Q2 2023 Enterprise Assessments Deep Dive

DISCUSSION MATERIALS Q2 2023 Page38 1.Houlihan Lokey Overview2.Assessments Segment Deep Dive Page1.Houlihan Lokey Overview32.Assessments Segment Deep Dive8 Houlihan Lokey Is a Leading Corporate Finance Advisor G L O B AL S E L L S I D E M & A E X E C U T I O N B O L S T E R E D B Y L O C ALP R E S E N C E T H E L E AD I N G M & A AD V I S O R , D R I V E N B Y I N D U S T R Y E X P E R T I S E No. 1 global M&A advisor for global transactions under $1 billion*Closed 1,800+ M&A deals in the past five years 36 offices in the Americas, Europe, and Asia370+ cross-border deals since 2011Outstanding track record with international investors, both on sellside and buysidetransactions F U L L Y I N T E G R AT E D D E B T C AP I T AL M AR K E T SC O V E R AG E T E AM Largest dedicatedalternative investorcoverage team in theindustry, with uniqueintelligence tooptimize HoulihanLokey sellsideprocesses Global team of ~90professionals across 11offices in five countriesSenior-level contact into allmajor credit investors$25~ billion capital raisedover the past two years Dedicated coverage of 1,000+funds provides proprietarydata and knowledge of buyerbehavior Since 2015, 700+ private equity firms have chosen Houlihan Lokey toadvise on M&A or capital raising for their portfolio companies Our integrated project teams work hand-in-hand from day one and are fully aligned to deliver outstanding results for our clients Professional Learning Market LeadershipGlobal Footprint Across Core Professional Learning Segments Houlihan Lokey’s global team continues to demonstrate leadership across all components of the professional learning segment. Training & Education Practice Core Coverage Pillars The Training & Education team serves businesses that, broadly, help individuals and companies achieve growth through learning. Training Education Assessments Technology, intellectual property (IP), andinfrastructure that create or administer proprietarytests, examinations, and/or performance reviews(collectively, “assessments”) Learning content, programs, and services,helping professionals and businesses remaincompliant, develop skills and competencies,and improve performance Curriculum creators, brick-and-mortarinstitutions, and service providers that supportschools, from early childhood through post-graduate institutions Early Childhood Education B2B Career-Elevating Soft Skills Enterprise Assessments: Pre-Hire K-12 Learning Content B2B Career-Elevating Technical Skills Enterprise Assessments: Post-Hire K-12 Services B2B Compliance: White Collar Enterprise Assessments: OKR(1) Educational Assessments andCredentials Extracurricular Learning B2B Compliance: Blue Collar Higher Education Learning Content B2P Certification and LicensureTraining Delivery and Enablement Higher Education Services Summarizing the B2B Learning UniverseHoulihan Lokey B2B Learning Framework | Assess. Train. Reinforce. Evolve. Houlihan Lokey’s proprietary “Assess. Train. Reinforce. Evolve.” framework paints a long-term picture for the B2B professional learning space. The Professional Assessments Ecosystem Two Core Segments The professional assessments ecosystem is separated into two core verticals: (a) delivery and enablement and (b) IP and technology. The Enterprise Assessments Segment Long-Term Thesis The enterprise assessments segment delivers clear value for enterprises and is in the early innings of achieving its value-creation potential. Thesis Summary The enterprise assessments segment reflects a core pillar of the broader human capital management (HCM) development ecosystem; thesegment is experiencing significant disruption, with developments driving ROI for enterprise customers. Tech-enablement has powered alignment between assessments, data, and customer strategy. In many cases, assessments help quantify, measure, and analyze qualitative skills and attributes. Data and analytics have turned assessments into a predictive mechanism, at scale. Technology has improved the scalability and usability of assessments across organizations, proliferating assessments across the employeelifecycle, from pre-hire to long-term OKRs. We are in the early innings. Technology and IP are still converging, with leaders either winning with technology or IP library depth and efficacy. Use cases are still divided, starkly, between candidate vetting (pre-hire) and employee development (post-hire), with limited linkage between pre-hire and post-hire assessments or learning content that is responsive to assessment performance. Long-term connectedness across (a) assessments verticals and (b) assessments, learning, and performance management are poised to drive clearcustomer value and ROI, paving multiple paths for further innovation from and growth for enterprise assessments leaders. Clear Value Creation for Customers The Enterprise Assessments Segment Mission-Critical Measurement Instrument Assessments possess a fo