???????????????????? Intelligence - Vol. 2

Welcome to the second issue of martinwolf Intelligence, a newsletter that keeps you up-to-date with IT Sector transactions, analysis, M&A valuations, upcoming IT conferences, Two Minute Takes, and more.

Video of the Month

Two Minute Takes cover industry topics and tidbits in two minutes or less. In this video, Marty Wolf covers the wrong reasons to sell your IT business.

Watch more videos here.

Quarterly Earnings Reports

The martinwolf Quarterly Earnings Reports (QERs) are quick performance snapshots of top IT companies. These highlight key statistics and are released on a quarterly basis after earnings are announced.

• CDW Corporation 4Q FY23 Results
• Arrow 4Q FY23 Results
• ePlus 3Q FY23 Results
• Cancom SE FY23 Results
• Crayon Group Holding ASA 4Q 2023 Results
• PC Connection, Inc. 4Q 2023 Results
• Insight Enterprises, Inc. 3Q 2023 Results
• SoftwareOne Holdings AG FY23 Results

Scoreboard

Released monthly, Scoreboard tracks the median multiples of M&A deals in the IT sector by collecting data on recent transactions and calculating the median enterprise value to EBITDA multiple for each deal.

"Despite strong tailwinds and optimism entering 2024, multiples are mostly down across the board from a Y/Y comparison to last year at this time. We expect these multiples to creep back up throughout 2024." - Michael Rosholt , Vice President at martinwolf

February 2024 Scoreboard

Tracker

Published weekly, Tracker combines?martinwolf‘s U.S., India, and China transaction indexes and compares them to public stock exchanges. These transactions are in the IT & IT Enabled Outsources Services, IT Supply Chain Services, Software, and SaaS segments.

"Prepared weekly by our team of analysts, the?martinwolf?tracker highlights recent M&A transactions globally within three categories: IT Services & BPO, IT Supply Chain, and Software. We comb through each transaction with care to ensure we get a real time feel on the momentum of the market and any trends that emerge." - Jacob Krupp , Senior Analyst at martinwolf

Week of 1.30.24-2.05.24

Week of 2.06.24-2.12.24

Week of 2.13.24-2.19.24

Week of 2.20.24-2.26.24

* Tracker and Scoreboard authored by Alec Buchenic , Associate at martinwolf.

Spotlight

Through Spotlight, martinwolf tracks noteworthy IT mergers and acquisitions in real-time and publishes a deal analysis relating to industry impact, accretive values, and long-term strategic growth.

NWN Carousel acquired by American Securities

martinwolf?Analysis

• Channel Expertise: NWN Carousel, under its new ownership by American Securities, with strong channel expertise and a leader in dramatically growing channel assets, has had multiple successes with their acquisition and sale of Presidio in 2014 and their current ownership of Trace3.
• Multi-Cloud Focus:?The growth NWN Carousel has seen, specifically in their levels of recurring revenue, has been driven by their EMP proprietary software. This backing by American Securities allows them opportunities for focused M&A to continue to expand geographically and add services to support the continued adoption of EMP.
• Ambitious Management Team: THE? NWN Carousel management team, led by Jim Sullivan, demonstrated operational excellence in growing both organically and inorganically while maintaining financial success. This transition to American Securities compliments and further bolsters the managements team’s abilities.
• M&A Tailwinds: This acquisition marks another strong transaction in the channel and will further drive M&A activity through the balance of 2024.

Read more here.

Conferences

Providing news on upcoming conferences where a martinwolf team member is speaking or attending. Take a look and let's talk at an upcoming forum.

MSPrescue, March 27, 2024 in Los Alamitos, California

• Martin Wolf Associates President TIM MUELLER will be discussing how MSPs can "get in position to be in position" for a sale.
• Click here to find a time to meet with the team.

Let's talk

If you'd like to learn more about current trends and valuations in the IT Sector or are contemplating a sale, contact Cindy Thomas, CFA at [email protected]

Questions about martinwolf Intelligence? Contact [email protected].

? martinwolf M&A Advisors 2024, Member FINRA, SIPC