Corporate Fuel Advisors
Human Capital Solutions Industry
Quarterly Update (2Q 2015)
Summary
Table of Contents
The staffing market remained strong during 2Q15, as evidenced by available
data, M&A activity, public company valuations, and industry sources.
Industry Overview
2
Public Market Overview

Staffing providers are well positioned to take advantage of a secular trend to
use contract labor to manage the workforce after the Great Recession.
5
M & A Market Analysis
6

According to Staffing Industry Analysts (SIA), the fastest growing staffing
segments in 2015 will be: Education (+15%), Direct Hire (+10%), Healthcare, IT,
F&A and Marketing/Creative (all +7%).
M & A Transaction Highlight
9
Corporate Fuel Advisors Overview
10
Select Business Services Experience
11
Case Study – IT Staffing Company
13


There appears to be signs of wage growth in certain staffing market segments
due to talent supply constraints, especially within the IT and healthcare staffing
markets.

The June 2015 BLS report indicated that temp jobs rose 5.7% sequentially and
that the temp penetration rate was an all-time high of 2.05%.

The current labor market cycle does not appear to be over. A 5.3%
unemployment rate masks some important underlying trends.

Public company valuations remained at relatively high levels during 2Q15.

M&A continued at a robust pace during 2Q15 with more buyers than sellers in
the market. Both the public and private financing markets remain attractive.
Exhibits
A: Public Company – Valuation Data
James J. Janesky
Managing Director
119 Fifth Avenue
8th Floor
New York, NY 10003
646-572-0430
14
Industry Overview
Secular Shift Towards Additional Temp Usage
 Staffing providers are well positioned to take advantage of a secular trend to use contract labor to manage the
workforce after the Great Recession. After suffering through a dramatic decline in revenues and ensuing layoffs
from 2007-2009, employers of all sizes have changed the way they view their permanent vs. temp labor bases.
Layoffs are not only costly from an expense standpoint, but they also hurt employee moral, which can reduce
productivity and profits.
 This “new” way to run the workforce is the largest driving force behind the current strength of the temporary
labor market. The June 2015 BLS report indicated that temp jobs rose 5.7% sequentially, above the normal range
from May to June, and that the temp penetration rate was an all-time high of 2.05%. Temp hiring strength of this
proportion is unusual at this point in the economic cycle (sixth year of an economic expansion).
Temporary Employment Data
3,000
2.1%
2.0%
1.9%
2,500
1.8%
1.7%
2,250
1.6%
2,000
1.5%
1,750
1.4%
1.3%
1,500
1.2%
1,250
1.1%
1.0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
1,000
Temp Workers
Temp Penetration Rate
Source: Bureau of Labor Statistics
2
Penetration Rate (%)
Number of Workers (In 000's)
2,750
Temp Penetration
Rate is at an
All-Time High
Recession
Recession
Industry Overview (cont.)
Fastest Growing Segments
 According to Staffing Industry Analysts (SIA), the fastest growing staffing segments in 2015 will be: Education
(+15%), Direct Hire (+10%), Healthcare, IT, F&A and Marketing/Creative (all +7%).
 There appears to be signs of wage growth in certain staffing market segments due to talent supply constraints,
especially within the IT and healthcare staffing markets. Market growth rates and the high level of skill sets within
these two verticals are both driving forces behind this trend. In order to be most successful, staffing firms need to
employ a “recruitment driven” model that takes a proactive, rather than a reactive, approach to recruiting.
Staffing Industry Forecast
$124.1B
Several
Segments
Projected to
Grow between
7% and 15% in
2015
$58.8B
IT Staffing: $25.7B
Healthcare: $10.3B
F&A: $6.8B
Creative: $1.0B
Education: $0.8B
$62.5B
IT Staffing: $27.5B
Healthcare: $11.0B
F&A: $7.2B
Creative: $1.1B
Education: $1.0B
Direct Hire: $8.0B
$16.9B
Direct Hire: $8.8B
2015P
2014
Place & Search
$66.2B
$18.1B
2016P
Commercial
Source: Staffing Industry Analysts “US Staffing Industry Forecast: April 2015 Update”, April 7, 2015
3
IT Staffing: $29.1B
Healthcare: $11.7B
F&A: $7.7B
Creative: $1.2B
Education: $1.0B
$54.8B
$52.4B
$49.8B
$15.5B
$139.1B
$131.9B
Professional
Direct Hire: $9.5B
Industry Overview (cont.)
Labor Market Cycle
 The current labor market cycle does not appear to be over. While an overall unemployment rate of 5.3% might
indicate the U.S. labor market is approaching full employment, it masks some important underlying trends.
Historically, economists believed that an overall unemployment rate in the 5.0% – 6.0% range would lead to
inflation as a shortage of workers drove up wages and increased disposable income drove up prices for goods.
Wage and price inflation also has historically prompted the Federal Reserve to increase interest rates, which tends
to slow down economic growth.
 In this cycle, however, the long term unemployed and availability of college students indicate that the supply of
available labor could sustain the economy for several more years. While nowhere near as high as in the years after
the Great Recession of 2007-2009, the current statistics for the long term unemployed and college student ranks
could provide a cushion against the adverse effects of full employment in the overall labor market
Temporary Employment Data
Unemployment Rate (%) - > 27 Weeks
45.0%
Recession
5.0%
40.0%
35.0%
4.0%
30.0%
25.0%
3.0%
20.0%
2.0%
15.0%
10.0%
1.0%
5.0%
0.0%
0.0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Long-term
Unemployed and
College Student
Ranks Could
Support Labor
Market
6.0%
Recession
Unemployed for > 27 Weeks
Bachelor's Degree and Higher, > 25 yrs.*
* Data prior to 1992 is unavailable
Source: Bureau of Labor Statistics
4
Unemployment Rate (%) - Bachelor's Degree and
Higher
50.0%
Public Market Overview
Public Company Valuation
 Public company valuations remained at relatively high levels during 2Q15. Current median multiples are between
0.4X and 1.5X revenues and between 10.3X and 17.9X EBITDA. While these multiples are not necessarily
inexpensive versus historical standards, they are unusual for this point in an economic cycle. This indicates that
the investment community believes that staffing stocks will remain attractive versus other alternatives.
Public Company EBITDA Valuations
Investors Believe
Staffing Stocks
Are Still
Attractive
Enterprise Value / EBITDA Multiple
19.0x
17.0x
15.0x
13.0x
11.0x
9.0x
7.0x
5.0x
Commercial Staffing Index
Executive and Retained Search Index
S&P 500 Index
Professional Staffing Index
Healthcare Staffing Index
Note: Index Constituents Available in Exhibit A
Source: Capital IQ
Three Year Median Valuations
Index
EBITDA Multiple
Commercial Staffing Index
11.0x
Professional Staffing Index
12.5x
Executive and Retained Search Index
12.2x
Healthcare Staffing Index
14.7x
S&P 500 Index
9.6x
Note: Index Constituents Available in Exhibit A
Source: Capital IQ
5
M & A Market Analysis
2Q Global Merger & Acquisition Overview
 M&A continued at a robust pace during 2Q15 with more buyers than sellers in the market. Private equity firms
also continue to be active in the staffing market. Both the public and private financing markets remain attractive.
 Multiples for staffing companies vary by company size, level of skill sets, percent of direct hire revenues and
EBITDA margins. Current multiples are in a range of 3.0x - 5.0x EBITDA for smaller companies and lower level skill
set platforms to 8.0x - 10.0x EBITDA, or higher, for higher skill set platforms and larger companies.
Public vs. Private
Yearly Transaction Volume
120
112
100
Number of Deals
15%
85%
82
80
17
60
30
40
16
0
25
19
29
21
22
18
20
25
28
28
2010
2011
2012
Q1
Private (22 Transactions)
30
Q2
Q3
50
18
26
29
26
24
2013
2014
2015
Q4
Source: Capital IQ
Source: Capital IQ
2Q Sector Activity
Strategic vs. Financial
19%
12%
IT Staffing (5 Transactions)
Other (4 Transactions)
Healthcare (7 Transactions)
81%
19%
15%
15%
F&A (3 Transactions)
Commerical (4 Transactions)
Technical (3 Transactions)
Strategic (21 Transactions)
99
28
42
19
20
Public (4 Transactions)
86
111
Financial (5 Transactions)
Source: Capital IQ
Source: Capital IQ
6
12%
27%
M & A Market Analysis (cont.)
2Q Global Merger & Acquisition Activity
Enterprise Enterprise Enterprise
Value
Value /
Value /
Revenues
EBITDA
($m m )
Date
Target / Issuer
Buyer
Business Description
06/30/2015
Information Technology
Engineering Corporation
Fahrenheit IT, Inc.
Information Technology Engineering Corporation provides technical staffing solutions supporting a range of industries in
the United States. The company w as founded in 1999 and is based in Aurora, Colorado.
06/24/2015
SKILLED Group Limited
(ASX:SKE)
Programmed Maintenance
Services Ltd. (ASX:PRG)
Skilled Group Limited offers staffing solutions to the public and private sectors. Skilled Group Limited w as founded in
1964 and is based in Haw thorn, Australia.
06/22/2015
Future Healthcare of America
(OTCPK:FUTU)
F3 & Associates, Inc.
06/18/2015
Axon Resourcing Ltd.
06/12/2015
7S Group GmbH
06/05/2015
-
N.A.
N.A.
449.1
0.3x
6.4x
Future Healthcare of America provides home healthcare and healthcare staffing services in the United States. The
company w as founded in 1991 and is based in Palm Beach, Florida.
-
N.A.
N.A.
Watson Moore Limited
Axon Resourcing Ltd. provides recruitment and permanent and temporary staffing services. The company w as founded
in 2002 and is based in Lockington, United Kingdom.
-
N.A.
N.A.
Manpow erGroup Inc.
(NYSE:MAN)
7S Group GmbH provides human resource services, information technology project and staffing services. The company
offers HR referral, outsourcing, in house services, master vendor concepts, consulting, executive search, training, and
business support services. 7S Group GmbH is based in Jena, Germany.
153.9
N.A.
N.A.
Staff Group Limited
Cordant Group PLC
Staff Group Limited offers recruitment and staffing solutions to the technology, finance, and energy industries. The
company w as incorporated in 2011 and is based in London, United Kingdom.
-
N.A.
N.A.
06/04/2015
Belcan Corporation
AE Industrial Partners, LLC
Belcan Corporation provides engineering, staffing, and other w orkforce solutions to clients w orldw ide. Belcan
Corporation w as founded in 1958 and is headquartered in Cincinnati, Ohio.
-
N.A.
N.A.
06/01/2015
Advanced Medical Personnel
Services, Inc.
Clearview Capital, LLC
Advanced Medical Personnel Services, Inc. offers medical staffing services to healthcare facilities and systems. The
company w as founded in 1989 and is based in Port Orange, Florida.
-
N.A.
N.A.
06/01/2015
Global Netw orker's, Inc.
Bucher & Christian
Consulting, Inc.
Global Netw orkers, Inc. provides information technology services in the United States. Its services include hardw are
and softw are integration, consulting, and staffing.The company w as founded in 2000 and is based in Charlotte, North
Carolina.
-
N.A.
N.A.
05/27/2015 Labor SMART, Inc., Substantially Command Center, Inc.
All Assets
(OTCPK:CCNI)
Labor SMART, Inc., Substantially All Assets provides temporary blue-collar staffing services. The assets are located in
the United States.
-
N.A.
N.A.
05/26/2015
Kingw ood Personnel Inc.
Murray Resources, Ltd.
Kingw ood Personnel Inc., a staffing agency, offers permanent and temporary placement staffing services. The
company w as founded in 1980 and is based in Humble, Texas.
-
N.A.
N.A.
05/13/2015
Staffing as a Mission, LLC
Clayton Associates, LLC
Staffing as a Mission, LLC offers contract, contract to hire, and direct hire staffing services. The company w as
founded in 2014 and is based in Brentw ood, Tennessee.
-
N.A.
N.A.
05/11/2015
Creative Circle, LLC
On Assignment Inc.
(NYSE:ASGN)
Creative Circle, LLC, a staffing agency, provides services for connecting advertising, marketing, creative, and
interactive professionals w ith companies seeking talent on a full-time or freelance basis. Creative Circle, LLC w as
incorporated in 2008 and is based in Los Angeles, California.
600.0
2.7x
N.A.
05/05/2015
Align MD PLLC and Elite
Management Services
American Physician
Partners, LLC
Align MD PLLC provides emergency medicine and hospitalist practice management staffing services. The companies
are based in the United States.
-
N.A.
N.A.
Source: Capital IQ
7
M & A Market Analysis (cont.)
2Q Global Merger & Acquisition Activity (cont.)
Date
Target / Issuer
05/04/2015
W. A. Hynes & Company, Inc.
05/01/2015
The Hiring Insiders
04/28/2015
Atterro, Inc.
04/22/2015
04/20/2015
Enterprise Enterprise Enterprise
Value /
Value /
Value
EBITDA
($m m )
Revenues
Buyer
Business Description
Kavaliro Staffing Services
W. A. Hynes & Company, Inc. provides staffing services to healthcare providers, finance, and insurance companies.
The company w as founded in 1976 and is headquartered in Petaluma, California.
-
N.A.
N.A.
machineLogic
Managed IT services provider machineLOGIC, headquartered in the greater Denver area, acquired The Hiring Insiders,
an IT-focused talent services firm based in Castle Rock, CO.
-
N.A.
N.A.
Advantage Resourcing
America, Inc.
Atterro, Inc. offers specialty staffing, contingent w orkforce solutions, and recruitment process outsourcing services in
the central United States. Atterro, Inc. w as founded in 1982 and is based in Minneapolis, Minnesota.
38.0
0.1x
3.8x
A. Soriano Corp. (PSE:ANS)
Anscor Consolidated
Corporation
A. Soriano Corporation provides temporary health-care staffing services in the United States and the Philippines. It
offers nurse/physical therapist staffing, and other healthcare and allied services. The company w as founded in 1930
and is based in Makati City, the Philippines.
-
N.A.
N.A.
Source4Solutions, LLC
Nautic Partners, LLC
Source4Solutions, LLC provides substitute staffing services for school districts.The company w as founded in 2000 and
is based in Cherry Hill, New Jersey w ith additional offices in the United States.
-
N.A.
N.A.
04/19/2015 DAVIS Transportation Services, TransForce, Inc.
LLC
DAVIS Transportation Services, LLC specializes in providing drivers and transportation-related personnel for short or
long term temporary, temporary to hire, and direct hire driving assignments, as w ell as offers payroll services. The
company w as founded in 1985 and is based in Marlborough, Massachusetts.
-
N.A.
N.A.
04/17/2015
Dedicare Assistanse AS
Humana Inc. (NYSE:HUM)
Dedicare Assistanse AS provides staffing solutions to health care industry. The company w as incorporated in 2014 and
is based in Oslo, Norw ay.
-
N.A.
N.A.
04/17/2015
Proffice Aviation AB
OSM Aviation
Proffice Aviation AB offers staffing services for the Norw egian airline. The company is based in Stockholm, Sw eden.
Proffice Aviation AB operates as a subsidiary of OSM Aviation.
5.8
0.2x
N.A.
Kable Staffing Resources, LLC operates as a temporary employment agency. The company offers temporary, temp to
hire, and direct hire employees. The company w as founded in 2006 and is based in Fairfield, Ohio.
0.3
N.A.
N.A.
Emergency Medicine Scribe Systems, Inc. provides scribe staffing services to hospitals and physicians’ groups in the
United States. The company w as founded in 2005 and is based in El Segundo, California.
-
N.A.
N.A.
-
N.A.
N.A.
0.8x
0.2x
5.1x
5.1x
04/10/2015
Kable Staffing Resources, LLC TSJ Staffing, LLC
04/06/2015
Emergency Medicine Scribe
Systems, Inc.
04/02/2015
Head2Head Inc.
Scribeamerica, LLC
Wilson Human Capital Group, Head2Head Inc. provides provides contract and permanent placement services for recruiters, human resource, supply
Inc.
chain, and information technology professionals. Head2Head Inc. w as founded in 2000 and is based in Toronto,
Canada.
Average
Median
Source: Capital IQ
8
M & A Transaction Highlight
On Assignment Acquires Creative Circle for $600 MM (May 2015)
Transaction Summary

On Assignment (NYSE:ASGN), a California based professional staffing firm, acquired Creative Circle, LLC for $570 million (plus a $30
million earn-out). Creative Circle generated revenues of $226 million in 2014 and was acquired from Morgan Stanley Private Equity. The
transaction was comprised of $540 million cash and $30 in common stock. The deal was structured as a purchase of limited liability
company interests, which will result in cash tax savings of an estimated $14 million per year for 15 years.

The purchase price (including earnout) represents an estimated 12.0-12.5x EV/TTM adjusted EBITDA. Including the tax savings, the
price represents an estimated 8.5x EV/TTM adjusted EBITDA multiple. This compares with ASGN’s 9.8x EV/TTM adjusted EBITDA
multiple at the time the transaction was announced and 12.0x ASGN’s EBITDA multiple as of July 8, 2015.

The acquisition is inline with On Assignment’s history of acquiring companies in fast-growing, professional staffing/consulting segments
that are expected to be immediately accretive to earnings. It also provides ASGN with a footprint in the ever-converging worlds of
technology and marketing and could allow for cross-selling opportunities due to essentially no business overlap between the two
companies.
Target Business Description
Buyer Business Description
Creative Circle, LLC offers services for connecting advertising,
marketing, creative, and interactive professionals with companies
seeking talent on a full-time or freelance basis. Creative Circle,
LLC was founded in 2002 and is based in Los Angeles, California
(www.creativecircle.com)
On Assignment, Inc. provides short and long-term placement of
contract, contract-to-hire, and direct hire professionals in the
United States, Europe, Canada, Australia, and New Zealand. On
Assignment’s contract staffing includes IT, scientific, software and
hardware engineering, physicians and nurses. The company
operates in four segments: Apex, Oxford, Physician, and Life
Sciences Europe. On Assignment was founded in 1985 and is
headquartered in Calabasas, California.
(www.onassignment.com)
9
Corporate Fuel Advisors Overview
General Overview
Founded in 2005, Corporate Fuel Advisors is a New York-based investment banking firm that provides a full range of advisory
services to middle market companies. Corporate Fuel Advisors prides itself on providing independent advice and senior
leadership on every assignment.
Focus:
Capabilities:

Mergers & Acquisitions

Business Valuations

Companies with revenues between $10-200mm

Recapitalizations

Divestures

Transaction size of $5-100mm

Strategic Advisory

Management Buyouts

A broad range of industries with over 400 transactions completed since 2005

Fairness Opinions

Raising Debt
Industries Served:

Business Succession Planning

Raising Growth Capital

Food & Fragrance

Consumer Products

Leadership & Talent Recruiting

Going Private Initiatives

ESOPs

Restructurings


IT & Software

Healthcare
Business Services

Industrial
Business Services Practice Overview
Areas of Focus:
Recent Assignments:

IT Staffing / Solutions


Finance & Accounting

Healthcare Staffing

Marketing / Advertising

Educational Technology

Professional Consulting
Architectural Engineering
has been acquired by
Advisor to Seller
has been acquired by
Served as
Exclusive
Financial Advisor
on
Acquisitions
Advisor to Seller
Contacts
Business Services Team
General Partners
James J. Janesky
Marc E. Hirschfield
Matthew D. Luczyk
John C. Simons
Charles S. Lachman
Managing Director
Vice President
Associate
Partner
Partner
jim@corporatefuel.com
marc@corporatefuel.com
matthew@corporatefuel.com
john@corporatefuel.com
charles@corporatefuel.com
(646) 572-0423
(646) 572-0425
(646) 572-0419
(646) 572-0422
(646) 572-0430
Corporate Fuel Advisors ♦ 119 Fifth Avenue, 8th floor, New York, NY 10003 ♦ 212-260-2743
www.corporatefuelpartners.com
10
Select Business Services Experience
CF has undertaken assignments for a variety of business services companies, examples of which
are shown below

IT consulting/solutions firm with a financial services industry focus
– Advising to explore strategic alternatives

IT solutions/staffing firm
– Targeted buy side and market analysis

$100 million full service recruitment, temporary staffing and retained search firm
– Provided valuation and evaluation of strategic options

National architectural, engineering, planning and environmental consulting firm
– Advised on series of acquisitions; completed two tactical purchases
– Recruited and placed COO and CFO for the Company’s senior management team

Facilities management and maintenance company providing construction and maintenance staff to
US government facilities domestically and internationally
– Advised the owners on acquisitions

Accounting and finance outsourced services to businesses and high net worth individuals
– Ongoing advisory

Marketing services business providing writers and branding resources to major financial services
companies
– Advised on a sale of the Company
11
Select Business Services Experience (cont.)

Electric company that provides linemen for electrical network systems
– Advised on a sale of the Company

Home healthcare aide business
– Provided valuation services

Medical transcription services business
– Advised on the sale of the Company

Financial services consulting firm
– Business provides finance, credit and risk, operations, compliance and technology support to investment
managers, family offices, banks, broker dealers and institutional investors
– Advised on the sale of the Company

Training and consulting firm active in corporate compliance and ethics
– Completed sale of the Company
– Recruited and placed CFO

$40 million staffing business
– Recruited and placed CFO

CF principals have had extensive involvement as bankers and consultants in the executive and online
recruiting spaces
– Lenders to four executive recruiting companies, of which two were $50 million + businesses
12
Case Study
Targeted Buy Side and Market Analysis for IT Staffing Company
 Corporate Fuel advised a Southeast-based IT Staffing company on the potential acquisition of a
website design and development company located in a top 40 U.S. IT staffing market.
- Acquisition opportunity arose as a result of a targeted and managed M&A process.
- Acquisition would provide a footprint to expand and diversify potential acquirer’s market and customer
base.
- Potential acquirer was exploring a “buy versus build” strategy to enter the new market.
 We performed a detailed valuation of acquisition target and a thorough market analysis:
- Potential acquirer wanted to determine if target market was attractive for expansion.
- Market analysis included a comprehensive overview of areas such as market size & growth
characteristics, competitive environment and pricing/margin trends.
 Ultimately the potential acquirer decided not to pursue the transaction or enter the new
market at this time.
- As part of our market analysis, Corporate Fuel provided advise on other markets should the potential
acquirer decide not to pursue the target market opportunity.
- The markets could be suitable to support other branch operations.
Key Takeaway: Expertise in the IT consulting and staffing services’ markets
was critical and allowed us to complete this assignment under significant
time constraints.
13
Exhibit A: Public Company – Valuation Data
Commercial Staffing
Enterprise
Value
Revenues
Gross Profit
Gross Profit
Margin
EBITDA
EBITDA
Margin
Enterprise
Value /
Revenues
Enterprise
Value / EBITDA
Com pany Nam e
Ticker
Date
Adecco S.A.
SWX:ADEN
3/31/2015
$13,941.9
$20,427.0
$3,807.0
18.6%
$1,057.0
5.2%
0.7 x
13.2 x
Barrett Business Services Inc.
NasdaqGS:BBSI
3/31/2015
$279.7
$668.0
$312.4
46.8%
($46.3)
-6.9%
0.4 x
NM
General Employment Enterprises Inc.
AMEX:JOB
3/31/2015
$81.6
$38.8
$13.1
33.6%
($0.0)
-0.1%
2.1 x
NM
Kelly Services, Inc.
NasdaqGS:KELY.A
3/29/2015
$596.9
$5,552.5
$906.4
16.3%
$61.6
1.1%
0.1 x
9.7 x
Manpow erGroup Inc.
NYSE:MAN
3/31/2015
$6,749.8
$20,401.0
$3,433.7
16.8%
$803.5
3.9%
0.3 x
8.4 x
Randstad Holding NV
ENXTAM:RAND
3/31/2015
$10,887.6
$17,711.5
$3,277.5
18.5%
$732.5
4.1%
0.6 x
14.9 x
TrueBlue, Inc.
NYSE:TBI
3/27/2015
$1,322.1
$2,351.3
$567.3
24.1%
$128.3
5.5%
0.6 x
10.3 x
Average
$4,837.1
$9,592.9
$1,759.6
25.0%
$390.9
1.8%
0.7 x
11.3 x
Median
$1,322.1
$5,552.5
$906.4
18.6%
$128.3
3.9%
0.6 x
10.3 x
EBITDA
EBITDA
Margin
Enterprise
Value /
Revenues
Enterprise
Value / EBITDA
Professional Staffing
Enterprise
Value
Revenues
Gross Profit
Gross Profit
Margin
Com pany Nam e
Ticker
Date
BG Staffing, Inc.
AMEX:BGSF
3/29/2015
$109.3
$174.7
$35.2
20.1%
$11.2
6.4%
0.6 x
9.7 x
CDI Corp.
NYSE:CDI
3/31/2015
$224.0
$1,104.2
$202.6
18.3%
$30.6
2.8%
0.2 x
7.3 x
Ciber, Inc.
NYSE:CBR
3/31/2015
$265.2
$847.6
$217.8
25.7%
$21.2
2.5%
0.3 x
12.5 x
Hudson Global, Inc
NasdaqGS:HSON
3/31/2015
$63.1
$561.3
$216.7
38.6%
($9.7)
-1.7%
0.1 x
NM
Kforce Inc.
NasdaqGS:KFRC
3/31/2015
$743.6
$1,247.9
$385.8
30.9%
$59.2
4.7%
0.6 x
12.6 x
Mastech Holdings, Inc.
AMEX:MHH
3/31/2015
$35.5
$111.9
$20.2
18.1%
$4.9
4.4%
0.3 x
7.2 x
On Assignment Inc.
NYSE:ASGN
3/31/2015
$2,300.7
$1,883.1
$605.6
32.2%
$189.8
10.1%
1.2 x
12.1 x
RCM Technologies Inc.
NasdaqGM:RCMT
4/4/2015
$89.8
$193.2
$52.7
27.3%
$12.2
6.3%
0.5 x
7.4 x
Robert Half International Inc.
NYSE:RHI
3/31/2015
$7,156.0
$4,816.2
$1,978.5
41.1%
$573.1
11.9%
1.5 x
12.5 x
Volt Information Sciences Inc.
AMEX:VISI
5/3/2015
$326.3
$1,620.6
$246.6
15.2%
$14.3
0.9%
0.2 x
22.9 x
Average
$1,131.4
$1,256.1
$396.2
26.8%
$90.7
4.8%
0.6 x
11.6 x
Median
$244.6
$975.9
$217.3
26.5%
$17.8
4.6%
0.4 x
12.1 x
Source: Capital IQ
Pricing As of July 8, 2015
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Exhibit A: Public Company – Valuation Data (cont.)
Executive and Retained Search
Enterprise
Value
Revenues
Gross Profit
Gross Profit
Margin
EBITDA
EBITDA
Margin
Enterprise
Value /
Revenues
Enterprise
Value / EBITDA
Com pany Nam e
Ticker
Date
Hays plc
LSE:HAS
12/31/2014
$2,306.7
$3,741.3
$312.7
8.4%
$161.1
4.3%
0.6 x
14.3 x
Heidrick & Struggles International Inc.
NasdaqGS:HSII
3/31/2015
$385.9
$498.3
$158.3
31.8%
$49.3
9.9%
0.8 x
7.8 x
Korn/Ferry International
NYSE:KFY
4/30/2015
$1,316.2
$1,028.2
$297.0
28.9%
$136.9
13.3%
1.3 x
9.6 x
Michael Page International plc
LSE:MPI
12/31/2014
$1,530.0
$1,046.9
$532.8
50.9%
$86.5
8.3%
1.5 x
17.7 x
Average
$1,384.7
$1,578.7
$325.2
30.0%
$108.4
8.9%
1.0 x
12.4 x
Median
$1,423.1
$1,037.5
$304.9
30.3%
$111.7
9.1%
1.0 x
12.0 x
EBITDA
EBITDA
Margin
Enterprise
Value /
Revenues
Enterprise
Value / EBITDA
Healthcare Staffing
Enterprise
Value
Revenues
Gross Profit
Gross Profit
Margin
Com pany Nam e
Ticker
Date
AMN Healthcare Services Inc.
NYSE:AHS
3/31/2015
$1,644.5
$1,122.7
$343.6
30.6%
$95.6
8.5%
1.5 x
17.2 x
Cross Country Healthcare, Inc.
NasdaqGS:CCRN
3/31/2015
$479.7
$685.7
$174.4
25.4%
$21.0
3.1%
0.7 x
22.9 x
Team Health Holdings, Inc.
NYSE:TMH
3/31/2015
$5,523.6
$3,018.5
$572.5
19.0%
$308.5
10.2%
1.8 x
17.9 x
Average
$2,549.2
$1,608.9
$363.5
25.0%
$141.7
7.3%
1.3 x
19.3 x
Median
$1,644.5
$1,122.7
$343.6
25.4%
$95.6
8.5%
1.5 x
17.9 x
Source: Capital IQ
Pricing As of July 8, 2015
CORPORATE FUEL ADVISORS , a New York-based investment banking firm, provides a full range of advisory services to middle market companies. The firm advises on mergers and acquisitions, and raising debt
and equity capital. CFA concentrates on small to mid-size enterprises with revenue between $10 million and $200 million. The diverse experience of our partners and unique market focus allows us to bring an
unmatched level of expertise to our clients. We conduct securities-related transactions through our wholly owned affiliate, Corporate Fuel Securities, LLC, a registered broker dealer. Member FINRA and SIPC.
Corporate Fuel Advisors gathers its data from sources it considers reliable but does not guarantee the accuracy or completeness of the information provided in this publication. Officers, partners or employees
may have investments in the securities of the companies discussed in this publication. Corporate Fuel may from time to time seek or provide investment banking services from the companies contained in this
report.
Any public companies included in the Corporate Fuel Advisors indices are companies commonly used for industry information to show performance within a sector. These indices do not include all public
companies that could be included within the sector and do not imply benchmarks.
This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by Corporate Fuel Advisors or its affiliates to buy, sell or hold any security,
financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold
any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance
and liquidity needs.
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