Lemons & Lemonade

Graeme Read

CEO

3R Partnership

The US has “Lemon Law”

The UK doesn’t. We do make

Exceptional Lemonade

IRONY

My first “lemon” was in the US

NEW YORK

• Retained Search & Selection Model

• Location, Location, Location - near Wall St

• Top clients: Enron, Global Crossing,

Worldcom, Tyco, GE, Coca Cola

My second happened around the same time

ANDERSON EXECUTIVE SEARCH

• High-end Search boutique in… Watford

• Moved Team of 5 to London

• Plan to take it to NY & elsewhere

• Clients - Arthur Anderson, BT Nth

America

Challenges

• US model is different

• Boston / Stanford nearer a client

• Watford staff liked Watford ?!?

• We can rely on our clients while we

fix them …

Pop Quiz

What Happened ?

• NY model different to Retained Search

• Dotcom bubble burst

• Lost our top tech / consulting / dotcom clients

• AND Enron / Andersen happened

• Location - wrong in US

• Anderson brand better than location / people

view ?

• 2 LEMONS but lots of lessons learned !

RUSSIA 1993/4Antal Opened in Moscow

Early 1998:Things were going well

Moscow & Kiev

• 60 staff & growing

• Plans to double that

• Additional premises signed up

• Life was grand

Aug-Sept 1998:Russian Crisis• Came back early from honeymoon

• 60 staff down to 6

• Stock & Currency Markets Collapse

• Inflation 84%,

• Many bank closed down, one bad debt

• Landlord dealt with

• Another lemon??

1998 - 2007

GET THROUGH IT & GROW

• Founder & CEO

• Shareholders & Management

• Team

• Finance & Credit Control Team

• Stay in the market

Fast forward to 2007:

>100 staff, Moscow & Yekaterinburg

• Dominant in market

• EBIT > $3.6m

• Real Value Created

• Time was right

• Appoint broker who knew Russia (not Rec

Sector)

2007-2008:

First Deal – Jilted at the altar

• Buyer had to divert fund elsewhere

• Senior Team began marketing to the sector

• Got 3 credible offers

• Chose FiveTen’s offer

• Celebrated

6mths later in 2008

• Despite Lehman & the rest – it’s a good

business

• Antal Russia continues to grow with great

returns

• Celebrating 20 years in careers

• Now in 3 offices, 2 countries in CIS

100% LEMONADE

Today:

Poland: Opened 1996

Then in early 2004

• Arrived in Warsaw

• Total Team Defection

• 20 set to walk out, except 1 Finnish chap

• This wasn’t going to be easy

Poland: 2004

• We’d always had expat management

• Asked staff who they admire most

• Artur Skiba made MD

• He kept 19 of the 20 (+ the Finn)

• Competitor got 1 former expat MD

• And 20 cars they had ordered

Poland: 2004-2013

• Investment in team and management

• Antal Poland larger than Hays / MP

• 3 Offices - Warsaw, Krakow & Wroclaw

• Staff from 20 to 100+

• Market red hot, the only economy to escape

• Used a well known “Big 4” broker in Poland

Poland: 2013

• We still had to market it outside Poland

• Business sold to WorkService

• Only listed staffing group on Poland

exchange

• Now in Czech Rep and further plans

100% LEMONADE

Is Making Lemonade worth it?Antal deals (buy & sell) worth $45m since 2008.

Anderson Exec Search Parkside

Recruitment

Antal Russia Alpha

Financial Jobs

Antal Poland Antal

China

+ various non recruitment deals & more planned

Despite selling 50% of the group in 2008, went on

to generate > $10m trading EBIT

Key To Do List• Generalist? Only if you dominate market• Keep swimming!• Capacity? Have internal capacity to handle the

“deal”• Don’t miss your numbers!• Overseas? Do research but Just Do It!• Brokers? Yes, specialists with international

reach• Team? Fundamental - Involve & Incentivise• Hit or exceed your numbers!

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e]3R

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3R Investing in the Recruitment Sector

3RPartnership.comRespect Results Returns

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Investments in or with specialist Business Partners covering:• Training• M&A• Marketing• Software• Accounting Back Office• Legal & HR Solutions• Funding / Investment• Brokering Invoice Discounting