Act with confidence.[[Nasdaq: GLOI]] August 2008August 2008
Business Overview
Investment Highlights
• Reputable and resourceful management and advisory boards
• Experienced senior management team and professionals
• Large and growing market opportunity
• Comprehensive offering of risk mitigation solutions
• High profile contract wins driving organic growth
• On track to achieve EBITDAS breakeven in Q2 and positive EPS in Q4
Opportunity to create sector-defining brand
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Corporate Description
Act with confidence.2
Integrated provider of risk mitigation and management services to governments, FORTUNE 1000, high net worth/high profile individualsBecame public: 2005
Headquarters: New York, NY
Number of Employees: 523 full-time, 123 part-time
2007 Revenue: $87.1M
2008E Revenue: $105-115M
The Large and Growing Market Opportunity
Greater focus on natural disasters and emergency preparedness
Increased regulatory complexity and litigation
Need for full service provider
We believe GlobalOptions has the right business model and organization to seize the market opportunity1Source: FEMA 2Source: Insurance Information Institute 3Source: Coalition Against Insurance Fraud
Greater awareness of market inefficiencies created by fraud
Act with confidence.
• Hurricane Katrina, 9/11
• 52 major disasters in the U.S. in 20061
• Public disaster assistance averaging $2.6 billion annually since 19981
• Insurance fraud more than
$100 billion annually2
• Overall consumer impact of approximately $900 per U.S.
family3
• Severe civil and criminal penalties for companies, officers and directors
• Need for expert management regarding USA Patriot Act, Federal Information Security Act, Gramm-Leach-Bliley Act, Health Insurance Portability and Accountability Act, Sarbanes-Oxley Act, etc.
• Niche providers not equipped to meet full range of client needs
• Several traditional leaders have been acquired or evolved their business model
• Shift by organizations to proactive risk mitigation strategies and procedures
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Foundation for Growth
June 2005: GlobalOptions Group, Inc. became a public company through reverse merger transactionAugust 2005: Acquired CBRFoundation acquisition for Fraud & SIU Services unit
March 2006: Acquired JLWASole business in Preparedness Services unit
May 2006: Acquired SafirRosettiFoundation acquisition for Security Consulting & Investigations unit
May 2006: Acquired SecureSourceAugmenting Fraud & SIU Services unit
August 2006: Acquired Hyperion RiskProvides additional investigative services to Fraud & SIU Services unit
February 2007: Acquired Bode TechnologyProvides forensic DNA analysis, proprietary DNA collection products and related research services; significantly expands Security Consulting & Investigations unit
February 2007: Acquired FACTICONExpands Fraud & SIU Services expertise in insurance, legal, business and financial industries
September 2007: Nasdaq ListingOctober 2007: Completed $20 million equity raise and capital restructuring
January 2007: Acquired On Line Consulting ServicesAdds security and communications systems expertise to Security Consulting & Investigations unit
6/05 8/05 3/06 5/06 5/06 8/06 1/07 2/07 2/07 97/07 10/07 04/08
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April 2008: Strategic Business Alliance with First AdvantageAcquired First Advantage’s Investigational Services
Management Team
Dr. Harvey W. SchillerChairman, CEO• Chairman, CEO YankeeNets• President, Turner Sports• Brigadier General, US Air Force (Ret.)
James Lee WittCEO, Preparedness Services• Director of FEMA• CEO James Lee Witt Associates• Director, Arkansas Office of Emergency Services
Jeffrey O. NyweideCFO, EVP Corporate Development• Technology entrepreneur and VC• Director, Pres, COO DatawareTechnologies
Halsey FischerCEO, Fraud & SIU Services• President, CEO CBR• SVP, Pinkerton Consulting & Investigations
Thomas P. OndeckPresident, International Strategies• Partner, Manatt, Phelps & Phillips, LLP • Partner, Baker & McKenzie
Howard SafirCEO, Security Consulting & Investigations• Chairman, CEO SafirRosetti• Vice Chairman, IPSA International• New York City Police and Fire Commissioners
Act with confidence.5
Comprehensive Provider of Risk Mitigation Services
Halsey FischerJames Lee Witt Howard Safir Tom Ondeck
Dr. Harvey W. Schiller, Chairman, CEOJeffrey O. Nyweide, CFO, EVP Corporate Development
Integrated solutions provider
Act with confidence.6
Preparedness Services
Develops and implements crisis management and emergency response plans for governments, corporations and individuals
• Business continuity plans
• Emergency exercises and training programs
• Post-disaster crisis communications assistance
• Preparedness, response and recovery services
• Strategic advisory services
• Threat and impact assessmentsManagement:James Lee Witt
Headquarters:Washington D.C.
Employees:88 full-time, 12 part-time
Comprised of the followingacquired company:James Lee Witt Associates
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Fraud & SIU Services
Provides investigative surveillance, anti-fraud solutions and business intelligence services to the insurance industry, law firms and multinational organizations
• Anti-fraud training• Background investigations• Corporate investigations for liability• Fraud reporting• Insurance claims investigations• On-scene accident investigations• Regulatory compliance• Surveillance
Proprietary GlobalTrak™ Enterprise Management technology
Management:Halsey Fischer
Headquarters:Nashville
OfficesOrlando, Sacramento, Anaheim, Philadelphia, Chicago, Dallas, Detroit
Employees:248 full-time, 98 part-time
Comprised of the followingacquired company:• Confidential Business
Resources (CBR)• Hyperion Risk• FACTICON• SecureSource
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Security Consulting & Investigations
Delivers specialized security and investigative services to governments, corporations and individuals
• Anti-terrorism training• Business intelligence• Executive protection• Facilities and IT security (design, implementation, management)
• Forensic DNA analysis and casework• Independent monitoring and regulatory
compliance• IT and accounting forensics• Litigation support
Management:Howard Safir
Headquarters:New York City
OfficesBoston, Washington, D.C.,Chicago, Dallas, Los Angeles, San Francisco
Employees:175 full-time, 11 part-time
Comprised of the followingacquired company:• SafirRosetti• Bode Technology • On Line Consulting
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International Strategies
Provides multidisciplinary, international security, risk management and business solutions to foreign and domestic governments, corporations and individuals
• Corporate governance compliance• Crisis management• Emerging market services• Facilities security• Global business intelligence• Investigations and litigation support• Personal protection
Management:Tom Ondeck
Headquarters:Washington D.C.
Employees:9 full-time, 2 part-time
Original Core Business
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Leveraging Proprietary Technology
Bode Technology
A leader in forensic DNA analysis, proprietaryDNA collection products, crime scene investigation tools and research services used by law enforcement agencies, federaland state governments, crime labs anddisaster management organizationsthroughout the world
• Bode’s forensic DNA experts have assisted in identifying victims of the attack on the World Trade Center, the war in Bosnia, victims of the tsunami in Thailand and the remains of U.S. soldiers dating back to the Vietnam War
• Bode’s use of Touch DNA was cited by the Boulder District Attorney’s office as key to its decision to exonerate family members in the death of JonBenetRamsey. Using Touch DNA, Bode identified a third sample of unexplained third-party DNA that was found on the clothing of the victim.
GlobalTrak™ Technology
Proprietary enterprise solution that provides fullyintegrated case management support from inceptionto resolution through to archiving
• Full suite of case management capabilities
• Evidence processing and management including audio and video surveillance files
• Internal management of client companies, contacts, status reports
• Manage assignments, evidence, investigative time, investigative reports
• Dashboards by function/topic
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Our Growth Strategy
Our goal is to build the risk mitigation industry’smost comprehensive solutions offering through abalance of organic growth and acquisitions
• Leverage our relationships and expertise
• Integrate and cross-sell solutions
• Selectively acquire companies
• Develop new risk mitigation solutions
• Expand internationally
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Recent Wins
• 5-year contract with York Insurance Group valued at up to $10 million• 2-year $750,000 contract with West Coast Property & Casualty Insurance Carrier• 3-year contract with leading workers comp provider valued at up to $3 million• Multi-year contracts worth $6 million with 2 major East Coast Property & Casualty Insurance Carriers• 2 Federal contracts totaling $2.5 million to conduct DNA research• Contract with State of Maryland to Enhance Emergency Management • 3-year contract with the State of Louisiana • 90-Day contract to help Oregon with Storm Recovery • Contract with Marathon Petroleum to provide security consulting services• $1.12 million in contracts from 6 N. J. Counties• 3-year contract with Gallagher-Bassett to provide investigative services• Contract to provide strategic advisory services to Purple Tree Technologies• Contract with Port Authority of N.Y. and N.J.• 1-year contract with U.S. Virgin Islands Office of Homeland Security (VIOHS)• 3-year contract with Southern Eagle Insurance Company • 2-year contract with State of Iowa to provide disaster management services for recent flooding
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Financial Summary
Our Growth Strategy
Disciplined approach to identify, acquire, integrate and scale
Ent
erpr
ise
Val
ue Pro
fitab
ility
Time
Phase I:Initial Acquisitions• Acquire platform of small
companies to create a $100M + revenue base
Phase II:Expansion/ Acquisitions• Acquire add-ons that enhance
service offerings• Achieve synergies between
acquired companies
Phase III:Market Leader• Recurring, global, diversified revenue
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Business Model Overview
• High level of repeatable revenue
• Strong visibility from long-term contracts
• Business integration accelerates EBITDA growth– Cross-selling– Back-office synergies– Full in-house services– Organic growth
• Driving towards profitability in 2008
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Manageable Investment Risk
• Capital to fund growth plans– Net proceeds of $18.2 million
from October 2007 secondary offering
– $20 million line of credit with Silicon Valley Bank
• Simplified capital structure
• Industry consolidation– Reed Elsevier acquired
ChoicePoint for an enterprise value of $4 billion, or 4x revenue
• Acquired The Bode Technology Group for $12.5 million in 2007– Transaction multiple of 1x
2006 revenue of $12.2 million
Limited Financial Risk External Upsides
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GlobalOptions Currently Trades at ~0.3 x 2008 Revenue
Revenue Growth
($ millions)
$25.0
$20.0
$15.0
$10.0
$5.0
0
12/05 03/06 06/06 09/06 12/06 03/07 06/07 09/07 12/07 03/08 06/08
Quarter Ended
$22.5$21.4
$17.3
$21.0
$17.4
$6.2$4.3
$21.6
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$21.7 $21.5
$26.2
Target Operating Model
Revenues
Gross profit
SG&A
Operating EBITDA
Net income
Target Operating Model (range)1
100%
45 – 50%
35 – 39%
10 – 15%
5 – 10%
�(1) The target operating model is for illustrative purposes only, and is not intended to be a projection of future financial performance.
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Capitalization Table
Common stock
Series A&B convertible preferred stock
Warrants
Series C&D convertible preferred stock
Series D common stock equivalents
Stock options
Restricted stock units
Total
10,023,454
•
•
•
3,692,746
680,617
368,475
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14,765,292*
*As of June 30, 2008
Investment Highlights
• Reputable and resourceful management and advisory boards
• Experienced senior management team and professionals
• Large and growing market opportunity
• Comprehensive offering of risk mitigation solutions
• Demonstrated success with strategic acquisitions
• Driving towards profitability
Opportunity to create sector-defining brand
20
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