HCM December Newsletter VF
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Transcript of HCM December Newsletter VF
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8/10/2019 HCM December Newsletter VF
1/12
HUMAN CAPITAL MONTHLY UPDAT
DECEMBER 2014
JON STEELEManaging DirectorCo-Head, Technology Services
CHIP KELSOSenior Vice PresidentHuman Capital [email protected]
2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC
SECTOR SPOTLIGHT
Software/Internet
Outsourcing Services
Transaction/Data Processors
Staffing/Recruiting Services
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HUMAN CAPITAL MONTHLY UPDAT
5.0x
2.1x
6.1x
0.4x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
Software /
Internet
Outsourcing
Services
Transaction
/ Data
Processing
Staffing and
Recruiting
Services
85
90
95
100
105
110
115
120
125
11-13 12-13 1-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14
3
HUMAN CAPITAL MARKET UPDATE
TEV / 2014E Revenue
1-Year Histor ical Composi te Stock Performance (%) as of 11/30/2014
TEV / 2014E EBITDA P/E 2014E
8.4%6.1%
18.0%
14.5%
3.9%
Nasdaq 18.0%
S&P 500 14.5%
HCM Outsourcing Services 8.4%
HCM Transaction / Data Processors 3.9%
HCM Software / Internet 6.1%
Staffing / Recruiting Services -5.3%
Indexed to 100 as of 11/30/2013
Operating / Trading Statist ics
16.1x
11.2x
15.6x
9.6x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
Software /Internet
OutsourcingServices
Transaction /Data
Processing
Staffing /RecruitingServices
32.4x
25.2x26.7x
15.8x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
Software /Internet
OutsourcingServices
Transaction /Data
Processing
Staffing /RecruitingServices
-5.3%
Software / Internet Outsourcing Services Transaction / Data
Processing
Staffing and Recruiting
Services
2014E Revenue Growth 16.0% 4.3% 2.0% 0.8%
2015E Revenue Growth 13.2% 4.3% 8.2% 6.2%
2014E EBITDA Margin 24.8% 19.8% 36.5% 4.6%
2015E EBITDA Margin 26.2% 19.0% 38.1% 5.6%
% 52 Week High 91.3% 96.7% 98.4% 83.3%
Debt / 2014E EBITDA 0.8x 1.5x 1.6x 0.8x
Software / Internet Outsourcing Services
Transaction / Data
Processing
Staffing and Recruiting
ServicesTop 3 Performers, by Stock Performance
Last Month Paycom Software, Inc. 64.9% Aon plc 11.3% ADP 8.5% Randstad Holding 12.0
Paylocity Holding Corporation 20.8% ADP 8.5% Edenred SA 5.5% Cros s Country Healthcare, Inc. 11.0
51job Inc. 19.9% TriNet Group, Inc. 8.3% Equi fax Inc. 5.3% Hays plc 10.1
Last 3 Months Pa ycom Softwa re, Inc. 60.4% TriNet Group, Inc. 18.1% Wa geWorks, Inc. 41.6% Cros s Country Hea lthcare, Inc. 33.7
Cal l idus Software Inc. 39.1% Paychex, Inc. 13.8% Paychex, Inc. 13.8% Kforce Inc. 16.3
Concur Technologies, Inc. 28.3% Insperi ty, Inc. 10.6% CEB 11.1% CDI Corp. 13.2
Last 12 Months Dice Holdings, Inc. 49.3% Aon plc 13.3% Equi fax Inc. 18.1% Staffl ine Group plc 39.8
Cal l idus Software Inc. 46.2% Paychex, Inc. 8.4% Paychex, Inc. 8.4% Cros s Country Healthcare, Inc. 39.7
Concur Technologies , Inc. 32.7% ADP 7.0% ADP 7.0% Synergie SA 25.9
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HUMAN CAPITAL MONTHLY UPDAT
90
95
100
105
110
115
120
125
12-13 1-14 2-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
40.0x
2010 2011 2012 2013 2014
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
2010 2011 2012 2013 2014
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2010 2011 2012 2013 2014
Sequential Year-over-Year
4
HCM SOFTWARE / INTERNET
Histor ical TEV / LTM EBITDA Multiples
Historical TEV / LTM Revenue Multiples
1-Year Historical Stock Performance
Quarterly Revenue Growth
HCM Software /
Internet
S&P 500
NASDAQ
Indexed to 100 as of 11/30/2013
HCM Software / Internet 6.1%
S&P 500 14.5%
NASDAQ 18.0%
5-Year
Median = 4.2x
5-Year
Median = 13.2x
5-Year
Median = 23.9x
HCM Software / In ternet Composite: AIM: BDI, ASUR, ASX: SEK,CALD, CNQR, CSOD, DHX, EBIX, EHTH, HSTM, INTU, JOBS, KLSE: JOBST, LNKD, LSE: SGE, MWW, NZSE: XRO, ORCL,
SABA, SAP, ULTI and XTRA: O1BC.
Historical LTM P/E Mult iples
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HUMAN CAPITAL MONTHLY UPDAT
Date Transaction
Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA
11/25/2014 PP Benchmark, T. Rowe Price, Stripes Group Elance-oDesk 30.0$ NA NA
11/20/2014 PP Impulse International, Sunstone Tyba Solutions 3.1 NA NA
11/18/2014 M&A 1-Page Limited BranchOut, Inc. 5.4 NA NA
11/6/2014 M&A Xero Monchilla 7.1 NA NA
11/4/2014 PP Randstad Holdings NV Qandidate.com NA NA NA
11/4/2014 PP Matrix Partners, True Ventures, Lerer Ventures, Bullpen Namely 12.0 NA NA10/27/2014 PP Oak HC/FT Partners Limeade, Inc. 25.0 NA NA
10/21/2014 M&A Bertelsmann SE & Co. Relias Learning, LLC NA NA NA
10/16/2014 DEBT Monster Worldwide, Inc. N/A 125.0 NA NA
10/16/2014 M&A Hg Capital Allocate Software 167.1 2.3 x 14.4
10/14/2014 PP Accel Partners, Khosla Ventures, SVAngel, Google Ventures Checkr 9.0 NA NA
10/13/2014 PP erecruit eStaff365 NA NA NA
10/10/2014 PP Undisclosed SpareHire, Inc. 0.8 NA NA
10/9/2014 PP Undisclosed 10 Minutes With 4.0 NA NA
10/7/2014 PP Catalyst Investors Jobvite, Inc. 25.0 NA NA
10/2/2014 PP Matrix Partners Lever, Inc. 10.0 NA NA
9/30/2014 PP Barracuda Networks, Inc. Expensify, Inc. 3.5 NA NA
9/22/2014 M&A Sage PayChoice 157.8 NA NA
9/24/2014 PP Accel-KKR F.W. Davidson & Company, Inc. NA NA NA
9/24/2014 PP Drive Capital, Valor Capital, Recruit Holdings Udacity 35.0 NA NA
9/22/2014 PP Randstad Innovation Fund RolePoint, Inc. NA NA NA
9/18/2014 M&A SAP America Concur Technologies 8,468.0 11.5 NM
9/18/2014 PP BoxGroup, Lerer Hippeau Ventures, Red Sea Ventures Campus Job 1.0 NA NA
TEV /
SOFTWARE / INTERNET: DETAILED VALUATION MULTIPLES AND METRICS
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
5
SOFTWARE / INTERNET: OTHER RECENT NEWS AND EVENTS
Date Company News
11/04 Monster Worldwide Inc.(NYSE: MWW)
Monster Worldwide announced today Salvatore Iannuzzi has resigned as president and CEO, effectiveimmediately. Iannuzzi stepped down for personal reasons, according to the company. He will continue toserve as a director and non-executive chairman of the board. Timothy Yates, a director of Monster andformerly its executive VP and CFO, has been appointed CEO. Additionally, Mark Stoever, who previouslyserved as executive vice president of corporate development and internet advertising, was appointed chieoperating officer, a new position on Monsters management team.
Total
Price % of 52 Market Enterprise 2014E 2015E 2014E 2015E 2014E P/
Company 11/30/2014 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2014E EPS 2015E EPS Growth Ra
Oracle Corporation 42.41$ 98.2 % 187,931.6$ 169,462.6$ 4.4 x 4.2 x 9.0 x 8.3 x 14.6 x 13.4 x 1
SAP SE 70.39 89.8 84,081.0 85,387.2 3.9 3.7 11.3 10.4 16.4 15.3 1
LinkedIn Corporation 226.27 94.6 28,097.5 25,839.0 11.8 8.8 45.0 31.8 NM NM 2
Intuit Inc. 93.87 98.4 26,802.2 25,712.2 5.6 5.7 15.9 17.7 28.5 34.3 2Workday, Inc. 87.05 74.7 16,191.3 15,376.2 19.6 13.6 NM NM NM NM N
Sage Group plc 6.37 92.6 6,855.2 7,564.4 3.6 3.4 12.1 11.4 17.7 16.2 2
SEEK Limited 14.57 93.7 4,982.8 5,591.7 8.1 7.1 19.3 15.9 28.4 24.6 1
The Ultimate Software Group, Inc. 147.24 85.6 4,177.3 4,076.5 8.1 6.6 34.3 26.7 72.9 59.8 2
Cornerstone OnDemand, Inc. 31.77 51.4 1,701.4 1,917.8 7.3 5.6 NM NM NM NM N
51job Inc. 36.75 85.5 2,169.8 1,630.1 5.3 4.7 16.4 13.9 22.4 19.6 1
Xero Limited. 13.32 96.5 1,693.3 1,560.2 17.7 10.2 NM NM NM NM N
Paycom Software, Inc. 28.75 97.7 1,469.5 1,478.2 10.0 7.8 58.7 43.2 NM NM 3
Paylocity Holding Corporation 29.09 93.8 1,445.0 1,372.2 10.9 8.6 NM NM NM NM 0
Castlight Health, Inc. 12.43 29.6 1,122.3 940.2 21.3 11.6 NM NM NM NM
Callidus Software Inc. 15.97 92.3 776.6 748.4 5.6 4.6 52.9 37.7 NM NM 2
Healthstream Inc. 28.65 82.7 791.7 675.3 3.9 3.4 23.8 19.9 72.4 66.4 4
Benefitfocus, Inc. 27.09 35.2 692.3 673.4 5.0 3.9 NM NM NM NM N
Dice Holdings, Inc. 10.87 94.6 577.7 663.8 2.5 2.4 7.8 7.5 21.0 18.3 1
Ebix Inc. 16.21 90.3 594.6 611.0 3.0 NA 6.9 NM 10.2 NM 1
XING AG 116.27 87.4 648.8 568.4 4.6 4.1 16.1 12.5 36.2 27.3 0
Monster Worldwide, Inc. 4.35 51.2 385.9 562.3 0.7 0.7 5.7 5.3 15.9 13.8 1
eHealth, Inc. 25.87 40.9 460.9 402.9 2.2 1.9 25.1 21.5 74.9 56.5 4
Saba Software, Inc. 13.75 94.8 409.6 395.4 2.9 NA NM NM NM NM N
Halogen Software Inc. 7.71 61.8 168.8 115.1 2.0 1.7 NM NM NM NM N
Bond International Software plc 1.45 60.5 61.9 71.1 1.1 1.0 5.7 5.2 16.7 13.5 N
Asure Software, Inc. 5.23 76.4 31.6 46.7 1.7 1.5 8.5 7.5 40.2 21.8 0
Mean 6.7 x 5.3 x 20.8 x 17.4 x 32.6 x 28.6 x 1
Median 4.8 4.4 16.0 13.9 22.4 20.7 1
Market Price
TEV TEV
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HUMAN CAPITAL MONTHLY UPDAT
90
95
100
105
110
115
120
125
12-13 1-14 2-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
2010 2011 2012 2013 2014
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
2010 2011 2012 2013 2014
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
2010 2011 2012 2013 2014(5.0%)
0.0%
5.0%
10.0%
15.0%
20.0%
2010 2011 2012 2013 2014
Sequential Year-over-Year
6
OUTSOURCING SERVICES
HCM Outsourcing
Services
S&P 500
NASDAQ
HCM Outsourcing Services 8.4%
S&P 500 14.5%
NASDAQ 18.0%
Indexed to 100 as of 11/30/2013
HCM Outsourcing Services Composite: ADP, AON, BBSI, CBZ, NSP, TSX: MSI and TW.
5-Year
Median = 9.8x
5-Year
Median = 1.3x
5-Year
Median = 20.2x
Histor ical TEV / LTM EBITDA Multiples Historical LTM P/E Multiples
Historical TEV / LTM Revenue Multiples
1-Year Historical Stock Performance
Quarterly Revenue Growth
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HUMAN CAPITAL MONTHLY UPDAT
Total
Price % of 52 Market Enterprise 2014E 2015E 2014E 2015E 2014E P/
Company 11/30/2014 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2014E EPS 2015E EPS Growth Ra
Automatic Data Processing, Inc. 85.64$ 99.3 % 41,317.0$ 40,785.4$ 3.5 x 3.6 x 17.3 x 16.9 x 28.6 x 27.7 x 2
Aon plc 92.49 99.8 27,825.6 32,927.6 2.7 2.6 12.6 12.1 16.3 15.1 1
Paychex, Inc. 47.41 98.4 17,333.1 16,773.8 6.4 5.9 15.0 13.9 26.7 24.5 2
Towers Watson & Co. 112.96 85.8 8,002.4 7,696.4 2.1 2.1 10.9 10.1 19.6 18.3 1TriNet Group, Inc. 31.66 96.6 1,443.3 1,895.6 0.9 0.8 10.9 9.5 28.1 22.6 1
Morneau Shepell Inc. 14.77 96.8 732.8 1,009.1 2.1 2.0 11.5 10.7 23.7 18.9
CBIZ, Inc. 8.65 91.5 437.6 641.2 0.9 0.8 6.7 6.1 15.1 13.7 1
Insperity, Inc. 32.65 90.0 809.0 583.5 0.2 0.2 8.1 7.2 29.8 25.0 1
Mean 2.4 x 2.2 x 11.6 x 10.8 x 23.5 x 20.7 x 1
Median 2.1 2.0 11.2 10.4 25.2 20.8 1
Market Price
TEV TEV
OUTSOURCING SERVICES: DETAILED VALUATION MULTIPLES AND METRICS
OUTSOURCING SERVICES: 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
OUTSOURCING SERVICES: OTHER RECENT NEWS AND EVENTS
Date Company News
11/19 Cielo Talent Management(private)
Cielo, the worlds leading provider of global talent acquisition and management solutions, was recognizedas the winner of the Europe Talent Acquisition Program of the Year award for its partnership with AnheuserBusch InBev during the annual HRO Today Services and Technology Association Awards. The winningpartnership between Cielo and AB InBev was chosen for the creation and implementation of imaginativeyet delivery-focused initiatives. The partnership has enabled AB InBev through cost savings, reduced time-to-hire, a consistent high quality of recruiting, and compelling employer brand.
7
Date Transaction
Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA
11/21/2014 M&A Xerox Intrepid Learning Solutions NA NA NA
11/20/2014 M&A Stone Point Capital Oasis Outsourcing (Nautic, Altaris) NA NA NA
11/10/2014 M&A Rhone Capital Global Knowledge (MidOcean Partners) NA NA NA
11/6/2014 M&A Mercer AUSREM NA NA NA
9/16/2014 M&A Steven Step RPO Blue Glue Limited NA NA NA
7/22/2014 M&A Arthur J. Gallagher & Co. Baker Ti lly's Employee Benefits Solutions NA NA NA
6/3/2014 M&A CBIZ Retirment Plan Services Tegrit Retirement Plan Services NA NA NA
6/2/2014 M&A TrueBlue, Inc. SeatonCorp 310.0$ 0.5 7.8
5/21/2014 M&A Carlyle Group Talent Partners NA NA NA
5/21/2014 M&A Pharos Capital Group, LLC Employee Benefit Solutions, Inc. NA NA NA
5/20/2014 PP Education Growth Partners Human Capital Institute NA NA NA
4/29/2014 M&A WilsonHCG CPH NA NA NA
4/28/2014 M&A Radius (New Company) Merger of High Street Partners and Nair & Co. NA NA NA
4/8/2014 M&A Baird Capital Workforce Insight NA NA NA
4/3/2014 M&A Hawaii Human Resources HRBenefix NA NA NA
4/3/2014 M&A Hawaii Human Resources Kiria Payroll Services NA NA NA
3/27/2014 IPO N/A Trinet Group 240.0 NA NA
3/20/2014 M&A DISA Global Solutions RS Occupational Health NA NA NA
3/14/2014 PP AMN Healthcare PipelineRx 7.0 NA NA
3/4/2014 PP CIP Capital OnCourse Learning NA NA NA
3/3/2014 M&A Morneau Shepell Inc. Groupe AST 32.0 NA NA
2/26/2014 M&A CoAdvantage Corporation Discovery Outsourcing NA NA NA2/26/2014 M&A CoAdvantage Corporation Compensation Solutions NA NA NA
2/13/2014 PP Accel-KKR LLC RiseSmart 11.0 NA NA
2/3/2014 M&A Seaton HRX NA NA NA
2/3/2014 M&A CBIZ Lewis Birch & Ricardo NA NA NA
1/29/2014 M&A ThinkHR HR That Works NA NA NA
1/23/2014 M&A Verisight Daily Access NA NA NA
1/9/2014 PP Lemhi Ventures, Timucuan AM PlanSource 12.0 NA NA
1/9/2014 M&A PetroSkills (BV Investment Partners) Resource Development Company NA NA NA
1/9/2014 M&A Acacia Partners Questco Companies NA NA NA
1/7/2014 M&A CBIZ Clearview National Partners NA NA NA
12/20/2013 M&A SimplyBiz Staffcare NA NA NA
12/19/2013 M&A Montagu Private Equity Corporate Employee Financial Services (div. of UBS AG) NA NA NA
12/10/2013 M&A Aon plc Stratford 360 NA NA NA
12/4/2013 PP undisclosed PE Bolt HR NA NA NA
11/21/2013 PP Access Venture, Point B, Dundee Venture RoundPegg 2.8 NA NA
11/7/2013 M&A Arthur J. Gallagher Employee Benefits Analysis Corporation NA NA NA
TEV /
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8/10/2019 HCM December Newsletter VF
8/12
HUMAN CAPITAL MONTHLY UPDAT
90
95
100
105
110
115
120
125
12-13 1-14 2-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
2010 2011 2012 2013 2014
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
2010 2011 2012 2013 2014
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
2010 2011 2012 2013 2014(10.0%)
(5.0%)
0.0%
5.0%
10.0%
15.0%
2010 2011 2012 2013 2014
Sequential Year-over-Year
8
TRANSACTION / DATA PROCESSORS
HCM Transaction/
Data Processors
S&P 500
NASDAQ
HCM Transaction / Data Processors 3.9%
S&P 500 14.5%
NASDAQ 18.0%
Indexed to 100 as of 11/30/2013
5-Year
Median = 3.9x
HCM Transaction / Data Processors Composite: ADP, EFX, ENXTPA: EDEN, EXBD, PAYX, VRSK and WAGE.
5-Year
Median = 12.3x
5-Year
Median = 22.1x
Histor ical TEV / LTM EBITDA Multiples Historical LTM P/E Multiples
Historical TEV / LTM Revenue Multiples
1-Year Historical Stock Performance
Quarterly Revenue Growth
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HUMAN CAPITAL MONTHLY UPDAT
Date Transaction
Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA
11/13/2014 M&A Accurate Background, LLC Hirease, Inc. NA NA NA
11/5/2014 M&A Phoenix Strategy Investments PI Worldwide NA NA NA
10/20/2014 M&A Institutional Shareholder Services Incentive Lab, LLC NA NA NA
10/17/2014 M&A BTS Group AB Fenestra, Inc. 2.5$ NA NA
9/23/2014 M&A Webster Financial Corp. HSA Business of JPMorgan Chase Bank NA NA NA8/4/2014 PP Undisclosed Investors FlexWage Solutions 3.5 NA NA
8/1/2014 M&A WageWorks, Inc. CONEXIS Benefits Administrators 118.0 NA NA
6/5/2014 M&A Lyceum Business Services BenePay NA NA NA
6/4/2014 PP Stonehenge Growth Capital, others SmartPay Solutions 1.4 NA NA
5/30/2014 PP Mosaik Partners TFG Card Solutions 1.8 NA NA
5/6/2014 M&A WageWorks, Inc. Crosby Benefit Systems, Inc. 4.1 NA NA
4/25/2014 M&A IRIS Software Group Cascade Human Resources NA NA NA
4/15/2014 M&A Hay Group Talent Q NA NA NA
4/9/2014 M&A Bond International Software Eurowage 14.0 2.2 x 4.8
4/3/2014 M&A John Wiley & Sons Profiles International 51.0 NA NA
3/3/2014 M&A Corporate Executive Board Co. KnowledgeAdvisors 52.0 NA NA
3/3/2014 M&A Corporate Resource Services Nationwide Screening Services NA NA NA
2/11/2014 M&A Corporate Executive Board Co. Talent Neuron 15.0 NA NA
1/16/2014 M&A Equifax TDX Group 326.8 3.7 NA
10/30/2013 M&A First Advantage Corporation Verifications, Inc. NA NA NA
10/22/2013 M&A WellTok Inc IncentOne NA NA NA10/11/2013 PP Flexpoint Ford JetPay Corp 10.0 NA NA
10/7/2013 M&A Sterling InfoSystems (Calera Capital) HR Plus NA NA NA
9/30/2013 M&A Project Management Institute Human Systems International NA NA NA
9/11/2013 M&A LexisNexis Risk Solutions Enclarity NA NA NA
8/30/2013 M&A Benu, Inc. SyncHR NA NA NA
8/28/2013 PP Corporate Executive Board Co. 9lenses, LLC 4.0 NA NA
8/14/2013 EQTY N/A WageWorks, Inc. 120.1 NA NA
7/8/2013 M&A Equifax Inc. TrustedID NA NA NA
6/4/2013 M&A ADP Payrol l S.A. NA NA NA
4/9/2013 PP Boathouse Capital Accurate Background 5.0 NA NA
3/1/2013 EQTY N/A WageWorks, Inc. 135.0 NA NA
2/26/2013 M&A LI Advantage Payroll Services Associated Payroll Consultants NA NA NA
2/4/2013 M&A Spire Capital Partners Performance Assessment Network NA NA NA
1/17/2013 M&A Ares Capital, Veronis Suhler Stevenson Cast & Crew Entertainment Services NA NA NA
1/17/2013 M&A First Advantage LexisNexis Risk Solutions, Employment Screening Business NA NA NA
1/7/2013 M&A Heartland Payment Systems Ovation Payroll NA NA NA
11/20/2012 M&A Ascensus ExpertPlan NA NA NA
TEV /
Date Company News
11/04 WANTED Technologies(TSX-V: WAN)
WANTED Technologies announced that its board of directors has adopted a shareholder rights plan toencourage fair treatment of shareholders, should a takeover bid be made for WANTED. The plan wilprovide the Board and the shareholders more time to consider an unsolicited takeover bid. The plan hasnot been adopted in response to, or in confrontation of, any specific proposal to acquire control ofWANTED. The rights issued under the plan will become exercisable only when a party acquires oannounces its intention to acquire 20% or more of the outstanding shares without approval of the Board.
TRANSACTION / DATA PROCESSORS: DETAILED VALUATION MULTIPLES AND METRICS
TRANSACTION / DATA PROCESSORS: 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
9
TRANSACTION / DATA PROCESSORS: OTHER RECENT NEWS AND EVENTS
Total
Price % of 52 Market Enterprise 2014E 2015E 2014E 2015E 2014E P/E
Company 11/30/2014 Week High Cap ($MM) V alue ($MM) Revenue Revenue EBITDA EBITDA 2014E EPS 2015E EPS Growth Rate
Automatic Data Processing, Inc. 85.64$ 99.3 % 41,317.0$ 40,785.4$ 3.5 x 3.6 x 17.3 x 16.9 x 28.6 x 27.7 x 2.6
Paychex, Inc. 47.41 9 8.4 17,333.1 16,773.8 6.4 5.9 15.0 13.9 26.7 24.5 2.6
Verisk Analytics, Inc. 61.98 9 1.8 10,554.7 11,395.2 6.6 5.8 14.2 12.7 25.9 22.9 2.0
Equifax Inc. 79.55 99.4 9,876.1 11,351.5 4.7 4.4 13.4 12.3 20.5 18.6 1.7
Edenred SA 28.84 87.4 6,564.0 7,547.0 5.9 5.4 16.1 14.2 27.4 23.4 2.2Corporate Executive Board Co. 73.21 90.4 2,497.8 2,918.9 3.2 2.9 13.3 11.7 21.7 19.7 1.5
WageWorks, Inc. 58.42 85.5 2,115.7 1,808.5 6.8 5.5 25.5 20.8 61.7 51.2 3.4
HealthEquity, Inc. 24.83 98.2 1,424.9 1,454.9 17.2 13.1 62.5 41.6 NM NM 2.4
Mean 6.8 x 5.8 x 22.2 x 18.0 x 30.4 x 26.9 x 2.3
Median 6.1 5.4 15.6 14.1 26.7 23.4 2.3
Market Price
TEV TEV
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HUMAN CAPITAL MONTHLY UPDAT
85
90
95
100
105
110
115
120
125
12-13 1-14 2-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
2010 2011 2012 2013 2014
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
2010 2011 2012 2013 2014
0.0x
0.1x
0.2x
0.3x
0.4x
0.5x
0.6x
2010 2011 2012 2013 2014(30.0%)
(20.0%)
(10.0%)
0.0%
10.0%
20.0%
30.0%
40.0%
2010 2011 2012 2013 2014
Sequential Year-over-Year
10
STAFFING / RECRUITING SERVICES
Staffing / Recruiting
Services
S&P 500
NASDAQ
Staffing / Recruiting Services -5.3%
S&P 500 14.5%NASDAQ 18.0%
Indexed to 100 as of 11/30/2013
5-Year
Median = 10.3x
5-Year
Median = 22.2x
HCM Staffing / Recruiting Services Composite: AHS, AIM: IPEL, AIM: MTEC, AIM: STAF, ASGN, CCRN, CDI, CTGX, ENXTAM: BRNL, ENXTAM: RAND, ENXTAM: USG, ENXTPA: CEN,
ENXTPA: SDG, HSII, HSON, ISE: DQ5, KELY.A, KFRC, KFY, LSE: HAS, LSE: HVN, LSE: MPI, LSE: RWA, LSE: STHR, MAN, OM: PROE B, RECN, RHI, SWX: ADEN, TBI, TSE: 2168 and TSE: 2181.
Histor ical TEV / LTM EBITDA Multiples Historical LTM P/E Multiples
Historical TEV / LTM Revenue Multiples
1-Year Historical Stock Performance
Quarterly Revenue Growth
5-Year
Median = 0.4x
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HUMAN CAPITAL MONTHLY UPDAT
Date Transaction
Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA
11/18/2014 M&A GSE Systems, Inc. Hyperspring LLC 3.0$ 0.2 x 4.2
11/14/2014 EQTY N/A Adecco 311.8 NA NA
11/7/2014 M&A ZeroChaos Incepture (Florida Blue) NA NA NA
11/5/2014 M&A Allen Austin Gaines International NA NA NA
10/30/2014 M&A Investcorp PRO Unlimited NA NA NA
10/29/2014 M&A Compunnel Software Group, Inc. Challenge Training and Consulting, Inc. NA NA NA
10/24/2014 M&A The Woodmansee Group Franklin-Belle NA NA NA
10/20/2014 M&A Team Health Holdings PhysAssist Scribes, Inc. NA NA NA
10/15/2014 M&A CTPartners Executive Search Inc. Neumann Leadership Holding NA NA NA
10/9/2014 M&A eTERA Consulting Discovery Services LLC NA NA NA
9/10/2014 M&A General Employment Enterprises Inc. Pivot Companies NA NA NA
9/2/2014 M&A Addison Group CVPartners NA NA NA
8/19/2014 M&A The Caldwell Partners Hawksmoor Search NA NA NA
8/7/2014 M&A Mitchell Martin HLP Solutions NA NA NA
TEV /
STAFFING / RECRUITING SERVICES: DETAILED VALUATION MULTIPLES AND METRICS
STAFFING / RECRUITING SERVICES: 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
11
STAFFING / RECRUITING SERVICES: OTHER RECENT NEWS AND EVENTS
Date Company News
11/13 ZeroChaos
(private)
ZeroChaos, an Orlando-based workforce solutions company backed by private equity firm Snow Phipps, isexploring a sale, according to industry sources. Snow Phipps acquired the company in December 2010 formore than $200 million, according to press reports. ZeroChaos posted revenues of about $1.1 billion in thefirst half of 2013, a 100% increase over the same period in 2012, according to the company. The financialsponsor may be hoping to sell the ZeroChaos for around $600 million, according to one industry source.
Total
Price % of 52 Market Enterprise 2014E 2015E 2014E 2015E 2014E P/E
Company 11/30/2014 Week High Cap ($MM) V alue ($MM) Revenue Revenue EBITDA EBITDA 2014E EPS 2015E EPS Growth Rate
North A merican Staffing / Recruiting Services
Robert Half International Inc. 56.79$ 97.4 % 7,727.7$ 7,438.1$ 1.6 x 1.5 x 13.7 x 11.9 x 25.4 x 21.9 x 1.3
ManpowerGroup Inc. 66.86 76.7 5,427.4 5,250.6 0 .3 0.3 6.5 6.3 12.7 12.1 1.0
On Assignment Inc. 30.73 77.1 1,685.9 2,059.7 1.1 1.0 10.4 9.5 14.9 13.6 1.1
TrueBlue, Inc. 22.95 73.3 939.4 1,085.7 0 .5 0.4 9.3 7.4 16.1 15.0 1.6
Korn/Ferry International 27.15 82.8 1,341.6 1,085.4 1 .1 1.0 7.3 6.6 15.4 14.2 1.4
AMN Healthcare Services Inc. 17.12 95.2 820.5 957.1 0.9 0.9 11.4 10.1 24.9 20.9 2.0
Kforce Inc. 23.34 96.7 762.0 774.4 0.6 0.6 11.2 9.6 21.3 17.2 0.3
Kelly Services, Inc. 15.44 59.0 579.4 616.5 0.1 0.1 10.8 5.9 36.8 11.4 0.0
Resources Connection Inc. 15.17 94.9 590.6 490.4 0 .8 0.8 9.1 8.2 25.7 20.6 0.9
Cross Country Healthcare, Inc. 10.67 92.5 332.3 390.3 0.6 0.5 22.8 11.8 NM 33.8 5.1
CDI Corp. 17.18 89.5 339.6 299.4 0.3 0.3 7.7 7.2 20.7 18.7 NA
Heidrick & Struggles International Inc. 20.02 83.8 367.9 239.1 0.5 0.5 4.8 4.8 39.2 28.4 2.9
Computer Task Group Inc. 9.32 48.5 153.2 124.9 0.3 0.3 5.4 5.7 12.5 12.0 1.3
Hudson Global, Inc 2.81 64.8 91.8 81.7 0.1 0.1 NM NM NM NM 0.0
Mean 0.6 x 0.6 x 10.0 x 8.1 x 22.1 x 18.5 x 1.5
Median 0.6 0.5 9.3 7.4 21.0 17.2 1.3
International Staffing / Recruiting Services
Adecco S.A. 70.24$ 100.0 % 12,479.4$ 13,934.6$ 0.6 x 0.5 x 10.5 x 9.2 x 15.1 x 13.1 x 1.0
Randstad Holding 49.35 79.6 8,905.3 9,739.2 0.5 0.4 10.1 8.8 15.8 13.3 0.9
Hays plc 2.08 84.3 2,978.8 3,086.2 0.5 0.5 10.9 9.7 18.9 15.9 0.9
Temp Holdings Co., Ltd. 29.60 91.5 2,309.9 2,274.5 0.7 0.6 11.4 8.7 20.1 17.5 NA
Michael Page International plc 6.45 80.6 2,014.4 1,941.0 1.2 1.1 12.7 10.1 24.7 18.7 1.0USG People NV 10.98 62.3 883.4 1,124.7 0 .4 0.4 9.0 7.0 18.4 10.5 0.0
Brunel International NV 19.04 58.6 933.7 813.1 0 .5 0.5 8.0 7.3 14.7 13.3 0.0
SThree Plc. 4.87 70.4 661.2 678.1 0.6 0.5 11.8 9.3 20.1 15.3 0.0
Groupe CRIT SA 47.38 70.6 525.6 604.4 0.3 0.3 4.9 4.5 8.4 7.3 0.0
Synergie SA 23.98 88.5 575.8 591.1 0.3 0.3 5.6 5.1 9.2 8.3 0.0
Impellam Group PLC 7.51 90.6 330.5 373.0 0.2 NA 5.6 NA 7.2 NA NA
Staffl ine Group plc 12.80 80.4 292.0 337.1 0.4 0.4 10.2 8.2 14.1 11.9 NA
Robert Walters plc 4.36 76.7 352.6 327.4 0.3 0.3 11.6 9.7 24.7 19.9 NA
Matchtech Group Plc 8.84 86.9 230.4 235.7 0 .3 NA 9.8 NA 14.5 13.1 NA
CPL Resources plc 8.11 82.5 247.7 205.9 0.4 0.4 10.1 9.6 15.0 13.1 NA
Pasona Group Inc. 4.56 66.1 170.4 194.5 0.1 0.1 4.1 3.8 35.8 27.7 NA
Proffice AB 2.43 64.0 165.7 175.0 0.3 0.3 8.7 7.0 11.7 9.5 NA
Harvey Nash Group plc 1.20 61.7 88.5 95.8 0.1 NA 5.2 NA 8.6 NA NA
Mean 0.4 x 0.4 x 8.9 x 7.9 x 16.5 x 14.3 x 0.4
Median 0.4 0.4 9.9 8.7 15.0 13.2 0.0
Market Price
TEV TEV
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8/10/2019 HCM December Newsletter VF
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HUMAN CAPITAL MONTHLY UPDAT
EQUITY CAPITAL MARKETS
Over 500 Equity Capital Markets professionals
Over 240 investment bankers in the U.S.
Over 100 institutional sales and sales traders inthe U.S. and Europe:
Bulge-bracket distribution capability
Approximately 25% institutional equitycommissions from Europe
Over 6,200 financial advisors; offices in all50 states
Greenwich Associates ranked #2 in overall qualityof analyst service
12
IT Supply Chain Services: Quarterly Update
RAYMOND JAMES
Full-service financial services firm with investmentbanking, equity research, institutional sales andtrading, and asset management operations
Founded in 1962; public since 1983 (NYSE: RJF)
$4.9 billion in FY 2014 revenue; equity marketcapitalization of $7.9 billion
Stable and well-capitalized platform; nogovernment/TARP financing
Industry-focused, knowledge-driven approach,backed by highly-ranked equity research team
21 domestic and international investment bankingand institutional sales offices
International operations in Brussels, Buenos Aires,Dsseldorf, Geneva, London, Paris, Sao Paulo,Toronto and Vancouver
Acquisition of Morgan Keegan consolidated andstrengthened Raymond James leadership in themiddle market
TECHNOLOGY SERVICES INVESTMENT
BANKING GROUP
Eight senior-level investment bankers with over 105years of combined experience; located in Atlantaand Boston
Services: Mergers & Acquisitions (sell-side & buy-side advisory); Public Equity and Debt Offerings;Private Placements of Equity and Debt;Divestitures; Board Advisory Services;Recapitalizations and Restructurings
134 completed transactions since February 2002:
91 M&A advisory and private placementservices transactions representing a total valueof over $9.5 billion
43 public equity and debt offerings raising over$8.0 billion in proceeds
NOTES & DISCLOSURES
Sources of data include Capital IQ, FactSet and other newsorganizations. Information obtained from third-partysources is considered reliable, but we do not guaranteethat the information herein is accurate or complete. This
report was prepared within Raymond James & AssociatesInvestment Banking Department and is for informationpurposes only. This report is not a product of RaymondJames & Associates Research Department; recipients ofthis report should not interpret the information herein assufficient grounds for an investment decision or any otherdecision.
The report shall not constitute an offer to sell or thesolicitation of an offer to buy any of the securitiesmentioned herein; past performance does not guaranteefuture results. Any performance mentioned does noinclude transaction fees and costs which would reduce aninvestors return. An investment cannot be made directly ina market index.
EBIT: Earnings BeforeInterest and Taxes
EBITDA: Earnings BeforeInterest, Taxes,Depreciationand Amortization
EPS: Earnings per Share
LTM: Last Twelve Months
NA: Not Applicable
NM: Not Meaningful
PE: Price Earnings Ratio
TEV: Total EnterpriseValue