($ billions)
$109$129 $151 $172 $188 $202
$72$70
$71$70
$70$69
$42$39
$36$34
$32$31
$224$239
$259$277
$290$302
2018 2019 2020 2021 2022 2023
Digital surpasses traditional
spend
Mobile-First:2/3+ Mobile
5G AcceleratesChange
AdSpend
Digital
TV
Other
9Sources: Acute Market Reports, 451 Research, MarketsandMarkets, Forrester, Statista, PwC1) eCommerce CAGR is 2018 – 2022; other CAGR figures are 2018 – 2023
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Brand Family
Execution Production Workflow Integration
DigitalChannels PLA
Versioning Mobile PLAs Video Ad Product Specs Reviews & UGC
Parent Corporation:
Digital Assets
Localization Geography Language Culture
Affiliate/Partner Marketing
Product Images Video Lifestyle ScenesAR/VR
Visual Merchandising
►
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(Technology & Workflow) (Integration, Dynamic Delivery and Iteration)
(Plan, Produce, Manage) (Technology & Workflow)
Global Content Creation and Workflow
Tagged
SupplierGateway
SupplierEnablement
Services
Social
eComm
Mktg
Partners
FTPImage, Motion
& Sound
3D Visualization
Digital + Interactive
Creative Resource Management and Deployment Platform
Studios & Content
Labs
Tagged
SupplierGateway
SupplierEnablement
Services
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Search Term
Review Site
Brick & Mortar
DTC Brand
Sponsored Placements
Product Listings
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1. Journey and destination controlled by the 3 major tech platforms
2. Massive amount of unstructured data from multiple sources
3. Restrictions on access to “traditional” digital marketing data with increasing regulations
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▪ Persona Development▪ Identity Graphing▪ Purchase Patterns▪ Lifetime Value▪ Location Data▪ A/B Testing
▪ Data Science▪ Predictive Analytics▪ Optimization
▪ Marketplace/Amazon Advertising
▪ Paid Search & PLA ▪ Paid Social▪ Programmatic▪ Affiliate▪ SEO▪ CRM & Email▪ Creative Services
▪ Persona Development▪ Identity Graphing▪ Purchase Patterns▪ Lifetime Value▪ Location Data▪ A/B Testing
▪ Data Science▪ Predictive Analytics▪ Optimization
Digital performance marketing deploying expert practitioners and platforms to deliver results across the "Triopoly"
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Integration of Customer Data Platforms and the Identity Graph
16Source: Emailvendorselection.com
Demographic
Behavioral
Engagement
Transactional
Mobile / Device
Web / IP
Mobile
Social
Offline
Marketer-managed system that creates a persistent, auto-appending and unified customer database that is accessible to other systems
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Robust database that stores identifiers that correlate with individual customers
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Known & Unknown User Interaction
✓ Site Visits✓ Mobile Visits✓ Geofencing✓ Direct Mail✓ Search✓ Social✓ Email
Profiled Users with Digital IDs
1
2
Identity Graph
Integrated Data Lake
IP, Email, and Mobile Graph
PRIZM
PRIZM
15
29
10
1
2
3 3
Execution
2.4
1.6
17.3
Search Conversion
ConversionSocial
Display In-Store
Distribution Partners Attributions & ScoringExecute Against
Audience1
2
3
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• The opportunity is massive• The customer journey and experience is the product• Fast movers are addressing a complex market need, across
➢ Content and ecommerce execution➢ Performance marketing; and➢ Customer data and identity
• Leaders are tightly integrated with clients, and• It's all powered by technology infrastructure
Pace of PE investing and strategic acquisitions will accelerate
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