MERGERS AND ACQUISITIONS, PUBLIC AND PRIVATE FINANCINGS … · 2020-05-08 · 4/28/2020 M&A...

INVESTMENT BANKING JUNE 2020

HUMAN CAPITAL INSIGHTMERGERS AND ACQUISITIONS, PUBLIC AND PRIVATE FINANCINGS & FINANCIAL ADVISORY SERVICES

IN THIS ISSUE

HCM Introduction 2

Human Capital Market Update 4

About Us 21

For Institutional Use Only

HUMAN CAPITAL INSIGHT

RAYMOND JAMES INVESTMENT BANKING 2

JUNE 2020

Premier HCM Investment Banking Team

CHIP KELSOManaging Director

[email protected]

+1.404.442.5835

ZACH SAYERSVice President

[email protected]

+1.404.442.5880

JON STEELEGroup Co-Head

[email protected]

+1.617.624.7020

EXPERIENCE EXPERIENCE EXPERIENCE

EDUCATION EDUCATIONEDUCATION

PHILIP STEINManaging Director,

Raymond James Europe

[email protected]

49.89.23.23.77.50

EXPERIENCE

SEBASTIAN WINTGENSManaging Director,


[email protected]

49.89.23.23.77.45

EXPERIENCE

EMANUEL BISCHOFBERGERVice President,


[email protected]

49.89.23.23.77.47

EXPERIENCE

EDUCATION EDUCATIONEDUCATION

HUMAN CAPITAL INSIGHT JUNE 2020

Representative Transactions

September 2019

February 2019

May 2019

October 2019

January 2019

February 2020

August 2019

September 2019

Private Equity Transactions

October 2017

March 2016

February 2017

February 2019

February 2016

September 2019

October 2017

June 2018

Strategic Buyer Transactions

November 2015 Sept. 2015 / Dec. 2014 August 2015 / July 2014

October 2016

May 2015 / July 2014

Jan 2017 / Oct. 2015

Public Equity Raises

February 2019

$330,960,000Initial Public OfferingCo-Manager

May 2018


$39,459,375Follow-on OfferingBookrunner




$111,265,375Follow-on OfferingCo-Manager




$73,500,000Follow-On OfferingSenior Co-Manager

$109,900,560Initial Public OfferingSenior Co-Manager

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.thesba.com/&ei=cgWcVYftNoa9sAWu25yICA&bvm=bv.96952980,d.b2w&psig=AFQjCNFWWAgyJrKPqnohxF3FC2V_LvfrKg&ust=1436374768427769


HUMAN CAPITAL MARKET UPDATE



JUNE 2020

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20

Human Capital Market Update

TEV / 2020E Revenue TEV / 2020E EBITDA P/E 2020E

Staffing / Recruiting Services

HCM Transaction / DataProcessing

HCM Outsourcing Services

HCM Software / Internet

EuroStoxx

Nasdaq

S&P 500

1-Year Historical Composite Stock Performance (%) as of 05/29/2020

Nasdaq 27.3%

S&P 500 10.6%

Euro Stoxx (5.7%)

HCM Software / Internet 6.1%

HCM Outsourcing Services (3.5%)

HCM Transaction / Data Processing (3.2%)

Staffing / Recruiting Services (6.3%)Indexed to 100 as of 5/31/2019

5.2x

2.7x

6.6x

0.4x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

Software /Internet

OutsourcingServices

Transaction/ Data

Processing

Staffing /RecruitingServices

16.0x

13.3x

19.9x

9.3x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

Software /Internet

OutsourcingServices

Transaction/ Data

Processing


27.6x

19.7x

33.6x

20.7x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

Software /Internet

OutsourcingServices

Transaction/ Data

Processing


Source: CapitalIQ

Trading Multiples as of 5/29/2020



JUNE 2020

Human Capital Market Update

Software / Internet

Outsourcing Services

Transaction / Data Processing


2020E Revenue Growth 2.3% (0.7%) (1.3%) (14.4%)

2021E Revenue Growth 12.8% 4.8% 5.9% 8.6%

2020E EBITDA Margin 21.7% 22.0% 32.1% 3.9%

2021E EBITDA Margin 26.0% 22.8% 33.6% 4.7%

% 52 Week High 83.6% 80.1% 79.8% 60.6%

Debt / 2020E EBITDA 1.9x 1.9x 3.2x 2.7x

Operating / Trading Statistics as of 5/29/2020

Software / Internet




Last Month Docebo Inc. 64.2% Aon Plc 14.1% Verisk Analytics, Inc. 13.0% Pasona Group Inc. 17.3%

New Work SE 31.3% Willis Towers Watson 13.8% Equifax Inc. 10.6% Recruit Holdings Co., Ltd. 15.8%

Pluralsight, Inc. 26.7% TriNet Group, Inc. 9.7% HealthEquity, Inc. 10.1% Persol Holdings Co.,Ltd. 12.3%

Last 3 Months Docebo Inc. 51.8% Willis Towers Watson 7.2% Verisk Analytics, Inc. 11.3% Pasona Group Inc. 16.3%

Xero Limited 18.3% TriNet Group, Inc. 1.6% Equifax Inc. 8.1% Hydrogen Group Plc 10.5%

DHI Group, Inc. 17.1% Morneau Shepell Inc. (3.2%) ADP, Inc (5.3%) TrueBlue, Inc. 3.9%

Last 12 Months ATOSS Software AG 41.6% Willis Towers Watson 15.6% Equifax Inc. 27.0% Recruit Holdings Co., Ltd. 8.0%

Paycom Software, Inc. 40.1% CBIZ, Inc. 14.4% Verisk Analytics, Inc. 23.3% Cpl Resources plc 1.3%

Ceridian HCM Holding Inc. 40.0% Aon Plc 9.4% HealthEquity, Inc. (5.2%) Computer Task Group (2.4%)

Top 3 Performers, by Stock Performance as of 5/29/2020



JUNE 2020

60%

70%

80%

90%

100%

110%

120%

130%

140%


HCM Software / Internet: Detailed Valuation Multiples & Metrics

1-Year Historical Stock Performance as of 5/29/2020

Source: CapitalIQ

HCM Software / Internet Composite: ASUR, ASX:SEK, ASX:LME, BNFT, CSLT, CSOD, DCBO, DHX, EBIX, EHTH, HSTM,INTU, JOBS, LSE:SGE, NZSE:XRO, ORCL, PAYC, PCTY, SAP, WDAY, INST, WKL, AOF

NASDAQ

S&P 500

Euro Stoxx

HCM Software

/ Internet

HCM Software / Internet 6.1%

Nasdaq 27.3%

S&P 500 10.6%

Euro Stoxx (5.7%)

Indexed to 100 as of 5/31/2019

Total

Price % of 52 52 Week Market Enterprise 2020E 2021E 2020E 2021E 2020E P/E

Company 5/29/2020 Week High Price High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2020E EPS 2021E EPS Growth Rate

Oracle Corporation 53.77$ 88.9 % 60.50 169,568.2$ 197,922.2$ 5.0 x 4.9 x 10.3 x 10.0 x 13.4 x 12.5 x 1.5SAP SE 126.18 87.6 144.08 150,259.6 160,751.9 5.1 4.8 14.5 13.0 22.7 19.7 2.2Intuit Inc. 290.32 94.6 306.89 75,707.1 72,399.1 9.6 8.6 26.8 23.4 40.8 35.1 2.7Workday, Inc. 183.43 80.9 226.83 43,137.2 42,638.1 10.2 8.7 NM NM NM NM 2.6Wolters Kluwer N.V. 79.69 100.0 79.69 21,094.3 23,582.3 4.4 4.3 15.3 14.6 24.2 22.8 3.1Paycom Software, Inc. 297.23 86.9 342.00 17,070.8 16,943.4 20.5 17.1 NM NM NM NM 3.2Ceridian HCM Holding Inc. 68.87 87.1 79.11 9,987.6 10,448.2 12.3 10.7 NM NM NM NM 12.9The Sage Group plc 8.53 83.7 10.19 9,301.3 9,597.6 4.2 4.3 16.7 16.5 27.6 26.2 7.2Xero Limited 56.61 94.5 59.90 8,017.0 7,993.9 16.4 13.2 NM NM NM NM NAPaylocity Holding Corporation 130.01 86.3 150.73 6,979.5 6,881.7 11.8 10.1 NM NM NM NM 4.8SEEK Limited 13.36 83.6 15.99 4,702.3 5,888.1 5.2 4.5 28.2 17.4 NM 45.3 NM51job, Inc. 64.49 69.6 92.61 4,314.6 2,774.0 5.3 4.7 15.1 13.7 24.0 21.7 NACornerstone OnDemand, Inc. 38.65 60.0 64.45 2,467.1 2,378.2 3.2 2.6 11.0 8.5 31.7 17.1 0.7Pluralsight, Inc. 20.83 62.8 33.15 2,198.1 2,339.8 6.2 5.1 NM NM NM NM NANew Work SE 312.40 73.9 423.01 1,755.8 1,703.6 5.5 5.2 18.3 16.0 40.5 41.7 3.5ATOSS Software AG 197.33 91.3 216.23 784.7 770.2 8.7 7.5 28.6 23.3 49.0 39.9 NAHealthStream, Inc. 22.78 76.5 29.78 728.9 617.0 2.7 2.8 17.0 16.8 NM NM NMBenefitfocus, Inc. 12.73 43.9 29.03 408.2 585.7 2.3 2.0 21.0 15.9 NM NM NADocebo Inc. 18.81 93.5 20.13 535.6 496.3 8.5 6.3 NM NM NM NM NALimeade, Inc. 0.91 70.3 1.29 222.7 194.6 3.6 3.2 NM NM NM NM NADHI Group, Inc. 2.67 61.2 4.36 130.3 157.9 1.1 1.0 5.4 4.4 29.7 11.1 1.0Asure Software, Inc. 6.18 60.3 10.25 97.3 108.9 1.7 1.6 12.8 10.3 18.1 22.7 1.5Castlight Health, Inc. 0.79 23.9 3.30 117.8 92.9 0.7 0.7 NM NM NM NM NM

Mean 6.7 x 5.8 x 17.2 x 14.6 x 29.3 x 26.3 x 3.6Median 5.2 4.8 16.0 15.2 27.6 22.8 2.7

Market Price

TEVTEV



JUNE 2020

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

2016 2017 2018 2019 20200.0x

10.0x

20.0x

30.0x

40.0x

50.0x

60.0x

2016 2017 2018 2019 2020

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

2016 2017 2018 2019 2020

HCM Software / Internet

5-Year Median = 20.0x 5-Year Median = 32.5x

5-Year Median = 5.4x

Source: CapitalIQ

HCM Software / Internet Composite: ASUR, ASX:SEK, ASX:LME, BNFT, CSLT, CSOD, DCBO, DHX, EBIX, EHTH, HSTM,INTU, JOBS, LSE:SGE, NZSE:XRO, ORCL, PAYC, PCTY, SAP, WDAY, INST, WKL, AOF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2016 2017 2018 2019 2020

Sequential Year-over-Year

Quarterly Revenue Growth Historical TEV / LTM Revenue Multiples

Historical TEV / LTM EBITDA Multiples Historical LTM P/E Multiples

Sector Growth and Trading Multiples as of 5/29/2020



JUNE 2020

DATEANNOUNCED

TYPE ACQUIROR / INVESTOR TARGET / ISSUERTRANSACTION VALUE ($MM)

TEV /

REVENUE EBITDA

5/26/2020 PP Ironfire, Semapa, Hermes DefinedCrowd $ 50.5 NA NA

5/26/2020 PP BuildGroup BenefitFocus 80.0 NA NA

5/21/2020 PP Glynn Capital Human Interest 10.0 NA NA

5/20/2020 M&A StepStone Cammio NA NA NA

5/19/2020 PP Seek, Modrona Ventures, Salesforce Go1 40.0 NA NA

5/14/2020 M&A iCIMS Opening.io NA NA NA

5/14/2020 PP Angel Investor Prodoscore NA NA NA

5/12/2020 PP Forestay Capital, AXA Ventures ZenJob 30.0 NA NA

5/11/2020 PP Brighton Park Capital Paradox 40.0 NA NA

5/6/2020 PP Education Growth Partners Emtrain 8.0 NA NA

5/5/2020 PP Basis Set Ventures, Founders Fund Workstream 10.0 NA NA

5/5/2020 PP RLG Capital, Trinity PE eLearning Brothers 38.0 NA NA

5/5/2020 PP Madrona Venture Group VNDLY 8.5 NA NA

4/29/2020 PP Notion, Workday Ventures, NewView Topia 15.0 NA NA

4/28/2020 M&A eLearning Brothers Edulence (Knoledgelink) NA NA NA

4/28/2020 M&A eLearning Brothers Trivantis Corporation NA NA NA

4/23/2020 M&A Terminal Roikoi NA NA NA

4/22/2020 PPTwo Sigma Ventures, Index Ventures,

General CatalystRemote 11.0 NA NA

4/15/2020 M&A Team Software Kwantek NA NA NA

4/13/2020 PP Springrock Ventures NextStep 3.6 NA NA

4/6/2020 M&A Koch Equity Development Infor 13,000.0 4.1x 15.3x

4/6/2020 M&A Paylocity VidGrid NA NA NA

3/31/2020 PP Georgian Partners Strivr 30.0 NA NA

3/31/2020 M&A Shiftboard EDP Software NA NA NA

3/26/2020 PP Marlin Equity Partners Smartlinx Solutions NA NA NA

3/23/2020 M&A Thoma Bravo Instructure 2,000.0 7.2x NM

3/23/2020 PP 137 Ventures Rigup 28.7 NA NA

3/20/2020 PP Notion Capital Mya Systems 18.8 NA NA

3/18/2020 M&A Topia Monaeo NA NA NA

Software / Internet: Selected M&A and Capital Markets Activity

Type Key: M&A – Merger & Acquisition, PP – Private Placement, SHLF – Shelf Registration,

IPO – Initial Public Offering, EQTY – Follow-on Equity Offering, DEBT – Debt Offering, CVT – Convertible Debt



JUNE 2020

60%

70%

80%

90%

100%

110%

120%

130%

140%


Outsourcing Services: Detailed Valuation Multiples & Metrics


Source: CapitalIQ

HCM Outsourcing Services Composite: ADP, AON, CBZ, NSP, PAYX, TNET, TSX:MSI, WLTW, OB:ZAL

HCM Outsourcing Services (3.5%)

Nasdaq 27.3%

S&P 500 10.6%

Euro Stoxx (5.7%)


NASDAQ

S&P 500

Euro Stoxx

HCM

Outsourcing

Total



Automatic Data Processing, Inc. 146.49$ 80.3 % 182.32 62,957.6$ 63,713.4$ 4.4 x 4.2 x 18.6 x 16.9 x 27.0 x 23.5 x 2.5Aon Plc 196.95 82.7 238.19 45,512.6 54,133.6 2.6 2.4 9.0 8.2 20.2 18.6 2.5Willis Towers Watson 202.90 91.8 220.97 26,120.5 32,287.5 3.5 3.4 13.5 12.9 18.1 16.9 2.5Paychex, Inc. 72.28 79.8 90.54 25,928.0 26,064.8 6.6 6.4 16.6 16.1 25.8 24.5 4.4TriNet Group, Inc. 53.73 69.9 76.92 3,691.3 3,787.3 0.9 1.0 10.1 10.5 15.8 15.9 NAInsperity, Inc. 51.84 35.8 144.92 2,009.6 2,016.4 0.5 0.4 9.0 8.3 15.3 13.2 1.2Morneau Shepell Inc. 23.90 92.9 25.74 1,630.4 1,998.2 2.8 2.7 13.9 13.1 42.3 37.3 NACBIZ, Inc. 22.65 78.8 28.73 1,221.7 1,546.8 1.6 1.5 13.0 11.4 19.1 15.8 1.3Zalaris ASA 3.51 87.7 4.00 68.6 105.5 NA NA NA NA NA NA NA


Market Price

TEVTEV



JUNE 2020

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

2016 2017 2018 2019 20200.0x

10.0x

20.0x

30.0x

40.0x

2016 2017 2018 2019 2020

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

2016 2017 2018 2019 2020




0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

2016 2017 2018 2019 2020


Source: CapitalIQ

HCM Outsourcing Services Composite: ADP, AON, CBZ, NSP, PAYX, TNET, TSX:MSI, WLTW, OB:ZAL






JUNE 2020

DATEANNOUNCED


TEV /

REVENUE EBITDA

5/27/2020 M&A Oyster Carrom NA NA NA

5/6/2020 M&A Ceridian HCM Excelity Global NA NA NA

5/5/2020 M&A G&A Partners Ignite PEO NA NA NA

4/23/2020 M&A G&A Partners Leading Edge Payroll NA NA NA

4/7/2020 M&A Aon The Farmington Company NA NA NA

3/10/2020 M&A M3 NAS Recruitment Communications NA NA NA

3/5/2020 M&A Cielo AsiaNet China NA NA NA

3/2/2020 M&A Hub International Morneau Shepell Benefits Consulting 70.0 NA NA

2/19/2020 M&A HR Path InTalent NA NA NA

2/11/2020 PP JumpStart EmployStream 3.5 NA NA

2/10/2020 M&A EBC HR & Payroll Solutions ComputerSearch NA NA NA

2/4/2020 M&A Wincove, TDR Capital Globalization Partners 150.0 NA NA

1/21/2020 M&A Seaside Equity Partners TalentSmart NA NA NA

1/9/2020 M&A PSI Services Caliper NA NA NA

1/6/2020 M&A Wiley mthree NA NA NA

1/4/2020 M&A Lyons HR Acline HR NA NA NA

12/2/2019 M&A Ryan Tax Services S.A.L.T Payroll Consultants NA NA NA

11/25/2019 M&A Securian Financial Empyrean Benefit Solutions NA NA NA

11/6/2019 M&A Alera Group, Genstar Capital HR inTune NA NA NA

10/7/2019 PP VSS, Trivest Quattro Business Support Services NA NA NA

10/3/2019 M&A Kronos Optimum Solutions NA NA NA

9/30/2019 M&A Leeds Equity Partners VitalSmarts NA NA NA

9/30/2019 M&A Korn Ferry TwentyEighty NA NA NA

9/5/2019 PP Permira Axiom NA NA NA

8/11/2019 M&A Verint Systems Transversal NA NA NA

7/25/2019 M&A Acquiline Capital Partners CoAdvantage Corp NA NA NA

7/24/2019 M&A Toast StratEx Partners NA NA NA

7/2/2019 M&A Alight Solutions Hodges-Mace NA NA NA

6/26/2019 M&A Ascensus HR Simplified NA NA NA

Outsourcing Services: Selected M&A & Capital Markets Activity





JUNE 2020

60%

70%

80%

90%

100%

110%

120%

130%

140%


Transaction / Data Processing: Detailed Valuation Multiples & Metrics


Source: CapitalIQ

HCM Transaction / Data Processing Composite: ADP, EFX, ENXTPA: EDEN, IT, HQY, PAYX, VRSK

HCM Transaction / Data Processing (3.2%)

Nasdaq 27.3%

S&P 500 10.6%

Euro Stoxx (5.7%)


HCM Transaction /

Data Processing

NASDAQ

Euro Stoxx

S&P 500

Total



Automatic Data Processing, Inc. 146.49$ 80.3 % 182.32 62,957.6$ 63,713.4$ 4.4 x 4.2 x 18.6 x 16.9 x 27.0 x 23.5 x 2.5Verisk Analytics, Inc. 172.68 99.6 173.33 28,018.9 31,145.2 11.2 10.6 23.9 22.2 36.3 32.8 3.1Paychex, Inc. 72.28 79.8 90.54 25,928.0 26,064.8 6.6 6.4 16.6 16.1 25.8 24.5 4.4Equifax Inc. 153.56 93.2 164.77 18,639.9 21,821.5 6.3 6.0 19.9 17.7 33.6 28.7 11.6Gartner, Inc. 121.70 70.8 171.78 10,852.6 13,826.0 3.6 3.1 21.9 19.5 40.0 33.6 4.0Edenred SA 41.78 72.9 57.32 10,144.2 11,881.3 7.2 6.4 18.2 15.6 33.0 26.6 9.9HealthEquity, Inc. 61.97 69.8 88.78 4,492.8 5,631.0 7.2 6.8 22.4 20.9 35.2 32.8 2.1


Market Price

TEVTEV



JUNE 2020

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

24.0x

28.0x

2016 2017 2018 2019 2020

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

45.0x

50.0x

2016 2017 2018 2019 2020

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

2016 2017 2018 2019 2020




Source: CapitalIQ

HCM Transaction / Data Processing Composite: ADP, EFX, ENXTPA: EDEN, IT, HQY, PAYX, VRSK

0.0%

4.0%

8.0%

12.0%

16.0%

2016 2017 2018 2019 2020







JUNE 2020

DATEANNOUNCED


TEV /

REVENUE EBITDA

5/22/2020 PP Andreesen Horowitz Deel $ 14.0 NA NA

5/15/2020 PP Voyager Capital, Emerson Collective Syndio 7.5 NA NA

5/14/2020 PP JMI Holdings Traitify 12.3 NA NA

5/6/2020 PP Access Venture Partners Bonusly 9.0 NA NA

4/23/2020 PP Harlem Capital Partners Compt.io 1.5 NA NA

4/17/2020 PP Origin Ventures, Signal Peak Ventures Everee 10.0 NA NA

3/3/2020 M&A Criteria Corp. Revelian NA NA NA

2/14/2020 M&A Cast & Crew Entertainment Services Media Services NA NA NA

2/11/2020 PP Group11 EquityBee 6.6 NA NA

2/4/2020 M&A Accurate Background CareerBuilder Employment Screening NA NA NA

11/25/2019 M&A Silver Lake First Advantage NA NA NA

11/21/2019 M&A Cast & Crew Entertainment Services Sargent-Disc NA NA NA

11/20/2019 M&A The Access Group People HR NA NA NA

10/16/2019 PP Costanoa Venture Capital, Ally Ventures Lively 27.0 NA NA

10/10/2019 M&A Primepay Interlogic Outsourcing NA NA NA

10/2/2019 M&A HireRight J-Screen NA NA NA

10/2/2019 M&A HireRight PeopleCheck NA NA NA

10/1/2019 PP LLR Partners Corestream NA NA NA

8/30/2019 M&A HealthEquity WageWorks 2,047.3 4.4x 16.8x

8/15/2019 M&A CIP Capital Benefit Resource NA NA NA

7/8/2019 PP Seek, OneVentures, AirTree Ventures Employment Hero 16.0 NA NA

7/1/2019 M&A CBIZ Paytime NA NA NA

6/17/2019 PP Eurazeo Croissance, Bpifrance PayFit 79.0 NA NA

5/15/2019 M&A iSolved HCM HK Payroll Services NA NA NA

4/5/2019 PP Naples Technology Ventures International Screening Solutions 1.5 NA NA

3/13/2019 M&A SNH Capital Partners Universal Background Screening NA NA NA

3/6/2019 PP Solar Capital Partners BAMFi NA NA NA

2/14/2019 M&A Inova Payroll One Source Payroll NA NA NA

Transaction / Data Processing: Selected M&A & Capital Markets Activity





JUNE 2020

60%

70%

80%

90%

100%

110%

120%

130%

140%


Staffing / Recruiting Services: Detailed Valuation Multiples & Metrics

1-Year Historical Stock Performance as of 5/29/2020Staffing / Recruiting Services (6.3%)

Nasdaq 27.3%

S&P 500 10.6%

Euro Stoxx (5.7%)


Staffing /

Recruiting

Services

S&P 500

NASDAQ

Euro Stoxx

Source: CapitalIQ

HCM Staffing / Recruiting Services Composite: TSE:6098, ENXTAM:RAND, SWX:ADEN, MAN, TSE:2181, KELY.A, TBI, ENXTPA:CEN, ENXTPA,SDG, TSE:2168, RHI, LSE:HAS, KFRC, LSE:STEM, LSE:RWA, AIM:IPEL, ENXTAM:BRNL, BGSF, ISE:DG5, AMEX:VOLT, CTG, RCMT, AIM:GATC, AIM:HYDG, HSON, AMN, CCRN, KFY, LSE:PAGE, HSII

Total



General StaffingRecruit Holdings Co., Ltd. 34.45$ 80.4 % 42.85 56,797.0$ 56,372.6$ 2.8 x 2.6 x NM x 18.8 x 46.6 x 34.6 x 3.2Randstad N.V. 41.95 67.3 62.37 7,687.7 9,276.2 0.4 0.4 11.2 7.5 18.2 11.1 NMAdecco Group AG 47.45 72.1 65.84 7,691.0 8,646.0 0.4 0.4 12.0 8.0 22.7 11.6 NMManpowerGroup Inc. 69.14 68.5 100.99 4,013.6 4,406.6 0.3 0.2 12.9 8.0 24.2 12.9 3.6Persol Holdings Co.,Ltd. 13.23 53.0 24.99 3,057.0 3,162.0 0.4 0.3 6.1 6.8 29.3 15.7 0.5Kelly Services, Inc. 14.99 51.9 28.91 594.0 639.3 0.1 0.1 NM NM 23.7 7.7 1.9TrueBlue, Inc. 15.46 61.9 24.98 537.3 606.9 0.3 0.3 NM NM NM 14.5 16.4Groupe CRIT SA 61.15 73.6 83.05 678.5 587.6 0.3 0.3 6.8 6.2 23.2 18.0 NASynergie SE 23.51 62.9 37.41 563.8 543.6 0.2 0.2 6.0 5.7 20.0 15.9 NAPasona Group Inc. 11.88 72.1 16.49 464.9 469.5 0.1 NA 3.2 NA 19.6 NA NABarrett Business Services, Inc. 50.70 53.0 95.64 382.1 318.9 0.4 0.3 11.5 7.3 15.3 9.9 1.3


Market Price

TEVTEV



JUNE 2020

Staffing / Recruiting Services: Detailed Valuation Multiples & Metrics (Cont.)

Source: CapitalIQ

Total



Professional StaffingRobert Half International, Inc. 50.74$ 79.3 % 63.97 5,724.0$ 5,750.4$ 1.1 x 1.1 x 13.4 x 11.1 x 21.4 x 16.7 x 9.2Hays plc 1.39 60.6 2.30 2,333.7 2,618.2 0.4 0.4 NM 12.5 NM 19.5 NAKforce, Inc. 30.20 70.8 42.64 626.8 716.1 0.6 0.5 12.1 9.7 19.1 14.7 1.3Resources Connection, Inc. 10.99 61.3 17.93 353.3 411.1 0.6 NA 8.3 NA NA NA NASThree plc 2.89 59.6 4.84 379.5 365.8 0.3 0.2 8.5 6.5 13.5 10.4 NARobert Walters plc 4.26 51.0 8.34 307.4 293.8 0.2 0.2 5.9 4.2 44.9 13.9 NAImpellam Group plc 3.17 56.0 5.67 147.1 282.8 NA NA NA NA NA NA NABrunel International N.V. 6.36 41.6 15.30 321.6 269.4 0.2 0.2 5.2 3.5 11.7 7.1 NABG Staffing, Inc. 10.44 46.6 22.38 107.6 161.0 0.6 0.5 10.8 7.2 27.8 10.4 1.0Cpl Resources plc 7.23 73.9 9.78 198.3 148.8 0.2 0.2 4.3 4.1 7.2 7.0 0.5Volt Information Sciences, Inc. 0.87 18.3 4.75 18.6 88.6 0.1 NA NA NA NM NA NMComputer Task Group, Inc. 4.10 63.3 6.48 61.8 62.6 NA NA NA NA NA NA NARCM Technologies, Inc. 1.34 32.1 4.17 17.6 55.9 0.4 0.3 NM 6.6 NM 4.3 NAGattaca plc 0.55 28.0 1.96 17.7 34.5 0.0 0.0 2.5 2.1 2.4 1.8 NAHydrogen Group plc 0.49 48.8 1.01 16.3 13.9 NA NA NA NA NA NA NAHudson Global, Inc. 8.66 64.1 13.50 23.2 (2.5) NM NM NM NM NM 9.5 2.5


Healthcare StaffingAMN Healthcare Services, Inc. 44.36$ 49.7 % 89.22 2,078.5$ 3,173.8$ 1.4 x 1.4 x 11.9 x 10.4 x 16.9 x 14.1 x 1.2Cross Country Healthcare, Inc. 6.07 45.2 13.42 227.4 313.3 0.4 0.4 15.3 10.3 NM 30.5 NM


Execuitve and Retained SearchKorn Ferry 30.26$ 62.0 % 48.81 1,665.6$ 1,749.8$ 1.1 x 1.0 x 10.2 x 7.4 x 22.4 x 13.4 x 1.5PageGroup plc 4.61 67.9 6.78 1,468.4 1,509.2 0.9 0.9 10.4 8.0 26.0 15.9 NAHeidrick & Struggles International, Inc. 22.18 64.5 34.41 427.5 383.9 0.7 0.6 6.4 5.4 18.6 12.7 2.1


Overall Staffing / Recruiting ServicesMean 0.5 x 0.5 x 8.9 x 7.7 x 21.6 x 13.6 x 3.3Median 0.4 0.3 9.3 7.3 20.7 13.2 1.7

Market Price

TEVTEV



JUNE 2020

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

2016 2017 2018 2019 2020

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

2016 2017 2018 2019 2020

0.0x

0.1x

0.2x

0.3x

0.4x

0.5x

0.6x

0.7x

2016 2017 2018 2019 2020




Source: CapitalIQ

HCM Staffing / Recruiting Services Composite: TSE:6098, ENXTAM:RAND, SWX:ADEN, MAN, TSE:2181, KELY.A, TBI, ENXTPA:CEN, ENXTPA,SDG, TSE:2168, RHI, LSE:HAS, KFRC, LSE:STEM, LSE:RWA, AIM:IPEL, ENXTAM:BRNL, BGSF, ISE:DG5, AMEX:VOLT, CTG, RCMT, AIM:GATC, AIM:HYDG, HSON, AMN, CCRN, KFY, LSE:PAGE, HSII



(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

2016 2017 2018 2019 2020





JUNE 2020

DATEANNOUNCED


TEV /

REVENUE EBITDA

3/10/2020 M&A HealthStream NurseGrid $ 25.0 NA NA

2/25/2020 M&A Express Employment Professionals Frontline Recruitment Group NA NA NA

2/6/2020 M&A CHG Healthcare Services LocumsMart NA NA NA

2/4/2020 M&A BG Staffing EdgeRock 21.6 NA NA

1/14/2020 M&A Kelly Services Insight Workforce Solutions NA NA NA

1/13/2020 M&A Kellermeyer Bergensons Hospitality Staffing Solutions NA NA NA

1/8/2020 M&A Virgin Pulse Yaro NA NA NA

1/9/2020 M&A Spencer Stuart Cambria Consulting NA NA NA

1/8/2020 M&A Bullhorn Herefish NA NA NA

1/7/2020 M&A NSC Technologies Staff Matters NA NA NA

1/1/2020 M&A AMN Healthcare b4Health NA NA NA

12/3/2019 M&A Msouth Equity Partners, Hire Dynamics Trace Staffing Solutions NA NA NA

11/20/2019 M&A WinterWyman Planet Group NA NA NA

11/13/2019 M&A Eliassen Group Weber Consulting Group NA NA NA

11/5/2019 M&A Olympus Partners Soliant Health 612.0 1.8x 11.3x

10/29/2019 M&A Talent International Experis NA NA NA

10/25/2019 M&A The Reserves Network ExecuTeam Staffing NA NA NA

10/23/2019 M&A Ettain Group Global Employmment Solutions NA NA NA

10/14/2019 M&A Proman Talentforce NA NA NA

10/1/2019 M&A G&A Partners Pay Pros, Inc NA NA NA

9/27/2019 M&A Lyneer Staffing Solutions Anchor Staffing NA NA NA

9/24/2019 M&A Heidrick & Struggles 2Get NA NA NA

9/5/2019 M&A Permira Axiom NA NA NA

8/20/2019 M&A IAC Nursefly NA NA NA

7/16/2019 M&A Command Center Hire Quest Holdings NA NA NA

Staffing / Recruiting Services: Selected M&A & Capital Markets Activity





JUNE 2020

DATE COMPANY NEWS

5/21 iCIMS(Private)

iCIMS, Inc., a cloud recruiting platform provider, today announced that Diane Fanelli is joining as chief operating officer, effective May 26. Fanelli will lead worldwide

customer and partner operations for iCIMS’ community of more than 2 million users and a recruiting ecosystem of partners. She brings extensive senior leadership

experience from global enterprise software companies, including COO roles at Citrix and SAP. “Given today’s dynamic labor market and workforce environment,

employers need the most innovative technology backed by customer experience and support to guide their talent strategies for the future,” said Steve Lucas, chief

executive officer of iCIMS. “Diane’s customer centricity and focus on engagement will elevate the experience of our customers and partners together as we work with

them to build winning, inclusive workforces around the globe.”

Other Recent News & Events

DATE COMPANY NEWS

5/27 Entelo(Private)

Entelo today announced that its Board of Directors has appointed Robert Tsao as Chief Executive Officer and member of the Board of Directors effective immediately.

Tsao previously held the positions of Chief Product Officer and Vice President of Strategic Operations at Jobvite. Mr. Tsao brings over 20 years of experience leading

strategy, scaling operations and raising funding for enterprise SaaS companies in Silicon Valley. Over the last decade, he has held management and executive roles

with leading Talent Management vendors such as Jobvite and Taleo. At Jobvite, Robert spearheaded the company's strategy and defined the roadmap for products

and services, most notably the company's Recruitment Marketing solutions. During his tenure, Jobvite significantly expanded its enterprise customer base and

revenue, successfully integrated multiple acquisitions and was consistently ranked as an industry leader in both vision and execution by IDC and Forrester Research.

DATE COMPANY NEWS

5/26 Benefitfocus(NDAQ: BNFT)

Benefitfocus, Inc., the technology platform driving rapid innovation for employers, health plans and consumers, today announced an $80m investment from

BuildGroup LLC, subject to customary closing conditions. Ray August, President and CEO of Benefitfocus, commented, “This investment provides us added financial

flexibility to further our mission of improving lives through benefits. The net proceeds from this investment will allow us to accelerate ongoing initiatives, including

the potential reduction of debt and the review of value-enhancing acquisitions that meet our stringent criteria and would extend our market or technology

leadership. The investment by BuildGroup should help us unlock the Company’s full potential to connect buyers and sellers on our digital benefits platform and drive

continued profitable growth for the benefit of our investors.”

DATE COMPANY NEWS

5/11 Cornerstone OnDemand

(NASDAQ: CSOD)

Cornerstone OnDemand, Inc., today announced that after 20 years as founder and Chief Executive Officer of Cornerstone, Adam Miller, will become co-chair of the

Cornerstone Board of Directors. The board has appointed Phil Saunders, the former CEO of Saba Software, to serve as Cornerstone’s new CEO effective June 15,

2020. He was instrumental in Saba's growth and position as a HR technology leader. Prior to Saba, Phil spent 20 years at Gemalto (previously SafeNet), where he

served in key sales and marketing leadership roles before becoming Chief Revenue Officer and board member.


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CAPITAL RAISING

HUMAN CAPITAL INSIGHT JUNE 2020

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