1_RegisteredAgentEntityMgtCorporateComplianceIndustryMarketMap-aug24-combined-compressed (1) cc.pdf

M&A acquisition deal briefing corporate compliance industry registered agent entity management 2023 charles bedard

1. Why
ERGO Comps
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
About the ERGO Comps Industry Deal Comps Briefing. 30 minute discussion with Charles…
Contact Charles for a detailed overview on historical and future M&A in the corporate compliance industry
Registered Agent Entity
Management
Corporate Compliance
Market Map
Contact Charles for a confidential
discussion about how to capitalize
on the industry deal trends
The corporate compliance industry is slowly being modernized through
technology modernization as well as new entrants via global expansion
and private equity backed entrants. The scope and competitive
landscape of the industry continues to expand creating new threats and
new opportunities…
Acquisition by Buyer Market Map
Public Comps Analysis
Industry Briefing Overview
Industry Market Map Catalog Industry Analysis
Registered Agent Entity Management Corporate Compliance Industry Briefing Snapshot
Deal Landscape & Analysis

2. 4
August 22
nd
2024
Registered Agent Entity Management Corporate
Compliance Industry Summary
Market Map Logos by Ownership
Industry Summary Analysis
Industry Summary Landscape Analysis
Company Tables by Ownership
Acquired Logos since 2020

3. 5
Private/Bootstrapped
Investor Backed
Registered Agent Entity Industry Market Map Logos
Sorted by Ownership Stage for Firms greater than $5m in revenues
Excludes public and subsidiaries
Key: There are more private firms than the investor backed firms.

4. 6
Registered Agent Entity Management Industry Landscape Analysis Executive Summary
Ownership Count
Estimated Total
Revenues
Private 118 $538m
Early Stage 16 $83m
Investor Backed 20 $211m
Public & Subsidiary 2 $billions
North America review of the industry as of August 2024 for firms with $1m+ Revenues
Notes:
*Overlap among categories exists
For North America, more than 1,000 members of NRRA and PRRN public records, represent more than 500 businesses that
deliver corporate services. The industry serves the following market.
1. Generalist et all: Public Record Corporate Services
2. Channel Partner Advisor
3. Globals, Multi Nationals, Holding Companies, Enterprises
4. Startups and micro business and smart business

5. 7
Registered Agent Entity Management Industry Landscape Analysis Summary Analysis
Summary Analysis as of Aug 2024
Ownership Companies Count #
Private 118
Investor Backed 22
Private Subsidiary 1
Public Subsidiary 1
Business Model Companies Count #
Software 23
Services 100
Non-Profit 4
Retailer 5
Industry Stats Average
Average Revenue Size
$6.7m
Median: $3m
Total Revenue Size $749m
Average Age 43 years
Average Employee Growth 0.13%
Average Funding Amount $5.9m
Total Funding Amount $99.4m
Average Employee Count 31
Total Employee Count 3584
Key: The Registered Agent Entity Management Industry is mostly made up of private companies with a select few investor-backed and subsidiary firms.

6. 9
Registered Agent Entity Management Corporate Compliance Industry Market Map
North America Top Private firms greater than $5m in revenue ranked by revenue of Aug 2024
Logo Company Employees Revenues ($m) Revenue/EE HQ
Agile Legal 49 $8 $163,265Middletown, DE
American Corporate Services. Inc. 41 $7 $150,731San Francisco, DE
Business Rocket.net - $17 - Beverly Hills, CA
Continental Corporate Services 47 $6 $127,659New York, NY
CorpNet 97 $19 $195,876Westlake Village, California
Corp USA 10 $8 $800,000New Smyrna Beach, Florida
First Corporate Solutions, Inc. 92 $29 $315,217Sacramento, California
Gordon, Fournaris & Mammarella
P.A.
48 $8 $166,666Wilmington, DE
How To Start An LLC 42 $25 $595,238Las Vegas, NV
InCorp Services, Inc. 96 $24 $250,000Las Vegas, Nevada
Laughlin Associates 29 $5 $172,413Reno, NV
Mohr Information & Investigation 56 $6 $107,142Winchester,VA
MyTaxFiler 134 $6 $44,776Plano, TX
Parasec 126 $26 $206,349Sacramento, California
Pioneer Corporate Services - $16 - Cheyenne, Wyoming
URS Agents, LLC 23 $7 $304,347Duluth, GA
United Corporate Services, Inc. 70 $14 $200,000White Plains, New York
Overall market size
estimated at $538m for
top 120 private
Key
- Excluded Georgia Registered Agent LLC, MaineRegistered Agent, Nebraska Registered Agent New York Registered, Oklahoma, Vermont Registered Agent LLC,
Washington Registered Agent LLC, California Registered Agent Inc
Sources

7. 10
Registered Agent Entity Management Corporate Compliance Industry Market Map
North America Top Investor Backed firms greater than $5m in revenue ranked by revenue of Aug 2024
Logo Company Employees Revenues ($m) Revenue/EE HQ
Bizee powered by Incfile 66 $30 $454,545Houston, Texas
ClearForce, Inc. 28 $6 $214,285Vienna, VA
Cogency Global 428 $89 $89,000New York. NY
Firstbase.com 87 $10 $114,942
Philadelphia,
Pennsylvania
Harbor Compliance 111 $31 $279,279Lancaster, PA
KeeperTax 60 $12 $200,000San Francisco, CA
Stable 31 $6 $193,548San Francisco, CA
Swyftfilings 59 $11 $186,440Houston, TX
The Neat Company 101 $20 $198,020
Philadelphia,
Pennsylvania
Overall market size
estimated at $211m for
top 20 investor
backed
Key
- Excluded Georgia Registered Agent LLC, MaineRegistered Agent, Nebraska Registered Agent New York Registered, Oklahoma, Vermont Registered Agent LLC,
Washington Registered Agent LLC, California Registered Agent Inc
Sources

8. 11
Deal News of Most Recent M&A Activity in 2024 YTD Market Map Logos
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Buyer/Acquirer Acquired
Deal News of Most Recent M&A Activity in 2024
Key:
• This is the recent activity in 2024 highlights that
major investments firms are actively acquiring
specialized compliance companies.
• The acquisitions by firms like Bertram Capital,
Sun Capital Partners & White Wolf Capital
Group indicate that private equity is investing in
the compliance sector, signaling its perceived
growth potential.

9. 12
Logos Acquired In The Year 2020 to 2024
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
M&A Deals for Corporate Compliance since 2020
Key:
2024
2023
2022
2021
2020

10. 2
Registered Agent Entity Management Corporate Compliance Industry Briefing
Market Map Logos by Ownership Company Tables by Ownership Industry Landscape
Analysis
For North America
Summary Analysis Acquired Logos
Contact Charles for a
confidential discussion
about how to capitalize
on the industry deal
trends

11. 13
The Future of Corporate Compliance
If you want to get ahead … contact Charles for your personal briefing on your M&A and Investment outlook, options and
opportunities. He’s covered and advised as an M&A Corporate Development industry expert for B2B Corporate Compliance
Solutions and Tech for 2 decades.
Contact Charles for your personal briefing where he'll discuss
-Industry briefing on M&A and Investment
-Peer Comps analysis
Acquisition by Buyer Market
Map
Public Comps Analysis
Industry Briefing Overview
Industry Market Map Catalog
Deal Landscape & Analysis
Industry Analysis
Corporate Compliance Industry Briefing Snapshot

12. ERGO Comps Industry Deal Briefing with Charles

13. Corporate Compliance Industry Comps Update
Published based on YE 2023

14. Table of
Contents
• Industry Sources & Communities
• Compliance Industry Comps YE 2023
• Industry Comps Update based on YE 2024
• Public Company Logo’s
• Key Performance Indicators Stats
• Public Comparable Company Analysis Summary
• Comparable Company Analysis
• Comparable Company Analysis – Start-up Compliance
• Comparable Company Analysis – Micro Business Compliance
• Comparable Company Analysis – Enterprise Compliance
• Comparable Company Analysis – Corporate Compliance Entity
• By Model Insights
• Comparable Company Analysis Summary
• Merger & Acquisition Activity
• Deal Transaction Summary
• Deal Transaction Summary – Public Companies
• Deal Transaction Summary – Investor Backed
•Deal Transaction Summary – Private Companies
• ERGO Deals Database Summary
• Why ERGO Comps
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com

15. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Industry Sources & Communities

16. Compliance Industry Comps based on YE 2023
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Stage ERGO Category Sector Rev/FTE (USD $m) EV/Sales EV/EBITDA EBITDA Revenue Growth R&D
Public Start-up Compliance $0.37 3.0x 17.5x 3.2% 4.0% 23.4%
Public Micro Business Compliance $0.60 2.8x 10.1x 9.9% 6.6% 18.4%
Public Enterprise Compliance $0.27 4.5x 8.9x 0.8% 8.2% 17.8%
Public Corporate Compliance Entity $0.35 5.1x 21.8x 22.9% 13.0% 10.0%
Funded Software & Service Leader Comps $0.50 3.0x NA 5.0% 25.0% 15.0%
Private Outsourcing Comps $0.20 1.5x 5.0x 24.0% 25.0% < 4.0%
Private Services Comps $0.20 0.8x 4.0x 15.0% 5.0% < 4.0%
Illustrative Snapshot for Public Comparable
Up to 25x EBITDA
1x to 4x Revenue
Startup Compliance
$$$
10x to 40x EBITDA
2x to 11x Revenue
Micro business
Compliance
$$$
Up to 30x EBITDA
2x to 11x Revenue
Enterprise Compliance
$$$
Up to 25x EBITDA
5x to 7x Revenue
Corporate Compliance
Entity
$$$

17. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Industry Comps Update based on YE 2024
0
20
40
60
80
100
120
140
160
180
200
2020 2021 2022 2023 2024
Micro Business Compliance
Enterprise Compliance
Corporate Compliance
No. of Acquisition/Deal per Year since 2020
0
20
40
60
80
100
120
140
160
180
200
2020 2021 2022 2023 2024
Public
Investor
Private
Breakdown of Acquirer Type per Year since 2020
Deal News Executive Summary
Valuations– Despite the headwinds in the market, the corporate compliance sector multiple went up from 4.4x to 5.6x in 2020 to 2023. The strong financial performance of the
sector and revenue growth were the primary driver of investor confidence to the sector. Comparatively, microbusiness and startup market focused ended 2023 at revenue multiple
of 2.5x, while enterprise compliance finished the year at 5.0x.
M&A Activity –as captured by the ERGO database, the compliance industry recorded 576 deals and acquisitions since 2020, with the majority of the M&A activity being in
enterprise compliance (435), followed by corporate compliance (101) and microbusiness compliance (14). The M&A activity picked up after the COVID-19 pandemic from 55 to
141 between 2020 to 2021. In 2022, the industry saw the highest number of deal/acquisitions of 190, thanks to the higher multiple and low-interest environment resulting in an
abundance of capital. In terms of the type of acquirer, private and investor-backed companies were the most buyers since 2020: private companies recorded 265
deals/acquisition since 2020, while investor-backed companies posted 242 deals/acquisition over the same period.
Performance –Since 2020, corporate compliance entity outperformed their peers on annual basis in terms of EBITDA margin, their lower fixed operating cost contributed to their
better operating income compared to their peers. Corporate compliance entity only spends around 10% of their revenue on R&D, while their peers spend up to 25%. In terms of
SG&A, they also spent a much lower relative to their revenue compared to their peers. Looking at the Rule of 40 metrics, corporate compliance only reported at around 25% - a far
cry from the technology software and industry growth leaders.

18. Public
Company
Logo’s
Public Comparable
Company
Analysis
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Startup
Compliance
Microbusiness
Compliance
Enterprise
Compliance
Corporate Entity
Compliance

19. Key Performance Indicators Stats (1/3)
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Enterprise Value / Revenue
Public companies offering compliance services to microbusiness, and
enterprise companies recorded the peak of their multiple in 2021 of
9.8x, driven by the strong equity market. However, it reverted to its
historical average in 2023 with the micro business and enterprise
compliance companies ending the year at 2.5x and 5.0x respectively. On
the other hand, investors showed greater confidence in corporate
compliance as it displayed an upward trend since 2020 of 4.4x and
ended 2023 with the highest multiple of 4.9x among its peers.
EBITDA %
The higher multiple of corporate compliance entity companies were
supported by their strong EBITDA % as they outperformed their peers
since 2020. On the other hand, enterprise compliance were unprofitable
for 3 years in the last 5 years, while startup compliance maintain their
profitability but show some weakness. Microbusiness compliance also
posted a positive EBITDA % except in 2020. In 2023, corporate
compliance entity recorded 22.9% of EBITDA % - followed by the 9.9%
of microbusiness compliance.
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
20232022202120202019
Micro Business Compliance
Enterprise Compliance
Start-up Compliance
Corporate Compliance Entity
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
20232022202120202019
Micro Business Compliance
Enterprise Compliance
Start-up Compliance
Corporate Compliance Entity

20. Key Performance Indicators Stats (2/3)
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Revenue YoY %
Microbusiness, enterprise and startup compliance companies
showed a weakening revenue growth since 2021 compared to
corporate entity compliance sector that displayed strength
over the same period. The increasing revenue growth of
corporate entity compliance represents growing demand that
could explain the shown investor confidence in the sector.
Gross Profit %
Microbusiness, startup compliance and enterprise companies
reported the highest gross profit at around 60% to 70%, while
corporate entity compliance is only at around 35%. The
disparity in gross profit margin is explained by the difference
in their business models.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2023202220212020
Micro Business Compliance
Enterprise Compliance
Start-up Compliance
Corporate Compliance Entity
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
2023202220212020201920182017
Micro Business ComplianceEnterprise ComplianceStart-up ComplianceCorporate Compliance Entity

21. Key Performance Indicators Stats (3/3)
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Rule of 40
The rule of 40 for microbusiness, enterprise and startup
compliance were on a downward trend, which were driven by
their weakening revenue growth. On the other hand,
corporate entity compliance’s rule of 40 continued to
strengthen from 22% to 26% from 2021 to 2023. Public
companies offering compliance services to corporate entity
showed some resiliency as they reported a strong EBITDA in
2023, despite the restrictive economic environment causing
the multiple of their peers to decline.
R&D %
Microbusiness and enterprise compliance were investing into
research and development at stable rate of 18.4% and 17.8%
of their revenue respectively. Although it noticeable that the
R&D expense of startup compliance show a significant decline
from 2019 to 2023, they still outperformed their peers by
allocating 23.4% of their revenue in 2023. On the other hand,
despite allocating smaller percentage of their revenue to R&D,
they still outperformed their peers in terms of profitability.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2023202220212020
Micro Business Compliance
Enterprise Compliance
Start-up Compliance
Corporate Compliance Entity
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
20232022202120202019
Micro Business Compliance
Enterprise Compliance
Start-up Compliance
Corporate Compliance Entity

22. Public
Comparable
Company
Analysis
Summary
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi & Yahoo Finance
1 Financial data of corporate compliance are from Yahoo Finance
2023 2022 2021 2020
Revenue YoY %
Microbusiness Compliance 6.6% 21.8% 27.4% 17.8%
Enterprise Compliance 9.5% 15.2% 15.8% 39.9%
Startup Compliance 4.0% 8.0% 15.0% 11.0%
Corporate Entity Compliance
1
13.0% 14.3% 3.6%
Gross Profit %
Microbusiness Compliance 61.4% 61.8% 60.5% 55.1%
Enterprise Compliance 73.6% 74.3% 73.7% 72.6%
Startup Compliance 63.1% 64.9% 64.0% 65.1%
Corporate Entity Compliance
1
46.9% 35.4% 36.6% 37.5%
SG&A %
Microbusiness Compliance 29.9% 31.7% 30.6% 31.9%
Enterprise Compliance 55.6% 55.3% 58.4% 58.2%
Startup Compliance 55.6% 48.1% 46.5% 46.9%
Corporate Entity Compliance
1
24.0% 9.2% 13.0% 8.4%
R&D %
Microbusiness Compliance 18.4% 18.6% 18.1% 18.6%
Enterprise Compliance 17.8% 20.0% 18.4% 16.4%
Startup Compliance 23.4% 25.5% 23.9% 31.7%
Corporate Entity Compliance
1
9.9% 9.9% 9.8% 9.4%
EBITDA %
Microbusiness Compliance 9.9% 11.9% 11.3% (5.0%)
Enterprise Compliance 0.8% 6.7% (1.1%) (5.7%)
Startup Compliance 3.2% 6.7% 7.0% 9.9%
Corporate Entity Compliance
1
22.9% 12.3% 11.9% 16.8%
Rule of 40
Microbusiness Compliance 18.9% 32.5% 44.5% 14.3%
Enterprise Compliance 8.7% 13.0% 19.5% 19.4%
Startup Compliance 3.8% 17.4% 18.8% 10.5%
Corporate Entity Compliance
1
26.2% 24.6% 22.2%
Compliance business sector slowed in
terms of revenue growth except for
corporate entity compliance with their
revenue growth in 2023 stood at 13.0%
from 14.3% in 2022 compared to the
rest of the groups which their revenue
growth fell by around half of their
historical average.
Corporate entity compliance also
heavily outperformed their peers in
terms of profitability as represented
by their EBITDA %. In 2023, the said
group generated 22.9% compared to
9.9% and 0.8% of microbusiness and
enterprise compliance. The combine
strong financial performance and
growth of the companies offering
compliance services to corporate
entities have resulted into higher Rule
of 40 of 26.2% in 2023 compared to
18.9% and 8.7% of microbusiness and
enterprise compliance.
Corporate compliance entity also spend
smaller portion of their revenue to
their fixed operating cost such as SG&A
and R&D compared to their peers,
resulting into a much higher EBITDA
margin.

23. Company Comparable Analysis –Startup Compliance
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Enterprise Value Multiple
Ticker Peer Companies
1 Enterprise
Value
Market Cap Revenue EBITDA Net Income EV / Revenue EV / EBITDA P / S
LZ LEGALZOOM.COM, INC. 1,976 2,202 661 21 14 3.0x 93.8x 3.3x
DLX DELUXE CORP 2,242 807 2,192 128 26 1.0x 17.5x 0.4x
THRY THRYV HOLDINGS, INC. 907 646 917 -197 -259 1.0x -4.6x 0.7x
GDDY GODADDY INC. 18,467 15,128 4,254 719 1,376 4.3x 25.7x 3.6x
BIGC BIGCOMMERCE HOLDINGS, INC. 970 702 309 -64 -65 3.1x -15.1x 2.3x
Average 4,205 3,247 1,389 101 182 2.5x 23.5x 2.0x
Median 1,473 755 789 11 7 3.0x 17.5x 2.3x
Maximum 18,467 15,128 4,254 719 1,376 4.3x 93.8x 3.6x
Minimum 907 646 917 -197 -259 1.0x -15.1x 0.4x
1
Based on 2023 year-end data
*All figures in USD millions unless stated
Revenue YoY Growth
Ticker Peer Companies 2022 2021 2020 2019 2018 2017 2016
LZ LEGALZOOM.COM, INC. 6.6% 7.8% 22.2% 15.2%
DLX DELUXE CORP -2.0% 10.7% 12.9% -10.8% 0.5% 1.7% 6.3%
THRY THRYV HOLDINGS, INC. -23.7% 8.0% 0.4% -21.9% -20.3%
GDDY GODADDY INC. 4.0% 7.2% 15.0% 11.0% 12.3% 19.2% 20.8%
BIGC BIGCOMMERCE HOLDINGS, INC. 10.9% 26.9% 44.3% 35.9% 22.0%
Average -0.9% 12.1% 19.0% 5.9% 3.6% 10.4% 13.5%
Median 4.0% 8.0% 15.0% 11.0% 6.4% 10.4% 13.5%
Maximum 10.9% 26.9% 44.3% 35.9% 22.0% 19.2% 20.8%
Minimum -23.7% 7.2% 0.4% -21.9% -20.3% 1.7% 6.3%

24. Company Comparable Analysis –Micro Business Compliance
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Enterprise Value Multiple
Ticker Peer Companies
1 Enterprise
Value
Market Cap Revenue EBITDA Net Income EV / Revenue EV / EBITDA P / S
HRB H&R BLOCK INC 7,530 7,028 3,472 749 562 2.2x 10.1x 2.0x
PAYD PAID INC 11 13 17 0.4 0.3 0.6x -36.7x 0.8x
DOCU DOCUSIGN, INC. 8,518 9,240 2,516 -88 -97 3.4x -96.8x 3.7x
INTU INTUIT INC. 164,188 160,916 14,368 3,624 2,384 11.4x 45.3x 11.2x
Average 45,062 44,299 5,093 1,071 712 4.4x -19.5x 4.4x
Median 8,024 8,134 2,994 374 281 2.8x -13.3x 2.8x
Maximum 164,188 160,916 14,368 3,624 2,384 11.4x 45.3x 11.2x
Minimum 11 13 17 0.4 0.3 0.6x 10.1x 0.8x
1
Based on 2023 year-end data
*All figures in USD millions unless stated
Revenue YoY Growth
Ticker Peer Companies 2023 2022 2021 2020 2019 2018 2017
HRB H&R BLOCK INC 0.3% 1.4% 29.3% -14.7% -2.1% 4.1% -0.1%
PAYD PAID INC -0.1% 11.4% 15.2% 22.5% 14.0% 22.2% 1345.7%
DOCU DOCUSIGN, INC. 19.4% 45.0% 49.2% 38.9% 35.2% 35.9% 52.3%
INTU INTUIT INC. 12.9% 32.1% 25.4% 13.2% 12.6% 16.0% 10.7%
Average 8.1% 22.5% 29.8% 15.0% 14.9% 19.5% 352.2%
Median 6.6% 21.8% 27.4% 17.8% 13.3% 19.1% 31.5%
Maximum 19.4% 45.0% 49.2% 38.9% 35.2% 35.9% 1345.7%
Minimum -0.1% 1.4% 15.2% -14.7% -2.1% 4.1% -0.1%
There is greater disparity in terms of valuation for market leader in this niche, where investors are willing to pay premium particularly for those
utilizing technology in their services. Intuit Inc. posted a revenue multiple of 11.4x – a far cry from 3.4x of DocuSign Inc. In terms of revenue
growth, microbusiness companies are growing at double-digit except in 2023, which the median fell to 6.6% as the revenue growth of the two
underlying companies were flat.

25. Company Comparable Analysis –Enterprise Compliance
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Enterprise Value Multiple
Ticker Peer Companies
1
Enterprise Value Market Cap Revenue EBITDA Net Income EV / Revenue EV / EBITDA P / S
INLX INTELLINETICS, INC. 19 17 17 2 1 1.1x 8.9x 1.0x
WK WORKIVA INC 5,910 5,389 630 -95 -128 9.4x -62.5x 8.6x
NICE NICE LTD. 11,931 11,986 2,378 435 338 5.0x 27.4x 5.0x
BL BLACKLINE, INC. 4,520 3,651 590 14 59 7.7x 315.1x 6.2x
TRI THOMSON REUTERS CORP /CAN/ 66,695 65,088 6,794 3,057 2,695 9.8x 21.8x 9.6x
CVLT COMMVAULT SYSTEMS INC 3,071 3,359 785 -7 -36 3.9x -464.3x 4.3x
AEYE AUDIOEYE INC 51 54 31 -6 -6 1.6x -8.6x 1.7x
OSPN ONESPAN INC. 369 412 235 -27 -30 1.6x -13.9x 1.8x
Average 11,571 11,244 1,432 422 362 5.0x -22.0x 4.8x
Median 3,796 3,505 610 -2 -3 4.5x 0.2x 4.7x
Maximum 66,695 65,088 6,794 3,057 2,695 9.8x 315.1x 9.6x
Minimum 19 17 17 -95 -128 1.1x -464.3x 1.0x
1
Based on 2023 year-end data
*All figures in USD millions unless stated
Revenue YoY Growth
Ticker Peer Companies 2023 2022 2021 2020 2019 2018 2017
INLX INTELLINETICS, INC. 20.5% 22.3% 38.9% 225.5% 6.5% -9.1% 0.7%
WK WORKIVA INC 17.1% 21.3% 26.1% 18.0% 21.9% 17.5% 16.4%
NICE NICE LTD. 9.0% 13.5% 16.6% 4.7% 9.0% 8.4% 31.2%
BL BLACKLINE, INC. 12.8% 22.8% 21.0% 21.7% 26.9% 29.7% 37.2%
TRI THOMSON REUTERS CORP /CAN/ 2.5% 4.4% 6.1% 1.3% 7.4% 3.9% -52.6%
CVLT COMMVAULT SYSTEMS INC 1.9% 6.4% 7.8% -5.6% 1.7% 8.4% 8.6%
AEYE AUDIOEYE INC 4.7% 22.1% 19.7% 90.2% 90.2% 106.6% 175.5%
OSPN ONESPAN INC. 7.4% 2.1% -0.6% -14.9% 19.9% 9.3% 0.5%
Average 9.5% 15.2% 15.8% 39.9% 20.7% 20.1% 24.0%
Median 8.2% 21.3% 16.6% 18.0% 12.4% 9.4% 11.1%
Maximum 20.5% 22.8% 38.9% 225.5% 90.2% 106.6% 175.5%
Minimum 1.9% 2.1% -0.6% -14.9% 1.7% -9.1% -52.6%
There is a huge disparity in terms of multiple among the public enterprise compliance companies, with investors paying premiums to market leaders such as
Thomson Reuters and Nice Ltd. Non-performing companies such as Onespan Inc. and Audioeyewere heavily discountedby trading at 1.6x multiple. On the
other hand, enterprise compliance revenue growth fell to single-digit in 2023 to 8.2% - after recording a double-digit growth from 2019 to 2022.

26. Company Comparable Analysis –Corporate Entity Compliance
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Yahoo Finance
Enterprise Value Multiple
Ticker Peer Companies
1 Enterprise
Value
Market Cap Revenue EBITDA Net Income EV / Revenue EV / EBITDA P / S
WKL Wolter Kluwer 34,432 32,487 5,584 1,330 1,007 6.2x 25.9x 5.8x
CPU ComputerShare 16,010 15,183 3,166 695 444 5.1x 21.8x 4.8x
EQS EQS Group 260 61 -4 -3 4.9x -67.7x 4.2x
Average 25,221 15,976 2,937 673 482 5.4x -6.7x 4.9x
Median 25,221 15,183 3,166 695 444 5.1x 21.8x 4.8x
Maximum 34,432 32,487 5,584 1,330 1,007 6.2x 25.9x 5.8x
Minimum 16,010 260 61 -4 -3 4.9x -67.7x 4.2x
1
Based on 2022 year-end data
*All figures in USD millions unless stated
Revenue YoY Growth
Ticker Peer Companies 2023 2022 2021 2020 2019 2018 2017
WKL Wolter Kluwer 2.4% 14.3% 3.6%
CPU ComputerShare 23.6% 12.3% 0.4%
EQS EQS Group 22.3% 33.4%
Average 13.0% 16.3% 12.5%
Median 13.0% 14.3% 3.6%
Maximum 23.6% 22.3% 33.4%
Minimum 2.4% 12.3% 0.4%
Compared to their peers that showed higher dispersion in terms of their multiple, the valuation of corporate compliance
entity were at smaller range of 4.9x to 6.2x. Investor value corporate compliance entity at higher multiple backed by their
strong financial performance.

27. By Model Insights
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Sources: Tagnifi, Yahoo Finance, ERGO Deals Database
Micro Business Compliance
There is greater disparity in terms of valuation for market leader in this niche, where investors are willing to pay premium for industry leaders as well as those
utilizing technology-enabled solutions in their services. Intuit Inc. posted a revenue multiple of 11.4x versus 3.4x of DocuSign Inc. In terms of revenue growth,
microbusiness companies are growing at double-digit except in 2023, which the median fell to 6.6% as the revenue growth of the two underlying companies were
flat.
Enterprise Compliance
There is a huge disparity in terms of multiple among the public enterprise compliance companies, with investors paying premiums to market leaders such as
Thomson Reuters and Nice Ltd. Non-performing companies such as Onespan Inc. and Audioeyewere heavily discountedby trading at 1.6x multiple. Volatility can e
seen,enterprise compliance revenue growth fell to single-digit in 2023 to 8% - after recording a double-digit growth from 2019 to 2022.
Corporate Compliance
Compared to their peers that showed higher dispersion in terms of their multiple, the valuation of corporate compliance entity were at smaller range of 4.9x to 6.2x.
Investor value corporate compliance entity at higher multiple backed by their strong financial performance.

28. M&A
Transaction
Analysis
Summary
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Public Companies Investor-Backed Private
Startup
Median EV/Sales 3.3x
Median EV $175.4m
Min. EV $3.0M
Microbusiness
Median EV $398.1M
Min. EV $48.4M
Median EV/Sales 18.7x
Median EV $10.8m
Min. EV $1.4M
Enterprise
Compliance
Median EV/Sales 2.6x
Median Revenue $60.0M
Median EV $126.1m
Min. EV $2.0M
Median EV/Sales 5.3x
Median EV $975.0m
Min. EV $33.9M
Median EV/Sales 3.7x
Median EV $77.6m
Min. EV $0.3M
Company
Compliance
Median Revenue $11.1m
Median EV $194.8m
Min. EV $70.0M
Median EV/Sales 6.1x
Median Revenue $317.4m
Median EV $1532.7m
Min. EV $142.5M
Median EV/Sales 4.0x
Median Revenue $24.0m
Median EV $24.0m
Min. EV $1.4M
** The statistics does not fully represent the actual valuation, multiples and revenue in the M&A activity of each category due to limited
availability of the data
Investor-backed companies acquired larger firms compared to their peers during this period, the median size of
their acquisition of enterprise compliance companies were $975 million compared to $126 million of the public,
while the median size of their acquisition for corporate compliance entity stood at $1532 million compared to
$194 million of the public. The ability of the investor-backed companies to acquired large-size companies were
supported of having access to the capital of institutional investor. Investor-backed companies also tend to
acquire companies at a premiumas seen by median multiple of 5.3x of the enterprise compliance acquisition
compared to 3.7x and 2.6x of their private and public peers. On the other hand, private companies expand their
businesses by acquiring smaller size companiesas seen from the median size of their acquired microbusiness
and corporate compliance entity at $10.8 million and $24.0 million respectively.
Contact Charles for your industry
deal comps briefing

29. Merger & Acquisition of Public Startup Compliance Companies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2022-10-17 Legalzoom.Com, Inc. Revvsales, Inc.
2021-11-10 Legalzoom.Com, Inc. Earth Class Mail, Inc. $63.0M
2021-04-22 Deluxe Corp First American Payment Systems $942.7M $288.3M 3.3x
2021-01-06 Thryv Holdings, Inc. Sensis Pty Ltd $175.4M
2022-06-28 Godaddy Inc. Dan.Com
2022-03-23 Godaddy Inc. Dnacademy
2021-11-11 Godaddy Inc. Pagely
2020-12-15 Godaddy Inc. Godaddy Payment $371.5M
2020-09-14 Godaddy Inc. Skyverge
2020-04-06 Godaddy Inc. Neustar Inc $217.2M
2020-02-11 Godaddy Inc. Uniregistry
2020-01-29 Godaddy Inc. Over
2022-04-26 Bigcommerce Holdings, Inc. Bundleb2B, Inc.
2022-02-10 Bigcommerce Holdings, Inc. Quote Ninja, Inc. $3.0M
2021-07-27 Bigcommerce Holdings, Inc. Feedonomics $81.1M
Average $264.8M $288.3M 3.3x
Median $175.4M $288.3M 3.3x
Minimum $3.0M $288.3M 3.3x
Maximum $942.7M $288.3M 3.3x
Source: Tagnifi

30. Merger & Acquisition of Public Micro Business Compliance Companies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2020-07-07 Docusign, Inc. Liveoak Technologies
2020-02-27 Docusign, Inc. Seal Software $211.1M
2022-12-01 Intuit Inc. Seedfi
2021-09-13 Intuit Inc. Mailchimp $12394.0M
2020-02-24 Intuit Inc. Credit Karma $7749.0M $1000.0M 7.7x
Average $5100.6M $1000.0M 7.7x
Median $3980.1M $1000.0M 7.7x
Minimum $48.4M $1000.0M 7.7x
Maximum $12394.0M $1000.0M 7.7x
Source: Tagnifi

31. Deal Transaction of Microbusiness Compliance Companies by Investor-Backed Companies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2023-10-10 Private Investor(S) Jfg Systems
2023-04-12 Strattam Capital , Llc Scishield
2022-06-08 Goldman Sachs Asset Management Careacademy
2022-03-16 Mucker Capital Bambee
2021-06-17 G2 Venture Partners Keeptruckin
2021-05-18 Westcap Investment Partners, Llc Amount $1000.0M
2021-03-16 Pfingsten Partners Llc Omega Systems Consultants
2021-01-27 Shore Capital Partners Tandem Hr

32. Deal Transaction of Microbusiness Compliance Companies by Private Companies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2024-01-12 Centurion Wealth Management, Llc The Rosin Cpa Group Llc
2023-12-12 Ncontracts Quantivate
2023-11-21 Ip Pathways Tenax Solutions
2023-09-28 Tecma Group Of Companies Nch Customs Brokers
2023-09-06 Sichenzia Ross Ference Llp Carmel, Milazzo & Feil, Llp
2023-04-03 Environmental Research Group, Llc Amaterra Environmental, An Erg Company
2022-12-08 Buyers Edge Platform Restaurant Accounting Services Inc.
2022-04-18 Calabrese Consulting Albeck Financial Services
2021-10-08 Allocations Lumen Advisory And Finance $2.5M
2021-08-23 Lres Corporation Keystone Asset Management
2021-03-23 Onetrust, Llc Convercent
2023-05-03 HUB24 Limited myprosperity Pty Ltd $25.8M
2021-10-18 HUB24 Limited Class Limited $304.8M $41.3M 22.8x
2021-08-17 Class Limited Topdocs Pty Ltd $9.6M
2021-06-11 EQS Group AG Business Keeper GmbH $115.0M
2020-11-30 EQS Group AG Got Ethics A/S $12.0M
2020-08-25 Orion IXL Berhad Boardroom.com Sdn Bhd. $1.4M $0.7M 14.6x
2020-08-13 Class Limited Assuriti Pty Ltd [dba Smartcorp] $3.0M
Average $59.3M $21.0M 18.7x
Median $10.8M $21.0M 18.7x
Minimum $1.4M $0.7M 14.6x
Maximum $304.8M $41.3M 22.8x

33. Merger & Acquisition of PublicEnterprise Compliance Companies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2022-04-05 Intellinetics, Inc. Yellowfolder, Llc $6.4M $2.8M 2.3x
2020-03-04 Intellinetics, Inc. Graphic Sciences, Inc. $4.6M
2022-04-01 Workiva Inc Parseport $99.2M
2022-01-25 Workiva Inc Mark V Systems Limited
2021-12-14 Workiva Inc Auditnet
2021-08-02 Workiva Inc Onecloud, Inc $39.8M
2023-10-04 Nice Ltd. Livevox Holdings, Inc. $341.1M $143.2M 2.4x
2021-10-05 Nice Ltd. Nortek Control $285.0M
2021-08-11 Nice Ltd. Gomoxie
2021-07-07 Nice Ltd. Contactengine
2021-04-20 Nice Ltd. Mindtouch, Inc
2020-06-04 Nice Ltd. Guardian Analytics, Inc. $113.9M
2023-10-10 Blackline, Inc. Data Interconnect Ltd
2022-01-27 Blackline, Inc. Fourq Systems, Inc. $213.1M
2020-10-02 Blackline, Inc. Rimilia $138.3M
2024-01-16 Thomson Reuters Corp /Can/ World Business Media Ltd
2024-01-11 Thomson Reuters Corp /Can/ Pagero Group Ab $729.3M $68.1M 10.7x
2023-06-28 Thomson Reuters Corp /Can/ Imagen, Ltd.
2023-06-26 Thomson Reuters Corp /Can/ Casetext, Inc. $650.0M
2022-11-11 Thomson Reuters Corp /Can/ Sureprep, Llc $500.0M $60.0M 8.3x
2022-05-10 Thomson Reuters Corp /Can/ Thoughttrace, Inc.
2020-03-27 Thomson Reuters Corp /Can/ Pondera Solutions
2020-03-19 Thomson Reuters Corp /Can/ Pondera Solutions
2024-04-16 Commvault Systems Inc Appranix
2022-12-31 Commvault Systems Inc Trapx Security $16.9M
2022-03-10 Audioeye Inc Bureau Of Internet Accessibility $7.5M $2.9M 2.6x
2022-02-01 Audioeye Inc Square Ada Llc $187.0M
2023-01-26 Onespan Inc. Provendb $2.0M
Average $208.4M $55.4M 5.3x
Median $126.1M $60.0M 2.6x
Minimum $2.0M $2.8M 2.3x
Maximum $729.3M $143.2M 10.7x

34. Deal Transaction of Enterprise Compliance Companies by Investor-BackedCompanies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2024-01-03 Evolution Equity Partners Aqua Security $1000.0M
2021-05-18 Westcap Investment Partners, Llc Amount $1000.0M
2023-11-16 Thoma Bravo LP EQS Group AG $465.3M $65.6M 6.1x
2023-08-31 Bridgepoint Advisers Limited Ports Group AB $33.5M
2023-04-13 Cinven Ltd. Archer Technologies LLC $1300.0M 5.8x
2023-01-17 KKR & Co. Inc. S&P Global Inc. (engineering solutions business) $975.0M
2022-10-31 Veritas Capital Fund Management LLC Wood Mackenzie $3100.0M
2022-09-06 Francisco Partners Management LP Drawbridge Partners, LLC $15.0M
2022-08-20 Bridgeport Partners LLC Computer Services, Inc. $1523.3M $316.6M 4.7x
2022-08-10 Mitratech Holdings Inc. talentReef, Inc. $110.0M 3.7x
2022-08-02 Antin Infrastructure Partners SAS Blue Elephant Energy AG $114.4M
2022-02-11 Apax Partners LLP Alcumus Group Limited $813.2M
2022-01-24 New Mountain Capital LLC Verisk Analytics Inc. (3E business) $630.0M
2022-01-20 Blackstone Inc. Interplex Holdings Pte. Ltd. $1600.0M
2022-01-04 Vendor Credentialing Service LLC Conduent Inc. (Midas Health Analytics Solutions assets) $340.0M
2021-07-06 Blackstone Inc. Sphera Solutions Inc. $1400.0M $150.0M
2021-06-10 K1 Investment Management LLC Compliance Science Inc. $120.0M
2020-08-20 KKR & Co. Inc. Citation Limited $33.9M
Average $960.7M $115.9M 5.1x
Median $975.0M $90.0M 5.3x
Minimum $33.9M $15.0M 3.7x
Maximum $3100.0M $316.6M 6.1x

35. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2024-02-13 The Renewables Infrastructure Group Limited Fig Power Ltd $25.3M
2024-02-06 Looking Glass Labs Ltd. Bot Media Corp. (climate and AI web3 assets) $0.6M
2023-12-05 SoftBank Corp. Cubic Telecom Limited $1009.0M
2023-10-23 Ormat Technologies Inc.
Enel Green Power North America, Inc. (geothermal and solar assets) $271.0M
2023-08-21 Statkraft AS
The Renewables Infrastructure Group Limited (35MW of three Wind farms) $27.2M
2023-07-24 CAREL Industries S.p.A. Kiona Holding AS $234.2M
2023-05-16 WALLIX Group SA Kleverware SAS $0.3M
2023-04-28 MJ Freeway Acquisition Co Akerna Corp. (software business) $5.0M
2023-01-25 CORLYTICS Limited ING Groep N.V. (SparQ) $5.4M
2022-12-27 Altus Power Inc. True Green Capital Management LLC (220 MW solar assets) $293.0M
2022-11-13 Sembcorp Green Infra Limited Vector Green Energy Private Limited $344.6M
2022-07-29 Legrand SA USystems Limited $12.5M
2022-06-27 Siemens Aktiengesellschaft Brightly Software Inc. $1575.0M
2022-05-26 ReVolve Renewable Power Corp. Centrica Business Solutions Mexico SA de CV $1.7M
2022-05-24 Power By Britishvolt Limited EAS Batteries GmbH $38.0M
2022-04-20 Accenture PLC Greenfish SA $20.4M
2022-03-29 EcoOnline AS Biome Environmental Ltd. $1.2M $0.3M 3.7x
2022-03-09 Wolters Kluwer Governance, Risk & Compliance International Document Services Inc. $70.0M
2022-02-22 TransUnion Verisk Analytics Inc. (Verisk Financial Services) $515.0M $143.0M 3.6x
2022-02-08 RISE Education Cayman Ltd Data Auto Inc. $587.0M
2022-02-03 Innergex Renewable Energy Inc. Aela Energa SpA $686.2M
2022-01-03 Blackbaud Inc. EVERFI Inc. $753.6M
2021-12-14 Deere & Company Kreisel Electric GmbH $249.3M
2021-12-10 Iron Mountain Inc. ITRenew Inc. $925.0M $420.5M 2.2x
2021-12-07 Tesserent Limited Claricent Pty Ltd $2.9M
2021-12-07 Tesserent Limited The Pearson Corporation Pty Ltd $20.1M
2021-11-09 Ideagen Plc CompliSpace Pty Ltd $77.6M $11.4M 6.8x
2021-11-09 ADT Inc. Sunpro Solar Inc. $825.0M
2021-11-01 Generac Holdings Inc. ecobee Inc. $650.0M
2021-10-27 Ideagen Plc AuditXPRT Limited $2.8M
2021-10-26 Husqvarna AB Orbit Irrigation Products LLC $480.0M $320.0M 1.5x
2021-10-20 Marlowe plc Riskwize Limited $34.3M $6.1M 5.6x
2021-10-13 Ansarada Group Limited TriLine GRC Pty Ltd $3.8M
2021-10-04 Alfa Laval AB Lift Up AS $8.8M
2021-09-03 LG Energy Solution Ltd. NEC Energy Solutions Inc. $207.0M
2021-08-19 Tesserent Limited Loop Secure Pty Ltd $9.8M $14.0M 0.7x
2020-01-23 Moodys Corporation Regulatory DataCorp Inc. $700.0M $70.0M 10.0x
Average $315.9M $102.8M 4.3x
Median $77.6M $17.2M 3.7x
Minimum $0.3M $0.3M 0.7x
Maximum $1575.0M $420.5M 10.0x
Deal Transaction of Enterprise Compliance Companies by PrivateCompanies since 2020

36. Deal Transaction of Corporate Entity Compliance Companies by PublicCompanies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2022-10-17 Legalzoom.Com, Inc. Revvsales, Inc.
2023-06-07 Wolters Kluwer N.V. Invistics Corporation
2023-01-09 Wolters Kluwer N.V. Nursetim, Inc.
2022-03-09 Wolters Kluwer N.V. Ids, Inc. $70.0M $15.0M 4.7x
2021-10-29 Wolters Kluwer N.V. Licenselogix, Llc
2021-05-14 Wolters Kluwer N.V. Vanguard Software Group $110.0M $7.2M 15.3x
2020-12-10 Wolters Kluwer N.V. Eoriginal, Inc. $279.6M
2020-01-16 Wolters Kluwer N.V. Cge Risk Management Solutions
2023-05-10 Computershare Sundoc Filings
2021-03-23 Computershare Wells Fargo & Company/Mn $750.0M
Average $302.4M $11.1M 10.0x
Median $194.8M $11.1M 10.0x
Minimum $70.0M $7.2M 4.7x
Maximum $750.0M $15.0M 15.3x
Source: Tagnifi

37. Deal Transaction of Corporate Entity Compliance Companies by Investor-BackedCompanies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2023-04-17 Ser Capital Partners Charah Solutions, Inc. $379.2M $318.1M 1.2x
2022-09-19 Vista Equity Partners Knowbe4, Inc. $4058.0M $289.2M 14.0x
2022-08-22 Centerbridge Partners, L.P. Computer Services, Inc. $1532.7M $316.6M 4.8x
2022-08-08 Vista Equity Partners Avalara, Inc. $7658.1M $749.9M 10.2x
2022-07-12 Aurora Capital Partners Sharps Compliance Corp $142.5M $69.1M 2.1x
2022-04-06 Turn/River Capital Tufin Software Technologies Ltd. $748.5M $111.0M 6.7x
2022-01-06 Vista Equity Partners Assent Compliance Usa Ltd. $1000.0M
2021-07-02 Eqt Parexel International Corp $8500.0M
2021-04-26 Thoma Bravo, Llc Proofpoint Inc $9962.3M $1050.0M 9.5x
2021-02-16 New Mountain Capital Aegion Corp $1062.2M $807.8M 1.3x
2020-01-22 Stone Point Capital Llc Kroll, Llc $4200.0M
2023-11-16 Thoma Bravo LP EQS Group AG 6.1x
Average $3567.6M $464.0M 6.2x
Median $1532.7M $317.4M 6.1x
Minimum $142.5M $69.1M 1.2x
Maximum $9962.3M $1050.0M 14.0x

38. Deal Transaction of Corporate Entity Compliance Companies by PrivateCompanies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2022-05-23 Clearwater Compliance Llc Cynergistek, Inc $15.4M $16.8M 0.9x
2023-05-03 HUB24 Limited myprosperity Pty Ltd $25.8M
2022-10-27 StartEngine Crowdfunding, Inc. SeedInvest LLC (assets) $24.0M
2021-10-18 HUB24 Limited Class Limited $304.8M $41.2M 7.4x
2021-08-17 Class Limited Topdocs Pty Ltd $9.6M
2021-06-11 EQS Group AG Business Keeper GmbH $115.0M
2021-04-06 Allied Universal Security Services LLC G4S plc $5300.0M
2020-11-30 EQS Group AG Got Ethics A/S $12.0M $2.0M 6.0x
2020-11-15 Nexi SpA Nets Holding A/S $7090.8M
2020-08-25 Orion IXL Berhad Boardroom.com Sdn Bhd. $1.4M $0.7M 2.0x
2020-08-13 Class Limited Assuriti Pty Ltd $3.0M
Average $1172.9M $15.2M 4.1x
Median $24.0M $9.4M 4.0x
Minimum $1.4M $0.7M 0.9x
Maximum $7090.8M $41.2M 7.4x

39. Executive Summary 2023 Deals Recap
July 23 –TMF Groupacquires KPK Faserv India financial accounting services, BPO Corporate Services for immigration and visa services,
Singapore Sino Corporate Services, and PartnersAdmin fund administration.
Aug23 –Alt LegalacquiredTM Cloud's docketing system, attracted by its international customer base (Founded 2012, Scottsdale AZ, a global
trademark and IP docketing software provider). 4
th
acquisition.
May23 –Computershare(ASX: CPU) acquiredSun Doc Filings(Founded 1999, Sacramento CA HQs, providesbusiness filings and document
retrieval nationwide for Attorneys, CPAs, and businesses. Our fourth in the entity compliance acquisition since 2020.
Setp23 –Computershare(ASX: CPU) acquiredthe European public equity share plan business of Solium Capital UK (which trades as
Shareworksby Morgan Stanley) serving 120 publics and 350k+ participants.
Jan23 –Cogency Global acquired Unisearch(founded 1991, Washington state HQs, provides a public records research firm that specializes in
the search, retrieval, and filing of public documents in all 50 states and internationally.
Sept23 –Cogency Global acquires Tax Guard (founded 2009, Westminster, Colorado, provides tax risk due diligence and monitoring services)
from Falfurrias Capital Partners. Expands compliance services for the financial services sector.
Jan23 –RASI Lexitas acquired TRAC The Registered Agent Company and HIQ Corporate Services. "By joining the RASi division, we can
streamline services to our law firm and registered agent clients and provide additional compliance services.“
Sept23 –RASi Lexitasacquired Esquire Assist and AAAgent Services . Both companies are headquartered in Harrisburg, PA, Esquire Assist,
Ltd. has decades of experience providing UCC/lien searches and corporate filings, and AAAgent Services, LLC provides registered agent
services.
Nov23 –White Wolf Capital Group acquires Wyoming Corporate Services
(founded 2003, provides have you ready for business in as little as 24 hours.
Whether you are forming a new LLC or C-Corp, or purchasing one of our aged shelf companies, Wyoming has lower startup costs, lower maintenance costs, no state
income taxes, privacy, and some of the best asset protection laws in the US!

40. • S&P Global Capital IQ Database • BVR Deal Stats
• 451 M&A Database • GF Data (ACG)
• PitchBook • Privco
• Tagnifi • Tracxn
• CrunchBase
ERGO CorpDev Deals Database Summary
About the Workforce Compliance Industry
Industry Category SectorWorkforce Compliance
Industry Human Resources
Keywords
Compliance, CRA, PBSA, pre-hire Compliance, post-hire compliance,
background check, background Screening, workforce compliance, employment
verification and credentialing, identity verification
Deal Sources

41. Why
ERGO Comps
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
About the ERGO Comps Industry Deal Comps Briefing. 30 minute discussion with Charles…
Contact Charles for a detailed overview on historical and future M&A in the corporate compliance industry
Corporate Compliance
Industry Briefing
Snapshot
Contact Charles for a
confidential discussion
about how to capitalize on
the industry deal trends
The corporate compliance industry is slowly being modernized through
technology modernization as well as new entrants via global expansion
and private equity backed entrants. The scope and competitive
landscape of the industry continues to expand creating new threats and
new opportunities…
Acquisition by Buyer Market Map
Public Comps Analysis
Industry Briefing Overview
Industry Market Map Catalog
Deal Landscape & Analysis
Industry Analysis
Corporate Compliance Industry Briefing Snapshot

42. Merger & Acquisition of PublicEnterprise Compliance Companies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2022-04-05 Intellinetics, Inc. Yellowfolder, Llc $6.4M $2.8M 2.3x
2020-03-04 Intellinetics, Inc. Graphic Sciences, Inc. $4.6M
2022-04-01 Workiva Inc Parseport $99.2M
2022-01-25 Workiva Inc Mark V Systems Limited
2021-12-14 Workiva Inc Auditnet
2021-08-02 Workiva Inc Onecloud, Inc $39.8M
2023-10-04 Nice Ltd. Livevox Holdings, Inc. $341.1M $143.2M 2.4x
2021-10-05 Nice Ltd. Nortek Control $285.0M
2021-08-11 Nice Ltd. Gomoxie
2021-07-07 Nice Ltd. Contactengine
2021-04-20 Nice Ltd. Mindtouch, Inc
2020-06-04 Nice Ltd. Guardian Analytics, Inc. $113.9M
2023-10-10 Blackline, Inc. Data Interconnect Ltd
2022-01-27 Blackline, Inc. Fourq Systems, Inc. $213.1M
2020-10-02 Blackline, Inc. Rimilia $138.3M
2024-01-16 Thomson Reuters Corp /Can/ World Business Media Ltd
2024-01-11 Thomson Reuters Corp /Can/ Pagero Group Ab $729.3M $68.1M 10.7x
2023-06-28 Thomson Reuters Corp /Can/ Imagen, Ltd.
2023-06-26 Thomson Reuters Corp /Can/ Casetext, Inc. $650.0M
2022-11-11 Thomson Reuters Corp /Can/ Sureprep, Llc $500.0M $60.0M 8.3x
2022-05-10 Thomson Reuters Corp /Can/ Thoughttrace, Inc.
2020-03-27 Thomson Reuters Corp /Can/ Pondera Solutions
2020-03-19 Thomson Reuters Corp /Can/ Pondera Solutions
2024-04-16 Commvault Systems Inc Appranix
2022-12-31 Commvault Systems Inc Trapx Security $16.9M
2022-03-10 Audioeye Inc Bureau Of Internet Accessibility $7.5M $2.9M 2.6x
2022-02-01 Audioeye Inc Square Ada Llc $187.0M
2023-01-26 Onespan Inc. Provendb $2.0M
Average $208.4M $55.4M 5.3x
Median $126.1M $60.0M 2.6x
Minimum $2.0M $2.8M 2.3x
Maximum $729.3M $143.2M 10.7x

43. Deal Transaction of Enterprise Compliance Companies by Investor-BackedCompanies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2024-01-03 Evolution Equity Partners Aqua Security $1000.0M
2021-05-18 Westcap Investment Partners, Llc Amount $1000.0M
2023-11-16 Thoma Bravo LP EQS Group AG $465.3M $65.6M 6.1x
2023-08-31 Bridgepoint Advisers Limited Ports Group AB $33.5M
2023-04-13 Cinven Ltd. Archer Technologies LLC $1300.0M 5.8x
2023-01-17 KKR & Co. Inc. S&P Global Inc. (engineering solutions business) $975.0M
2022-10-31 Veritas Capital Fund Management LLC Wood Mackenzie $3100.0M
2022-09-06 Francisco Partners Management LP Drawbridge Partners, LLC $15.0M
2022-08-20 Bridgeport Partners LLC Computer Services, Inc. $1523.3M $316.6M 4.7x
2022-08-10 Mitratech Holdings Inc. talentReef, Inc. $110.0M 3.7x
2022-08-02 Antin Infrastructure Partners SAS Blue Elephant Energy AG $114.4M
2022-02-11 Apax Partners LLP Alcumus Group Limited $813.2M
2022-01-24 New Mountain Capital LLC Verisk Analytics Inc. (3E business) $630.0M
2022-01-20 Blackstone Inc. Interplex Holdings Pte. Ltd. $1600.0M
2022-01-04 Vendor Credentialing Service LLC Conduent Inc. (Midas Health Analytics Solutions assets) $340.0M
2021-07-06 Blackstone Inc. Sphera Solutions Inc. $1400.0M $150.0M
2021-06-10 K1 Investment Management LLC Compliance Science Inc. $120.0M
2020-08-20 KKR & Co. Inc. Citation Limited $33.9M
Average $960.7M $115.9M 5.1x
Median $975.0M $90.0M 5.3x
Minimum $33.9M $15.0M 3.7x
Maximum $3100.0M $316.6M 6.1x

44. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2024-02-13 The Renewables Infrastructure Group Limited Fig Power Ltd $25.3M
2024-02-06 Looking Glass Labs Ltd. Bot Media Corp. (climate and AI web3 assets) $0.6M
2023-12-05 SoftBank Corp. Cubic Telecom Limited $1009.0M
2023-10-23 Ormat Technologies Inc.
Enel Green Power North America, Inc. (geothermal and solar assets) $271.0M
2023-08-21 Statkraft AS
The Renewables Infrastructure Group Limited (35MW of three Wind farms) $27.2M
2023-07-24 CAREL Industries S.p.A. Kiona Holding AS $234.2M
2023-05-16 WALLIX Group SA Kleverware SAS $0.3M
2023-04-28 MJ Freeway Acquisition Co Akerna Corp. (software business) $5.0M
2023-01-25 CORLYTICS Limited ING Groep N.V. (SparQ) $5.4M
2022-12-27 Altus Power Inc. True Green Capital Management LLC (220 MW solar assets) $293.0M
2022-11-13 Sembcorp Green Infra Limited Vector Green Energy Private Limited $344.6M
2022-07-29 Legrand SA USystems Limited $12.5M
2022-06-27 Siemens Aktiengesellschaft Brightly Software Inc. $1575.0M
2022-05-26 ReVolve Renewable Power Corp. Centrica Business Solutions Mexico SA de CV $1.7M
2022-05-24 Power By Britishvolt Limited EAS Batteries GmbH $38.0M
2022-04-20 Accenture PLC Greenfish SA $20.4M
2022-03-29 EcoOnline AS Biome Environmental Ltd. $1.2M $0.3M 3.7x
2022-03-09 Wolters Kluwer Governance, Risk & Compliance International Document Services Inc. $70.0M
2022-02-22 TransUnion Verisk Analytics Inc. (Verisk Financial Services) $515.0M $143.0M 3.6x
2022-02-08 RISE Education Cayman Ltd Data Auto Inc. $587.0M
2022-02-03 Innergex Renewable Energy Inc. Aela Energa SpA $686.2M
2022-01-03 Blackbaud Inc. EVERFI Inc. $753.6M
2021-12-14 Deere & Company Kreisel Electric GmbH $249.3M
2021-12-10 Iron Mountain Inc. ITRenew Inc. $925.0M $420.5M 2.2x
2021-12-07 Tesserent Limited Claricent Pty Ltd $2.9M
2021-12-07 Tesserent Limited The Pearson Corporation Pty Ltd $20.1M
2021-11-09 Ideagen Plc CompliSpace Pty Ltd $77.6M $11.4M 6.8x
2021-11-09 ADT Inc. Sunpro Solar Inc. $825.0M
2021-11-01 Generac Holdings Inc. ecobee Inc. $650.0M
2021-10-27 Ideagen Plc AuditXPRT Limited $2.8M
2021-10-26 Husqvarna AB Orbit Irrigation Products LLC $480.0M $320.0M 1.5x
2021-10-20 Marlowe plc Riskwize Limited $34.3M $6.1M 5.6x
2021-10-13 Ansarada Group Limited TriLine GRC Pty Ltd $3.8M
2021-10-04 Alfa Laval AB Lift Up AS $8.8M
2021-09-03 LG Energy Solution Ltd. NEC Energy Solutions Inc. $207.0M
2021-08-19 Tesserent Limited Loop Secure Pty Ltd $9.8M $14.0M 0.7x
2020-01-23 Moodys Corporation Regulatory DataCorp Inc. $700.0M $70.0M 10.0x
Average $315.9M $102.8M 4.3x
Median $77.6M $17.2M 3.7x
Minimum $0.3M $0.3M 0.7x
Maximum $1575.0M $420.5M 10.0x
Deal Transaction of Enterprise Compliance Companies by PrivateCompanies since 2020

45. Deal Transaction of Corporate Entity Compliance Companies by PublicCompanies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2022-10-17 Legalzoom.Com, Inc. Revvsales, Inc.
2023-06-07 Wolters Kluwer N.V. Invistics Corporation
2023-01-09 Wolters Kluwer N.V. Nursetim, Inc.
2022-03-09 Wolters Kluwer N.V. Ids, Inc. $70.0M $15.0M 4.7x
2021-10-29 Wolters Kluwer N.V. Licenselogix, Llc
2021-05-14 Wolters Kluwer N.V. Vanguard Software Group $110.0M $7.2M 15.3x
2020-12-10 Wolters Kluwer N.V. Eoriginal, Inc. $279.6M
2020-01-16 Wolters Kluwer N.V. Cge Risk Management Solutions
2023-05-10 Computershare Sundoc Filings
2021-03-23 Computershare Wells Fargo & Company/Mn $750.0M
Average $302.4M $11.1M 10.0x
Median $194.8M $11.1M 10.0x
Minimum $70.0M $7.2M 4.7x
Maximum $750.0M $15.0M 15.3x
Source: Tagnifi

46. Deal Transaction of Corporate Entity Compliance Companies by Investor-BackedCompanies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2023-04-17 Ser Capital Partners Charah Solutions, Inc. $379.2M $318.1M 1.2x
2022-09-19 Vista Equity Partners Knowbe4, Inc. $4058.0M $289.2M 14.0x
2022-08-22 Centerbridge Partners, L.P. Computer Services, Inc. $1532.7M $316.6M 4.8x
2022-08-08 Vista Equity Partners Avalara, Inc. $7658.1M $749.9M 10.2x
2022-07-12 Aurora Capital Partners Sharps Compliance Corp $142.5M $69.1M 2.1x
2022-04-06 Turn/River Capital Tufin Software Technologies Ltd. $748.5M $111.0M 6.7x
2022-01-06 Vista Equity Partners Assent Compliance Usa Ltd. $1000.0M
2021-07-02 Eqt Parexel International Corp $8500.0M
2021-04-26 Thoma Bravo, Llc Proofpoint Inc $9962.3M $1050.0M 9.5x
2021-02-16 New Mountain Capital Aegion Corp $1062.2M $807.8M 1.3x
2020-01-22 Stone Point Capital Llc Kroll, Llc $4200.0M
2023-11-16 Thoma Bravo LP EQS Group AG 6.1x
Average $3567.6M $464.0M 6.2x
Median $1532.7M $317.4M 6.1x
Minimum $142.5M $69.1M 1.2x
Maximum $9962.3M $1050.0M 14.0x

47. Deal Transaction of Corporate Entity Compliance Companies by PrivateCompanies since 2020
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: Tagnifi
Date Acquirer Name Target Name Enterprise Value Revenue EV/Sales
2022-05-23 Clearwater Compliance Llc Cynergistek, Inc $15.4M $16.8M 0.9x
2023-05-03 HUB24 Limited myprosperity Pty Ltd $25.8M
2022-10-27 StartEngine Crowdfunding, Inc. SeedInvest LLC (assets) $24.0M
2021-10-18 HUB24 Limited Class Limited $304.8M $41.2M 7.4x
2021-08-17 Class Limited Topdocs Pty Ltd $9.6M
2021-06-11 EQS Group AG Business Keeper GmbH $115.0M
2021-04-06 Allied Universal Security Services LLC G4S plc $5300.0M
2020-11-30 EQS Group AG Got Ethics A/S $12.0M $2.0M 6.0x
2020-11-15 Nexi SpA Nets Holding A/S $7090.8M
2020-08-25 Orion IXL Berhad Boardroom.com Sdn Bhd. $1.4M $0.7M 2.0x
2020-08-13 Class Limited Assuriti Pty Ltd $3.0M
Average $1172.9M $15.2M 4.1x
Median $24.0M $9.4M 4.0x
Minimum $1.4M $0.7M 0.9x
Maximum $7090.8M $41.2M 7.4x

48. Executive Summary 2023 Deals Recap
July 23 –TMF Groupacquires KPK Faserv India financial accounting services, BPO Corporate Services for immigration and visa services,
Singapore Sino Corporate Services, and PartnersAdmin fund administration.
Aug23 –Alt LegalacquiredTM Cloud's docketing system, attracted by its international customer base (Founded 2012, Scottsdale AZ, a global
trademark and IP docketing software provider). 4
th
acquisition.
May23 –Computershare(ASX: CPU) acquiredSun Doc Filings(Founded 1999, Sacramento CA HQs, providesbusiness filings and document
retrieval nationwide for Attorneys, CPAs, and businesses. Our fourth in the entity compliance acquisition since 2020.
Setp23 –Computershare(ASX: CPU) acquiredthe European public equity share plan business of Solium Capital UK (which trades as
Shareworksby Morgan Stanley) serving 120 publics and 350k+ participants.
Jan23 –Cogency Global acquired Unisearch(founded 1991, Washington state HQs, provides a public records research firm that specializes in
the search, retrieval, and filing of public documents in all 50 states and internationally.
Sept23 –Cogency Global acquires Tax Guard (founded 2009, Westminster, Colorado, provides tax risk due diligence and monitoring services)
from Falfurrias Capital Partners. Expands compliance services for the financial services sector.
Jan23 –RASI Lexitas acquired TRAC The Registered Agent Company and HIQ Corporate Services. "By joining the RASi division, we can
streamline services to our law firm and registered agent clients and provide additional compliance services.“
Sept23 –RASi Lexitasacquired Esquire Assist and AAAgent Services . Both companies are headquartered in Harrisburg, PA, Esquire Assist,
Ltd. has decades of experience providing UCC/lien searches and corporate filings, and AAAgent Services, LLC provides registered agent
services.
Nov23 –White Wolf Capital Group acquires Wyoming Corporate Services
(founded 2003, provides have you ready for business in as little as 24 hours.
Whether you are forming a new LLC or C-Corp, or purchasing one of our aged shelf companies, Wyoming has lower startup costs, lower maintenance costs, no state
income taxes, privacy, and some of the best asset protection laws in the US!

49. • S&P Global Capital IQ Database • BVR Deal Stats
• 451 M&A Database • GF Data (ACG)
• PitchBook • Privco
• Tagnifi • Tracxn
• CrunchBase
ERGO CorpDev Deals Database Summary
About the Workforce Compliance Industry
Industry Category SectorWorkforce Compliance
Industry Human Resources
Keywords
Compliance, CRA, PBSA, pre-hire Compliance, post-hire compliance,
background check, background Screening, workforce compliance, employment
verification and credentialing, identity verification
Deal Sources

50. Why
ERGO Comps
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
About the ERGO Comps Industry Deal Comps Briefing. 30 minute discussion with Charles…
Contact Charles for a detailed overview on historical and future M&A in the corporate compliance industry
Corporate Compliance
Industry Briefing
Snapshot
Contact Charles for a
confidential discussion
about how to capitalize on
the industry deal trends
The corporate compliance industry is slowly being modernized through
technology modernization as well as new entrants via global expansion
and private equity backed entrants. The scope and competitive
landscape of the industry continues to expand creating new threats and
new opportunities…
Acquisition by Buyer Market Map
Public Comps Analysis
Industry Briefing Overview
Industry Market Map Catalog
Deal Landscape & Analysis
Industry Analysis
Corporate Compliance Industry Briefing Snapshot

51. Comps Deals News Update (1/3)
Corporate Compliance Industry Deal Drivers as of October 2023
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Acquisitions volume. Since 2020: 114 B2B service deals via 451 M&A database with valuation multiple with average value
of $29m and median multiple of 1.3x EV/Sales (1,218 deals since 2020 with undisclosed value).
Financing and capital. Since 2020 there has been a meaningful increase in the quantity and significant increase in the
dollar volume accounting deals in the United States.
Deal multiples.Valuation multiples have risen for premium star performers significantly above historical averages.
Funded valuations for as-a-service firms have surpassedpublic comps.
Deal multiples are at a premium for tech-enabled solution providers as well as industry and niche leaders.
Deal News Trends Executive Summary.
Expansion– both product portfolio and national services offering
Verticalization– industry specialization and innovation
Platform– focus on experience, ecosystem, embedded capabilities, and networks effects

52. Comps Deals News Update (2/3)
Deal Trends Acquired Logos
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com

53. Comps Deal Update (3/3)
Buyers
Industry
Leaders
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com

54. Compliance
Industry
Public
Companies
Comparable
Company
Analysis
Note: Public companies' ratios are based on the financial performance of the below logos.
Micro/Startup Business Multi Entity
Revenue YoY %
- 2020 avg: 5.3%
- 2021 avg: 19.9%
- 2022 avg: 10.5%
Revenue YoY %
- 2021 avg: 12.5%
- 2022 avg: 16.3%
Gross Profit %
- 2020 avg: 55.5%
- 2021 avg: 56.8%
- 2022 avg: 55.9%
Gross Profit %
- 2020 avg: 39.5%
- 2021 avg: 37.1%
- 2022 avg: 40.2%
EBITDA %
- 2020 avg: 0.3%
- 2021 avg: 2.2%
- 2022 avg: 0.7%
EBITDA %
- 2020 avg: 20.2%
- 2021 avg: 16.3%
- 2022 avg: 18.4%

55. B2B Compliance
Public Companies
Comparable
Company
Analysis
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
2022 2021 2020
Revenue YoY %
Micro/Startup Business Compliance 8.0% 15.2% 11.0%
Corporate Compliance Entity 14.3% 3.6% -
Gross Profit YoY %
Micro/Startup Business Compliance 6.7% 13.2% 10.0%
Corporate Compliance Entity 16.8% 4.7% 0.0%
Gross Profit %
Micro/Startup Business Compliance 63.7% 63.4% 60.4%
Corporate Compliance Entity 35.4% 26.6% 29.7%
EBITDA YoY %
Micro/Startup Business Compliance 1.2% 87.2% -16.9%
Corporate Compliance Entity 24.8% -16.8% -
EBITDA %
Micro/Startup Business Compliance 6.7% 7.0% 2.9%
Corporate Compliance Entity 14.4% 14.2% 17.2%
Rules of 40
Micro/Startup Business Compliance 17.4% 18.8% 9.5%
Corporate Compliance Entity 30.8% 33.3% -
Source: Tagnifi

56. Private – Micro/Startup Business Compliance
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: PrivCo
Year Target / Issuer Investor Target Industry Category Sector Valuation Revenues EV/Sales
2022 IncFile n/a Professional Services $125 $108 1.2x
2022 Paracorp dba Parasec n/a Business Support Services $24.5 $24.2 24.5x
2022 Harbor Compliance n/a Software & Internet Services $105 $17 6.3x
2022 Nevada Corporate Headquaters n/a Professional Services $22.5 $19.4 1.2x
2022
NCH Inc dba Corporate Compliance
and Inc Authority
n/a Business Support Services $29 $28.8 1.0x
- 1800Accountant NA - - -
- MyTaxFiler.com NA - - -
Average $61.2M $39.5M 6.8x
Median $29.0M $24.2M 1.2x
Maximum $125.0M $108.0M 24.5x
Minimum $22.5M $17.0M 1.0x

57. Private Corporate Compliance including Entity Management and Registered Agent
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Year Target / Issuer Investor Target Industry Category Sector Valuation Revenues EV/Sales
2022 Northwest Registered Agent n/a Professional Services $18.5M $16.0M 1.2x
- Universal Registered Agents n/a Professional Services - - -
Average $18.5M $16.0M 1.2x
Median $18.5M $16.0M 1.2x
Maximum $18.5M $16.0M 1.2x
Minimum $18.5M $16.0M 1.2x
Source: PrivCo

58. Investor Backed –Micro/Startups Business Compliance
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Source: PrivCo
Year Target / Issuer Investors Target Industry Category Sector Valuation Revenues EV/Sales
2022 Belay Solutions Tenex Capital Management Software & Internet Services $350.0M $57.2M 6.1x
2022 Everlance Modern Ventures and 17 others Software & Internet Services$20.5M $3.4M 6.1x
2022 Swyft Filings Graylion Capital Professional Services $42.5M $36.3M 1.2x
2022 Taxfyle IDC Ventures Software & Internet Services $80.0M $12.8M 6.3x
2013 RocketLawyer Investor Growth Capital Professional Services $200.0M $71.1M 2.8x
2011 LegalShield Stone Point Capital LLC Specialized Consumer Services $650.0M $535.0M 1.2x
Average $223.8M $119.3M 4.0x
Median $140.0M $46.8M 4.5x
Maximum $650.0M $535.0M 6.3x
Minimum $20.5M $3.4M 1.2x

59. Investor Backed -Corporate Compliance including Entity Management and Registered Agent
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Year Target / Issuer Investors Target Industry Category Sector Valuation Revenues EV/Sales
2022 Lexitas Apax Partners Professional Services $365.0M $311.0M 1.2x
2022 AbacusNext Thomas H. Lee Partners Technology Services $455 $93.0M 4.9x
2022 Avalara Warburg Pincus LLC Software & Internet Services $8400.0M $864.0M 9.7x
2021 Mitratech HG Capital Software & Internet Services $1500.0M $157.0M 9.6x
2022 Incorp.com MBE Capital Partners Professional Services $23.5M $20.0M 1.2x
2022 CogencyGlobal Bertran Capital Professional Services $78.5M $67.3M 1.2x
2022 CSC Global WMB Holdings Professional Services $605.0M $350.0M 1.7x
2017 TMF Group CVC Capital Partners Professional Services $1930.0M $906.0M -
Average $1843.1M $346.0M 4.2x
Median $605.0M $234.0M 1.7x
Maximum $8400.0M $906.0M 9.7x
Minimum $23.5M $20.0M 1.2x
Source: PrivCo

60. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com
Compliance Industry Deal News Executive Summary
July 2023

Corporate Compliance Induutry Serial Repeat Buyers



















Acquired Logos since 2020 by category:
Backoffice payroll accounting tax compliance:

Corporate compliance:


Workforce Compliance
:
Vertical Compliance solutions:

61. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com

Corporate Compliance Industry Deal Trends
Since 2020
1
, more than 100+ compliance firms funded
2
.
Trends include:
Macro Trends
 ESG
 GRC
 RegTech
 Embedded Finance
Category Leaders
 Identity Vertification
 Entity Management
 Licensing & Credenitialing
 Compliance-as-a-Service

Markets
 Micro Business: Gig, 1099s,
Solorepnuers, Freelancers, ICs
 Regulated
 Global Business

Buzzwords: Supply chain risk management, Cybersecurity, Privacy, Data, Data privacy, Data
Security, Third Party Risk Management, Business Licensing, Professional Licensing and
Credentialing, Industry compliance, regulations, and goverance (HIPPA, SOC, Hitrust)


Compliance Market Stats & Trends:
 Startups. The Incorporation/Formation market for new businesses surged in 21
to more than 1M new business entities created.
 Micro Business. Integration across the backoffice department and across
vendor stacks including: Compliance, Accounting/Tax, Workforce, HR, and IT
systems to support the contractor and virtual work models.
 Global Business. Shift to support hybrid, global, and non traditional workforces
at scale.


--------------------------------------------------------------------------------------------------------
 Compliance solutions envogue for investors and strategic buyer deals as Stripe,
Equifax, Experian, Gusto, Wolters, Avalara, and numerous others have made
multiple compliance acqusitions.


1
More than $5.5B deployed to 287 deals between 2010 and 2020 for NA 79 acqusitstions between 2010 and
2020 for NA, 14 acquisitions in 2019, versus an average of 5 per year since 2010

2
$3.1 billion funded to 126 compliance solutions since 2010 with more than $462m funded in 2019 to 31 USA
companies delivering compliance solutions via the cloud and another $42.5m deployed in Q1 2020 to 3
companies

62. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com
Market Map Snapshot of Private Leaders by Category
The following is NOT meant to be exhaustive but merely illustrative.

Startups


Micro
Business


Globals

Partners

63. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com
Buyer Leaderboard for Micro Business Compliance
Based on 2+ acquisitions since 2020 (i.e. repeat serial buyer status)
Firm Deal Transactions Highlights
Wolters Kluwer
[NV: ADR]

Corporate Compliance deals:
1. International Document Services Inc. [The Reynolds and Reynolds Company] [aka IDS Inc.]
(Mar-2022) DMS
2. Kmaleon (2022) legal practice management software
3. LicenseLogix (2021) licensing and credentialing
4. XCM Solutions LLC (Sep-2020) tax compliance
5. eOriginal (2020) DMS
LegalZoom
(NASDAQ: LZ)

2021 IPO
10+ compliance deals: Earth Class Mail, Purely Solutions bookkeeping ad tax (LZTax), BCSG
(business app marketplace), Beaumont Legal UK, LegalInc
 United Agent Services (2022) registered agent corporate compliance services
 Revv (2022) legal document automation
 Earth Class Mail (2021) virtual address
 Purely Solutions outsourced tax compliance accounting bookkeeping (2020)
Avalara
(public company NYSE:AVLR
acquired by Vista Equity
Partners in 2022
3
)


Corporate Compliance deals:
1. 3CE Technologies, Inc. (Nov-2021)
2. CrowdReason (2021) property tax software
3. Track1099 (2021)
4. Business Licenses LLC (operational assets) (Nov-2020)
5. Transaction Tax Resources Inc. [aka TTR] (Oct-2020)
Computershare
(ASX:CPU)


Corporate Compliance deals:
1. Shareworks
4
from MorganStanley (2023)
2. Wells Fargo’s Corporate Trust Services (2021)
3. Verbatim Global Compliance (Jul-2020)
4. Corporate Creations Enterprises LLC (Feb-2020)
MitraTech
(PE backed)

27+ deals
 Talent acquisition eRecruiting: TalentReef, AssureHire (2022)
 Spend management analytics: Quovant (2021)
 GRC: Continuity (2021), Alyne (2021)
 EHS Platform: Integrum (2021)
 Compliance: ContractRoom (2021)
 Legal: AdvanceLaw, Acuity ELM, InsZoom,
 Workforce Compliance: Tracker Corp (2020) i9 and immigration management
Lexitas
[APAX Partners]

Acquired 37+ deals
Legal deals: Advanced One, Depo Intl, Oasis Reporting, Grove Reporting, Phipps Reporting,
Benchmark Reporting Agency
BlumbergExcelsior
Sunbelt Reporting & Litigation Services
RASI (2021) registered agent services
MyCorporation (2021) registered agent services


3
Vista Equity Partners takes Avalara private. Aug 2022 – At a $7.63 billion enterprise value,
Avalara is being valued at an estimated 9.67x TTM revenue, compared with the 17.6x Thoma
Bravo paid to purchase business planning software vendor Anaplan Inc. in June.
4
https://www.businesswire.com/news/home/20230920570656/en/Computershare-to-Buy-European-Public-
Equity-Employee-Share-Plan-Business-From-Shareworks-by-Morgan-Stanley#

64. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com
Corporate Compliance Industry Deals Recap Since 2020

Deal News Recap for Public Repeat Serial Buyers



 Avanatax formerly Blucora (NASDAQ: BCOR) acquired multiple: Gene Bell & Associates, Wartner Finance, Guidevine, Headquarters
Advisory Group, HK Financial Services
o 22 – Avantnax (formerly Blucora NASDAQ: BCOR) sold TaxAct to Cinven for $720m (AccountingToday). Blucora plans to
rebrand as Avantax and focus on providing tax-focused wealth management through its independent broker-dealer,
Avantax Wealth Management, and its employee-based registered investment advisor, Avantax Planning Partners.

 Computershare
5
acquires Shareworks from MorganStanley and SunDocFilings
6
registered agent RA in 2023, Wells Fargo’s Corporate
Trust Services business for $750m in 21, Computershare acquires Corporate Creations for $142m, ~4x EV/Rev multiple. Entity
compliance and governance services for 14,000 USA corporations in 2020, and acquires Verbatim Global Compliance, corporate
governance and compliance provider


 Deluxe Corp (NYSE: DLX) acquried 44+ multiple deals: First American Payment Systems, LogoMix, Verify Valid (payments)
o Jan23 – Deluxe sells web hosting and shifts focus to payments
7

o Apr3 – Launches digital wallet-as-a-service offering
8

o 21 – Sold Deluxe Rewards to Augeo
9

o 21 – acquired First American Payment Systems for $960m (merchant payments solutions for online and mobile payments)

 Intuit (INTU) 38+ deals: acquires MailChimp for $12B in 21, SeedFi, (22, credit building platform), Invision (21, APIs, acquired for
$50m), TradeGeckco (inventory platfomr for merchants) for $80m in 20, Credit Karma for $7.1B in 20
o Sept23: Launches QuickBooks Money
10
, all-in-one banking and payments solution for SMBs
o Sept23: Intuit AI agent, “Intuit Assist” gives pointers, answers questions
11





5
20+ deals - 2018 Equatex (international executive compensation services) acquired for $354.5m euros, 2016 RicePoint
Administration (legal settlement services)
6
May23 – Computershare acquires acquired SunDoc Filings to expand RA Registered agent capabilities.
“The acquisition of SunDoc, our fourth in the entity compliance space since 2020, will expand Computershare’s registered
agent footprint, specifically on the West Coast, and enhance the services we provide,” said Andrew Moore, President at
Computershare Governance Services. “SunDoc has established a great reputation within the industry, and bringing their highly
experienced team on board will allow us to provide even greater coverage to our collective clients.” “In the face of an
increasingly complex regulatory environment, corporations, law firms and other providers are more than ever seeking
innovative approaches to these challenges,” said Moore. “We have had tremendous positive reaction to our integrated entity
solutions offering and we continue to disrupt the decades-old status quo in this industry.”


8
https://www.marketscreener.com/quote/stock/DELUXE-CORPORATION-12322/news/Deluxe-Expands-Digital-Wallet-as-a-
Service-Payment-Options-to-Meet-the-Growing-Needs-of-ISVs-ISOs-43632523/?utm_content=20230425&utm_medium=RSS
9
https://www.prnewswire.com/news-releases/augeo-acquires-deluxe-rewards-expanding-its-consumer-engagement-
platform-and-advancing-growth-initiatives-301200651.html
10
https://thepaypers.com/e-invoicing-supply-chain-finance/intuit-launches-quickbooks-money--
1264407
11
https://www.thespuzz.com/meet-intuit-assist-a-new-ai-assistant-that-can-do-more-than-just-answer-
questions/

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Public Corporate Compliance Industry Deals Recap Since 2020 continued

 LegalZoom (LZ) acquired multiple firms: LegalInc, United Agent Services, Purely Solutions, Revv, Earth Class Mail
12

o Feb23 – Launches insurance for small business with NEXT Insurance
13
.
o Aug23 - Launches “LZ Books
14
” for SMB solopreneurs (includes accounting, tax, budget). This enhanced ecosystem houses
LZ Books along with recent additions such as LZ eSignature for contracts and proposals (acquired REVV in 22), and the
ability to set up a virtual mailbox and business address for increased privacy and professionalism with LZ Virtual Mail
(acquired Earth Class Mail in 22).
o 22 - Acquired registered agent networks LegalInc and United Agent Services, registered agent corporate compliance
services
o 22 - acquires Revv, legal document automation and forms template company. Adds proprietary technology to develop
modern productivity tools for small business. Adds 30 Bangalore talent. (PR)
o 20 - LegalZoom acquires Texas tax accounting firm Purely Solutions


 Wolters Kluwer (WK) acquired 70+ multiple firms: XCM Solutions, LicenseLogix, Vanguard Software (forecasting and benchmarkign
software), eOriginal (digital transaction DMS), CGE Risk Management Software
o 22 – acquired The Reynolds Company IDS aka International Document Services
o 20 - Wolters Kluwer acquires XCM Solutions (tax and accounting workflow solution). Existing partnership since 2006, with
$19m revenues valued at $136m (7X EV/revenue multiple) Globenewswire.
o 20 - Symplr [Clearlake Capital;] a global healthcare GRS SaaS platform acquires Complytrak from Wolters Kluwer
(PRNewswire)


Notable serial repeat buyers since 2010 focused on serving small and
micro businesses:
 Experian 50+ deals
15

 Equifax 50+ deals
 Newtek (NASDAQ: NEWT) 11+ deals
 GoDaddy: July and Sept23 – Launches AI instant video and content creation to
help entrepreneurs grow business




12
LegalZoom acquires Earth Class Mail [ScaleWorks] for $63m, virtual mailbox provider.
13
https://fintech.global/2023/02/09/digital-insurtech-next-insurance-teams-up-with-legalzoom/
14
https://www.marketscreener.com/quote/stock/LEGALZOOM-COM-INC-124268145/news/LegalZoom-
Launches-lsquo-LZ-Books-for-Small-Business-Owners-Seeking-a-Simple-Accounting-Solution-
44509864/?
15
22 - Experian acquires PayDashboard, expands its employer services with digital payslips, offering greater payroll insights.

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Investor Backed Deal News Announcements 2023 YTD
Serial repeat buyers


Industry Deal News for Compliance
Jan23 – Deel acquires Capbase (founded 2008, Sann Francisco California, provides startup equity and compliance management SaaS for businesses in
the United States. Software provides features for cap table, document, employee stock plan, hiring and onboarding full-time employees, fund,
contract, government filings, investor report tracking, and bank accounts and payroll management.
 "Capbase has a unique approach in that they help companies develop throughout their “lifecycle” - from incorporating, to fundraising, to
setting up employment contracts, to compliance filings, all the way through to granting equity. It’s why we think they’re a great fit for Deel.
Plus, they’ll help us do more in the US to support startups and help companies go global."

Feb22 – Wellspring Worldwide acquired IP Pragmatics (founded 2001, London UK, provides intellectual property (IP) and IT management
consultancy services to businesses globally. Services include IP valuation, IP audit, IP transaction support services, market assessment, professional
services, licensing services, and IP renewals.

Mar23 – TMF Group [CVC Capital Partners] acquired PartnersAdmin LLC (founded 2008, Carlsbad CA, outsourced solution designed to meet the
alternative investment industry's operational needs to protect investors and decrease risks).

Apr23 - TMF Group acquires Sino Corporate Services Group, a provider of fund, trust, and corporate services located in APAC founded in 2007 and
has offices in Hong Kong, China and Singapore, and employs a team of 53 experts. With this acquisition, TMF Group will boost its corporate
secretarial, accounting, trust and fund administration services in the APAC region. As a result of the acquisition, four key members of Sino Corporate
Services Group’s management team will join TMF Group. The strategic acquisition highlights TMF Group’s drive to further grow its APAC presence.
The deal follows the acquisitions of Hong Kong-based Ecovis and Union Alpha in 2022 and reflects the growing focus on fund services and private
wealth in the region.

Apr23 - ClearView Capital Fund invests in Capitol Services is a tech-enabled provider of outsourced legal and compliance services, including
registered agent, corporate and lien search and filing and other services, primarily to law firms and corporate clients, founded 1978 Austin Texas. The
transaction provided an opportunity for the Company’s founders, John Robinson and Cheryl Roberts, to retire and transition leadership of the
business to the senior management team, led by Kevin Roberts and Jody Roberts, who
have managed the day-to-day operations for nearly a decade.
 “The founders will continue to maintain a minority stake in the business and remain in advisory roles. The Company has many compelling
growth opportunities which we intend to pursue by investing in additional talent, service line extensions, technology and complementary
acquisitions to further differentiate the Company from its competition.”

Sept23 – Cogency Global acquires Tax Guard (founded 2009, Colorado HQs, provides AI-enhanced federal tax risk due diligence and monitoring SaaS,
and related APIs for financial organizations in the US. Software provides features for tax lien monitoring, application security, infrastructure security,
tax risk portfolio management, credit risk management, and reporting).
 “Tax Guard’s expertise in tax risk assessment aligns perfectly with our comprehensive compliance solutions. This acquisition allows us to
offer even more specialized services to our diverse client base.'",

23 - Mitratech
16
[HG Capital] acquired Federal Contract Compliance and DEI provider Circa and Traksar talent acquisition and management
solution. In 2022 acquired AssureHire
17
.

23 – Lexitas acquired Enright Court Reporting, Kusar Court Reporters, HIQ Corporate Services
18
(add-on to RASI) , TRAC
19
(add-on).


16
https://www.globenewswire.com/en/news-release/2023/04/11/2644728/0/en/Mitratech-Acquires-Circa-and-Trakstar-
Unifying-Top-Technology-Platforms-Through-Continued-Investment-in-HR-Compliance-Talent-Strategy.html
17
https://mitratech.com/resource-hub/pressreleases/mitratech-acquires-assurehire/
18
HIQ Corporate Services, Inc. Nationwide Corporate Document Filing, Retrieval & Search Services National Registered Agent
Services About Us. Serving clients since 1990 based in Baltimore MD.
19
Founded in 1990 in Baltimore MD, TRAC provides Registered Agent and Independent Director Services to businesses, large
and small, throughout the U.S. Equipped with cloud-based technologies that provide state-of-the-art security and the fastest,
most efficient processors available, TRAC has raised the customer service bar in the Registered Agent industry to its highest
level.

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Deal News Announcements 2023 YTD


Industry Deal News
Jan23 - Deel buys startup equity and compliance management SaaS developer Capbase
20
(founded 2018 San Francisco CA, Provides
startup equity and compliance management SaaS for businesses in the United States.

Mar23 – Sun Capital Partners (global private equity) acquired Anderson Business Advisors, founded 1999 in Las Vegas Nevada, a
provider of corporate services, including entity formation and incorporation, registered agent, and tax and bookkeeping services,
primarily serving real estate investors.

July23 – Collective raises $50m convertible note from multiple investors
21
(total $78.7m), founded 2020 in San Francisco CA, offers
financial solutions designed for self-employed business owners such as company formation, tax, accounting, & bookkeeping.

July23 – Filejet raised $1.4m (total $3.9m). Founded 2018, cloud-based platform that In-House Legal, Compliance, and Finance teams
to use Organization and Automation their legal entity compliance.

Aug23: Alt Legal purchases docketing business of trademark and patent management SaaS specialist TM Cloud (founded 2012
Arizona, The docketing business of TM Cloud, which provides trademark and intellectual property (IP) docketing, and record keeping
SaaS for corporate IP departments and law firms globally. Software provides features for trademarks, disputes, domain names,
documents, additional IP, and searches, TTAB downloads, TESS, audits, automatic deadline creation, calendaring, document and
email handling, and numerous APIs. "'...We’re thrilled to welcome TM Cloud customers to Alt Legal and are confident that they will
appreciate our enhanced software capabilities and user experience, amazing customer support, and the additional value we provide
through the Alt Legal Community and free resources, CLE webinars, and more.'"







20
Software provides features for cap table, document, employee stock plan, hiring and onboarding full-time employees, fund,
contract, government filings, investor report tracking, investor CRM, and bank accounts and payroll management). "Capbase
has a unique approach in that they help companies develop throughout their “lifecycle” - from incorporating, to fundraising,
to setting up employment contracts, to compliance filings, all the way through to granting equity. It’s why we think they’re a
great fit for Deel. Plus, they’ll help us do more in the US to support startups and help companies go global." Source: Acquirer
Blog, 1/11/23
21
General Catalyst, Better Tomorrow Ventures, Expa, General Catalyst, Gradient Ventures, Innovius Capital, QED
Investors, The General Partnership

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Corporate Compliance Industry Deals Recap Since 2020
Deal News Recap for Investor Backed Repeat Serial Buyers

 Avalara [Vista Equity Partners, formerly NYSE: AVLR] acquired multiple firms: CrowdReasopn, Track1099, DAVO, Inposia, Impendulo,
Business Licenses, Transcation Tax Resources, Portway International, Indix, Compi Beverage
o 22 – Vista Equity Partners acquired Avalara (2018 IPO) for $8.4B
22

o 22 – acquired 3CE Technologies, Inc., provider of customs compliance and global trade management
o 20 – acquired Business Licenses LLC (business credentialing and licensing) for $97m
o 20 – acquired Transaction Tax Resources Inc. [aka TTR] for $377m (18x EV/Revenues)

 Gusto [General Atlanntic, multiple] acquried multiple: RemoteTeam.com, Symmetry Software (tax software), Ardius (tax credits),
Rentobo (tenant screening and rent payment processing)
o 22 – invested in Mosey, HR compliance services
o 22 – invested in Noyo, health insurance and benefits platform

 Lexitas [Apax Partners PEG] acquired Advanced Legal, Depo Intl, Oasis Reporting, Grove Reporting, Phipps Reporting, Yorkson Legal,
Strehwlo Assocaites, Taylor Morse, Imber Court Reporters, Alaris Litigation Services, Confidential Communications, Elaw, and more..
In 21 acquired registered agent services RASI (Austin TX) and MyCompanyWorks (NV, WY) , incorporation formation company,
acquires Precision Corporate Services, Corporate/UCC/Registered Agent Service company in Boston, MA, and acquires Infinity
Professional Services Group, a partner since 2011, corporate/UCC transactional services.


 MitraTech [HG Capital London, TA Associates] acquried 18+ deals: TalentReef (hourly decetnalized recruiting), Assurehire
(employmnet background checks and workorce compliance), Quovant (spend management), Alyne (RegTech), ContractRoom,
AdvanceLaw (procurement), INSZoom (immigration and HR), Acuity (ebilling and analytics software), Tracker (i9, everify), CMPG
(risk management consulting), Contunity



Notable serial repeat buyers since 2010 focused on serving small and micro businesses:
 Equiom [Varde Partners]
 CSC (Intertrust, doubles firm size and the industry’s largest RA provider
 Zywave
 Riveron
 The Riverside Company





22
https://www.businesswire.com/news/home/20221019005402/en/Vista-Equity-Partners-Completes-Acquisition-of-Avalara

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Corporate Compliance Industry Deals Recap Since 2020
Notable Industry Deals for Corporate Compliance *Continued*
 The combined CSC-Intertrust company would be able to better compete with the registered agent industry’s largest provider,
Corporation Trust Co., which also has a Wilmington office and is owned by giant Dutch firm Wolters Kluwer.2020 - Providence
Equity rolling up legaltech players such as HotDocs and Amicus Attorney several years ago.

 Atrium , Fintech and LegalTech for startups shuts down after raising $75m. Unsuccessful pivot from solutions back to
legaltech software model.

 TA Associates private equity group acquires In.Corp Global
23
and InCorp Global expands to Australia via investment in
CharterNet
24
.

 Harbor Compliance acquires Labryinth, registration and compliance services for nonprofits

 CVC Captial and Abu Dhabi Investment Group acquires TMF Group. Exploring public offering at the right time. Will expand its corporate
trust services.

 The Riverside Company acquires a majority stake in labor and employment compliance SaaS and services provider OutSolve
(founded 1998, Metairie Louisiana, adds 2k customers, provider of affirmative action plans, EEO reporting, compensation and
DEI solutions, “'We are excited to partner with the OutSolve team. The company’s end markets are supported by strong
regulatory tailwinds as well as the broader corporate move towards DE&I, ESG and social responsibility, which are all critically
important. These fundamentals provide a robust platform for growth as we look to expand into adjacent service offerings and
new end markets”

 Riveron acquires Clermont Partners, ESG advisory firm. The acquisition augments Riveron’s ESG services and introduces new
investor relations and transaction communications capabilities to help clients engage with investors. Saunders and Sivrais will
co-lead Riveron’s newly created ESG and strategic communications practice.

 HG pays $1.3B to take regulatory and compliance management SaaS provider Ideagen private.

 Bertram Capital acquires Cogency Global, a global provider of corporate compliance and transactional legal support services. Cogency
provides a full range of registered agent, transactional and corporate compliance services for law firms, lenders and multi-jurisdictional
corporations in the US and internationally. The Company's service model is flexible, pairing responsive and high-touch service with
convenient online applications and customer portals to deliver the "Right Response at the Right Time, Every Time.®" Cogency will focus on
expanding via new service line extensions, geographic expansion and strategically accretive add-on acquisitions by leveraging Bertram's
established buy and build value creation strategy.

 Stewart Title (NYSE: STC) acquires ASK Services, expands title resources for its independent agency partners, provider of public records
research products and services.

 ZenBusiness acquired Ureeka, a growth engine platform for small business that combines the technology, courses and services to help
entrepreneurs scale their businesses. a shared commitment to ‘unleashing the entrepreneur in everybody' these two companies are ready
to make entrepreneurship an option for anyone. "'We are excited to integrate Ureeka’s platform into the work we’re doing to empower the
next generation of entrepreneurs grow and thrive. Being a business owner can be challenging, but it’s also one of the most rewarding
opportunities people have to take control of their futures. By acquiring Ureeka, we’re now able to support business owners even more than
we already do -- from business inception on day-one to supporting them as they smash their growth goals through customer acquisitions,
and beyond.'" Adds 12,000 customers. Web analytics & marketing SaaS & services: Provides website and marketing performance
management SaaS, related online courses and growth-engine services, including website development, SEO, content, audience discovery,
media management, and marketing services for small businesses globally. Software provides features for web analytics, marketing
effectiveness monitoring, shopper catalog, recommendations, and impact analysis


23
Asian Corporate solutions provider specializing in corporate compliance, accounting, taxation, incorporation and expansion
advisory services.
24
Headquartered in Sydney, Australia, CharterNet offers services that cover the accounting & tax advisory, outsourced finance
function, and government incentives requirements of early-stage and established businesses across Australia.

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Micro Business Backoffice Compliance Industry Deals Recap Since 2020
 Escalon Services acquires Early Growth Financial Services. Adds product coverage across CFO and tax to create a one-stop shop
for SMBs.
 ZenBusiness acquires Joust, small business banking for contractors. Adds product to platform for micro businesses to start, run
and grow their business.
 LegalZoom acquires Texas tax accounting firm Purely Solutions.
 Intuit acquisition of Credit Karma Inc for $7.1B at 7.1x EV/Rev multiple to deliver credit services.
 Square acquires Credit Karma’s Tax app for $50m.
 FMS Solutions acquires Boschini Miller & Associates. Consolidates platform for grocers to manage accounting, payroll, finance.
 BDO USA acquires restaurant industry capabilities of CFO Advisors LLC.
 Gainline Capital Partners acquires SourceHOV tax and credits practice.
 Springbrook
25
[Accel-KKR] (ERP and Payments for Government) acquired BIAS Software
26
, provider of accounting software for
public agencies (undisclosed).


25
provider of fund accounting, payroll and utility billing.
26
ERP, payments, and cloud accounting for local public agencies.

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B2B Deal Trends as of mid-year 2023

● Acquisitions volume: Since 2020: 114 B2B service deals via 451 M&A database with
valuation multiple with average value of $29m and median multiple of 1.3x
EV/Sales (1,218 deals since 2020 with undisclosed value)

● Financing and capital. Since 2020 there has been a meaningful increase in the
quantity and significant increase in the dollar volume accounting deals in the
United States.

● Deal multiples. Valuation multiples have risen for premium star performers
significantly above historical averages.
o Funded valuations for backoffice as-a-service firms have surpassed
public comps.
o Deal multiples are at a premium for tech-enabled solution providers as
well as industry and niche leaders.

● Deal News Trends Executive Summary.
o Expansion – both product portfolio and national services offering
o Verticalization – industry specialization and innovation
o Platform – focus on experience, ecosystem, embedded capabilities,
and networks effects


Corporate Compliance Industry Deals News Update

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Published August 2023 deal announcements and highlights executive summary

Deal
Stats
 More than 100
27
B2B corporate services and compliance providers acquired since 2020 (previously an
average of less than 5 per year historically excluding public acquisitions pre 2020).

 More than $1.6 billion in capital deployed to work tech investments across: corporate services, corporate
compliance, entity management and registered agent, corporate secretarial services,
incorporation/formation, startup services since 2020 across 42 firms with USA headquarters.


Deal
Trends
a) Industry Consolidation
b) Product Expansion across Corporate Services, Verification, Compliance, Startups, Micro Business


Acquired
Logos
2023 acquired logos








27
Since 2020: 114 B2B service deals via 451 M&A database with valuation
multiple with average value of $29m and median multiple of 1.3x
EV/Sales (1,218 deals since 2020 with undisclosed value)

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Industry Deals Report Sources




Compliance Industry Sources



Startup Resources


Summary of the technology and services vendors serving entrepreneurs
28
.
Launch Manage
Plan.
Turn that idea into a
business model.

Launch. Turn your idea into
reality and register to start doing
business.

Comply. Annual corporate
goverance and legal compliance
29
.


Protect. Business Insurance &
DR/BC.
Run
your buisness like a boss.


Master day-to-day operations.

Grow with funding, locations, expansion, markets.

Workforce. Hire and manage a team.

Marketing. Growth by customer strategy and
route to market.
Manage.
Tax & Accounting


Finance. Banking & Financing.

Expansion. By market.

Assets. Buy, build, pr acquire.

Prepare for success.

Exit. Close or sell.



28
Score.org, SBECouncil.org, https://nsba.biz/about-us/, NFIB
29
https://www.sba.gov/business-guide

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Tax Compliance Solution Landscape


Global

Industry
Specialist

Channel
Partner
Specialist
1


Small
Business
Generalist

Micro
Business


Industry Landscape forr Tax Compliance solutions
 More than 117,000 tax service firms operate in the USA (5,000 more
than 10 years ago) representing 257,000 employees
 478 Tax compliance vendors and software providers


1
https://tax.thomsonreuters.com/en/products#t=products&sort=relevancy

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Tax Compliance Industry Executive Summary

The following overview is based on the American tax compliance industry.

Market Forecast
 The overall American economy is forecast to grow in the single digits at
3%
2
through 2023; however, there are a number of growth segments
growing by double digits, a number of verticals that are forecast to add
thousands of jobs, and several underserved market niches.
 The Tax Compliane market is forecast to grow at 1.5% annualized with a
market size of $11B


Industry Deal Forecast.
 Beyond the large established market leaders continuing to acquire
firms, there exists a growing chasm split between tech-enabled leaders
and traditional service laggards; which coupled with aging senior
leadership teams and thousands of existing professional service firms
exploring exit and transfer options, and the abundance of capital
3
, the
forecast for M&A deals is robust and likely to increase year-over-year
until the boomers age out of the workforce

Deal Stats
 45 M&A tax deals in 2021 versus an average of 11 tax acquisitions per
year for the past decade
 114 tax companies funded for $7.7B since 2020 versus average of 16
firms funded per year since 2010






2
https://www.conference-board.org/research/us-forecast
https://www.spglobal.com/ratings/en/research/articles/211129-economic-outlook-u-s-q1-2022-cruising-at-a-
lower-altitude-12199021
3
More than $2.5 trillion in capital reserves by the Fortune 500, and more than $1.6 trillion in captial to be
deployed by US private equity groups, in addition to rising, but relative to historical averages low interst rates.

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Tax Compliance Deal Trends
 Tax acquisition leaders include
4
: Blucora (8+), CBIZ (25+) , Nextpoint
(3+), Ryan (5+), Sovos (23+), Taxfyle (2+), Xero (9+)

 Portfolio horizontal expansion includes Tax Credits, Equity
management, Corporate Compliance, Workforce Compliance for
Gig/Contractors, and support for DEI, ESG, GRC and RegTech

 Tech-enabled leaders include: Altius, Nimbl, TaxFyle

Tax Compliance Industry Deal News for 2022
22 – ZRG (talent advisory and executive search firm) acquired RoseRyan
22 – Belay expands bookkeeping services to include ecommerce, tax, fractional CFO
(PR). These services daily ecommerce and/or provide year-round tax support, the
preparation and filing of quarterly and annual business tax returns, 1099 filings, and
sales tax to ensure compliance with the IRS.

4
Starting in the 1990s large corporate consolidators such as American Express Tax & Business Services,
Centerprise, H&R Block and CBIZ were rolling up CPA firms on an almost daily basis paying multiples ranging
from 0.5x EV/Sales to up to 2x EV/Sales for premium leaders.

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Industry Deal Transaction Multiples for Tax Services
Buyer Company Multiple About
Blucora Avantax 1.9x EV/Rev 2015 – Blucora acquires Avantax tax-smart wealth management for 1.9xx
EV/Rev multiple , 33.2x EV/NI with $304.9m revenues and $18.82 NI
Blucora HD VEST 2.01x EV/rev 2015 - Blucra acquries HD VEST providing wealth management and advisory
solutions to tax professionals for 2x EV/Rev with
$304m annual revenues
Blucora TaxAct 3.68x EV/Rev 2012 - Blucora acquires TaxAct for 3.68 EV/Rev 7.61 EV/EVBITDA with
$78.1m revenues and $37.8 EBITDA for PP of $287.5
Financial
Gravity
Tax Coach Software 1.21x EV/Rev 2015 – Financial Gravity acquires Tax Coach Software for 1.21x EV/Rev and
2.77 EV/NI with $0.86m revenues and $0.4m NI
Gainline Capital

SourceHOV Tax for 2x EV/Rev
2020 –Gainline Capital Partners acquires SourceHOV Tax for $40m (~2x
EV/Rev). Tax credits leader.
Wave Instafile 4.6x EV/rev
2018 – WAVE acquires London Instafile, cloud tax filing solution with $1.5m
annual revenues for $6.9m (4.6x EV/rev) to enter UK market.

H&R Block Wave ($537m price)
2019 – Wave acquired by H&R Block for $405m or $537m
8
to accelerate
SMB product offering. (<$50m revenues).

Green Dot Corp

SBBT Holdings TPG Tax 4.38 EV/Rev 2014 – Green Dot acquires Santa Barbara Tax Products Group for $320m
Brown &
Brown
Industry Consulting
Group
1.83 EV/rev 2011 – Brown & Brown acquires Industry Consulting Group tax services for
1.83 EV/rev for $13.01m with $9.13m to shareholders and $3.88 in cash
earnouts based on revenues of $7.1m
CBIZ Wenner Group ($2.4m price) 2019 – CBIZ acquires The Wenner Group, accounting, tax and consulting firm
with 14 employees and $2.4m in revenues.

VerTex Taxampo ($200m stock)
2020 – VERTEX acquires Taxampo for $200m in stock



Deal Stats. 45 M&A deals in 2021 versus an average of 11 tax acquisitions
per year for the past decade



8
https://www.surepathcapital.com/research/hr-block-to-acquire-wave-financial-for-405m/

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Industry Deal Transaction Multiples for Tax Services
Buyer Company Multiple About
Avalara TTR ($377m price) financial services firm specializing in tax rates, tax matrices, rate lookups,
and content exports services.
Square Credit Karma Tax ($50m price) free, do-it-yourself tax filing service for consumers.
NextPoint
Financial (TSX:
NPF)
Community Tax ($90m price) 2021 - Chicago-based full service professional tax company.
Roper
Technologies
PowerPlan ($1.1b price) 2018 – Roper Technologies acquires PowerPlan, integrated suite of tax
products for $1.1B
CoreLogic National Tax Search ($22.5m price) 2019 – CoreLogic acquires Natioanl Tax Search, property and HOA tax
services for $15m in stock and $7.5m in cash earnout for $22.5m
Carta YearEnd
2021 - YearEnd is software that helps startup employees to optimize
their equity and taxes in real-time.
National
Holdings
Giman
0.38 revenue
multiple, 11.6
EV/EBITDA

2018 – National Holdings acquired Giman for $14.2m
Cardiff Lexington

Platinum Tax
Defenders
0.68x EV/rev, 2.3
EV/EBITDA

2018 – Cardiff Lexington acquired Platinum Tax Defenders for $21.13m
Markel Abbey Protection
9.3x EBITDA

2014 – Markel (NYSE: MKL) acquires Abbey Protection Plc, supplies legal
and tax professional services and insurance for 116.5 pounds,

79. ERGO Comps, LLC
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Tax Credits Deal News
2021 – Equifax acquires Efficient Hire, tax credit platform.

2021 – Equifax acquires HIREtech, tax credit platform.

2021 – Experian acquires Tax Credit, tax credit and incentives company

2021 – Gusto buys Ardius, expands into R&D tax credits.

2021 – Ryan acquires TCF Services, Australian tax incentives firm.

2021 – Think LLP acquires Black Line Group, specialty R&D tax credits services.

2021 – MainStreet raises Series A $60m, financial platform that helps startups and small businesses discover and claim tax
credits and government incentives.

2021 – Neo.Tax raises $3m seed round to help firms claim R&D tax credits in minutes.

2021 – Walker & Dunlop acquires Alliant Capital, tax credit syndication for construction and real estate.

2021 – Boast.ai, platform for automating tax credits, raises $123m financing.

2021 – CrossBorder Solutions raises $101m, global leader in technology driven tax solutions.

2020 – Gainline Capital Partners acquires SourceHOV Tax for $40m (~2x EV/Rev). Tax credits leader.

2020 – Incentify raises $4.25m from Ryan for global SaaS platform solving the needs of enterprise Tax Credits & Incentives.

2017 – Efficient Hire, raises capital from Search Funds Partners, FinRock Growth Partners (acquired by Equifax in 2022).

2013 – Aquilvest and Arby Partners acquires Alliant Group, specialty tax credits (works 4k CPA firms nationwide).

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Executive Summary
Comparables Teaser
Industry Snapshot. While there are thousands of accounting firms, as well as
hundreds of service providers and outsourcing firms, and hundreds of funded FinTech
vendors, there is an emerging segment of AaS
1
leaders that leverage modern tech using
AI, RPA bots, ML and an integrated stack to tech-enable the work.
Model Alternatives
2

Micro Business Backoffice Compliance Industry Global




 Pilot [$161.3m]
 GigWage [$16m]
 OnPay [$6m]
 Wagepoint [$10m]
 Belay [PEG]
 1800Accountant
 Nimble
 Taxfyle

 Avalara (NYSE: AVLR)
 LegalZoom (LZ)
 Lexitas [ApaxPartners]
 MBO Partners [Primus Capital]
 AbacusNext [Zola Suite]
 LicenseLogix [Wolters Kluwer]
 ZenBusiness [$74m]
 Shoobx [$10m]
 BusinessRocket [$1m]
 Conduent
(NASDAQ:
CNDT)
 Genpact
(NYSE: G)
 CFGI [Carlye
Group]
 Equiom
[Varde
Partners]
 IQ-EQ [Astorg]
 IQ Backoffice
(LiveIT
Investments)
 KPMG Spark
[Global HoldCo]
 API Outsourcing
(global)



ERP | POS | Payments | GL | AR | AP | Financial Close & Reporting | Compliance | Analytics and BI


Comparables Snapshot Overview
 To date, primary model differentiation based on customer market strategy
 Use cases for AI and RPA to-date focused largely on the promise of “tech-enablement” of the workforce
and automation of the majority of transactional processing
 Tech-stack consolidation saves end-users time and money across AP, AR, Payments, T&A, Expense,
Reporting, Analytics (typically cuts down vendors by 5 to 2)
 Industry KPIs. Key financial and operating ratios vary widely.



1
AaS = “As-a-Service” also referred to as BpaaS or managed services
2
Requires capital >$1m, long-term recurring contract, profitability and model beyond outsourcing comps.
Please note that overlap exist and the above list is merely illustrative not exhaustive based on publicly available
information. Additional apps and industry vertical leaders are prevalent, but excluded.

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Comparables Overview



Public
Funded



Peer Group Ratio Analysis
Commercial
LZ BCOR DLX HRB DNB
In $ Thousands, except per share (USD)
LEGALZOOM.CO
M, INC. BLUCORA, INC.DELUXE CORPH&R BLOCK INC
DUN &
BRADSTREET
HOLDINGS, INC.
Peer Group
Average
For the Year Ended 2020-12-31 2020-12-31 2020-12-31 2021-04-30 2020-12-31
Profitability Ratios
Gross Profit Margin 67.2% 47.2% 59.2% 46.0% 68.6% 57.6%
EBITDA Margin 15.3% 9.6% 18.4% 27.1% 36.5% 21.4%
Valuation Ratios
Enterprise Value to EBITDA 67.5 16.3 7.5 5.8 15.6 22.6
Enterprise Value to Revenue 10.3 1.6 1.4 1.6 5.7 4.1
Selected Financial Data
Income Statement Data
Revenue 470,636$ 754,952$ 1,790,781$ 3,413,987$ 1,738,100$
Gross Profit 316,073 356,662 1,060,010 1,571,895 1,192,500
EBITDA 71,900 72,497 329,144 926,479 634,300
R&D Spend % of Rev 9% 9%
YoY Growth Rate 25% 9% NA 30% 25% 22%
Rev/FTE $446 $892 $295 $948 $430 $603

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CorpDev Opportunity Segments
There are a number of acquisition opportunities across the following
category segments.
Segment Description Target Landscape
5

Corporate
6

RA & EM, Licensing, Reporting, UCC, F&I, Industry Solutions
91
Compliance
Tax, Credits, GRC, Board, Investor, Shareholder, WFM, Global
42
Digital
Virtual, Office, IT, Web, Marketing, Communications, Apps,
Cloud, Payments
77
Professional
Insurance, Credit, Financing, Legal
106
Backoffice
Tax, Bookkeeping, Accounting, Payroll, HR, WFM, 1099
Contractors, Financial, Health, Wellness, Plans, Industry
200+
*Some overlap exists among the above segments categories

CorpDev Opportunities Illustrative Snapshot



Acquired since 2020







5
Private firms >$2m with USA HQs
6
Beyond startup corporate services from formation to close

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Micro Business Backoffice Leaderboard Landscape
Funded and HoldCo serial Buyers Market Map by Industry Sector Category
Corporate Backoffice Vendor Services Frontoffice
-
Corporate Compliance
- Corporate Services
- Legal Services

-
Accounting
- Finance
- Tax
- IT
- HR
- Work Management
- Virtual Support
-
Financing
- Insurance
- Payments
- eRecruiting talent
-
Marketing
- Sales
- Web & Digital

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Micro Business M&A Deal News Executive Summary

Industry Leader Acquisitions
Lexitas [APAX Partners] acquires multiple registered agent businesses under RASI brand as well as 14 other firms since 2019.
 21 – Lexitas acquires Barrister Reporting Service and Benchmarking Reporting Agency, tech-enabled litigation services
company
 20 – Lexitas acquires RASI, registered agent solutions.
o 21 - Registered Agent Solutions Inc. [Lexitas Inc, Apax Partners LLP] [aka RASi] acquires Corp2000 Inc. [aka C2K].
CSC acquires multiple compliance and fund administration services firms.
 21 – CSC to acquire Intertrust for $2 billion, publicly traded company provides corporate solutions and will double CSC’s
global workforce. The combined CSC-Intertrust company would be able to better compete with the registered agent
industry’s largest provider, Corporation Trust Co., which also has a Wilmington office and is owned by giant Dutch firm
Wolters Kluwer.
TA Associates private equity group acquires In.Corp Global, Asian Corporate solutions provider specializing in corporate compliance,
accounting, taxation, incorporation and expansion advisory services.
- 21 - InCorp Global expands to Australia via investment in CharterNet. Headquartered in Sydney, Australia, CharterNet offers
services that cover the accounting & tax advisory, outsourced finance function, and government incentives requirements of
early-stage and established businesses across Australia.
Gusto acquires Symmetry Software (tax) and Airdus (tax credits)

Wolters Kluwer acquires LicenseLogix (US business licensing and credentialing entity management services), XCM Solutions (tax), and
Vanguard Software for $110m in cash.

LegalZoom acquires Earth Class Mail, virtual mailbox and Purely Solutions, virtual accounting as well as national registered agent
entity manager leader LegalInc

Deluxe announced the acquisition of LogoMix for $43 million in cash.

ZenBusiness [$55m] acquires Joust, banking for contractors. Platform for micro businesses to start, run and grow their business.

Clearlake Capital Group acquires Endurance International Group (NASD: EIGI) for $3B. Family of brands includes Constant Contact,
Bluehost, HostGator, and Domain.com, among others.

Fiverr acquires And Co, smart backoffice for freelancers.

VistaPrint acquires 99Designs

ADP acquires WorkMarket, marketplace for managing contractors and freelancers.

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Micro Business Public Leaders M&A Deal News Executive
Summary since 2020


Deal Funding IPO News
- 2021 – LegalZoom IPO raises $535m.

- 2021 – Gusto raises equity ($516 million to date) and secures $10B valuation , acquires three (3) companies. *IPO Watch List*

- 2021 – Stripe invests in 22 startups: $35m in Check, $102m for payments vendor Fast, baking vendors Step and Paymongo,
and others. *IPO Watch List*

- 2019 – Fiverr (NYSE: FVRR) IPO raises $111m, marketplace for creative and professional services.

- 2018 – Upwork (NASD: UPWK) IPO raises $187m, largest online global marketplace for freelancers.

- 1994 – Computershare
7
(ASX: CPU) IPO in 1994 and entered the USA market in 2001.

- 1987 – Wolters Kluwer (AEX: WKL) merged to create public entity with dual Netherlands and Philadelphia PA USA
headquarters. Operating in 1509 countries with $5B in revenues and 20,000 employees serving legal, business, tax,
accounting, finance, audit, compliance and healthcare markets.

- 1965 – Deluxe (NYSE: DLX) IPOs and goes public. It’s four divisions include payments, promotional products, checks and cloud.
Employees more than 6500 with $1.8B in sales and $8m in annual profits.

Global Publics










7
https://www.computershare.com/us/our-history

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Industry Serial Deals Summary Recap post 2020



Buyer Target Category Sector Details
Gusto Remote Team Work Tech 21 – Gusto acquires Remote Team to support international contractor
payments
Gusto Symmetry Tax Software 21 – Gusto acquires Symmetry Software, used by nearly 40% of the American
workforce and a Gusto partner since 2012
Gusto Airdus Tax Credits 21- Gusto acquires Ardius, adds tax credits

Avalara Track1099 W2/1099 21 – Avalara acquires Track1099, paper-free IRS e-file solution
Avalara Business Licences Licenses 2020 – Avalara acquires Business Licenses, LLC for $97m and per
Avalara Transaction Tax
Resources
Tax Avalara (NYSE) acquires Transaction Tax Resources for $377m (18x
EV/Revenues).

LegalZoom Purely Solutions Cloud Accounting 20 – Legal Zoom acquires Purely Solutions, adds cloud backoffice accounting
LegalZoom Earth Class Mail Virtual Mailbox 21 – Legal Zoom acquires Earth Class Mail, a virtual mailbox solution for small
businesses.
LegalZoom LegalInc Registered Agent
Corporate Compliance
2018 – LegalZoom acquires LegalInc, adds registered agent services corporate
compliance services

Wolters Kluwer XCM Solutions Tax 21 - Globenewswire – Wolters Kluwer acquires XCM Solutions (tax and
accounting workflow solution). Existing partnership since 2006, with $19m
revenues valued at $136m (7X EV/revenue multiple).
Wolters Kluwer LicenseLogix Corporate Compliance
Registered Agent (RA)
Entity Management (EM)
21 – Wolters Kluwer acquires License Logix, provider of Business Licensing has
been a long-time strategic partner to WK and serves more than 800 corporate
customers registration agent services, corporate establishment services, and
corporate compliance

Lexitas [APAX
Partners]
RASI Corporate Compliance
Registered Agent (RA)
Entity Management (EM)
20 – Lexitas acquires Registered Agent Solutions dba RASI, U.S. provider of
outsourced Registered Agent and corporate compliance services.
Lexitas [APAX
Partners], RASI
MyCompanyWorks Incorporation Formation 21 – RASI, a Lexitas Company acquires MyCompanyWorks, formation and
filing, and licensing.

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Industry Deals Summary Recap by Deal Value
Date Acquirer Acquiree Deal Value ($)
2022 LegalZoom (NASDAQ: LZ) Earth Class Mail $63m
2021 Stewart Information Services Corporation A.S.K. Services -
2020 Computershare Corporate Creations $142m
2020 Lexitas Registered Agent Solutions, Inc. -
2019 Corporation Service Company TCS-Groep -
2017 Atlantic BT BoostSuite -
2017 Startupr Hong Kong Limited Eastbiz.com, Inc $3M
2016 Wolters Kluwer Vcorp Services -
2016 Corporation Service Company NetNames $14M
2016 Wolters Kluwer Triad Professional Services LLC -
2015 Corporation Service Company Koehler Group -
2012
8
Corporation Service Company Ingeo Systems, Inc. -



8
https://www.prweb.com/releases/2012/3/prweb9270038.htm

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Notable Industry Acquisitions

22 – LegalZoom (NASDAQ: LZ) acquires Earth Class Mail, adds virtual office services.

21 - BV Investment Partners acquires SupportNinja, outsourcing customer experience backoffice support.

21 - CareerGig acquires Moonlighting , freelancer platform (PRWeb).

21 – Sleek acquired LTD Companies, UK incorporation management.

21 – Wolters Kluwer acquires Vanguard Software for $110m in cash (WWW)

20 – Wolters Kluwer acquires XCM Software for 136 million pounds with 19 million pounds in revenue (WWW)

20 – Computershare acquires Corporate Creations for $142.9m, registered agent entity management solutions provider at 4x EV/Sales revenue
multiple.

20 – LinkedIn acquires UpCounsel , shutdown (ABA Journal). UpCounsel links freelance lawyers with small businesses and other would-be clients.

18 - MVF acquires Tech Co, media and events company for startups and entrepreneurs (TechCrunch).

18 - Business Rockstars acquires CoFoundersLab. Entrepreneur community and marketplace.

18 – PrePaid Legal aka LegalShield acquired by Stone Point Capital


Industry Deal Leaderboard

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Micro Business Funded Leaderboard


About Company Last Round Amount Raised ($)
Cloud payroll, HR, benefits Gusto 22 - $230m Series E
$746m (T Rowe Price, Fidelity,
CapitalG, General Catalyst)
Automated background checks Checkr
22
9
- $370m Series E Durable
Capital, T Rowe Price, Accel
$679m
Platform for solopreneurs and
freelancers
Honeybook
21 – $250 Series E – Tiger, Durable,
multiple VCs
$498m
Solutions for owners starting,
running, growing business
ZenBusiness 21 - $200m Series C
$274m via Oak, Cathay,
Greycroft, Lerer Hippreau
Online legal services for familes
and businesses
Rocket Lawyer
21 - $223M Equity via Vista Credit
Partners
$291m via LexisNexis, August
Capital, Vista Credit, multiple

digital tax compliance and
regulatory reporting company
Zenwork
21 – $163m PEG round from
Spectrum Equity
$163m
On-demand notary service Notarize
22
10
- Secondary Market Note
21 – $130m Series D
$213m
HR solutions Mineral 18 – Guidepost Private Equity $82m
Mobile banking for freelancers Lili
11
Series B $80M
Virtual HR on-demand Bambee 22 – $30m Series C
$63m, QED Investors, Alpha
Edison
Singapore corporate and
backoffice services
Sleek
21 - $25m Series A from multiple
VCs
$34m
All-in-one financial concierge for
self-employed
Collective
21 – $20m Series A, General
Catalyst, QED Investors
$28m



9
San Francisco-based Checkr, a platform that helps employers screen job seekers through initiating background checks, raised
a $250 million Series E at a $4.6 billion valuation
10
Boston-based on-demand remote electronic notary service Notarize raised a $130 million Series D in March at a reported
$760 million valuation
11
Banking for freelancers that includes expense, tax, and other financial tools to empower customers

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Micro Business Recently Funded News

About Company Last Round Amount Raised ($)
Tax filing app Taxfyle
22 - $20m Series B by Fuel Venture
and IDC Ventures
$27m
Fintech for gig workers and
contractors
GigWage 21 – Debt Financing and Series A
$16m, Silicon Valley Nank,
multiple VCs
Tax solution for independent
contractors and freelancers
Keeper Tax 21 - $13m Series A $15M Matrix Partners
Financial management solution for
the self-employed
Formations Corp
22 – $8m Series A by Arthur
Ventures
$11m
AI powered Tax April
22 - $10m seed round from multiple
VCs
$10m
Simple payroll OnPay 20 – $6m Series A $6m
Banking for the self-employed Lance 21 – Seed Round $4m
Helping founders turn ideas into
business
Doola 21 - $3m Seed Round $3m
Governance platform Equa
21 – Corporate Round led by
Horizen Labs
$2.3m

Micro Business Funding Deal News Executive Summary since 2020
Emerging Leaders Funding News
-
2021 – Zenwork raises $163m, tax compliance reporting and software development firm (AccountingToday)
- 2021 – Zen Business raises $200m Series C at $1.7B valuation. Founded in 2015, has raised more than $275m to date.
- 2021 – Doola raises $3M to help global founders launch an LLC in the US..
- 2021 – Filejet secures $1.5m seed round, provides platform that works with Law Firms, Accounting Practices, In-House Legal
Departments, and Companies.
- 2021 – GigWage raises additional capital
- 2021 – Sleek raises Series A $14m to fund global expansion, from Jungle Ventures, White Star Capital to fund global expansion.
Builds upon recent acquisition of UK market LTD companies to create holistic SME operating system for entrepreneurs beyond
incorporation to include back office utilities such as secretarial services, bookkeeping, payroll, tax, and more including digitizing
the financial workflow across tax, accounting and governance. So that it’s all handled in one place.
- 2020 – OnPay raises $6 million Series A. The Atlanta-based payroll company focuses on the sub-20 employee market.

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Industry Deal Briefing
Contact ERGO to schedule a complimentary CorpDev Deal Landscape
update
CorpDev deal topics and supporting materials available upon request.
 Deal Multiples
 Industry Comparables
 List of Private Company Star Performers
 Industry Deal Trends & Opportunities
 Deal Strategy Options Briefing
Deal Trends


Private Co. Rankings




Portfolio & Deal Options



The backoffice administration industry is evolving beyond the adoption of modern tech. With the
emergence of cloud, digital, and FinTech the industry is changing from relying on a local service to
transformation to a solution model that includes a cloud/SaaS platform plus services. Leaders are
bundling services with cloud “As-A-Service” solutions.

Why Conduct an ERGO Industry Briefing
 Review As-a-Service trends and M&A deal opportunities:
o Geographic market expansion
o Industry consolidation
o Recurring managed service solutions
o Technical services, implementation and consulting capabilities
 Identify 5X opportunities and ideas to outsmart your competition.

Industry
Deal
Briefing
→ For a complete list of opportunities, & a detailed review of your deal
options, contact ERGO to schedule your complimentary briefing.
Direct 1-281-756-7178 | [email protected]

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ERGO Expertise
CorpDev services from deal sourcing to expansion enablement.

Backoffice
Administration
Solutions
Backoffice administrative services have grown beyond software
supported by a local service provider to robust industry solutions.
Backoffice growth segments include:
 AaS - “As-a-Service”
 Administrative Services Outsourcers (ASOs) beyond BPOs
 FaaS - “Finance as a Service” beyond cloud accounting
 Outsourced technical services and solutions
 Payrolling, Contractor, Freelancer and Gig Economy providers
→ Consolidation opportunities to create national industry leader.

Tech-Enabled
As-A-Service
As companies move beyond cloud adoption and digital transformation;
the market for industry preconfigured solutions is underserved.
 Everything-as-a-service
 Industry pre-configured solutions
 Subscription solutions beyond managed outsourced services
 The CX journey
 The rise of Procurement, HR & Compliance “As-a-Service”


Supporting materials available upon request along with top deal opportunities
Communities & Industry Sources
20




Deal Experience

…our approach starts by forecasting the ROI impact of your CorpDev options.

Start with a CorpDev briefing to





review your options and their
impact on your business.

20
@Copyright 2018 ERGO Comps LLC. All Rights Reserved.

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Executive Summary
Comparables Teaser
Industry Snapshot. While there are thousands of accounting firms, as well as
hundreds of service providers and outsourcing firms, and hundreds of funded FinTech
vendors, there is an emerging segment of AaS
1
leaders that leverage modern tech using
AI, RPA bots, ML and an integrated stack to tech-enable the work.
Model Alternatives
2

Micro Business Backoffice Compliance Industry Global




 Pilot [$161.3m]
 GigWage [$16m]
 OnPay [$6m]
 Wagepoint [$10m]
 Belay [PEG]
 1800Accountant
 Nimble
 Taxfyle

 Avalara (NYSE: AVLR)
 LegalZoom (LZ)
 Lexitas [ApaxPartners]
 MBO Partners [Primus Capital]
 AbacusNext [Zola Suite]
 LicenseLogix [Wolters Kluwer]
 ZenBusiness [$74m]
 Shoobx [$10m]
 BusinessRocket [$1m]
 Conduent
(NASDAQ:
CNDT)
 Genpact
(NYSE: G)
 CFGI [Carlye
Group]
 Equiom
[Varde
Partners]
 IQ-EQ [Astorg]
 IQ Backoffice
(LiveIT
Investments)
 KPMG Spark
[Global HoldCo]
 API Outsourcing
(global)



ERP | POS | Payments | GL | AR | AP | Financial Close & Reporting | Compliance | Analytics and BI


Comparables Snapshot Overview
 To date, primary model differentiation based on customer market strategy
 Use cases for AI and RPA to-date focused largely on the promise of “tech-enablement” of the workforce
and automation of the majority of transactional processing
 Tech-stack consolidation saves end-users time and money across AP, AR, Payments, T&A, Expense,
Reporting, Analytics (typically cuts down vendors by 5 to 2)
 Industry KPIs. Key financial and operating ratios vary widely.



1
AaS = “As-a-Service” also referred to as BpaaS or managed services
2
Requires capital >$1m, long-term recurring contract, profitability and model beyond outsourcing comps.
Please note that overlap exist and the above list is merely illustrative not exhaustive based on publicly available
information. Additional apps and industry vertical leaders are prevalent, but excluded.

94. ERGO Comps, LLC
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Comparables Overview



Public
Funded



Peer Group Ratio Analysis
Commercial
LZ BCOR DLX HRB DNB
In $ Thousands, except per share (USD)
LEGALZOOM.CO
M, INC. BLUCORA, INC.DELUXE CORPH&R BLOCK INC
DUN &
BRADSTREET
HOLDINGS, INC.
Peer Group
Average
For the Year Ended 2020-12-31 2020-12-31 2020-12-31 2021-04-30 2020-12-31
Profitability Ratios
Gross Profit Margin 67.2% 47.2% 59.2% 46.0% 68.6% 57.6%
EBITDA Margin 15.3% 9.6% 18.4% 27.1% 36.5% 21.4%
Valuation Ratios
Enterprise Value to EBITDA 67.5 16.3 7.5 5.8 15.6 22.6
Enterprise Value to Revenue 10.3 1.6 1.4 1.6 5.7 4.1
Selected Financial Data
Income Statement Data
Revenue 470,636$ 754,952$ 1,790,781$ 3,413,987$ 1,738,100$
Gross Profit 316,073 356,662 1,060,010 1,571,895 1,192,500
EBITDA 71,900 72,497 329,144 926,479 634,300
R&D Spend % of Rev 9% 9%
YoY Growth Rate 25% 9% NA 30% 25% 22%
Rev/FTE $446 $892 $295 $948 $430 $603

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CorpDev Opportunity Segments
There are a number of acquisition opportunities across the following
category segments.
Segment Description Target Landscape
5

Corporate
6

RA & EM, Licensing, Reporting, UCC, F&I, Industry Solutions
91
Compliance
Tax, Credits, GRC, Board, Investor, Shareholder, WFM, Global
42
Digital
Virtual, Office, IT, Web, Marketing, Communications, Apps,
Cloud, Payments
77
Professional
Insurance, Credit, Financing, Legal
106
Backoffice
Tax, Bookkeeping, Accounting, Payroll, HR, WFM, 1099
Contractors, Financial, Health, Wellness, Plans, Industry
200+
*Some overlap exists among the above segments categories

CorpDev Opportunities Illustrative Snapshot



Acquired since 2020







5
Private firms >$2m with USA HQs
6
Beyond startup corporate services from formation to close

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Financing and Capital Options
The following is not intended to be exhaustive, but merely an illustrative list.
Financing
7



Private
Equity



Strategic


ERP & Business
Systems
Payments
FinTech
8

Global
HoldCos

























7
SBICs, Mezzanine Debt

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Corporate Compliance Services Industry Snapshot
YE 2020 Small Business Executive Summary for North America

Industry Deal Trends for Capital Funding:

 FinTech and RegTech for Compliance: The acceptance and shift to the virtual workforce and
the rise of “As-A-Service” economy (“AaS”) is driving deals as illustrated by the billions in
funding; which has created opportunities to capitalize on integration of cloud software with
RegTech (compliance) and FinTech (Finance, Banking-as-a-Service and Payments).
 Microbusiness and Freelancer Marketplace: the freelance economy is greater than a $50B
total addressable market (TAM) in the United States, and a $1T TAM worldwide, representing
a growing % of the workforce.

M&A Deal Trends
1
:
Consolidation of the stack
2
, apps, and providers as models are converging traditional functions
into a broader and more robust unified solutions.
3




1
M&A deals based on funded, public, small, and midmarket deals with USA HQs >$1m EV
2
Deals driven by digital transformation, industry consolidation, & shift to the cloud.
3
Acquisition of add-on capabilities across FinTech, Financial Services, emerging technologies (AI, RPA, bots,
analytics, AaS), and F&A FinTech tools for optimization, spend efficiencies, and analytics, as well as gene

Based on United States HQsCapital # Capital $ Capital # Capital $
Avg # Financings per
Year
Industry Categories 2019 2019 2020 2020 2010 to 2020
FinTech 689 $18,024,850,931 600 18,970,727,856$ 461
B2B 194 $1,125,350,304 172 1,797,146,899$ 153
Compliance 51 $795,290,499 60 1480704942 40
Small and Medium Business 71 $1,401,937,084 69 2340967663 75
Freelance 11 $17,490,000 9 83040910 11
Based on United States HQs Avg Per Year
Industry Categories 2019 2020
FinTech 150 113 1006 101
B2B 53 31 307 31
Compliance 16 15 64 6
Small and Medium Business 41 24 249 25
Freelance 1 1 11 1
2010 to 2020
Acquisitions Count #

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Backoffice for B2B MBs Industry Deals Snapshot
Industry Buyers Landscape North America Executive Summary
4

Buyers Funded






RegTech
and
FinTech




Private





Industry
Leaders

Microbusiness and Freelancer Deals Snapshot
WWW - Stripe invests in 22 startups: $35m in Check, $102m for payments vendor Fast, baking vendors Step and Paymongo, and others.

PRWeb – CareerGig acquires Moonlighting, freelancer platform.

Business Wire - Deluxe announced the acquisition of LogoMix for $43 million in cash.

WWW – OnPay raises $6 million Series A. The Atlanta-based payroll company focuses on the sub-20 employee market.

FinSMEs ZenBusiness [$55m] acquires Joust, banking for contractors. Platform for micro businesses to start, run and grow their business.

Globenewswire - Clearlake Capital Group acquires Endurance International Group (NASD: EIGI) for $3B. Family of brands includes Constant
Contact, Bluehost, HostGator, and Domain.com, among others.

TechCrunch - Fiverr acquires And Co, smart backoffice for freelancers.

TechCrunch - VistaPrint acquires 99Designs

PRWeb – Business Rockstars acquires CoFounedrsLab.

TechCrunch – MVF acquires Tech Co, media and events company for startups and entrepreneurs.

TechCrunch - ADP acquires WorkMarket, marketplace for managing contractors and freelancers.


4
Overlap exisits across categories. This snapshot is merely illustrative based on publicly available information

99. ERGO Comps, LLC
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Corporate Startup Services Industry Deals Snapshot
Industry Buyers Landscape North America Executive Summary
5

Buyers Funded


RegTech
and
FinTech










Industry
Leaders

Startup Business Market Size. Hundreds of thousands of new company startups formed annually in the
USA
6
, plus more than a 30M
7
small busineseses across the USA
8
and 40M 1099 workers.


Startup Resources


Summary of the technology and services vendors serving entrepreneurs
9
.
Launch Manage
Plan.
Turn that idea into a
business model.

Launch. Turn your idea into
reality and register to start doing
business.

Comply. Annual corporate
goverance and legal compliance
10
.


Protect. Business Insurance &
DR/BC.
Run
your buisness like a boss.


Master day-to-day operations.

Grow with funding, locations, expansion, markets.

Workforce. Hire and manage a team.

Marketing. Growth by customer strategy and
route to market.
Manage.
Tax & Accounting


Finance. Banking & Financing.

Expansion. By market.

Assets. Buy, build, pr acquire.

Prepare for success.

Exit. Close or sell.


5
overlap exisits across categories. This snapshot is merely illustrative based on publicly available information
6
https://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm
7
https://www.sba.gov/sites/default/files/advocacy/2018-Small-Business-Profiles-US.pdf
8
BLS.gov, https://www.census.gov/smallbusiness
9
Score.org, SBECouncil.org, https://nsba.biz/about-us/, NFIB
10
https://www.sba.gov/business-guide

100. ERGO Comps, LLC
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www.ERGOcomps.com

Corporate Compliance Industry Deals
Industry Buyers Landscape North America Executive Summary
11

Buyers Funded Private




Tech






Industry
Leaders



Corporate Compliance Services Industry Deals Recap
 PRNewswire – Symplr [Clearlake Capital;] a global healthcare GRS SaaS platform acquires Complytrak from Wolters Kluwer.
 Globenewswire – Wolters Kluwer acquires XCM Solutions (tax and accounting workflow solution). Existing partnership since
2006, with $19m revenues valued at $136m (7X EV/revenue multiple).
 PRWeb – Escalon Services acquires Early Growth Financial Services. Adds product coverage across CFO and tax to create a one-
stop shop for SMBs.
 FinSMEs– ZenBusiness acquires Joust, small busines banking for contractors. Adds product to platform for micro businesses to
start, run and grow their business.
 WWW – LegalZoom acquires Texas tax accounting firm Purely Solutions.
 BusinessWire – Intuit acquisition of Credit Karma Inc for $7.1B at 7.1x EV/Rev multiple to deliver credit services.
 CrunchBase – Square acquires Credit Karma’s Tax app for $50m.
 GeekWire.com – Avalara (NYSE) acquires Transaction Tax Resources for $377m (18x EV/Revenues).
 2020 – Computershare acquires Corporate Creations for $142m, ~4x EV/Rev multiple. Entity compliance and governance
services for 14,000 USA corporations

 2020 – Lexitas [APAX Partners] acquires Registered Agent Solutions Inc. ("RASi"), a leading U.S. provider of outsourced
Registered Agent and corporate compliance services.
 2020 – Avalara acquires Business Licenses, LLC.


11
overlap exisits across categories. This snapshot is merely illustrative based on publicly available information

101. ERGO Comps, LLC
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 2020 –Atrium , Fintech and LegalTech for startups shuts down after raising $75m. Unsuccessful pivot from solutions back to
legaltech software model.

 2019 – Ryan [$687m] global tax services, acquires SALT Payroll Consultants.
 Globenewswire – Blucora acquires HK Financial Services, a CPA RIA with $4.4B AUM for $160M at 9.3x EBITDA.
 PRNewswire – FMS Solutions acquires Boschini Miller & Associates. Consolidates platform for grocers to manage accounting,
payroll, finance.
 QSR Magazine – BDO USA acquires restaurant industry capabilities of CFO Advisors LLC.
 CherryTree – Gainline Capital Partners acquires SourceHOV tax and credits practice.
 PRNewswire – Springbrook
12
[Accel-KKR] acquired BIAS Software
13
(undisclosed).



12
provider of fund accounting, payroll and utility billing.
13
ERP, payments, and cloud accounting for local public agencies.

102. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com
Industry Deal Briefing
Contact ERGO to schedule a complimentary CorpDev Deal Landscape update
CorpDev deal topics and supporting materials available upon request.
 Deal Multiples
 Industry Comparables
 List of Private Company Star Performers
 Industry Deal Trends & Opportunities
 Deal Strategy Options Briefing
Deal Trends


Private Co. Rankings




Portfolio & Deal Options



The backoffice administration industry is evolving beyond the adoption of modern tech. With the
emergence of cloud, digital, and FinTech the industry is changing from relying on a local service to
transformation to a solution model that includes a cloud/SaaS platform plus services. Leaders are
bundling services with cloud “As-A-Service” solutions.

Why Conduct an ERGO Industry Briefing
 Review As-a-Service trends and M&A deal opportunities:
o Geographic market expansion
o Industry consolidation
o Recurring managed service solutions
o Technical services, implementation and consulting capabilities
 Identify 5X opportunities and ideas to outsmart your competition.

Industry
Deal
Briefing
→ For a complete list of opportunities, & a detailed review of your deal
options, contact ERGO to schedule your complimentary briefing.
Direct 1-281-756-7178 | [email protected]

103. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com
ERGO Expertise
CorpDev services from deal sourcing to expansion enablement.

Backoffice
Administration
Solutions
Backoffice administrative services have grown beyond software supported by
a local service provider to robust industry solutions. Backoffice growth
segments include:
 AaS - “As-a-Service”
 Administrative Services Outsourcers (ASOs) beyond BPOs
 FaaS - “Finance as a Service” beyond cloud accounting
 Outsourced technical services and solutions
 Payrolling, Contractor, Freelancer and Gig Economy providers
→ Consolidation opportunities to create national industry leader.

Tech-Enabled
As-A-Service
As companies move beyond cloud adoption and digital transformation; the
market for industry preconfigured solutions is underserved.
 Everything-as-a-service
 Industry pre-configured solutions
 Subscription solutions beyond managed outsourced services
 The CX journey
 The rise of Procurement, HR & Compliance “As-a-Service”


Supporting materials available upon request along with top deal opportunities
Communities & Industry Sources
14




Deal Experience

…our approach starts by forecasting the ROI impact of your CorpDev options.

Start with a CorpDev briefing to





review your options and their
impact on your business.


14
@Copyright 2018 ERGO Comps LLC. All Rights Reserved.

104. RA EM Compliance partner private label leaders Rankings
Company Stats & Notes
Northwest Registered Agent (private)

Wholesale program link
Industry = Legal
About = National registered agent
WA HQ
15 EE LinkedIn
14,000 RA clients | 308k Monthly Visits

Founded 1998
Tagline/ We’re just not annoying
LegalInc ($2.6m, multiple investors)

fully automated, entirely digital registered agent service (link)
private and white-label packages available
Industry = Legal, Cloud Management, SaaS
About = registered agent, compliance, entity formation
TX HQ
$25m+ | 25 EE LinkedIn | 7395 monthly visits
Founded 2013/2014
Tagline / Law Practice Automation
RASI Registered Agent Solutions Inc acquired by Lexitas 2020

Austin TX Sean Prewitt, Richard O VP
Affiliate program link
Corpliance and EM demo link
Industry = Consulting, Information Technology
About = legal service company, registered agent services
Austin TX HQ
$10m | 27 EE LID | 7608 monthly visits

Founded 2002
Tagline / Registered agent solutions
Corporate Creations
[acquired by Computershare AUS public company in 2020]

Beacon Entity Management System link
Industry = legal
About = registered agent, compliance services
14000 RA clients
FL HQ
Founded 1993

Parasec (private CBlinkNA, employee owned, ESOP owned)

Parasec EM demo link
Partner link NA
90 EE LinkedIn
Founded 1977
Tagline / National Entity Formation and Compliance
Wolters, CT Corporation, National Registered Agents Inc
Multiple systems
Industry = Legal
About = registered agent services
NRAI founded 1995/2000 in NJ, subsidiary to Wolters acquired 2011
6996 monthly visits
Universal Registered Agents (private)
KA HQ
Kent Rockwell
Proprietary platform with partners, affiliates, resellers
Founded 2013
RAI – Registered Agents Inc (subsidiary)
Sheriden, WY
Acquired CorporateFilingsLLc.com, filingsmdaeeasy.com (team
bios link), others
Whitelabel model link

4 offices across WA, MT, MO, DE
20 EE LID
$10m+ per INC
Founded 2011
Tagline /The Standard for Registered Agent Services
UAS – United Agent Services (private, CBlink NA)
wholesale RA clients
Founded 2005, spinout 2015
DE HQ
one of the top 8 incorporation partners
Incorp (private)
RA proprietary
Incorp Partners include HBBLeads.com,. idefendbusiness ID protection, licenselogix
Demo NA
Industry = Legal, Legal Tech, Staffing Agency
NV HQ (1)
Founded 1998
60 EE LID

Capitol Lien (private)
Portfolio of Monitoring, Real Estate, Property Management, Corporate,
UCC, RA, Compliance
Lisa & Tony M, Owners
Industry = Construction, Industrial, Real Estate

MN HQ (1)
$10m

AccuSearch
AZ HQ
CorpData
NJ HQ

Capitol Services
Austin TX
Blumberg
NYC HQ


LawCloud, LawBot
NY + CA
United Corporate Services Inc
Michael Barr, NYC





This is NOT intended to be exhaustive but merely illustrative.

105. ERGO Comps, LLC
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www.ERGOcomps.com


Private Rankings Leaderboard
Focused on startup corporate backoffice and compliance solutions.

Corporate
4
Backoffice
5






Corporate Compliance & Backoffice Industry Snapshot
Private companies with North America HQs
Category
6

Private
North America >$1m
Summary
Cloud Accounting
7
200+ Bookkeeping, Accounting, Payroll,
HR Compliance
8
206 Workforce compliance
Corporate Compliance <50 Entity management, corporate secretary, registered agent
Tax 200+ Tax services
Managed Tech 200+ Virtual technology management
FinTech 255 FinTech apps for corporate and backoffice
Industry Tech 400 Industry solutions for micro businesses

Industry Overview for North America
- More than $5.5B deployed to 287 deals since 2010
- 79 acqusitstions since 2010

4
Corporate Compliance Services
5
Accounting, Finance, Tax, Workforce, HR, Work Management, IT, Procurement , Virtual Support
6
Category = Industry Sector and Business model
7
Non CPA, non Staffing provider of outsourced cloud accounting to SMBs without proprietary
technology
8
HR services provider to SMBs without proprietary technology

106. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com


Industry Deals Summary Recap



Buyer Target Category Sector Details
Greatland Jasteck W2/1099 21 – AccountingToday - Greatland buys Jasteck, NY based provider of W2 and
1099 products.
Gusto Remote Team Work Tech 21 – Gusto acquires Remote Team to support international contractor
payments
Gusto Symmetry Tax Software 21 – Gusto acquires Symmetry Software, used by nearly 40% of the American
workforce and a Gusto partner since 2012
Gusto Airdus Tax Credits 21- Gusto acquires Ardius, adds tax credits
Avalara Track1099 W2/1099 21 – Avalara acquires Track1099, paper-free IRS e-file solution
Avalara Business Licences Licenses 2020 – Avalara acquires Business Licenses, LLC for $97m and per
Avalara Transaction Tax
Resources
Tax Avalara (NYSE) acquires Transaction Tax Resources for $377m (18x
EV/Revenues).
LinkedIn Upcounsel Legal Services LinkedIn acquired UpCounsel (Enduring Ventures)
Zen Business Joust Banking 20 – Zen acquires Joust, adds business banking for entrepreneurs
LegalZoom Purely Solutions Cloud Accounting 20 – Legal Zoom acquires Purely Solutions, adds cloud backoffice accounting
LegalZoom Earth Class Mail Virtual Mailbox 21 – Legal Zoom acquires Earth Class Mail, a virtual mailbox solution for small
businesses.
LegalZoom LegalInc Registered Agent
Corporate Compliance
2018 – LegalZoom acquires LegalInc, adds registered agent services corporate
compliance services
Wolters Kluwer XCM Solutions Tax 21 - Globenewswire – Wolters Kluwer acquires XCM Solutions (tax and
accounting workflow solution). Existing partnership since 2006, with $19m
revenues valued at $136m (7X EV/revenue multiple).
Wolters Kluwer LicenseLogix Corporate Compliance
Registered Agent (RA)
Entity Management (EM)
21 – Wolters Kluwer acquires License Logix, provider of Business Licensing has
been a long-time strategic partner to WK and serves more than 800 corporate
customers registration agent services, corporate establishment services, and
corporate compliance
Lexitas [APAX
Partners]
RASI Corporate Compliance
Registered Agent (RA)
Entity Management (EM)
20 – Lexitas acquires Registered Agent Solutions dba RASI, U.S. provider of
outsourced Registered Agent and corporate compliance services.
RASI, a Lexitas
Company
MyCompanyWorks Incorporation Formation 21 – RASI, a Lexitas Company acquires MyCompanyWorks, formation and
filing, and licensing.
Computershare Corporate Creations Corporate Compliance
Registered Agent (RA)
Entity Management (EM)
2020 – Computershare acquires Corporate Creations for $142m, ~4x EV/Rev
multiple at $35m. ~13x EBITDA assumption

107. ERGO Comps, LLC
O: 281.756.7178

www.ERGOcomps.com
CorpDev Deal Briefing
Deal Landscape Updates
 Review industry deal trends, options and opportunities
Rankings


Solutions



Future Firm


 Future Firm Portfolio Updates
 Deal Multiples & Deal Options
 Industry Comps: Private Company Star Performers
Deal Options
 Acquihires: geographic or industry expansion
 Strategic Portfolio Expansion: access to customers and products
 Capitalize or Monetize a portion of the business

Industry Deal News
 $3.1 billion funded to 126 compliance solutions since 2010 with more
than $462m funded in 2019 to 31 USA companies delivering compliance
solutions via the cloud and another $42.5m deployed in Q1 2020 to 3
companies
 14 acquisitions in 2019, versus an average of 5 per year since 2010



Deal
Briefing
→ For a complete list of opportunities, & a detailed review of
your deal options, contact ERGO to schedule your
complimentary deal briefing.

Direct 1-281-756-7178 | [email protected]

108. ERGO Comps, LLC
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www.ERGOcomps.com
Corporate Entity Compliance Industry

Compliance Market Map Leaderboard Snapshot
Corporate Compliance Services for Entity Startup & Compliance Management
Corporate Compliance Services Category Sector Niche




Global


Industry Solutions


Channel Partner Leaders

Financial Services

Tax Compliance & Backoffice

LegalTech & Legal Services


Registered Agent

Incorporation Formation

109. USA B2B
Economic Indicator
Report Executive
Summary
August 2024
ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Table of Contents
•B2B Industry M&A Acquisition Deal Trends
•Profit Strategies for the B2B Entrepreneur
•Economic Indicator Impact Summary
•Gross Domestic Product (GDP)
•Equity Risk Premium
•Consumer Price Index (CPI)
•Average Annual Earnings for All
Professional and Business Services
•Cost of Debt (ICE BofA US High Yield
Index)
•R&D Expenditure % to GDP
•Gross Change in Jobs per Firm Size in
the US

110. M&A and Investment Briefing
August 2024 update on investments, M&A deals, and profit strategies to capitalize
Placement funding and financing Investments Deals
•More than $1 Trillionto be deployed by USA private credit and equity investors; tech innovation and platform consolidation
to continue at a faster pace in Q3 and Q4 than previous 6 quarters (PitchBook)
•More than 1,000acquisitions since 2020 for work tech
•Category leaders command 2x pricing premium (and ½ the cost of customer acquisition)
•Deal trending categories include: AI, Intelligent Automation, Embedded Experience, Talent Intelligence, Upskilling, WFM,
Safety & Security Compliance, Platfomization, Verticalization
Profit Considerations
•Valuations at all-time high for B2B Work Tech in 2021; first half of the year revealed declining valuations for service providers,
with widening valuations for software splitting firms into either below historical average or above average premium valuation
•Increase in competition from non-traditional industry Vertical SaaS solutions as well as global leaders
•30 to 40% revenue growth for niche industry vertical specialists (versus single digit growth for generalists)
If you want to get ahead … contact Charles for your personal briefing on your M&A and
Investment outlook, options and opportunities.He’s covered and advised as an M&A
Corporate Development industry expert for B2B Work Tech for 2 decades.

111. Deal Summary Comparison by Market
# of Deals in Q1 2024 YTD
176
# of Deals in 2023
670
Average # of Deals
per year since 2020
823
Increasing amount of M&A deals and type of deals
M&A Deal Trends Summary. Driven by low-interest rate environment and
abundant access to debt and capital, 2021 was all-time high for deal volume and
valuations.
The forecast for second half of 2024 predicts deal volume will be above 2022 and
2023, but the volume of closed deals is off to a slow start.
More deals in 2024 than 2023, but on average a 1x lower valuation multiple.
M&A Platform Deals. Average valuations on completed deals dropped to just 6.6x
Trailing Twelve Months (TTM) adjusted EBITDA, down more than a half-turn of
EBITDA from the 7.2x average from the fourth quarter of 23.
M&A B2B Services Deals. For small business, valuation multiples have declined to
historical levels below 5x.
0
100
200
300
400
500
600
2020 2021 2022 2023 Forecast 2024
B2B M&A Deals for USA Targets by Market
Enterprise Midmarket Private Equity SMB Small Business Main Street

112. Deal Briefing
based on a review of Q1
and Q2 2024
August 2024
Investment Trend
•
Deal trending categories capitalize on either
AI or Intelligent Automation to improve
legacy tech and/or business models.
M&A Trends & Findings
•More deals in 24 than 23, but on average a 1x
lower valuation multiple.
•M&A Platform Deals. Average valuations on
completed deals dropped to just 6.6x Trailing
Twelve Months (TTM) adjusted EBITDA, down
more than a half-turn of EBITDA from the 7.2x
average from the fourth quarter of 23.
•B2B Services Deals. EBITDA MULTIPLES
RETURN TO HISTORICAL LEVELS IN 2024 of sub
5x
In H1 2024, More Deals, Less Quality YTD
An update on investments, M&A deals, and profit strategies to capitalize
Placement funding and financing Investments Deals
With still more than $1 Trillionto be deployed by USA private debt & equity investors; industry and
platform consolidation likely to continue. With an abundance of capital, larger deals (requiring $20m to
$100m+ in capital) are in demand. Large scale buyouts and public-take-privates are becoming more
prevalent such as Sterling , HireRight, Discover, etc.
•Emerging Technologies such as AI, RPA, Digital Platforms, and Intelligent Automation are driving investment and deal
trends (more than 70% of deals in 24 YTD across B2B Work Tech). While automation remains a primary motivator,
these emerging technologies promise capabilities for better performance execution & augmented tech-enablement of
work.
Deal & Profit Considerations
More than 1,000acquisitions since 2020 for B2B.
•Category leaders command 2x pricing premium and ½ the cost of customer acquisition.
•Valuations all-time high for B2B software in 2021; forecast to increase over the next two years for trending categories
versus decline for Service providers through 2027.
•Increase in competition from non traditional industry solutions as well as globals
•40% revenue growth for niche industry vertical specialists (versus single digit growth for generalists)

113. SDE Indicator Index - When is the Right Time to Exit?
0%
2%
4%
6%
8%
10%
12%
14%
0%
2%
4%
6%
8%
10%
12%
14%
Median Income Tax Rate : 5.0%
Valuation Trendline (EV/Sales) Abundance of Capital
Income Tax Rate per State Equity Rate of Return (S&P 500)
Source: Tagnifi and S&P Global
SDE = Seller Discretionary Earnings i.e. owner compensation + expenses + profits
•Available capital for investment for global private equity more than
tripled since 2008, hence access to this type of funding will be more
flexible.
•On the other hand, the cost of funding for debt is at its multi-year high.
•Income tax rate for wealthy states have the highest
income tax rates such as in CA, NY and WA.
S&P500 has generated an average annual rate of return of
10% since 2010, if the expected rate of return of the equity
market is in the next couple of years, businesses should
consider investing in an alternative asset class.
When should you exit?
Based on the following valuation
factors:
Split economy between laggards and
leaders with single digit slow growth
for most; but significant growth for
notable niches, emerging technologies,
and market leaders
Cost of financing capital due to higher
interest rates limited to sub <$4m and
>$10m+ sized deals which is
improvement over the first half of 24
If your YoY % profit growth is
projected to slow or decline, then
based on the abundance of capital, it
is a good time to exit; otherwise have
a gameplan to dramatically leverage
technology and new models to
improve profitability over the next 3
to 4 year period.
2021 was a 5 year high in valuations for majority; Q1 2024 valuations higher than 2023 and 2022, will you be ready to
capitalize on the timing or will you focus on tech-enabling your business model for the next decade?
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
20232022202120202019
Solution
Services
Marketplace
Software
0
500
1000
1500
2000
2500
3000
3500
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Global Private Equity Dry Powder (US$b)
US 3M Treasury Bill
-30%
-20%
-10%
0%
10%
20%
30%
40%

114. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Strategies for the B2B Entrepreneur
While the majority of the market is in low slow single digits niche vertical
and market segments represent double-digit growth opportunities for
tech-enabled, specialists, and platforms.
Business market demand driven by expertise in digitalization, regulatory
compliance, global market strategies, sustainability practices and
cybersecurity.
The corresponding growth solutions include digital transformation,
regulatory compliance complexities, globalization, sustainability/ESG, and
data security and privacy concerns. These trends represent a growing
market opportunity.
If profit growth is slowing preserve cash, if declining pivot or exit, if profit
growth is expanding double-down.
Investment Financing and Private Capital is available for emerging
technologies, as well as niche, vertical and platform leaders as there is
more than $1 trillion in USD USA cash to be deployed by each publics and
private credit/capital.
M&A acquisitions including acquihires, alliances, industry consolidation,
add-on products, expansion, divestures, represent a steady meaningful
opportunity for leaders to accelerate profits.
Growth Action based on Q2 June 2024 data
Profit Expansion Corporate Development

115. Comps Briefing
August 2024
Strategies To Capitalize
1. Capitalize on the tailwindsfrom
one of the new models to
differentiate from the competition
and unlock profit growth.
2. B2B investment and deal trends
signal a shift in industry and
market share and opportunity or
threat
3. Take an inventory of your
Corporate Development options;
there exists more types of deals
than ever before that can augment
existing expansion, deal, or profit
plans.
B2B Entrepreneur Strategies to Capitalize
Market Forecast and Dynamics.
B2B Industry Deal Trends.
As the long-time coming promise of Digital Transformationbecomes
reality for leaders that have made the investment and embraced these new capabilities, the value of
the impact may not exceed the hype, but nonetheless creates a significant competitive advantage for
those that have crossed the digital chasm. The realization of the impact is evident across corporate
financial performance and operating metrics. Emerging technologies that have been embedded into
reengineered processes are delivering greater results anywhere from 200% to much greater.
Landscape. While there are millions of B2B service and software businesses with USA headquarters,
the majority of new firms fail within a few years, and only a small percentage reach success of $10m in
annual recurring revenues within their first ten years of business. In fact, there are less than 100,000
private bootstrapped businesses with $10m+ in recurring annual revenues. Approximately an additional
20,000 funded and backed by investors.
Market. While the overall USA GDP market is growing in the low single digits, select niches and
verticals are experiencing double-digit growth. For the B2B industry, Digital Transformation, including
Platformization, Embedded, Verticalization, AI, Intelligent Automation, and other emerging
technologies, represents a BIG value opportunity, but also a rising cost and risk. In the era of platforms,
verticalization, and the AI arms race; businesses that embrace these technologies and navigate the
changes will be worth more than twice as much as traditional that lagger behind the times. While
valuations may remain steady, in the long-run, traditional service models valuations are declining, and
premium valuations are increasing for technology and market leaders.

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Gross Domestic Product (GDP)
Insights based on the Q1-2024 Data Action based on the Q1-2024 Data
Definition and Purpose
Gross domestic product (GDP) is the total monetary or market value of
all the finished goods a nd services produced within a country’s borders
in a specific time period. As a broad measure of overall domestic
production, it functions as a comprehensive scorecard of a given
country’s economic health.
• The broader economic outlook suggests that despite ongoing challenges such as persistent
inflation and geopolitical conflicts, the U.S. economy continues to grow, albeit at a moderated
pace. Consumer spending, a key driver of GDP, has been robust but is expected to slow down
as pandemic-era savings dwindle and high interest rates persist
Sources: Tagnifi
• With the expected slowdown in the US economy in the near term, small businesses
should monitor consumer spending and adjust offerings.
• They should focus on essential and services as they are more likely to
maintain its demand and must be agile in adjusting product lines for shift in
consumer preferences.
• Strengthen their financial health by building cash reserves to weather economic
uncertainties and potential market downturn.
• Invest in technology and innovation to enhance operating efficiency and open new
revenue streams. Innovative solutions may open to new business models that would
leverage technology to meet emerging market demands.
Business revenue growth is correlated to GDP growth, particularly for cyclical
companies, with higher GDP growth companies can expect higher growth in their
revenue
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

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R&D Expenditure % to GDP
Insights based on the Q2-2024 Data Action based on the Q2-2024 Data
Definition and Purpose
The charts shows the average spending to research & development,
businesses can used this as a benchmark on their budget for research and
development to remain competitive in the market
Gross domestic expenditures on research and development (R&D),
expressed as a percent of GDP. They include both capital and current
expenditures in the four main sectors: Business enterprise,
Government, Higher education and Private non-profit.
• With the advancement of technology since the dot-com bubble, total expenditure of Research
& Development as percentage to GDP went up from 2.8% in 2000 to 3.6% in Q1-2024.
• The development in the artificial intelligence industry are among of the primary driver on the
increase spending to research and development in the recent period.
• It is also worth noting, the Magnificent 7 of the S&P500 which are Apple, Alphabet, Microsoft,
Amazon, Meta, Tesla and NVIDIA comprise around 30% of the index total market cap, which
these companies heavily invested into research & development.
• Companies are taking advantage on the technology to get ahead with the competition
by investing into research & development.
• Allocate at least 3.5% of your annual revenue to research & development to keep up
with the competition.
Sources: Tagnifi
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%2.0%
2.5%
3.0%
3.5%
4.0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
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2011
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2015
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2019
2020
2021
2022
2023
2024

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Equity Risk Premium
Insights based on the Q2-2024 Data Action based on the Q2-2024 Data
Definition and Purpose
Equity risk premium predicts how much a stock might outperform risk-
free investments over the long term. Calculating the risk premium can
be done by taking the estimated expected returns on stocks and
subtracting them from the estimated expected return on risky bonds.
The equity risk premium is represented by the difference between the 5-
year return of Wilshire US Small-Cap and ICE BofA US High Yield.
Equity risk premium is considered as the additional required return on
top of the risk-free rate in raising capital through issuing shares.
Equity risk premiums are cyclical in nature which is high during strong
economic conditions and vice versa. Businesses should always
consider the timing in raising capital through issuing shares, such as
they should raise capital through issuing shares when the market is
depressed to minimize its cost of equity.
• As of July 2024, the equity risk premium fell from its recent high of 3.9% in January 2024 down
0.5%. The stubborn inflation rate in the early part of the year have pushed the Federal Reserve
to reduce its expected cut rate in 2024 from three to one throughout the year, resulting in the
decline in risky assets such as equities.
• Based on the most recent US CPI numbers which have shown some positive sign on declining
back to its long-term target of 2.0%, equity risk premium are expected to recover in 2025.
• As the US inflation rates fading its strength, interest rates are expected to decline in the
medium term which may result in an upside recovery of the equity risk premium.
Businesses could repurchase their shares from their external investors to gain more
control and buyback at a discount.
Sources: Tagnifi
Equity risk premium is the proxy for the cost of raising capital through equities,
businesses who considered raising capital through equity should look at the
current equity risk premium.
0
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1-40.0%
-30.0%
-20.0%
-10.0%
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10.0%
20.0%
30.0%
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Jun-23
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Jun-24

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Cost of Debt –ICE BofAUS High Yield Index
Insights based on the Q2-2024 Data Action based on the Q2-2024 Data
Definition and Purpose
Businesses considering raising capital through debt should check the level of US
high yield index as it represents its relative cost.
The cost of debt is the effective interest rate that a company pays on its
debts, such as bonds and loans. The cost of debt can refer to the before-tax
cost of debt, which is the company’s cost of debt before taking taxes into
account, or the after-tax cost of debt.
The cost of debt is represented by ICE BofA US High Yield Index, which
tracks the performance of below-investment-grade corporate debt publicly
issued in the US domestic market. The said index is a good alternative as a
proxy for the cost of raising capital through debt with small-cap companies.
The cost of debt is an important indicator for businesses that are
considering raising capital through issuing or taking debt. The higher cost of
debt indicates that capital through raising debt would be expensive as
reflected in higher interest expenses that would reduce the company’s
profitability.
• As of July 2024, the cost in raising debt for small businesses stood at 7.2% as represented by
the ICE BofA US High Yield Index – which is a 230 basis points lower from its most recent
peak of 9.5% - recorded in October 2022.
• The cost of debt are expected to remained elevated in the near term but with downward
projection as the inflation rates decelerates moving back to around 3.0%.
• Similar trend are also observed except in 2008 financial crisis, where the cost of debt usually
peaks at around 10.0% and then moved downward to 6.0% on average.
• Cost of debt is trading at multi-year high as represented by the ICE BofA US High
Yield Index, driven by the exhibited monetary tightening by the Federal Reserve to
combat inflation. As a result, businesses should consider an alternative method in
raising capital such as through issuing equity.
• As the inflation rate are a component of cost of debt, while inflation rate expected to
decline in the near term due to restrictive monetary policy. Businesses who have
excess cash may invest into fixed income securities such as US treasuries, as
these assets will gain in value as the yields declines.
Sources: Tagnifi
0
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0.9
10.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
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Dec-16
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Dec-17
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Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Dec-22
Jun-23
Dec-23
Jun-24

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Average Annual Earnings for All Professional and Business Services
Insights based on the Q2-2024 Data Action based on the Q2-2024 Data
Definition and Purpose
Businesses can use this as benchmark to their labor cost and identify if they
overspend or underspend.
The Average Annual Earnings of All Private Professional and Business
Services is a measure of the average annual earnings of all professional
and business services on a “gross” basis, including premium pay for
overtime and late-shift work. These differ from wage rates in that
average annual earnings measure the actual return to a worker for a set
period of time, rather than the amount contracted for a unit of work, the
wage rate. This measure excludes benefits, irregular bonuses,
retroactive pay, and payroll taxes paid by the employer.
• As of June 2024, average annual earnings for all professional and business services stood at
$87,838 compared to $54,430 since the end of 2008 global financial crisis in December 2009.
• Over the last 12 months, average annual earnings for all professional and business services
went up by 4.3% YoY, compared to 3.0% of CPI over the same period.
• Since the start of pandemic in Q1-2020, the average annual earnings of all professional and
business services went up by $14,581 in dollar terms, which is equivalent to 19.9% in the last
four-year period.
• Businesses should reevaluate their annual salary rate appraisal as the average wage
growth declines from 7.1% in Q1-2020 to 4.3% by Q2-2023. Businesses should align
their salary wage growth to the overall average to minimize their future labor cost.
Sources: Tagnifi
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
Sep-07
Mar-08
Sep-08
Mar-09
Sep-09
Mar-10
Sep-10
Mar-11
Sep-11
Mar-12
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Mar-13
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Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Sep-21
Mar-22
Sep-22
Mar-23
Sep-23
Mar-24
Average Annual Earnings for
YoY Growth of Average Hourly Earnings

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Consumer Price Index (CPI) –Inflation Rate
Insights based on the Q2-2024 Data Action based on the Q2-2024 Data
Definition and Purpose
The Consumer Price Index for All Urban Consumers: All Items
(CPIAUCSL) is a price index of a basket of goods and services paid by
urban consumers. Percent changes in the price index measure the
inflation rate between any two time periods. The most common inflation
metric is the percent change from one year ago. It can also represent
the buying habits of urban consumers. This particular index includes
roughly 88 percent of the total population, accounting for wage earners,
clerical workers, technical workers, self-employed, short-term workers,
unemployed, retirees, and those not in the labor force.
• US CPI YoY stood at 3.0% in June 2024 – far cry from its most recent peak of 8.9% last June
2022.
• US CPI continued to decelerates and moving to the Fed’s inflation target of 2.5% as a result of
the Federal Reserve’s monetary tightening. The Federal Reserve have hiked their interest rates
the 11
th
time since April 2022 to combat inflation, increasing from 0.25% to 5.50% - the fastest
rate hike cycle in the last 40 years.
• Businesses should increase the prices on segment with strong demand, despite the
declining inflation rates, while keep the prices or increase slightly the prices of segment
with weaker demand to offset the overall effect.
• Businesses should also be careful on raising prices on segment which have high
elasticity despite the strong demand as it might also impact the overall revenue if the
increase is too high.
• With inflation potentially impacting consumer purchasing power, business should
manage their inventory levels carefully, particularly on items with fluctuating demands.
Sources: Tagnifi
The growth of operating cost of the businesses are linked to
the increased in the inflation rate, businesses should forecast
the rate of their operating cost based on the direction of
inflation rate.
0%
10%
20%
30%
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60%
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80%
90%
100%-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Jul-07
Jan-08
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Jan-24

122. 16
CFO Services –
F&A, consulting
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Comparable
Company
Analysis
Valuation comparison of Private vs Investor
Backed vs Public
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Seismic shift for tech-enabled solutions creates
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123. The Future of Work
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Investment outlook, options and opportunities.He’s covered and advised as an M&A
Corporate Development industry expert for B2B Work Tech for 2 decades.
Contact Charles for your personal briefing
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