Industry Insights:
Staffing Industry M&A Landscape
By the Numbers
89 Staffing Industry M&A transactions were reported in the first nine months of 2015, a 14% increase vs. the same period in 2014.
35 Staffing Industry M&A transactions completed by 32 different buyers were reported in the third quarter of 2015.
Unique buyers completed a staffing transaction in the first nine months of 2015.
Summary
â˘â˘ Privatelyâ˘heldâ˘staffingâ˘buyersâ˘accountedâ˘forâ˘78%â˘ofâ˘theâ˘acquisitionsâ˘inâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015,â˘whileâ˘publicâ˘buyersâ˘completedâ˘22%.
â˘â˘ Strategicâ˘buyersâ˘accountedâ˘forâ˘87%â˘ofâ˘theâ˘staffingâ˘acquisitionsâ˘inâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015,â˘withâ˘privateâ˘equityâ˘(financial)â˘buyersâ˘investingâ˘inâ˘aâ˘newâ˘platformâ˘acquisitionâ˘accountingâ˘forâ˘theâ˘otherâ˘13%â˘ofâ˘theâ˘transactions.
â Twelve new platform staffing investments were acquired by private equity groups in the first nine months of 2015 and 39 since the beginning of 2012.
â˘â˘ ITâ˘staffingâ˘continuesâ˘toâ˘beâ˘theâ˘mostâ˘activeâ˘staffingâ˘M&Aâ˘sector,â˘withâ˘31â˘transactionsâ˘reportedâ˘inâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015.
â˘â˘ Professionalâ˘staffingâ˘companiesâ˘(includingâ˘IT,â˘Healthcare,â˘Financeâ˘&â˘Accounting,â˘Legalâ˘andâ˘Creative/Digitalâ˘staffing)â˘continueâ˘toâ˘seeâ˘theâ˘mostâ˘widespreadâ˘demandâ˘fromâ˘buyers.
â˘â˘ Buyersâ˘continueâ˘toâ˘beâ˘veryâ˘selectiveâ˘regardingâ˘theâ˘acquisitionâ˘opportunitiesâ˘theyâ˘areâ˘pursuing,â˘especiallyâ˘asâ˘theâ˘supplyâ˘ofâ˘sellersâ˘inâ˘theâ˘marketâ˘increases.â˘Companiesâ˘withâ˘scale,â˘strongâ˘growthâ˘andâ˘marginâ˘profiles,â˘directâ˘clientâ˘relationshipsâ˘withâ˘aâ˘broadâ˘diversifiedâ˘setâ˘ofâ˘customers,â˘andâ˘withâ˘tenuredâ˘managementâ˘teamsâ˘continuingâ˘posttransactionâ˘remainâ˘highlyâ˘soughtâ˘after,â˘bothâ˘byâ˘strategicâ˘acquirersâ˘andâ˘ifâ˘largeâ˘enough,â˘privateâ˘equity.â˘Staffingâ˘companiesâ˘lackingâ˘theseâ˘differentiatingâ˘characteristicsâ˘typicallyâ˘drawâ˘moreâ˘limitedâ˘buyerâ˘interest,â˘yetâ˘stillâ˘canâ˘beâ˘completed.
Q3 2015
Represents the highest number of announced quarterly M&A transactions in the staffing industry since Q2 2007.
79
Powering Sound Decisions for Companies, Boards and Investors Worldwide
#1 Announced Fairness Opinions in the U.S. Over the Past Five Years
#3 U.S. Middle-Market M&A Advisor Over the Past Three Years
Top 10 U.S. Restructuring Advisor
Source:â˘Fairnessâ˘opinionâ˘rankingsâ˘calculatedâ˘byâ˘numberâ˘ofâ˘dealsâ˘fromâ˘Thomsonâ˘Financialâ˘Securitiesâ˘fullâ˘yearsâ˘2010â˘throughâ˘2014.â˘M&Aâ˘rankingsâ˘calculatedâ˘byâ˘numberâ˘ofâ˘dealsâ˘fromâ˘Thomsonâ˘Financialâ˘Securitiesâ˘fullâ˘yearsâ˘2012â˘throughâ˘2014.â˘Middle-marketâ˘M&Aâ˘dealsâ˘<â˘$200â˘million.â˘Bankruptcyâ˘caseâ˘rankingâ˘providedâ˘byâ˘Theâ˘Dealâ˘Q4â˘2014â˘leagueâ˘table.
Duffâ˘&â˘Phelpsâ˘isâ˘theâ˘premierâ˘globalâ˘valuationâ˘andâ˘corporateâ˘financeâ˘advisorâ˘withâ˘expertiseâ˘inâ˘complexâ˘valuation,â˘disputeâ˘andâ˘legalâ˘managementâ˘consulting,â˘M&A,â˘restructuring,â˘andâ˘complianceâ˘andâ˘regulatoryâ˘consulting.â˘Theâ˘firmâsâ˘moreâ˘thanâ˘2,000â˘employeesâ˘serveâ˘aâ˘diverseâ˘rangeâ˘ofâ˘clientsâ˘fromâ˘officesâ˘aroundâ˘theâ˘world.â˘
Forâ˘moreâ˘information,â˘visitâ˘www.duffandphelps.com.
Duffâ˘&â˘Phelpsâ˘â˘ 3
Industry Sector
IT Staffing
F&A
Healthcare
Legal
Other
Outplacement
PEO
Technical
Executive Search
Commerical Staffing
No. of Transactions
31
6
9
1
16
1
1
6
4
14
16%
4%
7%
1%1%
18%
1% 10%
7%
35%
YTD September
2015
201420132012201120102009200820072006200520040
20
40
60
80
100
120
140
160
180
153142
133
150
97
68
87
59
103 103 105
89
Num
ber o
f Dea
ls
Private78%
Strategic87%
Financial13%
Public22%
(20 Transactions) (12 Transactions)
(77 Transactions)(69 Transactions)
Source:â˘Duffâ˘&â˘Phelpsâ˘Securities,â˘Staffingâ˘Industryâ˘Analysts,â˘Capitalâ˘IQ Source:â˘Duffâ˘&â˘Phelpsâ˘Securities,â˘Staffingâ˘Industryâ˘Analysts,â˘Capitalâ˘IQ
Source:â˘Duffâ˘&â˘Phelpsâ˘Securities,â˘Staffingâ˘Industryâ˘Analysts,â˘Capitalâ˘IQ
Publicâ˘vs.â˘Privateâ˘Buyer Strategicâ˘vs.â˘Financialâ˘Buyer
M&Aâ˘Overview:Theâ˘thirdâ˘quarterâ˘ofâ˘2015â˘sawâ˘35â˘staffingâ˘industryâ˘M&Aâ˘transactionsâ˘completedâ˘byâ˘32â˘differentâ˘buyers.â˘Theseâ˘35â˘transactionsâ˘representâ˘theâ˘highestâ˘amountâ˘ofâ˘announcedâ˘quarterlyâ˘M&Aâ˘activityâ˘inâ˘theâ˘staffingâ˘industryâ˘sinceâ˘theâ˘secondâ˘quarterâ˘ofâ˘2007.â˘Forâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015,â˘89â˘staffingâ˘industryâ˘M&Aâ˘transactionsâ˘haveâ˘beenâ˘completedâ˘byâ˘79â˘uniqueâ˘buyers.â˘Atâ˘theâ˘currentâ˘pace,â˘moreâ˘staffingâ˘M&Aâ˘transactionsâ˘willâ˘beâ˘completedâ˘inâ˘2015â˘thanâ˘inâ˘anyâ˘yearâ˘datingâ˘backâ˘toâ˘2007,â˘whichâ˘wasâ˘theâ˘peakâ˘yearâ˘forâ˘staffingâ˘M&Aâ˘activityâ˘duringâ˘thatâ˘economicâ˘cycle.â˘
Ourâ˘conversationsâ˘indicateâ˘thatâ˘muchâ˘ofâ˘theâ˘currentâ˘M&Aâ˘activityâ˘inâ˘theâ˘staffingâ˘sectorâ˘isâ˘beingâ˘drivenâ˘byâ˘staffingâ˘companyâ˘ownersâ˘sensingâ˘thatâ˘thisâ˘mayâ˘beâ˘theâ˘optimalâ˘timeâ˘toâ˘sellâ˘theirâ˘businessâ˘duringâ˘thisâ˘economicâ˘cycle.â˘Evenâ˘withâ˘theâ˘influxâ˘ofâ˘sellersâ˘enteringâ˘theâ˘market,â˘valuationâ˘multiplesâ˘mayâ˘continueâ˘toâ˘beâ˘attractive,â˘especiallyâ˘forâ˘fastâ˘growingâ˘businessesâ˘providingâ˘professionalâ˘staffingâ˘servicesâ˘suchâ˘asâ˘ITâ˘orâ˘healthcareâ˘staffing.
Asâ˘previouslyâ˘noted,â˘buyersâ˘continueâ˘toâ˘beâ˘veryâ˘selectiveâ˘regardingâ˘theâ˘acquisitionâ˘opportunitiesâ˘theyâ˘areâ˘pursuing,â˘especiallyâ˘asâ˘theâ˘supplyâ˘ofâ˘sellersâ˘inâ˘theâ˘marketâ˘increases.â˘Companiesâ˘withâ˘scale,â˘strongâ˘growthâ˘andâ˘marginâ˘profiles,â˘directâ˘clientâ˘relationshipsâ˘withâ˘aâ˘broadâ˘diversifiedâ˘setâ˘ofâ˘customers,â˘andâ˘withâ˘tenuredâ˘managementâ˘teamsâ˘continuingâ˘post-transactionâ˘remainâ˘highlyâ˘soughtâ˘after,â˘bothâ˘byâ˘strategicâ˘acquirersâ˘andâ˘ifâ˘largeâ˘enough,â˘privateâ˘equity.â˘Staffingâ˘companiesâ˘lackingâ˘theseâ˘differentiatingâ˘characteristicsâ˘typicallyâ˘drawâ˘moreâ˘limitedâ˘buyerâ˘interest,â˘yetâ˘stillâ˘canâ˘beâ˘completed.
Staffingâ˘industryâ˘acquisitionâ˘activityâ˘remainsâ˘primarilyâ˘drivenâ˘byâ˘privatelyâ˘heldâ˘strategicâ˘buyersâ˘(manyâ˘ofâ˘whomâ˘areâ˘backedâ˘byâ˘privateâ˘equityâ˘funds),â˘asâ˘theâ˘largerâ˘andâ˘betterâ˘knownâ˘publicâ˘staffingâ˘companiesâ˘accountâ˘forâ˘onlyâ˘aâ˘limitedâ˘numberâ˘ofâ˘transactionsâ˘eachâ˘year.â˘Inâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015,â˘78%â˘ofâ˘theâ˘transactionsâ˘wereâ˘completedâ˘byâ˘privatelyâ˘ownedâ˘buyers,â˘withâ˘onlyâ˘22%â˘acquiredâ˘byâ˘publiclyâ˘tradedâ˘entities.â˘
Strategicâ˘buyersâ˘(includingâ˘thoseâ˘staffingâ˘companiesâ˘primarilyâ˘ownedâ˘byâ˘privateâ˘equityâ˘investors)â˘completedâ˘87%â˘ofâ˘theâ˘staffingâ˘acquisitionsâ˘inâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015.â˘Thisâ˘followsâ˘theâ˘94%â˘ofâ˘announcedâ˘acquisitionsâ˘completedâ˘byâ˘strategicâ˘acquirersâ˘inâ˘2014.â˘Privateâ˘equityâ˘(financial)â˘buyersâ˘continueâ˘toâ˘beâ˘anâ˘attractiveâ˘optionâ˘forâ˘theâ˘largestâ˘andâ˘fastestâ˘growingâ˘staffingâ˘companies,â˘withâ˘fourâ˘newâ˘platformâ˘investmentsâ˘madeâ˘inâ˘theâ˘thirdâ˘quarterâ˘ofâ˘2015â˘andâ˘twelveâ˘inâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015.â˘
Exhibit 2: Staffing Industry Transaction Activity â YTD September 30, 2015 Exhibit 3: M&A Activity by Staffing Industry Sector â YTD September 30, 2015
Exhibit 1: Yearly Staffing Transaction Volume â 2004 to September 30, 2015
ITâ˘staffing,â˘especiallyâ˘thoseâ˘companiesâ˘withâ˘aâ˘moreâ˘relationship-orientedâ˘salesâ˘modelâ˘generatingâ˘higherâ˘grossâ˘margins,â˘continuesâ˘toâ˘beâ˘theâ˘singleâ˘mostâ˘attractiveâ˘temporaryâ˘staffingâ˘segmentâ˘forâ˘acquirers,â˘asâ˘31â˘ofâ˘theâ˘89â˘transactionsâ˘reportedâ˘inâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015â˘involvedâ˘companiesâ˘whoseâ˘predominateâ˘serviceâ˘offeringâ˘wasâ˘ITâ˘staffing.â˘Healthcareâ˘staffingâ˘andâ˘Finance/Accountingâ˘staffingâ˘companiesâ˘areâ˘alsoâ˘seeingâ˘significantâ˘buyerâ˘interestâ˘withâ˘9â˘andâ˘6â˘transactions,â˘respectively,â˘completedâ˘inâ˘theâ˘firstâ˘nineâ˘monthsâ˘ofâ˘2015.â˘Theâ˘professionalâ˘staffingâ˘segmentsâ˘(includingâ˘IT,â˘Healthcare,â˘Financeâ˘&â˘Accounting,â˘Legalâ˘andâ˘Creative/Digitalâ˘staffing)â˘continueâ˘toâ˘seeâ˘theâ˘mostâ˘widespreadâ˘demandâ˘fromâ˘buyersâ˘andâ˘typicallyâ˘generateâ˘theâ˘strongestâ˘valuations,â˘whileâ˘commercialâ˘staffingâ˘M&Aâ˘activityâ˘isâ˘drivenâ˘mostlyâ˘byâ˘lightâ˘industrialâ˘staffingâ˘buyersâ˘seekingâ˘toâ˘eitherâ˘expandâ˘theirâ˘geographicâ˘marketâ˘coverageâ˘orâ˘gainâ˘accessâ˘toâ˘newâ˘customers.
Staffingâ˘Industryâ˘M&Aâ˘Landscape
M&A Activity â Staffing Industry
Staffingâ˘Industryâ˘M&Aâ˘Landscape
Notable Staffing Transactions Q3 2015
Vision Technology ServicesBGâ˘Staffingâ˘Inc.,â˘aâ˘Plano,â˘Texas-basedâ˘staffingâ˘firm,â˘acquiredâ˘substantiallyâ˘allâ˘ofâ˘theâ˘assetsâ˘ofâ˘theâ˘Visionâ˘Technologyâ˘Servicesâ˘familyâ˘ofâ˘companiesâ˘(VTS).â˘Basedâ˘inâ˘theâ˘Baltimoreâ˘area,â˘VTSâ˘providesâ˘ITâ˘temporaryâ˘staffingâ˘talentâ˘andâ˘projectâ˘managementâ˘servicesâ˘toâ˘companiesâ˘throughoutâ˘theâ˘mid-Atlanticâ˘regionâ˘andâ˘selectedâ˘marketsâ˘nationwide.â˘Visionâ˘Technologyâ˘Servicesâ˘willâ˘operateâ˘asâ˘aâ˘separateâ˘brandâ˘underâ˘theâ˘BGâ˘Staffingâ˘Inc.â˘umbrella,â˘andâ˘itsâ˘employeesâ˘willâ˘remainâ˘withâ˘theâ˘firm.
VTSâ˘hadâ˘revenuesâ˘ofâ˘approximatelyâ˘$33.2â˘millionâ˘inâ˘2014â˘basedâ˘uponâ˘preliminaryâ˘unauditedâ˘information.â˘Accordingâ˘toâ˘theâ˘pressâ˘releases,â˘theâ˘purchaseâ˘priceâ˘isâ˘upâ˘toâ˘anâ˘aggregateâ˘ofâ˘$20.75â˘million,â˘includingâ˘$10.0â˘millionâ˘paidâ˘atâ˘closingâ˘andâ˘earn-outâ˘paymentsâ˘upâ˘toâ˘anâ˘aggregateâ˘ofâ˘$10.75â˘million,â˘providedâ˘certainâ˘conditionsâ˘areâ˘met,â˘overâ˘aâ˘threeâ˘yearâ˘periodâ˘followingâ˘theâ˘acquisitionâ˘date.
â˘âTheâ˘completionâ˘ofâ˘theâ˘accretiveâ˘Visionâ˘Technologyâ˘Servicesâ˘acquisitionâ˘inâ˘theâ˘ITâ˘segmentâ˘fitsâ˘perfectlyâ˘intoâ˘ourâ˘growthâ˘andâ˘expansionâ˘plans,ââ˘saidâ˘BGâ˘Staffingâ˘Presidentâ˘andâ˘CEOâ˘L.â˘Allenâ˘Baker,â˘Jr.â˘âItâ˘willâ˘allowâ˘usâ˘toâ˘moveâ˘closerâ˘toâ˘ourâ˘goalâ˘ofâ˘generatingâ˘$100â˘millionâ˘inâ˘revenueâ˘fromâ˘theâ˘ITâ˘segmentâ˘ââ˘andâ˘toâ˘enhanceâ˘theâ˘cashâ˘flowâ˘portfolioâ˘weâ˘areâ˘buildingâ˘forâ˘ourâ˘shareholders.
Duff & Phelps acted as the exclusive financial advisor to Vision Technology Services
TransForce, Inc.Palladiumâ˘Equityâ˘Partners,â˘LLC,â˘aâ˘privateâ˘investmentâ˘firmâ˘withâ˘overâ˘$2.0â˘billionâ˘inâ˘assetsâ˘underâ˘management,â˘announcedâ˘thatâ˘anâ˘affiliatedâ˘fundâ˘hasâ˘acquiredâ˘TransForce,â˘Inc.,â˘aâ˘specializedâ˘staffingâ˘andâ˘recruitingâ˘companyâ˘thatâ˘providesâ˘qualifiedâ˘commercialâ˘truckâ˘driversâ˘toâ˘third-partyâ˘logisticsâ˘companies,â˘privateâ˘fleets,â˘andâ˘truckingâ˘companies.â˘Headquarteredâ˘inâ˘Alexandria,â˘VA,â˘theâ˘Companyâ˘operatesâ˘47â˘branchesâ˘acrossâ˘24â˘statesâ˘andâ˘dispatchesâ˘moreâ˘thanâ˘2,500â˘driversâ˘toâ˘itsâ˘customersâ˘onâ˘aâ˘dailyâ˘basis.â˘
âWeâ˘believeâ˘TransForceâ˘hasâ˘establishedâ˘aâ˘differentiatedâ˘positionâ˘inâ˘theâ˘industryâ˘throughâ˘itsâ˘broadâ˘geographicâ˘footprint,â˘fullâ˘serviceâ˘offering,â˘strongâ˘safetyâ˘trackâ˘record,â˘regulatoryâ˘expertise,â˘andâ˘excellentâ˘customerâ˘service,ââ˘saidâ˘Luisâ˘Zaldivar,â˘aâ˘Managingâ˘Directorâ˘ofâ˘Palladium.â˘âMyâ˘partnersâ˘andâ˘Iâ˘lookâ˘forwardâ˘toâ˘supportingâ˘theâ˘growthâ˘ofâ˘TransForceâ˘intoâ˘newâ˘geographiesâ˘throughâ˘expectedâ˘deâ˘novoâ˘branchesâ˘andâ˘acquisitions.â
Cross Country Education, LLC Crossâ˘Countryâ˘Healthcare,â˘Inc.,â˘aâ˘nationalâ˘leaderâ˘inâ˘providingâ˘staffing,â˘recruitingâ˘andâ˘leading-edgeâ˘healthcareâ˘workforceâ˘solutions,â˘announcedâ˘thatâ˘itâ˘completedâ˘theâ˘saleâ˘ofâ˘itsâ˘Educationâ˘Business,â˘Crossâ˘Countryâ˘Education,â˘LLC,â˘toâ˘PESI,â˘Inc.â˘forâ˘anâ˘aggregateâ˘purchaseâ˘priceâ˘ofâ˘$8.0â˘million,â˘plusâ˘potentialâ˘considerationâ˘ofâ˘$0.5â˘million,â˘accordingâ˘toâ˘theâ˘pressâ˘release.â˘Crossâ˘Countryâ˘Educationâ˘providesâ˘in-personâ˘seminarsâ˘toâ˘healthcareâ˘professionalsâ˘andâ˘wasâ˘non-coreâ˘toâ˘theâ˘Companyâsâ˘business.â˘Accordingâ˘toâ˘theâ˘pressâ˘release,â˘theâ˘Companyâ˘intendsâ˘toâ˘useâ˘theâ˘netâ˘proceedsâ˘fromâ˘theâ˘transactionâ˘toâ˘financeâ˘furtherâ˘investmentsâ˘forâ˘revenueâ˘growthâ˘includingâ˘futureâ˘acquisitions,â˘toâ˘implementâ˘andâ˘financeâ˘itsâ˘strategicâ˘objectives,â˘toâ˘reduceâ˘debtâ˘andâ˘forâ˘generalâ˘businessâ˘purposes.â˘Crossâ˘Countryâ˘Educationâ˘isâ˘anâ˘approvedâ˘providerâ˘ofâ˘continuingâ˘educationâ˘withâ˘moreâ˘thanâ˘30â˘professionalâ˘healthcareâ˘associations.â˘Theâ˘divisionâ˘isâ˘basedâ˘inâ˘Brentwood,â˘Tenn.
âSellingâ˘thisâ˘businessâ˘isâ˘aâ˘logicalâ˘nextâ˘stepâ˘inâ˘executingâ˘ourâ˘statedâ˘strategyâ˘asâ˘weâ˘concentrateâ˘ourâ˘resourcesâ˘onâ˘ourâ˘coreâ˘staffingâ˘andâ˘workforceâ˘solutionsâ˘businesses,ââ˘Presidentâ˘andâ˘CEOâ˘Williamâ˘Grubbsâ˘said.â˘âIâ˘wantâ˘toâ˘thankâ˘theâ˘employeesâ˘ofâ˘Crossâ˘Countryâ˘Educationâ˘forâ˘theirâ˘services,â˘andâ˘Iâ˘amâ˘veryâ˘pleasedâ˘weâ˘couldâ˘findâ˘themâ˘anâ˘outstandingâ˘newâ˘homeâ˘asâ˘partâ˘ofâ˘theâ˘PESIâ˘team.â
Medical Solutions, Inc.Investmentâ˘partnersâ˘Beeckenâ˘Pettyâ˘OâKeefeâ˘&â˘Companyâ˘andâ˘Heritageâ˘Groupâ˘acquiredâ˘100%â˘ofâ˘theâ˘stockâ˘ofâ˘travelâ˘nurseâ˘providerâ˘Medicalâ˘Solutionsâ˘fromâ˘Texexâ˘Capitalâ˘Managementâ˘andâ˘McCarthyâ˘Capital.â˘Theâ˘transactionâ˘closedâ˘onâ˘Augustâ˘31;â˘termsâ˘wereâ˘notâ˘disclosed.â˘Medicalâ˘Solutionsâ˘ranksâ˘fourthâ˘onâ˘Staffingâ˘Industryâ˘Analystsââ˘listâ˘ofâ˘largestâ˘travelâ˘nurseâ˘staffingâ˘firmsâ˘inâ˘theâ˘U.S.â˘andâ˘No.â˘13â˘onâ˘theâ˘listâ˘ofâ˘largestâ˘healthcareâ˘staffingâ˘firmsâ˘inâ˘theâ˘U.S.
âForgingâ˘theseâ˘newâ˘partnershipsâ˘becameâ˘possibleâ˘dueâ˘toâ˘theâ˘incredibleâ˘growthâ˘weâveâ˘experiencedâ˘throughoutâ˘theâ˘pastâ˘threeâ˘years,ââ˘saidâ˘Medicalâ˘Solutionsâ˘CEOâ˘Craigâ˘Meier.â˘âTenexâ˘andâ˘McCarthyâ˘Capitalâ˘haveâ˘beenâ˘outstandingâ˘partners,â˘andâ˘weâ˘lookâ˘forwardâ˘toâ˘continuedâ˘growthâ˘withâ˘BPOCâ˘andâ˘Heritage.â˘Ourâ˘newâ˘partnersâ˘areâ˘anâ˘idealâ˘fitâ˘andâ˘weâ˘couldnâtâ˘beâ˘moreâ˘excitedâ˘aboutâ˘thisâ˘evolution.ââ˘
Theâ˘recapitalizationâ˘withâ˘theâ˘newâ˘investmentâ˘partnersâ˘willâ˘fundâ˘organicâ˘growthâ˘andâ˘futureâ˘acquisitions.â˘Beeckenâ˘Pettyâ˘OâKeefeâ˘&â˘Company,â˘aâ˘Chicago-basedâ˘privateâ˘equityâ˘managementâ˘firmâ˘focusesâ˘onâ˘theâ˘healthcareâ˘industry.â˘Heritageâ˘Groupâ˘isâ˘aâ˘Nashville,â˘Tenn.-basedâ˘healthcare-exclusiveâ˘ventureâ˘capitalâ˘firm.
PeopleSharePrivateâ˘Equityâ˘firmâ˘Trivestâ˘Partnersâ˘acquiredâ˘PeopleShare,â˘aâ˘Kingâ˘ofâ˘Prussia,â˘Penn.-basedâ˘companyâ˘providingâ˘temporaryâ˘staffingâ˘andâ˘outsourcedâ˘HRâ˘servicesâ˘providerâ˘inâ˘theâ˘northeastâ˘Unitedâ˘States.â˘Theâ˘transactionâ˘closedâ˘onâ˘Septemberâ˘2;â˘termsâ˘wereâ˘notâ˘disclosed.â˘PeopleShareâ˘ownersâ˘Davidâ˘Donaldâ˘andâ˘Ryanâ˘Clarkâ˘willâ˘remainâ˘withâ˘theâ˘firm.â˘
PeopleShareâ˘operatesâ˘13â˘officesâ˘inâ˘Pennsylvania,â˘Newâ˘Jerseyâ˘andâ˘Delaware.â˘Theâ˘companyâ˘providesâ˘temporary,â˘temp-to-hireâ˘andâ˘contingentâ˘workforceâ˘solutionsâ˘forâ˘theâ˘lightâ˘industrialâ˘andâ˘officeâ˘andâ˘clericalâ˘sectors.â˘PeopleShareâ˘alsoâ˘hasâ˘customerâ˘programsâ˘servicingâ˘clientsâ˘onâ˘aâ˘nationalâ˘basis.
Healthcare Staffing Services, LLCPrivateâ˘equityâ˘firmâ˘Thomasâ˘H.â˘Leeâ˘Partnersâ˘LPâ˘acquiredâ˘aâ˘majorityâ˘stakeâ˘inâ˘Healthcareâ˘Staffingâ˘Servicesâ˘inâ˘aâ˘recapitalizationâ˘transaction.â˘Healthcareâ˘Staffingâ˘Servicesâ˘specializesâ˘inâ˘providingâ˘nurseâ˘staffingâ˘onâ˘aâ˘ârapidâ˘responseââ˘basis.â˘Itâ˘ownsâ˘Fastaffâ˘Travelâ˘Nursingâ˘andâ˘U.S.â˘Nursingâ˘Corporation.â˘Healthcareâ˘Staffingâ˘Servicesâ˘ranksâ˘No.â˘11â˘onâ˘Staffingâ˘Industryâ˘Analystsââ˘2015â˘listâ˘ofâ˘largestâ˘healthcareâ˘staffingâ˘firmsâ˘inâ˘theâ˘U.S.,â˘withâ˘$137â˘millionâ˘inâ˘2014â˘U.S.â˘healthcareâ˘staffingâ˘revenue.â˘Termsâ˘ofâ˘theâ˘transactionâ˘wereâ˘notâ˘disclosed.â˘Theâ˘companyâ˘willâ˘remainâ˘atâ˘itsâ˘corporateâ˘headquartersâ˘inâ˘Denver.
âWithâ˘thisâ˘investmentâ˘weâ˘willâ˘haveâ˘theâ˘scaleâ˘andâ˘resourcesâ˘toâ˘accelerateâ˘ourâ˘growthâ˘andâ˘furtherâ˘expandâ˘ourâ˘platform,ââ˘saidâ˘Rayâ˘Marcy,â˘executiveâ˘chairmanâ˘ofâ˘Healthcareâ˘Staffingâ˘Services.â˘âAsâ˘weâ˘continueâ˘toâ˘evaluateâ˘andâ˘pursueâ˘newâ˘opportunities,â˘bothâ˘strategicâ˘andâ˘organic,â˘weâ˘areâ˘veryâ˘excitedâ˘toâ˘beâ˘partneringâ˘withâ˘THLâ˘ââ˘aâ˘firmâ˘withâ˘aâ˘longâ˘andâ˘distinguishedâ˘trackâ˘recordâ˘ofâ˘helpingâ˘companiesâ˘growâ˘andâ˘succeedâ˘inâ˘theâ˘healthcareâ˘space.â˘Asâ˘theâ˘healthcareâ˘industryâ˘continuesâ˘toâ˘evolve,â˘HSSââ˘uniqueâ˘nurseâ˘staffingâ˘servicesâ˘modelâ˘isâ˘helpingâ˘hospitalsâ˘addressâ˘oneâ˘ofâ˘theirâ˘majorâ˘issuesâ˘inâ˘ensuringâ˘theâ˘deliveryâ˘ofâ˘qualityâ˘careâ˘ââ˘aâ˘shortageâ˘ofâ˘well-qualifiedâ˘nurses.â
Healthcareâ˘Staffingâ˘Servicesâ˘acquiredâ˘Fastaffâ˘andâ˘U.S.â˘Nursingâ˘fromâ˘Reliantâ˘Healthcareâ˘inâ˘Februaryâ˘2014.â˘Reliantâ˘wasâ˘ownedâ˘byâ˘privateâ˘equityâ˘firmâ˘Clarionâ˘Capitalâ˘Partners.
Duffâ˘&â˘Phelpsâ˘â˘ 4
Duffâ˘&â˘Phelpsâ˘â˘ 5
Staffingâ˘Industryâ˘M&Aâ˘Landscape
Staffing M&A Transactions Q3 2015
Announced Date Seller Buyer EV EV / Rev. Business Description
7/1/15 Evereadyâ˘Staffingâ˘andâ˘Training Chartwellâ˘Staffingâ˘Solutions NA NA Providesâ˘temporary,â˘temporary-to-hire,â˘andâ˘directâ˘hireâ˘staffingâ˘solutionsâ˘forâ˘variousâ˘positions,â˘suchâ˘asâ˘administrativeâ˘andâ˘clerical,â˘manufacturing,â˘skilledâ˘trades,â˘andâ˘more
7/6/15 TransForceâ˘Inc. Palladiumâ˘Equityâ˘Partnersâ˘LLC NA NA Aâ˘nationwideâ˘truck-driverâ˘staffingâ˘firm
7/6/15 Legacyâ˘Engineeringâ˘LLC PDSâ˘Tech NA NA Providesâ˘technicalâ˘andâ˘managementâ˘professionalsâ˘toâ˘theâ˘aerospaceâ˘andâ˘defenseâ˘industry
7/9/15 Reichardâ˘Staffing Alluvionâ˘Staffing NA NA Providesâ˘professionalâ˘staffingâ˘asâ˘wellâ˘asâ˘lightâ˘industrialâ˘andâ˘clericalâ˘staffing
7/9/15 RDWâ˘Professionalâ˘Staffing Alluvionâ˘Staffing NA NA Providesâ˘professionalâ˘staffingâ˘asâ˘wellâ˘asâ˘lightâ˘industrialâ˘andâ˘clericalâ˘staffing
7/9/15 S&Bâ˘Staffing HWâ˘Staffingâ˘Solutions NA NA Providesâ˘lightâ˘industrial,â˘clerical,â˘andâ˘officeâ˘servicesâ˘staffing
7/13/15 Lighthouseâ˘Placementâ˘Servicesâ˘LLC Staffingâ˘360â˘Solutionsâ˘Inc. NA NA Anâ˘engineeringâ˘staffingâ˘providerâ˘servingâ˘easternâ˘Massachusettsâ˘andâ˘southernâ˘Newâ˘Hampshire.â˘Theâ˘companyâ˘alsoâ˘targetsâ˘theâ˘
pharmaceutical,â˘biotechnologyâ˘andâ˘ITâ˘sectors
7/23/15 P.â˘Murphyâ˘&â˘Associatesâ˘Inc. Intelliswiftâ˘Softwareâ˘Inc. NA NA Providesâ˘ITâ˘staffingâ˘services
7/30/15 Crossâ˘Countryâ˘Educationâ˘business PESIâ˘Inc. $9⢠NA Staffâ˘fieldâ˘expertsâ˘toâ˘seminars,â˘conferences,â˘andâ˘e-learningâ˘continuedâ˘educationâ˘venues
8/3/15 Agileâ˘Resourcesâ˘Inc. Generalâ˘Employmentâ˘Enterprisesâ˘Inc. NA NA Providesâ˘ITâ˘staffingâ˘andâ˘consultingâ˘services
8/3/15 Completeâ˘Staffingâ˘Services Activeâ˘Staffingâ˘Services NA NA Providesâ˘administrative,â˘clerical,â˘professionalâ˘andâ˘lightâ˘industrialâ˘laborâ˘inâ˘theâ˘Houstonâ˘market
8/4/15 Substationâ˘Designâ˘Servicesâ˘LLC RCMâ˘Technologiesâ˘Inc. NA NA Engineeringâ˘staffingâ˘firmâ˘specializingâ˘inâ˘designâ˘servicesâ˘forâ˘substationâ˘projects
8/6/15 ScaleneWorksâ˘Peopleâ˘Solutionsâ˘LLP CDIâ˘Corp. NA NA Aâ˘humanâ˘capitalâ˘managementâ˘consultingâ˘companyâ˘thatâ˘offersâ˘talentâ˘acquisitionâ˘services
8/6/15 Veritaaq ManpowerGroup NA NA Providesâ˘ITâ˘consultingâ˘servicesâ˘toâ˘clientsâ˘inâ˘theâ˘telecommunications,â˘financial,â˘andâ˘oilâ˘andâ˘gasâ˘sectorsâ˘andâ˘alsoâ˘servesâ˘allâ˘levelsâ˘ofâ˘government
8/10/15 Premierâ˘Legalâ˘Staffingâ˘Inc. Intelliswiftâ˘Softwareâ˘Inc. NA NAProvidesâ˘legalâ˘staffingâ˘servicesâ˘inâ˘areasâ˘includingâ˘patentâ˘preparation/prosecution,â˘opinions,â˘dueâ˘diligence,â˘IPâ˘strategy,â˘patentâ˘litigation,â˘Hatch-Waxman,â˘standardsâ˘bodiesâ˘andâ˘openâ˘source,â˘licensingâ˘andâ˘variousâ˘agreements,â˘interâ˘parties,â˘andâ˘re-examination,â˘asâ˘wellâ˘asâ˘M&Aâ˘andâ˘generalâ˘corporate-relatedâ˘legalâ˘positions
8/12/15 OnPointâ˘Partnersâ˘Inc. Catapultâ˘Staffing NA NA Specializesâ˘inâ˘direct-hireâ˘placementsâ˘ofâ˘executiveâ˘financialâ˘managementâ˘andâ˘accountingâ˘supportâ˘staff
8/12/15 180Northâ˘Financialâ˘Staffing Catapultâ˘Staffing NA NA Specializesâ˘inâ˘interimâ˘staffingâ˘ofâ˘executiveâ˘financialâ˘managementâ˘andâ˘accountingâ˘supportâ˘staff
8/14/15 Fiveâ˘Branchâ˘Locationsâ˘ofâ˘Laborâ˘SMART Harrisâ˘Ventures,â˘Inc.â˘dbaâ˘Staffâ˘Zone $1⢠NA Theâ˘fiveâ˘branchesâ˘providesâ˘temporaryâ˘labor,â˘lightâ˘industrialâ˘andâ˘clericalâ˘staffing
8/14/15 Recruitingâ˘divisionâ˘ofâ˘PaperBoatâ˘Mediaâ˘LLC Valintryâ˘Servicesâ˘LLC NA NA Providesâ˘ITâ˘staffingâ˘andâ˘consultingâ˘services
8/20/15 Virajâ˘LLC V-Softâ˘Consultingâ˘Group NA NA Providesâ˘ITâ˘consultingâ˘services
8/26/15 Hospitalâ˘Physicianâ˘Partners Schumacherâ˘Group NA NA Providerâ˘ofâ˘emergencyâ˘andâ˘hospitalâ˘medicineâ˘clinicalâ˘staffingâ˘services
8/31/15 Bayâ˘Staffingâ˘Solutions Atriumâ˘Staffing NA NA Providesâ˘expertiseâ˘inâ˘residentialâ˘realâ˘estateâ˘andâ˘nonprofitâ˘staffing
8/31/15 inVantage Theâ˘Novoâ˘Group NA NA Providesâ˘professionalâ˘talentâ˘acquisitionâ˘servicesâ˘inâ˘aâ˘diverseâ˘rangeâ˘ofâ˘professions,â˘alsoâ˘providesâ˘RPOâ˘services
9/3/15 Medicalâ˘SolutionsBeeckenâ˘Pettyâ˘O'Keefeâ˘&â˘Companyâ˘andâ˘Heritageâ˘Group
NA NA Providesâ˘travelâ˘nurseâ˘staffing
9/4/15 Vircon Diversantâ˘LLC NA NA Providesâ˘technologyâ˘solutionsâ˘andâ˘ITâ˘staffingâ˘services
9/4/15 PeopleShare Trivestâ˘Partners NA NAProvidesâ˘temporaryâ˘staffingâ˘andâ˘outsourcedâ˘HRâ˘servicesâ˘inâ˘theâ˘northeastâ˘US.â˘Theâ˘companyâ˘specializeâ˘inâ˘aâ˘varietyâ˘ofâ˘professionalâ˘staffingâ˘services
9/4/15 Priorityâ˘Personnelâ˘Inc. Theâ˘Hamilton-Rykerâ˘Groupâ˘Inc. NA NA Providesâ˘commercialâ˘staffing,â˘targetingâ˘theâ˘lightâ˘industrialâ˘andâ˘clericalâ˘sectors
9/14/15 Theâ˘Firstâ˘Stringâ˘Healthcare AMNâ˘Healthcare $11⢠NA Providerâ˘ofâ˘temporaryâ˘staffingâ˘andâ˘permanentâ˘placementâ˘ofâ˘nurseâ˘leadersâ˘andâ˘executives
9/21/15 Theâ˘Renickâ˘Group Theâ˘Arevoâ˘Group NA NA Executiveâ˘Searchâ˘firmâ˘specializingâ˘inâ˘ITâ˘andâ˘humanâ˘resourcesâ˘placements
Source:â˘Capitalâ˘IQ
Staffing M&A Transactions Q3 2015
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Staffingâ˘Industryâ˘M&Aâ˘Landscape
Duffâ˘&â˘Phelpsâ˘â˘ 6
Announced Date Seller Buyer EV EV / Rev. Business Description
9/21/15 StrategyHire Sonomaâ˘Consultingâ˘Inc. NA NA Providesâ˘ITâ˘technologyâ˘recruitingâ˘andâ˘solutions
9/23/15 RecruitProâ˘Inc. CorTech NA NA Providesâ˘aâ˘diverseâ˘rangeâ˘ofâ˘staffingâ˘servicesâ˘thatâ˘includesâ˘lightâ˘industrial,â˘commercial,â˘accountingâ˘/â˘financeâ˘andâ˘ITâ˘positions
9/24/15Healthcareâ˘Staffingâ˘Servicesâ˘(Fastaffâ˘Travelâ˘Nursingâ˘andâ˘U.S.â˘Nursingâ˘Corporation)
Thomasâ˘H.â˘Leeâ˘Partnersâ˘LP NA NA Specializesâ˘inâ˘providingâ˘nurseâ˘staffingâ˘onâ˘aâ˘ârapidâ˘responseââ˘basis
9/24/15 Hayâ˘Group KornFerry $452⢠0.9x
Offersâ˘leadershipâ˘andâ˘talentâ˘services,â˘includingâ˘capabilityâ˘assessment,â˘leadershipâ˘transformation,â˘andâ˘talentâ˘management;â˘rewardâ˘services,â˘suchâ˘asâ˘rewardâ˘strategies,â˘totalâ˘rewardâ˘framework,â˘executiveâ˘rewards,â˘jobâ˘evaluation,â˘andâ˘rewardâ˘informationâ˘services;â˘strategicâ˘performanceâ˘managementâ˘services;â˘andâ˘employeeâ˘surveys.â˘Itâ˘servesâ˘aerospaceâ˘andâ˘defense,â˘chemicals,â˘communicationsâ˘andâ˘media,â˘education,â˘financialâ˘services,â˘FMCG,â˘healthcare,â˘lifeâ˘sciences,â˘manufacturing,â˘oilâ˘andâ˘gas,â˘publicâ˘sectorâ˘andâ˘notâ˘forâ˘profit,â˘retail,â˘andâ˘technologyâ˘sectors
9/25/15 RiseSmart Randstadâ˘Holdingâ˘NV $100⢠NA Providesâ˘outplacementâ˘services
9/28/15 Visionâ˘Technologyâ˘Services BGâ˘Staffing $20⢠0.6x Providesâ˘ITâ˘staffingâ˘servicesâ˘inâ˘theâ˘Mid-Atlanticâ˘Region
Source:â˘Capitalâ˘IQ
Staffing M&A Transactions Q3 2015
Source:â˘Capitalâ˘IQ;â˘forâ˘definitionsâ˘referâ˘toâ˘pageâ˘8
Duffâ˘&â˘Phelpsâ˘â˘ 7
Staffingâ˘Industryâ˘M&Aâ˘Landscape
Public Trading Data for Staffing Companies
($â˘inâ˘millions,â˘exceptâ˘perâ˘shareâ˘amounts)
Company Name TickerPrice as of
09/30/2015
52-WeekMarket
CapEnterprise
ValueLTM
Revenue
EBITDALTM
EBITDA Margin
EV / EBITDA% of 52
Week HighLow High LTM 2015E LTM 2015E
Commercialâ˘Staffing
Adeccoâ˘S.A. ADEN $72.97 $57.97 $85.97 $13,779.0⢠$15,196.8⢠$23,416.3⢠$1,226.4⢠$1,421.6⢠â˘5.2% 12.4x 10.7x 84.9%
Barrettâ˘Businessâ˘Servicesâ˘Inc. BBSI 42.93 18.25 49.79 301.0⢠263.3⢠699.3⢠(43.3) 44.1⢠â˘NM⢠â˘NM⢠6.0⢠â˘86.2â˘â˘
CDIâ˘Corp. CDI 8.55 8.36 19.24 165.3⢠154.1⢠1,066.7⢠24.8⢠12.3⢠â˘2.3â˘â˘ 6.2⢠12.5⢠â˘44.4â˘â˘
Generalâ˘Employmentâ˘Enterprisesâ˘Inc. JOB 4.00 1.20 18.70 8.7⢠10.6⢠40.4⢠0.8⢠1.2⢠â˘1.9â˘â˘ 14.0⢠9.2⢠â˘21.4â˘â˘
Kellyâ˘Services,â˘Inc. KELY.A 14.14 13.47 18.22 524.4⢠537.7⢠5,527.0⢠65.4⢠95.2⢠â˘1.2â˘â˘ 8.2⢠5.6⢠â˘77.6â˘â˘
ManpowerGroupâ˘Inc. MAN 81.89 57.55 96.87 6,424.8⢠6,731.2⢠19,940.6⢠783.1⢠784.5⢠â˘3.9â˘â˘ 8.6⢠8.6⢠â˘84.5â˘â˘
Randstadâ˘Holdingâ˘NV RAND 59.38 33.61 72.53 10,218.2⢠12,064.3⢠20,338.8⢠860.7⢠1,046.1⢠â˘4.2â˘â˘ 14.0⢠11.5⢠â˘81.9â˘â˘
Staffingâ˘360â˘Solutions,â˘Inc. STAF 7.90 2.45 16.60 36.3⢠36.7⢠128.8⢠(3.2) (1.6) â˘(2.5) (11.4)⢠(23.0)⢠â˘47.6â˘â˘
TrueBlue,â˘Inc. TBI 22.47 19.82 31.50 870.2⢠750.9⢠2,525.8⢠137.9⢠142.7⢠â˘5.5â˘â˘ 5.4⢠5.3⢠â˘71.3â˘â˘
Average $2,648.6⢠$2,934.02⢠$7,175.3⢠$267.1⢠$303.7⢠3.1% 9.1x 8.1x 70.3%
Median $524.4⢠$537.7⢠$2,525.8⢠$65.4⢠$95.2⢠3.1% 8.4x 8.6x 77.6%
Professionalâ˘Staffing
BGâ˘Staffing,â˘Inc. BGSF $7.92 $9.79 $13.00 $58.6⢠$58.6⢠$181.6⢠$12.7⢠$0.0⢠7.0% 4.6x NA 60.9%
Ciber,â˘Inc. CBR 3.18 2.84 4.21 233.9⢠243.0⢠830.9⢠25.9⢠30.8⢠â˘3.1â˘â˘ 9.4⢠â˘7.9⢠â˘75.5â˘â˘
Hudsonâ˘Global,â˘Inc HSON 2.49 1.98 3.84 82.6⢠48.7⢠533.0⢠(12.8) (8.9) â˘NM⢠â˘NM⢠â˘NM⢠â˘64.8â˘â˘
Kellyâ˘Services,â˘Inc. KELY.A 14.14 13.47 18.22 524.4⢠537.7⢠5,527.0⢠65.4⢠95.2⢠â˘1.2â˘â˘ 8.2⢠5.6⢠â˘77.6â˘â˘
Kforceâ˘Inc. KFRC 26.28 18.65 29.33 944.6⢠940.4⢠1,282.5⢠66.2⢠83.5⢠â˘5.2â˘â˘ 14.2⢠11.3⢠â˘89.6â˘â˘
ManpowerGroupâ˘Inc. MAN 81.89 57.55 96.87 6,424.8⢠6,731.2⢠19,940.6⢠783.1⢠784.5⢠â˘3.9â˘â˘ 8.6⢠8.6⢠â˘84.5â˘â˘
Mastechâ˘Holdings,â˘Inc. MHH 7.55 5.30 12.00 30.1⢠26.9⢠113.5⢠4.8⢠0.0⢠â˘4.2â˘â˘ 5.6⢠NA â˘62.9â˘â˘
Onâ˘Assignmentâ˘Inc. ASGN 36.90 25.98 41.49 1,938.0⢠2,363.7⢠1,934.0⢠194.3⢠233.5⢠â˘10.0â˘â˘ 12.2⢠10.1⢠â˘88.9â˘â˘
Randstadâ˘Holdingâ˘NV RAND 59.38 33.61 72.53 10,218.2⢠12,064.3⢠20,338.8⢠860.7⢠1,046.1⢠â˘4.2â˘â˘ 14.0⢠11.5⢠â˘81.9â˘â˘
RCMâ˘Technologiesâ˘Inc. RCMT 4.92 4.16 9.25 59.2⢠29.0⢠188.9⢠10.4⢠0.0⢠â˘5.5â˘â˘ 2.8⢠NA â˘53.2â˘â˘
Resourcesâ˘Connectionâ˘Inc. RECN 15.07 12.60 18.54 617.9⢠495.1⢠595.5⢠57.0⢠55.9⢠â˘9.6â˘â˘ 8.7⢠8.9⢠â˘81.3â˘â˘
Robertâ˘Halfâ˘Internationalâ˘Inc. RHI 51.16 45.30 63.27 7,203.6⢠6,915.7⢠4,923.4⢠600.3⢠645.7⢠â˘12.2â˘â˘ 11.5⢠10.7⢠â˘80.9â˘â˘
TSR,â˘Inc. TSRI 4.32 3.09 5.50 8.6⢠0.4⢠59.0⢠0.7⢠NA â˘1.1â˘â˘ 0.6⢠NA â˘78.5â˘â˘
Voltâ˘Informationâ˘Sciencesâ˘Inc. VISI 9.10 7.50 13.00 189.7⢠162.2⢠1,562.6⢠9.0⢠NA â˘0.6â˘â˘ 18.1⢠NA â˘70.0â˘â˘
Average $1,525.6⢠$1,546.0⢠$3,134.5⢠$152.5⢠$192.9⢠5.0% 9.1x 9.6x 75.7%
Median $379.1⢠$369.0⢠$1,056.7⢠$41.4⢠$69.7⢠4.2% 8.7x 9.5x 78.1%
(1)â˘$â˘Millions,â˘exceptâ˘forâ˘perâ˘shareâ˘data
(2)â˘Excludesâ˘theâ˘highestâ˘andâ˘lowestâ˘values.
(3)â˘â˘EBITDAâ˘doesâ˘notâ˘reflectâ˘adjustmentsâ˘forâ˘extraordinaryâ˘items.
Source:â˘Capitalâ˘IQ
Definitions
PEG Ratio: Priceâ˘earningsâ˘toâ˘growthâ˘
EBITDA:â˘Earningsâ˘Beforeâ˘Interest,â˘Taxes,â˘Depreciation,â˘andâ˘Amortizationâ˘
EPS: Earningsâ˘Perâ˘Shareâ˘
Enterprise Value: Marketâ˘Capitalizationâ˘+â˘Totalâ˘Debtâ˘+â˘Preferredâ˘Equityâ˘+â˘Minorityâ˘Interestâ˘ââ˘Cashâ˘andâ˘Shortâ˘Termâ˘Investmentsâ˘
LTM: Lastâ˘Twelveâ˘Monthsâ˘
Duffâ˘&â˘Phelpsâ˘â˘ 8
Staffingâ˘Industryâ˘M&Aâ˘Landscape
Public Trading Data for Staffing Companies
($â˘inâ˘millions,â˘exceptâ˘perâ˘shareâ˘amounts)
Company Name TickerPrice as of
09/30/2015
52-WeekMarket
CapEnterprise
ValueLTM
Revenue
EBITDALTM
EBITDA Margin
EV / EBITDA% of 52
Week HighLow High LTM 2015E LTM 2015E
Healthcareâ˘Staffing
AMNâ˘Healthcareâ˘Servicesâ˘Inc. AHS $30.01 $15.04 $37.47 $1,332.1⢠$1,524.4⢠$1,221.9⢠$111.2⢠$143.8⢠9.1% 13.7x 10.6x 80.1%
Crossâ˘Countryâ˘Healthcare,â˘Inc. CCRN 13.61 8.80 16.72 420.6⢠447.6⢠755.7⢠25.1⢠30.4⢠â˘3.3â˘â˘ â˘17.8⢠â˘14.7⢠â˘81.4â˘â˘
Teamâ˘Healthâ˘Holdings,â˘Inc. TMH 54.03 50.83 70.21 3,646.5⢠4,149.9⢠3,221.4⢠322.3⢠381.4⢠â˘10.0â˘â˘ â˘12.9⢠â˘10.9⢠â˘77.0â˘â˘
Average $1,799.7⢠$2,040.6⢠$1,733.0⢠$152.9⢠$185.2⢠7.5% 14.8x 12.1x 79.5%
Median $1,332.1⢠$1,524.4⢠$1,221.9⢠$111.2⢠$143.8⢠9.1% 13.7x 10.9x 80.1%
Executiveâ˘andâ˘Retainedâ˘Search
Heidrickâ˘&â˘Strugglesâ˘Internationalâ˘Inc. HSII $19.45 $17.98 $26.73 $349.5⢠$1,344.0⢠$495.3⢠$44.9⢠$50.7⢠9.1% NM NM 72.8%
Korn/Ferryâ˘International KFY 33.07 24.13 36.34 1,607.2⢠2,251.3⢠1,044.4⢠142.6⢠155.5⢠â˘13.7â˘â˘ â˘15.8⢠â˘14.5⢠â˘91.0â˘â˘
Average $978.4⢠$1,797.7⢠$769.8⢠$93.8⢠$103.1⢠11.4% 15.8x 14.5x 81.9%
Median $978.4⢠$1,797.7⢠$769.8⢠$93.8⢠$103.1⢠11.4% 15.8x 14.5x 81.9%
Duffâ˘&â˘Phelpsâ˘â˘ 9
Sell Side Advisor
a portfolio company of North Texas Opportunity Fund LP, has been acquired by
Sell Side Advisor
has sold its IT staffing business to
Sell Side Advisor
has been acquired by
Staffingâ˘Industryâ˘M&Aâ˘Landscape
Selected Duff & Phelps Staffing Transactions
Sell Side Advisor
has been acquired by
a portfolio company
Sell Side Advisor
has been acquired by
Sell Side Advisor
has been acquired by
Sell Side Advisor
has been acquired by
Sell Side Advisor
and Prescott Legal Professionals, LP have been acquired by
a division of MPS Group, Inc.
Sell Side Advisor
has been acquired by
a portfolio company
Sell Side Advisor
has been acquired by
a portfolio company
Copyrightâ˘ÂŠâ˘2015â˘Duffâ˘&â˘Phelpsâ˘LLC.â˘Allâ˘rightsâ˘reserved.â˘
John Niehausâ˘Managingâ˘Directorâ˘+1â˘713â˘986â˘9307â˘[email protected]
712â˘Mainâ˘Streetâ˘Suiteâ˘2500â˘Houston,â˘TXâ˘77002
Jim Rebelloâ˘Managingâ˘Directorâ˘+1â˘713â˘986â˘9318â˘[email protected]
712â˘Mainâ˘Streetâ˘Suiteâ˘2500â˘Houston,â˘TXâ˘77002
For more information please visit: www.duffandphelps.com
About Duff & PhelpsDuffâ˘&â˘Phelpsâ˘isâ˘theâ˘premierâ˘globalâ˘valuationâ˘andâ˘corporateâ˘financeâ˘advisorâ˘withâ˘expertiseâ˘inâ˘complexâ˘valuation,â˘disputeâ˘andâ˘legalâ˘managementâ˘consulting,â˘M&A,â˘restructuring,â˘andâ˘complianceâ˘andâ˘regulatoryâ˘consulting.â˘Theâ˘firmâsâ˘moreâ˘thanâ˘2,000â˘employeesâ˘serveâ˘aâ˘diverseâ˘rangeâ˘ofâ˘clientsâ˘fromâ˘officesâ˘aroundâ˘theâ˘world.â˘
M&A advisory and capital raising services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff & Phelps Securities, LLC. M&A advisory and capital raising services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd., which is authorized and regulated by the Financial Conduct Authority.
Staffingâ˘Industryâ˘M&Aâ˘Landscape
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