Quarterly M&A Report

QUARTERLY M&A REPORT Q3 2021
Q3 2021
M&A Insider Report

Defense, Government Physical & Cyber Critical Maritime Transport
& Intelligence Security Infrastructure & Facilities
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QUARTERLY
TMG OVERVIEW
M&A REPORT Q3 2021
The McLean Group is a 25-year-old boutique investment bank and financial services firm focused on the Defense, Government &
Intelligence (DGI); Physical & Cyber Security; Critical Infrastructure; and Maritime Transport & Facilities markets. Our 60+ professionals
bring deep industry experience and relentless execution to every client engagement. We provide solutions that blend financial
creativity with operational expertise. Whether we are providing transaction advisory, valuation opinions, or growth capital, our services
are unmatched in these core markets.
Our clients are special, and their missions are often vital to national security. They are required to be excellent at all times, and they
expect the same from their transaction advisor.
HIGHLY SPECIALIZED BOUTIQUE INVESTMENT BANK
Our trusted team of financial professionals provides middle-market clients with transaction advisory services, business valuation
services, and growth capital to help them reach their short and long-term goals.
CORE BUSINESS KEY STATISTICS
Mergers &
Acquisitions
Valuation
Advisory
Growth
Capital
> $6B 25
Total Transaction Value Since Years Supporting Our Clients
Sell-Side Advisory Business Valuations Capital Infusion 2010
Buy-Side Support Complex Securities Valuations
Corporate Divestures
Leveraged Transactions
ESOPs
ESOP Valuations
Estate & Gift Valuations
Impairment Testing
130+ 5
Closed M&A Engagements Dedicated Offices
Exit Strategy Plans Portfolio Valuations Since 2010
Purchase Price Allocations
Tangible Asset Valuations
Transaction Options
Transaction Valuations
6 400+
Growth Capital Investments Annual Valuation Clients
The McLean Group

Premier middle market investment bank 2
QUARTERLY M&A REPORT TMG DEALS IN REVIEW Q3 2021
September 21, 2021: Criterion Systems, Inc. October 4, 2021: CGI Inc. (NYSE: GIB) (TSX:
(Criterion) acquired Protas Solutions Inc. GIB.A) acquired Array Holding Co., Inc.
(Protas), a provider of data science, (ARRAY) in an effort to expand its federal
software engineering, and management division’s footprint into the U.S. Air Force
consulting services to the Intelligence and Space Command markets. ARRAY is a
Community (IC). Protas will operate as a leading application and digital services
wholly-owned subsidiary of Criterion, and provider for the U.S. DoD and other
Criterion co-founder and Chief Financial government organizations with service
Officer Steve Mast will serve as President of offerings including enterprise solutions,
the subsidiary. Protas’ employees will join software development, systems engineer-
Criterion’s Intelligence Solutions (IS) business unit, which focuses ing, and critical mission support. The merger will bring 275 ARRAY
on providing systems integration, software engineering, and cyber professionals to CGI and enhance the company’s position as a
operations-focused services to current and future customers. leading provider of digital modernization services to meet public
Protas Chief Executive Officer William (Bill) Monas will become a sector client needs. The combined portfolio of enterprise
Criterion Vice President, responsible for business development for application expertise in modernization, DevSecOps, cloud, data
the IS business unit. Protas President and Chief Technology Officer analytics, and cyber security further strengthens CGI's position as a
Anthony Monas will also become Vice President, responsible for powerful end-to-end solutions provider to federal, state, and local
solutions and intellectual capital development. This marks the governments. It also provides access to ARRAY’s portfolio including
second acquisition that Criterion has made in the past year to Army Information Technology Enterprise Solutions – 3 Services
support the growth of their Intelligence Solutions business unit. (ITES-3S), Air Force Technology Enterprise Solutions – 3 Services,
Protas will join Realm Consulting to enable Criterion to deliver a Air Force Network-Centric Solutions-2, General Services
broad range of innovative IT solutions to the IC. This is The McLean Administration’s IT Schedule 70, and others. As a result of the
Group’s second transaction with an Intelligence Community acquisition, CGI Federal has decided to reorganize its operations
contractor in the past 12 months. The terms of the transaction by dividing its four previous sectors into seven separate business
were not disclosed. practices. The terms of the transaction were not disclosed.
The McLean Group

QUARTERLY M&A REPORT POTENTIAL TAX INCREASES Q3 2021
PROPOSED TAX INCREASES
20.0% 25.0% 39.6%

Long-Term Capital Gains
21.0% 26.5% 28.0%

Corporate
10.5% 16.6% 21.0%

Minimum on Foreign Income of
U.S. Companies
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Current Rate House Democrats’ Proposal Biden’s Proposal
Commentary
─ On September 13th, House Democrats released their proposed tax plan which called for increases on a variety of taxes, but to a lesser degree
than what President Biden had proposed in the plan he released on April 28th.
─ The House Democrats’ plan calls for increasing long-term capital gains taxes from the current rate of 20.0% to 25.0%. This increase is
substantially lower than the previously proposed increase to 39.6% by President Biden and his administration.
─ The House Democrats’ proposal would make the capital gains tax increase effective as of September 13th, meaning that any sales after this
date would be retroactively taxed at the new rate. Biden’s earlier proposal aimed to make the increase effective as of late April 2021.
─ In late May, the leaders of each of the six largest U.S. banks testified to Congress and warned that a retroactive change to the capital gains
tax would spook small businesses and investors, likely causing economic damage. A retroactive increase is likely to face aggressive opposition
from Republicans in Congress, with even some Democrats expressing hesitance around the proposal.
─ Many investors have been trying to sell before a possible increase in capital gains. There will likely be a strong push to close deals by year end
given that Democrats face an uphill battle to making tax increases retroactive.
Source(s): Wall Street Journal
The McLean Group

QUARTERLY M&A REPORT RELEVANT NEWS & COMMENTARY Q3 2021
Defense, Government & Intelligence Overview
─ The Senate has yet to approve a debt limit increase, placing the ─ Chairman of the Joint Chiefs of Staff Gen. Mark Milley
Government in threat of default. Senate is split along party lines recommended deeper military communication between U.S and
over the vote to increase the debt limit, preventing the Treasury Russia. Gen. Milley met with Russian counterpart Gen. Valery
Department from raising money for expenses that have previously Gerasimov on September 22nd in Helsinki to discuss risk
been authorized. Treasury Secretary Janet Yellen told lawmakers reduction and operational deconfliction. This meeting comes
the government would exhaust it cash reserves, preventing it after Russian President, Vladimir Putin, rejected the U.S.
from paying bills and shutting down the Government as soon as entreaties for establishing a presence in Central Asia to
October 18th if the debt ceiling isn’t raised. strengthen over-the-horizon capabilities to conduct airstrikes
and ISR from outside Afghanistan. These capabilities will now
─ The House passed 2022 NDAA, which boosts defense spending by
have to rely heavily on satellites and drones launched from gulf
$37.5B, a 5.0% increase over last year’s bill. The bill included
state bases and U.S. aircraft carriers, significantly limiting the
funding for 13 additional naval warships, improvements to the
amount of time they can linger over targets.
cyber workforce, and an expansion of the draft to women. The bill
also included provisions to create a board of software acquisition ─ The Department of Defense established a supply chain resiliency
experts aimed at developing a strategic agile contracting group with a common goal of addressing systemic barriers
mechanism for quicker software acquisition. The senate has yet to currently limiting supply chain visibility, conducting resiliency
approve its version of the NDAA which sets DoD policy priorities assessments, and developing effective mitigation actions. The
and spending limits. DoD is also exploring a new BPA targeted at supporting efforts
─ The Department of Homeland Security awarded a $3.0B BPA to related to supply chain data and information sharing as well as
support its financial systems modernization program. DHS made an RFI in late July seeking to build a software platform for
awards on September 2nd, to Carahsoft, CGI Federal, and Mythics. automated vendor, supply chain, and affiliated entity vetting.
This BPA will supply DHS with software and complements a $1.0B
systems integration BPA that was awarded in April. DHS has faced
difficulties with its disparate financial management systems since
it was formed in 2003 through the consolidation of 22 agencies.
Source(s): Wall Street Journal, New York Times,
Federal Contracting Workforce (FCW)
The McLean Group

QUARTERLY M&A REPORT TMG CUSTOM INDICES Q3 2021
TRAILING TWELVE MONTHS (TTM) PUBLIC EQUITY INDEX CHART 1

40% 48.0%
35%
30% 29.6%
25%
21.6%
20%
16.6%
15%
10%
11.6%
8.1%
5%
0%
-5%
-10%
Sep-20 Nov-20 Dec-20 Feb-21 Mar-21 May-21 Jun-21 Aug-21 Sep-21
Defense Primes MM Gov’t Services Gov’t Contractors Defense Systems S&P 500
Market Commentary
─ For much of the past twelve months, most of the TMG custom DGI indices tracked the S&P 500. Recent events including the Afghanistan
withdrawal and potential government shutdown have driven the indices below the broader market. Middle market government services
were especially impacted as they are more susceptible to disruption due to a shutdown.
─ Defense Systems companies and Government Contractors have faired better throughout these recent market fluctuations relative to the
other custom DGI industries due to firms in these segments possessing a more diversified offering and customer base.
─ The Defense Primes index has continued to lag due to the index’s greater exposure to the aerospace market, which has been slower to
recover from COVID-19 than anticipated.
Source(s): S&P Capital IQ

1. For composition of indices, see page 27
The McLean Group

QUARTERLY M&A REPORT NOTABLE PRECEDENT TRANSACTIONS Q3 2021
Overview TRANSACTIONS BY MONTH

Q4 2020 Q1 2021 Q2 2021 Q3 2021
Q3 2021 saw tremendous deal volume relative to recent quarters as 70 49 62 73
strong activity in the middle market continued drive sales / exits ahead
29
of potential increases in capital gains taxes. This activity has also been 26 26
supported by strong valuations as buyers continue to take advantage 23 22
20 21 21 21
of lower interest rates – a significant amount of activity was seen 16 17
among private equity firms. 12
We expect the remainder of 2021 to be strong from a deal volume

perspective as tax considerations continue to drive activity in the
market and sellers try to close by year-end.
Key Statistics Key Statistics Key Statistics

Date: 7/15/2021 Date: 7/16/2021 Date: 8/3/2021
EV: ND EV: ND EV: ND
acquired by acquired by acquired by
EBITDA Multiple: ND EBITDA Multiple: ND EBITDA Multiple: ND
Subsector: Government Subsector: Government Subsector: Government
Services Services Services

Date: 8/19/2021 Date: 9/21/2021 Date: 9/22/2021
as-a-service business
EV: $1,650.0M EV: ND EV: ND
Subsector: Defense Prime Subsector: Government Subsector: Government
Services Services
Source(s): DACIS, S&P Capital IQ
The McLean Group

QUARTERLY M&A REPORT RECENT M&A ACTIVITY Q3 2021
Closed EV EV /
Acquirer(s) Target(s) Target Description
Date ($M) Rev. EBITDA
Offers supply chain, logistics, facility, and data
7/1/2021 Valiant Integrated Services Alliance Technical Services ND ND ND
management services
Manufactures and markets small arms and
7/2/2021 Chumash Capital Investments Capco ND ND ND
ordinance components for military / maritime
Science Applications Provider of professional and technology
7/2/2021 Halfaker And Associates $214.0 1.3x ND
International Corporation solutions
Combat Propulsion Systems and Manufactures and markets military engines
7/2/2021 Renk Aktiengesellschaft $400.0 1.7x ND
related businesses of L3Harris and transmissions
Designs and manufactures space-qualified
7/6/2021 BlueHalo DDES ND ND ND
electronic systems and sub-systems
Provides cyber and information environment
7/6/2021 Parsons Government Services BlackHorse Solutions $203.0 ND ND
solutions and services
CONTROP Precision Israeli-technology integration company
7/8/2021 ESC BAZ ND ND ND
Technologies focused on smart video
Designs and develops cyber tools and
7/15/2021 Avantus Occam's Razor Tech ND ND ND
integrated software solutions
Provider of information technology consulting
7/16/2021 ECS Mission Solutions IndraSoft ND ND ND
and cyber security services
Develops AI-enhanced autonomy, swarming
7/22/2021 Shield AI Heron Systems ND ND ND
systems, and mission planning solutions
Engineering and cyber security solutions
7/23/2021 Deloitte Consulting Sentek Global ND ND ND
business
7/27/2021 Logistics Management Institute Suntiva Management and technology consulting firm ND ND ND
Engaged in the R&D, manufacture, and

7/30/2021 Shield AI Martin UAV ND ND ND
operation of unmanned aerial systems (UAS)
7/30/2021 Parsons Corporation Echo Ridge Manufactures devices for wireless applications $9.0 ND ND
The McLean Group

QUARTERLY M&A REPORT RECENT M&A ACTIVITY, CONTD. Q3 2021
Closed EV EV /
Engineering, security and training support
8/2/2021 Broadtree Partners Sayres and Associates ND ND ND
services for the DoD
Technology and creative design company
8/3/2021 IntelliBridge U.Group ND ND ND
providing IT services to government
Offers program management, logistics and
8/5/2021 Counter Threat Solutions Quantitative Analytics ND ND ND
aviation operations, and IT services
Provides IT consulting, data analytics, AI/ML,
8/9/2021 ASGN Enterprise Resource Performance ND ND ND
and healthcare domain services
Information systems and engineering services
8/16/2021 Castellum Specialty Systems ND ND ND
consulting company
Offers systems engineering, software
8/16/2021 Vetegrity DB2 ND ND ND
engineering, and project management services
Operates as a program management and
8/18/2021 Sedulous Consulting Services Infinity Support Services ND ND ND
technical support consulting company
Designs and integrates electro-optical infrared
8/18/2021 ATL Partners GEOST ND ND ND
sensors for national security space missions
Provides IT, digital, cyber, and data analytics
8/19/2021 GovernmentCIO Salient CRGT ND ND ND
services to federal government customers
Provides engineering, IT, naval architecture,
8/19/2021 Huntington Ingalls Industries Alion Science and Technology $1,650.0 ND ND
and operational solutions
Provides software engineering, cyber, and
8/24/2021 Two Six Technologies Trusted Concepts ND ND ND
analytics solutions
Provides healthcare consulting and research
8/24/2021 Customer Value Partners Atlas Research ND ND ND
services
Develops undersea warfare and unmanned
8/25/2021 VTG ASSETT ND ND ND
systems
Specializes in business intelligence, data
8/25/2021 Bluestone Investment Partners cBEYONDData $14.8 ND ND
analytics, and business automation solutions
The McLean Group

QUARTERLY M&A REPORT RECENT M&A ACTIVITY, CONTD. Q3 2021
Closed EV EV /
Manufactures production drones for a range of
9/1/2021 Red Cat Holdings Teal Drones ND ND ND
applications
Provides electronic manufacturing services
9/1/2021 Spartronics Inovar ND ND ND
(EMS) and supply chain solutions
9/2/2021 Quantic Electronics ITW Paktron Manufactures polymer film capacitors ND ND ND
IT and DevOps consulting services to federal

9/8/2021 Contegix Ascend Integrated Technologies ND ND ND
and commercial clients
IT and engineering services to federal and
9/8/2021 Document Storage Systems SBG Technology Solutions ND ND ND
commercial clients
Geospatial services, including
9/9/2021 Woolpert Optimal GEO ND ND ND
Photogrammetric Mapping and Orthoimagery
Designs, engineers, manufactures, and markets
9/13/2021 Fairbanks Morse Defense Hunt Valve Company ND ND ND
fluid power engineering solutions
Designs, develops, and manufactures Small
9/14/2021 UAVFACTORY Jennings Aeronautics ND ND ND
Unmanned Aerial Systems (SUAS)
Island Empire Community Management consulting, acquisition
9/16/2021 Digitalspec ND ND ND
Development management, and program management firm
Provider of data science, software engineering,
9/21/2021 Criterion Systems Protas Solutions ND ND ND
and management consulting services to the IC
Cloud solution platform that enables scale and
9/22/2021 Peraton as-a-service business of ViON ND ND ND
governance
Karman Missile & Space Manufactures components and systems for
9/23/2021 Systima Technologies ND ND ND
Systems defense, space, and commercial markets
Sage Black Consulting & Provides IT consulting and contracting services
9/28/2021 Criterion Systems ND ND ND
Contracting to geoint/sigint, space, and cyber domains
The McLean Group

QUARTERLY M&A REPORT PUBLICLY TRADED COMPANIES Q3 2021
CAPITAL MARKETS DATA

Stock Price Ent. CY2021E CY2022E TEV /2021E TEV/2022E
9/30/21 Value Revenue EBTIDA Margin Revenue EBITDA Margin Revenue EBITDA Revenue EBITDA
Defense Primes
Lockheed Martin 345.10 104,997.9 68,335.2 10,501.7 15.4% 70,737.9 10,873.9 15.4% 1.54x 10.00x 1.48x 9.66x
Northrop Grumman 360.15 67,460.3 36,254.4 6,155.6 17.0% 38,039.9 5,118.8 13.5% 1.86x 10.96x 1.77x 13.18x
General Dynamics 196.03 67,394.8 39,285.8 5,067.5 12.9% 40,851.7 5,322.7 13.0% 1.72x 13.30x 1.65x 12.66x
L3Harris 220.24 50,086.8 18,482.8 3,890.0 21.0% 19,134.4 4,194.2 21.9% 2.71x 12.88x 2.62x 11.94x
Average $280.38 $72,484.9 $40,589.6 $6,403.7 16.6% $42,191.0 $6,377.4 15.9% 1.96x 11.78x 1.88x 11.86x
Middle Market Gov’t Services

PAE 5.98 1,564.1 3,035.3 204.1 6.7% 2,992.2 201.3 6.7% 0.52x 7.66x 0.52x 7.77x
Vectrus 50.28 724.0 1,780.8 90.5 5.1% 1,900.0 102.5 5.4% 0.41x 8.00x 0.38x 7.06x
VSE 48.17 912.6 726.9 82.0 11.3% 843.0 103.5 12.3% 1.26x 11.13x 1.08x 8.82x
Average $34.81 $1,066.9 $1,847.7 $125.5 7.7% $1,911.7 $135.8 8.1% 0.73x 8.93x 0.66x 7.88x
Gov’t Contractors
Leidos. 96.13 19,117.7 13,996.6 1,486.3 10.6% 15,038.0 1,576.1 10.5% 1.37x 12.86x 1.27x 12.13x
Jacobs Engineering 132.53 20,592.8 14,587.0 1,321.6 9.1% 15,663.9 1,519.1 9.7% 1.41x 15.58x 1.31x 13.56x
Booz Allen Hamilton 79.35 13,303.4 8,244.0 897.8 10.9% 9,017.2 963.4 10.7% 1.61x 14.82x 1.48x 13.81x
SAIC 85.56 7,635.4 7,388.4 669.2 9.1% 7,725.3 697.0 9.0% 1.03x 11.41x 0.99x 10.95x
CACI 262.10 8,279.3 6,149.1 647.2 10.5% 6,523.9 715.2 11.0% 1.35x 12.79x 1.27x 11.58x
Parsons 33.76 3,876.9 3,657.5 304.4 8.3% 3,863.3 346.1 9.0% 1.06x 12.74x 1.00x 11.20x
ManTech 75.92 3,156.4 2,659.6 249.8 9.4% 2,795.1 258.3 9.2% 1.19x 12.63x 1.13x 12.22x
Average $109.34 $10,851.7 $8,097.5 $796.6 9.7% $8,661.0 $867.9 9.9% 1.29x 13.26x 1.21x 12.21x
The McLean Group

QUARTERLY M&A REPORT PUBLICLY TRADED COMPANIES, CONTD. Q3 2021

Defense Systems
HEICO 131.87 17,137.3 1,945.4 510.6 26.2% 2,227.0 603.5 27.1% 8.81x 33.57x 7.70x 28.40x
Teledyne 429.58 24,235.7 4,591.0 981.9 21.4% 5,573.8 1,288.3 23.1% 5.28x 24.68x 4.35x 18.81x
Elbit. 145.52 7,742.3 5,028.0 553.0 11.0% 5,271.0 604.0 11.5% 1.54x 14.00x 1.47x 12.82x
Mercury Systems 47.42 2,866.4 956.9 201.2 21.0% 1,073.4 237.4 22.1% 3.00x 14.25x 2.67x 12.07x
Kratos 22.31 2,794.9 835.4 84.1 10.1% 962.0 111.9 NA 3.35x 33.24x 2.91x 24.98x
Average $155.34 $10,955.3 $2,671.3 $466.2 17.9% $3,021.4 $569.0 20.9% 4.39x 23.95x 3.82x 19.42x
Low $5.98 $724.0 $726.9 $82.0 5.1% $843.0 $102.5 5.4% 0.41x 7.66x 0.38x 7.06x
Mean $145.68 $22,309.4 $12,523.2 $1,784.1 13.0% $13,170.2 $1,833.5 13.4% 2.16x 15.08x 1.95x 13.35x
Median $96.13 $8,279.3 $5,028.0 $647.2 10.9% $5,573.8 $697.0 11.2% 1.54x 12.86x 1.47x 12.13x
High $429.58 $104,997.9 $68,335.2 $10,501.7 26.2% $70,737.9 $10,873.9 27.1% 8.81x 33.57x 7.70x 28.40x
The McLean Group

Physical & Cyber Security Overview
─ Chip shortages and 5G threaten to disrupt smaller alarm and ─ President Biden and his administration are pushing Federal
security services firms. Many security service and alarm Agencies to adopt a zero-trust policy. Zero-trust cyber security
companies provide systems to their commercial and residential frameworks differ from traditional approaches in that tools and
customers that communicate using 3G technology. AT&T has personnel still do not receive a trusted status even after making it
announced it would phase out 3G service in Feb. 2022 to free up past perimeter defenses. Adopting this framework will not be a
the spectrum range for 5G, while Verizon is giving customers until simple task and involves developing a catalog of devices and data
the end of the calendar year. For many security and alarm access controls as well as instituting multifactor or biometric
companies, this trend means their equipment will not have a authentication. The OMB draft strategy currently directs federal
connection after February 2022. The systems can be updated to agencies to adopt this framework by FY 2024.
utilize 5G, however chip shortages have made it difficult for ─ The Cybersecurity and Infrastructure Security Agency (CISA)
smaller security and alarm providers to procure the equipment unveiled its Joint Cyber Defense Collaborative initiative on August
needed to update systems. 5th. This new initiative recruits leading technology companies
─ To combat rampant ransomware attacks, the Biden administration including Amazon, Microsoft, and Google to combat ransomware
is turning to crypto currency payments. Cyber criminals have and cyber attacks on cloud computing providers, with the goal of
demonstrated that ransomware attacks can range in severity and fostering a collaborative working relationship between the
impact from threatening national security to disrupting government and private sector in order to improve defensive
operations of firms that are integral to the U.S. food, energy, and cyber security planning.
financial systems. In response, the Treasury Department has ─ Cyber criminals continue to target critical infrastructure industries,
begun to impose sanctions on virtual currency exchanges used by specifically Iowa grain co-op. New Cooperative, an Iowa grain co-
cyber criminals to facilitate ransom payments. The sanctions op was the victim of a ransomware attack linked to the criminal
imposed include the virtual currency exchange, Suex, which was group BlackMatter. The criminals demanded $5.9M in exchange
used during the Colonial Pipeline and JBS attacks. for the organization’s data. New Cooperative has successfully
contained the threat and is working with law enforcement and
data security experts.
Source(s): Wall Street Journal, New York Times
The McLean Group

QUARTERLY M&A REPORT TMG CUSTOM INDICES Q3 2021
TRAILING TWELVE MONTHS (TTM) PUBLIC EQUITY INDEX CHART 1
70.0%
60.0%
52.1%
50.0%
40.0% 38.2%
30.0% 29.6%
20.0%
10.0%
14.3%
0.0%
-10.0%
Sep-20 Nov-20 Dec-20 Feb-21 Mar-21 May-21 Jun-21 Aug-21 Sep-21
Security Services Security Solutions Cyber Security S&P 500
Market Commentary
─ The Security Services index had tracked the S&P 500, performing strongly alongside the market. However, the recent spread of the Delta
variant and related labor shortages have negatively impacted operations and resulted in some index constituents lowering revenue guidance
for the remainder of the year.
─ Security Solutions have continued to outperform the market as the popularity of “smart” home trends continues and security solutions
become increasingly integrated within modern homes and offices.
─ An ever-growing government and private sector spending priority, the Cyber Security index has outperformed the market for the majority of
the year as organizations look to defend themselves from cyber attacks.

1. For composition of indices, see page 27
The McLean Group

OVERVIEW TRANSACTIONS BY MONTH

Q4 2020 Q1 2021 Q2 2021 Q3 2021
Market activity during Q3 2021 was relatively stable with transactions 48 48 35 31
occurring across the security landscape. We expect this stability to
continue through the remainder of the year. 21 22
One of the more prominent transactions in the space this quarter was 17
15
Securitas’ acquisition of Protection1. This acquisition will double 12 13 13
11 11
Securitas’ security solutions business and highlights the trend of security 9 9 9
service companies driving growth through more diversified product and

service offerings.
video surveillance Date: 7/20/2021 Date: 7/29/2021 (A) Date: 8/3/2021

portfolio & assets
EV: $7.8M EV: $85.6M EV: ND
Subsector: Security Solutions Subsector: Security Services Subsector: Cyber Security
Date: 8/25/2021 (A) Date: 9/1/2021 Date: 9/13/2021 (A)

EV: $85.0M EV: ND EV: $160.0M
Subsector: Cyber Security Subsector: Security Solutions Subsector: Cyber Security

(A) – announcement date
The McLean Group

Closed EV EV /
Provides scalable Linux operating system
7/7/2021 Sophos Group Capsule 8 ND ND ND
security
Mobile Communications Security and audiovisual solutions including
7/7/2021 Madel Enterprises ND ND ND
America access control, CCTV, and fire alarm systems
Provides SaaS products that detect phishing,
7/12/2021 (A) Microsoft RiskIQ ND ND ND
fraud, malware, and other threats
Develops and manufactures static analysis
7/12/2021 Aqua Security Software tfsec ND ND ND
security scanners
Provides a cyber security monitoring services
7/13/2021 Barracuda Networks SkOUT Secure Intelligence ND ND ND
platform with data analytics capabilities
Designs, implements, and services life safety
7/14/2021 Fortis Fire Safety LifeSafety Management ND ND ND
and fire protection systems
Security solutions for offices by combining
7/15/2021 Motorola Solutions Openpath Security $297.0 ND ND
hardware with a cloud-based control system
IT technology and cyber security services
7/15/2021 ID Technologies Attila Security ND ND ND
specializing in data protection solutions
Fidelity Building Protection and Installs, services, and repairs surveillance alarm
7/16/2021 Hoosier Security ND ND ND
Management Systems systems for residential and commercial clients
Provides automated systems that detect and
7/16/2021 Rapid7 IntSights Cyber Intelligence $308.3 ND ND
remediate threats
Provides solutions that automate risk
7/20/2021 (A) Sysdig Apolicy.IO ND ND ND
assessment
Video Surveillance and Assets of Operates intelligent hyperconverged
7/20/2021 Quantum $7.8 ND ND
Pivot 3 infrastructure
Omnitech Communications & Designs and installs burglar alarms, security
7/21/2021 Security Alarm Corporation ND ND ND
Protection alarms, and commercial fire alarms
7/29/2021 (A) Securitas Protection One Remote surveillance and monitoring services $85.6 ND ND

The McLean Group

Closed EV EV /
Self-managed SaaS platform enabling
8/2/2021 Ivanti Software RiskSense ND ND ND
organizations to assess cyber risk exposure
Designs, installs, and maintains commercial
8/3/2021 Convergint Technologies Premier Security Group ND ND ND
electronic security
Provides cyber risk management, cyber
8/3/2021 Deloitte Consulting aeCyberSolutions ND ND ND
security programs, & security implementation
Provides locksmith services and integrated
8/9/2021 Floyd Total Security Armor Security ND ND ND
security electronics
Develops anti-piracy software for content
8/9/2021 Synamedia Holdings ContentArmor ND ND ND
owners and sellers
Offers a range of software related to security,
8/10/2021 (A) NortonLifeLock Avast $8,019.7 ND ND
privacy, and performance
Offers technology for detecting and tracking
8/12/2021 (A) Tevano Systems Holdings Illuria Security $3.0 ND ND
attackers of critical networks
Provides fire protection, security, AV, and life
8/19/2021 Pye-Barker Fire and Safety Keystone Fire and Securities ND ND ND
safety solutions
Provides education and consulting for security
8/21/2021 Elastic Perched ND ND ND
analysis and threat hunting
Integration platform for developers to
8/23/2021 (A) Elastic Build Security $45.0 ND ND
authorize policy management
GCM Grosvenor / Labor Impact Telecommunications and security monitoring
8/24/2021 (A) Horizon Telcom ND ND ND
Funds services provider
Virtual reality platform for law enforcement
8/25/2021 InVeris Training Solutions SURVIVR PBC ND ND ND
training
Security platform providing control of cloud
8/25/2021 (A) Elastic CmdWatch Security $85.0 ND ND
workloads
8/30/2021 (A) Check Point Software Avanan Cloud email security platform ND ND ND

The McLean Group

Closed EV EV /
Designs, fabricates, and installs automatic fire
9/1/2021 The Hiller Companies Carolina Fire Control ND ND ND
sprinkler systems
Offers installation and maintenance services
9/1/2021 Janus International Access Control Technologies ND ND ND
for access control, CCTV, and security
Provides fire, security, and communication
9/3/2021 (A) Corbett Technology Solutions AFA Protective Systems $131.8 1.6x 22.9x
systems
9/7/2021 Cennox National Safe & Security Systems Offers a range of high-quality vaults and safes ND ND ND
Facility contracting services as well as

9/8/2021 Convergint Technologies ATS Alaska & ATS Facility Systems ND ND ND
integrated systems for security
Develops solutions related to cryptocurrency
9/9/2021 (A) Mastercard CipherTrace ND ND ND
and anti-money laundering
Develops security platforms to protect full
9/13/2021 (A) Tenable Holdings Accurics $160.0 ND ND
cloud native stack
Manufactures and sells containers to keep
9/14/2021 GMI Holdings BenchSentry ND ND ND
packages out of sight
9/14/2021 (A) WorkWave TEAM Software Software solutions and field force automation $85.6 ND ND
9/15/2021 Route1 SPYRUS Solutions Develops encryption/authentication solutions ND ND ND
Omnitech Communications & Develops and operates Security-as-a-Service

9/16/2021 Cytracom ND ND ND
Protection solutions for unified threat management
Develops cloud and security compliance
9/20/2021 (A) F5 Networks Threat Stack $68.0 ND ND
solutions
Provides threat protection, specialized training,
9/20/2021 (A) Allied Universal Security MSA Security ND ND ND
and business intelligence services
9/21/2021 (A) OneTrust Tugboat Logic Develops automation of security certification ND ND ND

The McLean Group

QUARTERLY M&A REPORT PUBLICLY TRADED COMPANIES Q3 2021

Security Services
Securitas 15.89 7,661.8 12,313.4 957.5 7.8% 12,877.7 1,016.1 7.9% 0.62x 8.00x 0.59x 7.54x
The Brink's Company 63.30 5,757.9 4,239.4 660.9 15.6% 4,704.9 772.8 16.4% 1.36x 8.71x 1.22x 7.45x
Prosegur 2.98 3,008.6 4,123.9 482.8 11.7% 4,420.7 562.6 12.7% 0.73x 6.23x 0.68x 5.35x
Loomis 27.16 2,490.3 2,283.0 444.4 19.5% 2,454.9 510.9 20.8% 1.09x 5.60x 1.01x 4.87x
Average $27.33 $4,729.7 $5,739.9 $636.4 13.6% $6,114.5 $715.6 14.5% 0.95x 7.14x 0.88x 6.30x
Security Solutions
Honeywell International 212.28 156,868.0 35,119.2 8,807.4 25.1% 37,791.7 9,756.6 25.8% 4.47x 17.81x 4.15x 16.08x
Johnson Controls 68.08 57,368.2 24,277.2 3,678.5 15.2% 25,889.9 4,159.7 16.1% 2.36x 15.60x 2.22x 13.79x
Motorola Solutions 232.32 43,594.5 8,164.8 2,393.2 29.3% 8,666.1 2,638.6 30.4% 5.34x 18.22x 5.03x 16.52x
ADT 8.09 16,452.9 5,231.7 2,166.1 41.4% 5,419.5 2,236.9 41.3% 3.14x 7.60x 3.04x 7.36x
Allegion 132.18 12,918.8 2,932.1 680.0 23.2% 3,090.3 751.2 24.3% 4.41x 19.00x 4.18x 17.20x
Vivint Smart Home 9.45 4,508.4 1,424.0 645.6 45.3% 1,561.2 719.4 46.1% 3.17x 6.98x 2.89x 6.27x
Alarm.com Holdings 78.19 3,711.3 714.1 133.6 18.7% 765.7 152.4 19.9% 5.20x 27.78x 4.85x 24.35x
Napco Security Technologies 43.08 761.6 124.2 24.7 19.9% 140.8 35.0 24.8% 6.13x 30.88x 5.41x 21.78x
Arlo Technologies 6.41 380.3 416.5 (14.4) -3.5% 462.0 (1.2) -0.3% 0.91x NA 0.82x NA
Average $87.79 $32,951.6 $8,711.6 $2,057.2 23.8% $9,309.7 $2,272.1 25.4% 3.90x 17.98x 3.62x 15.42x
The McLean Group

QUARTERLY M&A REPORT PUBLICLY TRADED COMPANIES, CONTD. Q3 2021

Cyber Security
Fortinet 292.04 45,632.6 3,239.3 925.6 28.6% 3,796.8 1,089.2 28.7% 14.09x 49.30x 12.02x 41.89x
Check Point 113.04 11,039.3 2,144.3 1,042.9 48.6% 2,212.1 1,058.1 47.8% 5.15x 10.59x 4.99x 10.43x
SolarWinds 16.73 4,282.0 882.3 375.4 42.5% 743.3 316.1 42.5% 4.85x 11.41x 5.76x 13.55x
Varonis Systems 60.85 5,980.6 378.4 24.1 6.4% 462.6 48.6 10.5% 15.80x NA 12.93x NA
FireEye 17.80 4,435.1 479.7 (60.6) -12.6% 578.6 62.2 10.7% 9.25x NA 7.67x NA
Tenable 46.14 4,713.9 530.1 54.9 10.4% 628.2 75.8 12.1% 8.89x NA 7.50x NA
NetScout Systems 26.95 1,923.4 843.6 NA NA 875.3 NA NA 2.28x NA 2.20x NA
SecureWorks 19.88 1,526.0 538.8 3.1 0.6% 550.0 (0.7) -0.1% 2.83x NA 2.77x NA
Average $74.18 $9,941.6 $1,129.6 $337.9 17.8% $1,230.9 $378.5 21.7% 7.89x 23.76x 6.98x 21.96x
Low $2.98 $380.3 $124.2 ($60.6) -12.6% $140.8 ($1.2) -0.3% 0.62x 5.60x 0.59x 4.87x
Mean $71.09 $18,810.3 $5,257.1 $1,171.3 19.7% $5,623.4 $1,298.0 21.9% 4.86x 16.25x 4.38x 14.30x
Median $43.08 $4,713.9 $2,144.3 $564.2 19.1% $2,212.1 $641.0 20.4% 4.41x 11.41x 4.15x 13.55x
High $292.04 $156,868.0 $35,119.2 $8,807.4 48.6% $37,791.7 $9,756.6 47.8% 15.80x 49.30x 12.93x 41.89x
The McLean Group

Critical Infrastructure Overview U.S. CONSTRUCTION EMPLOYEES (000’S)
7,800
─ On July 9th, President Biden signed an executive order meant to
7,600
limit the dominance of large corporations. The order specifically
7,400
targets combating the impact of consolidation within the ocean 7,200
shipping and railroad industries. The executive order encourages 7,000
the Surface Transportation Board to mandate reciprocal or 6,800
competitive switching and also asks the maritime commission to 6,600
take steps to reduce the ability of large shipping companies to 6,400
charge high fees. The executive order illustrates the Biden 6,200
6,000
administration’s opposition to consolidation within the critical
5,800
infrastructure industry, which has the potential to hamper M&A.
However, President Biden asserts that his admiration's actions
will benefit small and medium sized companies.
─ U.S. regulators rejected Canadian National Railway’s proposed
voting trust structure to acquire Kansas City Southern on August ─ Like many areas of the economy, the critical infrastructure
31st. Although Kansas City Southern was eventually sold to industry continues to struggle with labor shortages. According to
Canadian Pacific for $31.3B, the intense scrutiny that the deal Associated General Contractors, 89% of contractors have
faced from regulators further illustrates the Biden difficulty finding craft workers. As illustrated above by data from
administration’s opposition to additional consolidation in the FRED, the construction industry labor force continues to lag pre-
critical infrastructure industry. pandemic levels despite largely leveling off over the past year.
─ On July 21st, the Senate held a hearing on “Addressing The continued labor shortage within the critical infrastructure
Cybersecurity Vulnerabilities Facing Our Nation’s Physical industry has the potential to hamper growth going forward.
Infrastructure”. Politicians on both sides of the aisle agreed that
cyber attacks on critical infrastructure continue to remain a
critical threat that most companies are not adequately
addressing or preparing for at the moment.
Source(s): Wall Street Journal, Engineering News-Record,
Reuters, Federal Reserve Economic Data
The McLean Group


Q4 2020 Q1 2021 Q2 2021 Q3 2021
M&A deal volume remains remarkably steady in the critical 117 92 82 69
infrastructure industry as many sellers look to capitalize on continued 53
strong valuations. Despite some political opposition, the critical 44
infrastructure sector saw a litany of large, multi-billion dollar deals in Q3 35
2021. 29 29 27 26 26
24 24 21 22
Investment in energy storage was particularly strong. Energy storage is a
key component in the adoption of renewable power sources that are
not always as reliable and need to be stored as a result. VC firms have
invested $4.9B in rechargeable battery companies so far this year, up
from $1.6B in all of 2020.
Date: 7/6/2021 (A) Date: 7/14/2021 (A) Date: 8/10/2021 (A)

EV: $5,250.0M EV: $5,330.6M EV: $31,329.0M
EBITDA Multiple: ND EBITDA Multiple: 16.6x EBITDA Multiple: 20.8x
Subsector: Water Subsector: Environmental Services Subsector: Transportation
Date: 9/2/2021 (A) Date: 9/16/2021 Date: 9/22/2021 (A)

EV: $2,995.8M EV: ND EV: $499.0M
EBITDA Multiple: 10.3x EBITDA Multiple: ND EBITDA Multiple: ND
Subsector: Energy Subsector: Water Subsector: Infrastructure
Source(s): S&P Capital IQ, WSJ

(A) = announcement date
The McLean Group

Closed EV EV /
Produces specialty chemicals for water
7/6/2021 (A) Sigura Water Solenis International $5,250.0 ND ND
intensive industrial operations
Provides waste and energy services to
7/14/2021 (A) EQT Partners Covanta Holding Corporation $5,330.6 2.7x 16.6x
municipal entities
Provides domestic and international rail
8/10/2021 (A) Canadian Pacific Railway Kansas City Southern $31,329.0 11.2x 20.8x
transportation services in North America
Fossil Generating Portfolio of Public
8/12/2021 (A) Parkway Generation 6,750-megawatt power generation plant $1,920.0 ND ND
Service Enterprise Group
Innergex Renewable Energy; Curtis Palmer (hydroelectric
8/17/2021 (A) Engages in hydroelectricity generation $307.0 ND ND
Hydro-Québec International portfolio)
8/23/2021 (A) Sensata Technologies Holding Spear Power Systems Lithium-ion battery storage system designer ND ND ND
Water treatment technology and solution

8/27/2021 BlueInGreen Adedge Holdings $40.0 ND ND
provider
Provides range of construction and
9/2/2021 (A) Quanta Services Blattner Holding Company $2,995.8 1.2x 10.3x
engineering services
Provides services for water and wastewater
9/9/2021 Chadwick-Baross J.F. McDermott Corp. ND ND ND
industry
Water handling facilities and associated water
9/10/2021 WaterBridge Resources Produced Water Assets ND ND ND
midstream infrastructure
9/16/2021 Clearwater Systems Clean Water Services Water resource management utility ND ND ND
Manufactures chemical feed and flow

9/20/2021 Hawkins Southeast Water Systems ND ND ND
metering for municipal wastewater
Water sourcing, water production, and land
9/21/2021 Lagoon Water Logistics Double Drop Resources ND ND ND
acquisition services
Developer of software platform that
9/22/2021 (A) Procore Technologies Express Lien (Levelset) $499.0 ND ND
processes and manages construction payments

The McLean Group

Maritime Transport & Facilities 2021 FREIGHTOS BALTIC INDEX (FBX) GLOBAL CONTAINER INDEX
$12,000
─ On August 3rd, Allianz Global Corporate & Specialty released their
Safety and Shipping Review for 2021, which highlighted how $10,000
shipping losses remain at historic lows. Only 49 large ships were
lost worldwide in 2020, which is down 50% over the last 10 years. $8,000
Additionally, the number of shipping incidents declined YoY.
$6,000
Despite low losses, the shipping industry faces several security
threats including privacy, which has been exacerbated by $4,000
deteriorating economic conditions in 3rd world countries due to
$2,000
COVID-19. AGCS also sites cyber attacks as a security area of
concern, noting that all four of the world’s largest shipping $0
companies have now been hit by cyber attacks. Shipping and
logistics firms experienced three times as many ransomware
attacks in 2020 over 2019. Although shipping losses are down,
investors need to remain aware of shifting security threats.
─ Growth of freight rates accelerated in mid-July as companies
─ A variety of businesses and investors are looking for different struggled to meet strong consumer demand for goods as a
shipping models to deal with the global supply chain issues. Some result of continued global supply chain issues. At the end of
retailers have began chartering their own ships due to high September 2021, the Freightos Baltic Index had increased 214%
freight prices and limited capacity among shipping companies. over the course of 2021 and is roughly 8x higher than it was pre-
Walmart hired its own ship in August while Home Depot did the pandemic in March 2020. Freight rates are currently the highest
same in June. Additionally, volatility in the sector has led to an they have been in over a decade which has caused an increased
increase in alternative financing methods including convertible demand for ships. Additionally, purchases of dry bulk carriers
debt, private equity capital, and sale-and-leaseback reached record levels for the year in Q3.
arrangements. The entrance of new businesses and investors into
the shipping market presents the possibility for market
disruption.
Source(s): Wall Street Journal , Freightos, Hellenic Shipping
News
The McLean Group


Q4 2020 Q1 2021 Q2 2021 Q3 2021
Although the number of M&A deals closed was down in September, 39 24 28 24
deal flow was otherwise robust throughout the rest of the quarter and is 20
expected to return to previous levels in Q4 of 2021.
14 14
In Q3, many companies looked to quickly bolster their supply chain
11 11 11
management capabilities through inorganic growth in order to respond 8 8
to the many supply chain issues challenging the global economy. 5 5 6
Notably, A.P. Møller - Mærsk A/S acquired two supply chain companies, 2
HUUB and Visible Supply Chain Management, the latter of which had an
EV of $838.0M.

Gemini
Shipholdings
Date: 7/1/2021 (A) Date: 7/1/2021 Date: 7/15/2021 (A)
Corporation
EV: $1,200.0M EV: $131.5M EV: $145.0M
Subsector: Logistics Subsector: Shipping Vessels Subsector: Petroleum Transport

Date: 8/2/2021 Date: 9/13/2021 (A) Date: 9/15/2021
EV: $838.0M EV: $2,280.6M EV: ND
EBITDA Multiple: ND EBITDA Multiple: 13.6x EBITDA Multiple: ND
Subsector: Logistics Subsector: Shipping Vessels Subsector: Logistics

The McLean Group

Closed EV EV /
Offers logistics and supply chain management
7/1/2021 (A) DP World Limited Syncreon.Us $1,200.0 1.09x ND
services
Ship holding company with a fleet of five
7/1/2021 Danaos Corporation Gemini Shipholdings Corporation $131.5 ND ND
container ships
Designs and manufactures fuel optimization
7/6/2021 Yara Marine Technologies AS Lean Marine Sweden AB ND ND ND
systems and propulsion control systems
Waterfront Shipping Company Marine transportation company specializing in
7/15/2021 (A) Mitsui O.S.K. Lines, Ltd. $145.0 ND ND
Limited the transportation of bulk chemicals
Provides ocean freight and rail transportation
7/30/2021 Allcargo Belgium N.V. Nordicon AB $29.0 ND ND
services
Provides customized business-to-business
8/2/2021 A.P. Møller - Mærsk A/S Visible Supply Chain Management $838.0 ND ND
supply chain management solutions
Makena Capital Owner, operator, developer, and acquirer of
8/3/2021 PORT 32 Marinas ND ND ND
Management dry and wet slip coastal marina assets
Comprises marinas located in Naples, Marco
8/10/2021 PORT 32 Marinas Three Marinas ND ND ND
Island, and Cape Coral, FL
Provides marine transportation services for
8/13/2021 SEACOR Holdings U.S. Shipping Corp. ND ND ND
petroleum and commodity chemical products
Provides freight and passenger ferry services in
8/17/2021 (A) Devon Transport Ltd. Lady Rose Marine Services Ltd. ND ND ND
Alberni Inlet and Barkley Sound
Operates a marina in the Caribbean that offers
9/1/2021 Safe Harbor Marinas Marina OldCo. ND ND ND
wetslip, dockage, heliport, and a service center
Invests in vessels on long-term charters in
9/13/2021 (A) KKR & Co. Ocean Yield ASA $2,280.6 12.51x 13.58x
Norway
Logistic and supply chain management
9/15/2021 A.P. Møller - Mærsk A/S HUUB ND ND ND
platform

The McLean Group

QUARTERLY M&A REPORT INDEX COMPOSITION Q3 2021
Defense, Government & Intelligence Physical & Cyber Security
Defense Primes Defense Primes

Lockheed Martin LMT Securitas AB SECU B
Northrop Grumman NOC The Brink’s Company BCO
General Dynamics GD Prosegur PSG
L3Harris Technologies LHX Loomis AB LOOMIS
Middle Market Gov’t Services Security Solutions

PAE PAE Honeywell International HON
Vectrus VEC Johnson Controls International JCI
VSE VSEC Motorola Solutions MSI
Government Contractors ADT ADT
Leidos LDOS Allegion ALLE
Jacobs Engineering J Vivint Smart Home VVNT
Booz Allen Hamilton BAH Alarm.com Holdings ALRM
SAIC SAIC Napco Security Technologies NSSC
CACI International CACI Arlo Technologies ARLO
Parsons PSN Cyber Security

ManTech International MANT Fortinet FTNT
Defense Systems Check Point Software Tech. SHKP
HEICO HEI Proofpoint PFPT
Teledyne Technologies TDY SolarWinds SWI
Elbit Systems ESLT Varonis Systems VRNS
Mercury Systems MRCY Mandiant FEYE
Kratos Defense & Security KTOS Tenable Holdings TENB

NetScout System NTCT
SecureWorks SCWX
The McLean Group

QUARTERLY
CONTACT INFORMATION
M&A REPORT Q3 2021
Mergers & Acquisitions Business Valuation DLS Marine
Mark Bertler Marc Gruzenski Ryan Berry Tyler Halstead Harry Ward
Chicago, IL Los Angeles, CA McLean, VA McLean, VA New Orleans, LA
Water & Wastewater Security & Technology Valuation Advisory Valuation Advisory DLS Marine
(847) 226-0793 (703) 827-0246 (703) 827-0091 (703) 752-9013 (504) 835-8505
[email protected] [email protected] [email protected] [email protected] [email protected]
Paul S. Klick IV Mitch Martin Michael Loftus Shari Overstreet Norman Dufour
McLean, VA McLean, VA McLean, VA Austin, TX New Orleans, LA
Tech. & Critical Infrastructure Defense & Gov’t Services Valuation Advisory Valuation Advisory DLS Marine
(703) 752-9019 (703) 752-9009 (703) 827-0200 (512) 687-3485 (504) 835-8505
[email protected] [email protected] [email protected] [email protected] [email protected]
Barbara Papas Andy Smith Scott Sievers

Dallas, TX McLean, VA McLean, VA
Technology Valuation Advisory Valuation Advisory
(214) 773-7068 (703) 827-0233 (703) 827-8685
[email protected] [email protected] [email protected]
Jack Zollinger
Sarasota, FL
Critical Infrastructure
(239) 595-5151
[email protected]
1660 International Dr.

Suite 810 (703) 827-0200 www.mcleanllc.com
McLean, VA 22102
The McLean Group


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QUARTERLY M&A REPORT Q3 2021

M&A Insider Report

HIGHLY SPECIALIZED BOUTIQUE INVESTMENT BANK

CORE BUSINESS KEY STATISTICS

The McLean Group

The McLean Group

PROPOSED TAX INCREASES

20.0% 25.0% 39.6%

21.0% 26.5% 28.0%

10.5% 16.6% 21.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

Current Rate House Democrats’ Proposal Biden’s Proposal

The McLean Group

Defense, Government & Intelligence Overview

The McLean Group

TRAILING TWELVE MONTHS (TTM) PUBLIC EQUITY INDEX CHART 1

Source(s): S&P Capital IQ

The McLean Group

Overview TRANSACTIONS BY MONTH

We expect the remainder of 2021 to be strong from a deal volume

Key Statistics Key Statistics Key Statistics

Key Statistics Key Statistics Key Statistics

Source(s): DACIS, S&P Capital IQ

The McLean Group

Engaged in the R&D, manufacture, and

Source(s): DACIS, S&P Capital IQ

The McLean Group

Source(s): DACIS, S&P Capital IQ

The McLean Group

9/2/2021 Quantic Electronics ITW Paktron Manufactures polymer film capacitors ND ND ND

IT and DevOps consulting services to federal

Source(s): DACIS, S&P Capital IQ

The McLean Group

CAPITAL MARKETS DATA

Middle Market Gov’t Services

Source(s): S&P Capital IQ

The McLean Group

CAPITAL MARKETS DATA

Source(s): S&P Capital IQ

The McLean Group

Physical & Cyber Security Overview

Source(s): Wall Street Journal, New York Times

The McLean Group

TRAILING TWELVE MONTHS (TTM) PUBLIC EQUITY INDEX CHART 1

Source(s): S&P Capital IQ

The McLean Group

OVERVIEW TRANSACTIONS BY MONTH

service companies driving growth through more diversified product and

Key Statistics Key Statistics Key Statistics

video surveillance Date: 7/20/2021 Date: 7/29/2021 (A) Date: 8/3/2021

Key Statistics Key Statistics Key Statistics

Date: 8/25/2021 (A) Date: 9/1/2021 Date: 9/13/2021 (A)

Source(s): S&P Capital IQ

The McLean Group

Source(s): S&P Capital IQ

The McLean Group

Source(s): S&P Capital IQ

The McLean Group

Facility contracting services as well as

9/15/2021 Route1 SPYRUS Solutions Develops encryption/authentication solutions ND ND ND

Omnitech Communications & Develops and operates Security-as-a-Service

9/21/2021 (A) OneTrust Tugboat Logic Develops automation of security certification ND ND ND

Source(s): S&P Capital IQ