Our Thesis: Value Creation in Industrials

A managed service provider that augments organizational capacity with domain expertise and cutting-edge digital capabilities to deliver outcomes for industrial and industrial technology sector in North America

Massive Segment Comprised Primarily of Mid- And Small-Cap Companies

4000+

Companies

~$3T+

Revenues

80%+

of which are mid-and small-cap

$5T+

Enterprise value

Source: Capital IQ, Ayna.AI analysis

Nearly 2/3 of companies in this sector undervalued by the market

Above median
market multiple

Below bottom quartile
market multiple

Distribution of public companies by
EV/EBITDA multiples, %

Between median and bottom
quartile market multiple

Source: Capital IQ, Ayna.AI analysis

Industrials sector overall shows high correlation between valuations and margins

TEV/ LTM EBITDA multiple, x

Avg EBITDA - Last 5 years, %

CORRELATION COEFFICIENT = 46%

Source: Capital IQ, Ayna.AI analysis

Typical recipe used by Industrial companies that
outperform

Level I – Transform Performance using Data & Analytics

Data, analytics, and technology for industry-leading margin and cash generation within 24 months

Level II – Upgrade
Valuation

Invest or engagement to create transparency on value creation potential

Level III – Use the company as an M&A platform

M & A capital to either roll-up the space or to drive operating improvements to these companies

Three barriers hindering Industrial companies from achieving their value potential

Executional capability

Lack of critical execution capabilities in-house, e.g., performance management, supplier, and customer negotiations

Organizational capability

Attracting right talent for emerging critical functions, e.g., data analytics, e-commerce

Decision-making enablers

Trail other sectors on technology adoption both for customers and internal decision-making (performance management systems)

Ayna.AI - “one-stop-shop” bringing these capabilities to the sector

Proprietary capabilities to execution roles
Deliver operational optimization
Enhancing long-term competitiveness

Turbo-charge transparency
Enhance decision-making in critical areas (e.g., pricing, labor efficiency)

Domain expertise across multiple micro-verticals
Relationship with 1,000+ senior leaders and executives from Industrial ecosystem

Ayna.AI is a “one-stop-shop” that brings these capabilities to Industrial and Industrial tech companies

Execution capabilities to drive alpha

Domain expertise in 90+ micro verticals

Proprietary capabilities to execution roles within companies and drive operational and growth optimization while preserving/ enhancing long-term competitiveness

Bench of talent

Domain expertise in 90+ micro verticals

Relationship with 1,400+ senior leaders and executives (CEOs, CXOs, Board members) from the Industrial ecosystem

Digital tools to enable and sustain impact

Leveraging domain expertise to deploy digital tools that enhance performance transparency and improve decision making in critical areas (e.g. pricing, labor efficiency, etc.)

This website does not constitute an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Ayna or its affiliates nor any company in which Ayna or its affiliates have invested. Nothing on this website constitutes professional or financial advice nor does any information on this website constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Past performance is not indicative of future results. Specifically, there is no guarantee that any results that may be described on this website can be or will be replicated in the future. Some portions of this website include the use of various charts or graphs. These are intended as visual aids only and are not to be construed as a means to make investment decisions of any kind. The information presented represents the opinions of Ayna and its affiliates and all statements of opinion and/or belief contained in this website and all views expressed represent our own assessment and interpretation of information available. While these opinions are based on our experience and research, there can be no guarantee that any expectation discussed in this website will be realized. All trademarks, product names, company names and their respective logos are the property of their respective owners. Learn more about our Terms of Use.