HUMAN CAPITAL MONTHLY UPDATE

DECEMBER 2014

SECTOR SPOTLIGHT
Software/Internet
Outsourcing Services
JON STEELE

Transaction/Data Processors

Managing Director
Co-Head, Technology Services
617-624-7020
jon.steele@raymondjames.com

Staffing/Recruiting Services

CHIP KELSO
Senior Vice President
Human Capital Coverage
404-442-5835
chip.kelso@raymondjames.com

2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC

HUMAN CAPITAL MONTHLY UPDATE

IT Supply Chain Services: Quarterly Update

HCM INVESTMENT BANKING TRANSACTIONS

Investment by

Sale to

Initial Public Offering

Initial Public Offering

September 2013

Follow-On Equity
Offering

December 2014

October 2014

July 2014

Investment by

Investment by

Initial Public Offering

Initial Public Offering

April 2014

March 2014

March 2014

March 2014

Initial Public Offering

July 2014

Workday Services
Investment by

Sale to

Sale to

August 2013

March 2013

November 2012

October 2012

Investment by

Investment by

Sale to

Recapitalization

August 2012

January 2012

December 2011

October 2011

Sale to

Sale to

Recapitalization by

Sale to

July 2011

January 2011

July 2010

June 2009

May 2013

Follow-On Equity
Offering

2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC

HUMAN CAPITAL MONTHLY UPDATE

HUMAN CAPITAL MARKET UPDATE

TEV / 2014E Revenue
7.0x
6.0x
5.0x

TEV / 2014E EBITDA

6.1x

18.0x

35.0x
16.1x

15.6x

16.0x

5.0x

P/E 2014E
30.0x
25.2x

14.0x
9.6x

10.0x

3.0x

20.0x

2.1x

6.0x

10.0x

4.0x

0.4x

1.0x

15.8x

15.0x

8.0x

2.0x

26.7x

25.0x

11.2x

12.0x

4.0x

32.4x

5.0x

2.0x

0.0x

0.0x

Software / Outsourcing Transaction Staffing and

Internet
Services
/ Data
Recruiting
Processing Services

0.0x
Software /
Internet

Outsourcing Transaction / Staffing /

Services
Data
Recruiting
Processing
Services

Software /
Internet

Outsourcing Transaction / Staffing /

Services
Data
Recruiting
Processing
Services

1-Year Historical Composite Stock Performance (%) as of 11/30/2014

125
120
115

Nasdaq
S&P 500
HCM Outsourcing Services
HCM Transaction / Data Processors
HCM Software / Internet
Staffing / Recruiting Services

18.0%
14.5%
8.4%
3.9%
6.1%
-5.3%

18.0%
14.5%

110

8.4%
6.1%
3.9%

105
100

-5.3%

95
90
85
11-13

Indexed to 100 as of 11/30/2013

12-13

1-14

3-14

4-14

5-14

6-14

7-14

8-14

9-14

10-14

11-14

Operating / Trading Statistics

4.3%
4.3%

Transaction / Data
Processing
2.0%
8.2%

Staffing and Recruiting

Services
0.8%
6.2%

24.8%
26.2%

19.8%
19.0%

36.5%
38.1%

4.6%
5.6%

91.3%
0.8x

96.7%
1.5x

98.4%
1.6x

83.3%
0.8x

Software / Internet

Outsourcing Services

Transaction / Data
Processing

Staffing and Recruiting

Services

Software / Internet

Outsourcing Services

2014E Revenue Growth

2015E Revenue Growth

16.0%
13.2%

2014E EBITDA Margin

2015E EBITDA Margin
% 52 Week High
Debt / 2014E EBITDA

Top 3 Performers, by Stock Performance

Pa ycom Softwa re, Inc.
Last Month
Pa yl oci ty Hol di ng Corpora ti on
51job Inc.

64.9%
20.8%
19.9%

Aon pl c
ADP
Tri Net Group, Inc.

11.3%
8.5%
8.3%

ADP
Edenred SA
Equi fa x Inc.

8.5%
Ra nds ta d Hol di ng
5.5% Cros s Country Hea l thca re, Inc.
5.3%
Ha ys pl c

12.0%
11.0%
10.1%

Last 3 Months

Pa ycom Softwa re, Inc.

Ca l l i dus Softwa re Inc.
Concur Technol ogi es , Inc.

60.4%
39.1%
28.3%

Tri Net Group, Inc.

Pa ychex, Inc.
Ins peri ty, Inc.

18.1%
13.8%
10.6%

Wa geWorks , Inc.
Pa ychex, Inc.
CEB

41.6% Cros s Country Hea l thca re, Inc.

13.8%
Kforce Inc.
11.1%
CDI Corp.

33.7%
16.3%
13.2%

Last 12 Months

Di ce Hol di ngs , Inc.

Ca l l i dus Softwa re Inc.
Concur Technol ogi es , Inc.

49.3%
46.2%
32.7%

Aon pl c
Pa ychex, Inc.
ADP

13.3%
8.4%
7.0%

Equi fa x Inc.
Pa ychex, Inc.
ADP

18.1%
Sta ffl i ne Group pl c
8.4% Cros s Country Hea l thca re, Inc.
7.0%
Synergi e SA

39.8%
39.7%
25.9%

HUMAN CAPITAL MONTHLY UPDATE

HCM SOFTWARE / INTERNET

1-Year Historical Stock Performance
HCM Software / Internet
S&P 500
NASDAQ

125

6.1%
14.5%
18.0%

Indexed to 100 as of 11/30/2013

120

NASDAQ
S&P 500

115
110

HCM Software /
Internet

105
100
95
90
12-13

1-14

2-14

3-14

4-14

5-14

6-14

Quarterly Revenue Growth

30.0%

Sequential

7-14

8-14

9-14

10-14

11-14

Historical TEV / LTM Revenue Multiples

Year-over-Year

5-Year
Median = 4.2x

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
2010

2011

2012

2013

2014

Historical TEV / LTM EBITDA Multiples

Historical LTM P/E Multiples

40.0x

20.0x
18.0x

35.0x

5-Year
Median = 13.2x

16.0x
14.0x

5-Year
Median = 23.9x

30.0x
25.0x

12.0x

20.0x

10.0x
8.0x

15.0x

6.0x

10.0x

4.0x

5.0x

2.0x

0.0x

0.0x
2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

HCM Software / Internet 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.

HUMAN CAPITAL MONTHLY UPDATE

SOFTWARE / INTERNET: DETAILED VALUATION MULTIPLES AND METRICS

Price
11/30/2014

Company
Oracle Corporation
SAP SE
LinkedIn Corporation
Intuit Inc.
Workday, Inc.
Sage Group plc
SEEK Limited
The Ultimate Software Group, Inc.
Cornerstone OnDemand, Inc.
51job Inc.
Xero Limited.
Paycom Software, Inc.
Paylocity Holding Corporation
Castlight Health, Inc.
Callidus Software Inc.
Healthstream Inc.
Benefitfocus, Inc.
Dice Holdings, Inc.
Ebix Inc.
XING AG
Monster Worldwide, Inc.
eHealth, Inc.
Saba Software, Inc.
Halogen Software Inc.
Bond International Software plc
Asure Software, Inc.

42.41
70.39
226.27
93.87
87.05
6.37
14.57
147.24
31.77
36.75
13.32
28.75
29.09
12.43
15.97
28.65
27.09
10.87
16.21
116.27
4.35
25.87
13.75
7.71
1.45
5.23

Market
Cap ($MM)

Total
Enterprise
Value ($MM)

98.2 % $ 187,931.6
84,081.0
89.8
28,097.5
94.6
26,802.2
98.4
16,191.3
74.7
6,855.2
92.6
4,982.8
93.7
85.6
4,177.3
51.4
1,701.4
2,169.8
85.5
1,693.3
96.5
1,469.5
97.7
1,445.0
93.8
1,122.3
29.6
776.6
92.3
82.7
791.7
35.2
692.3
577.7
94.6
90.3
594.6
87.4
648.8
385.9
51.2
460.9
40.9
94.8
409.6
168.8
61.8
61.9
60.5
31.6
76.4

$ 169,462.6
85,387.2
25,839.0
25,712.2
15,376.2
7,564.4
5,591.7
4,076.5
1,917.8
1,630.1
1,560.2
1,478.2
1,372.2
940.2
748.4
675.3
673.4
663.8
611.0
568.4
562.3
402.9
395.4
115.1
71.1
46.7

% of 52
Week High

TEV

TEV
2014E
Revenue

Mean
Median

2015E
Revenue

2014E
EBITDA

2015E
EBITDA

Market Price
2015E EPS
2014E EPS

2014E P/E
Growth Rate

4.4 x
3.9
11.8
5.6
19.6
3.6
8.1
8.1
7.3
5.3
17.7
10.0
10.9
21.3
5.6
3.9
5.0
2.5
3.0
4.6
0.7
2.2
2.9
2.0
1.1
1.7

4.2 x
3.7
8.8
5.7
13.6
3.4
7.1
6.6
5.6
4.7
10.2
7.8
8.6
11.6
4.6
3.4
3.9
2.4
NA
4.1
0.7
1.9
NA
1.7
1.0
1.5

9.0 x
11.3
45.0
15.9
NM
12.1
19.3
34.3
NM
16.4
NM
58.7
NM
NM
52.9
23.8
NM
7.8
6.9
16.1
5.7
25.1
NM
NM
5.7
8.5

8.3 x
10.4
31.8
17.7
NM
11.4
15.9
26.7
NM
13.9
NM
43.2
NM
NM
37.7
19.9
NM
7.5
NM
12.5
5.3
21.5
NM
NM
5.2
7.5

14.6 x
16.4
NM
28.5
NM
17.7
28.4
72.9
NM
22.4
NM
NM
NM
NM
NM
72.4
NM
21.0
10.2
36.2
15.9
74.9
NM
NM
16.7
40.2

13.4 x
15.3
NM
34.3
NM
16.2
24.6
59.8
NM
19.6
NM
NM
NM
NM
NM
66.4
NM
18.3
NM
27.3
13.8
56.5
NM
NM
13.5
21.8

1.6
1.8
2.1
2.6
NM
2.4
1.3
2.4
NM
1.3
NM
3.9
0.0
NA
2.5
4.0
NM
1.2
1.1
0.8
1.2
4.0
NM
NM
NM
0.0

6.7 x
4.8

5.3 x
4.4

20.8 x
16.0

17.4 x
13.9

32.6 x
22.4

28.6 x
20.7

1.9
1.7

SOFTWARE / INTERNET: SELECTED M&A AND CAPITAL MARKETS ACTIVITY

Date
Announced

Type

Acquiror / Investor

Target / Issuer

11/25/2014
11/20/2014
11/18/2014
11/6/2014
11/4/2014
11/4/2014
10/27/2014
10/21/2014
10/16/2014
10/16/2014
10/14/2014
10/13/2014
10/10/2014
10/9/2014
10/7/2014
10/2/2014
9/30/2014
9/22/2014
9/24/2014
9/24/2014
9/22/2014
9/18/2014
9/18/2014

PP
PP
M&A
M&A
PP
PP
PP
M&A
DEBT
M&A
PP
PP
PP
PP
PP
PP
PP
M&A
PP
PP
PP
M&A
PP

Benchmark, T. Rowe Price, Stripes Group

Impulse International, Sunstone
1-Page Limited
Xero
Randstad Holdings NV
Matrix Partners, True Ventures, Lerer Ventures, Bullpen
Oak HC/FT Partners
Bertelsmann SE & Co.
Monster Worldwide, Inc.
Hg Capital
Accel Partners, Khosla Ventures, SVAngel, Google Ventures
erecruit
Undisclosed
Undisclosed
Catalyst Investors
Matrix Partners
Barracuda Networks, Inc.
Sage
Accel-KKR
Drive Capital, Valor Capital, Recruit Holdings
Randstad Innovation Fund
SAP America
BoxGroup, Lerer Hippeau Ventures, Red Sea Ventures

Elance-oDesk
Tyba Solutions
BranchOut, Inc.
Monchilla
Qandidate.com
Namely
Limeade, Inc.
Relias Learning, LLC
N/A
Allocate Software
Checkr
eStaff365
SpareHire, Inc.
10 Minutes With
Jobvite, Inc.
Lever, Inc.
Expensify, Inc.
PayChoice
F.W. Davidson & Company, Inc.
Udacity
RolePoint, Inc.
Concur Technologies
Campus Job

Transaction
Value ($MM)
$

30.0
3.1
5.4
7.1
NA
12.0
25.0
NA
125.0
167.1
9.0
NA
0.8
4.0
25.0
10.0
3.5
157.8
NA
35.0
NA
8,468.0
1.0

TEV /
Revenue
NA
NA
NA
NA
NA
NA
NA
NA
NA
2.3 x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
11.5
NA

EBITDA
NA
NA
NA
NA
NA
NA
NA
NA
NA
14.4 x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NM
NA

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

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, effective
immediately. Iannuzzi stepped down for personal reasons, according to the company. He will continue to
serve as a director and non-executive chairman of the board. Timothy Yates, a director of Monster and
formerly its executive VP and CFO, has been appointed CEO. Additionally, Mark Stoever, who previously
served as executive vice president of corporate development and internet advertising, was appointed chief
operating officer, a new position on Monsters management team.

HUMAN CAPITAL MONTHLY UPDATE

OUTSOURCING SERVICES
1-Year Historical Stock Performance
HCM Outsourcing Services
S&P 500
NASDAQ
Indexed to 100 as of 11/30/2013

125
120

8.4%
14.5%
18.0%

NASDAQ
S&P 500

115
110

HCM Outsourcing
Services

105
100
95
90
12-13

1-14

2-14

3-14

4-14

5-14

6-14

Quarterly Revenue Growth

20.0%

Sequential

7-14

8-14

9-14

10-14

11-14

Historical TEV / LTM Revenue Multiples

Year-over-Year

2.5x

15.0%

2.0x

10.0%

1.5x

5.0%

1.0x

0.0%

0.5x

5-Year
Median = 1.3x

0.0x

(5.0%)
2010

2011

2012

2013

Historical TEV / LTM EBITDA Multiples

14.0x

2011

2012

2013

2014

2013

2014

Historical LTM P/E Multiples

30.0x

5-Year
Median = 9.8x

12.0x

2010

2014

5-Year
Median = 20.2x

25.0x

10.0x

20.0x

8.0x
15.0x

6.0x
10.0x

4.0x

5.0x

2.0x
0.0x
2010

2011

2012

2013

2014

0.0x
2010

2011

2012

HCM Outsourcing Services Composite: ADP, AON, BBSI, CBZ, NSP, TSX: MSI and TW.

HUMAN CAPITAL MONTHLY UPDATE

OUTSOURCING SERVICES: DETAILED VALUATION MULTIPLES AND METRICS

Price
11/30/2014

Company

Automatic Data Processing, Inc.

Aon plc
Paychex, Inc.
Towers Watson & Co.
TriNet Group, Inc.
Morneau Shepell Inc.
CBIZ, Inc.
Insperity, Inc.

85.64
92.49
47.41
112.96
31.66
14.77
8.65
32.65

Market
Cap ($MM)

Total
Enterprise
Value ($MM)

99.3 % $ 41,317.0
27,825.6
99.8
98.4
17,333.1
85.8
8,002.4
96.6
1,443.3
732.8
96.8
437.6
91.5
90.0
809.0

$ 40,785.4
32,927.6
16,773.8
7,696.4
1,895.6
1,009.1
641.2
583.5

3.5 x
2.7
6.4
2.1
0.9
2.1
0.9
0.2

3.6 x
2.6
5.9
2.1
0.8
2.0
0.8
0.2

17.3 x
12.6
15.0
10.9
10.9
11.5
6.7
8.1

16.9 x
12.1
13.9
10.1
9.5
10.7
6.1
7.2

28.6 x
16.3
26.7
19.6
28.1
23.7
15.1
29.8

27.7 x
15.1
24.5
18.3
22.6
18.9
13.7
25.0

2.6
1.3
2.5
1.8
1.2
NA
1.2
1.8

Mean
Median

2.4 x
2.1

2.2 x
2.0

11.6 x
11.2

10.8 x
10.4

23.5 x
25.2

20.7 x
20.8

1.8
1.8

% of 52
Week High

TEV
2014E
Revenue

TEV
2015E
Revenue

2014E
EBITDA

2015E
EBITDA

Market Price
2015E EPS
2014E EPS

2014E P/E
Growth Rate

OUTSOURCING SERVICES: SELECTED M&A AND CAPITAL MARKETS ACTIVITY

Date
Announced

Type

Acquiror / Investor

Target / Issuer

11/21/2014
11/20/2014
11/10/2014
11/6/2014
9/16/2014
7/22/2014
6/3/2014
6/2/2014
5/21/2014
5/21/2014
5/20/2014
4/29/2014
4/28/2014
4/8/2014
4/3/2014
4/3/2014
3/27/2014
3/20/2014
3/14/2014
3/4/2014
3/3/2014
2/26/2014
2/26/2014
2/13/2014
2/3/2014
2/3/2014
1/29/2014
1/23/2014
1/9/2014
1/9/2014
1/9/2014
1/7/2014
12/20/2013
12/19/2013
12/10/2013
12/4/2013
11/21/2013
11/7/2013

M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
PP
M&A
M&A
M&A
M&A
M&A
IPO
M&A
PP
PP
M&A
M&A
M&A
PP
M&A
M&A
M&A
M&A
PP
M&A
M&A
M&A
M&A
M&A
M&A
PP
PP
M&A

Xerox
Stone Point Capital
Rhone Capital
Mercer
Steven Step RPO
Arthur J. Gallagher & Co.
CBIZ Retirment Plan Services
TrueBlue, Inc.
Carlyle Group
Pharos Capital Group, LLC
Education Growth Partners
WilsonHCG
Radius (New Company)
Baird Capital
Hawaii Human Resources
Hawaii Human Resources
N/A
DISA Global Solutions
AMN Healthcare
CIP Capital
Morneau Shepell Inc.
CoAdvantage Corporation
CoAdvantage Corporation
Accel-KKR LLC
Seaton
CBIZ
ThinkHR
Verisight
Lemhi Ventures, Timucuan AM
PetroSkills (BV Investment Partners)
Acacia Partners
CBIZ
SimplyBiz
Montagu Private Equity
Aon plc
undisclosed PE
Access Venture, Point B, Dundee Venture
Arthur J. Gallagher

Intrepid Learning Solutions

Oasis Outsourcing (Nautic, Altaris)
Global Knowledge (MidOcean Partners)
AUSREM
Blue Glue Limited
Baker Tilly's Employee Benefits Solutions
Tegrit Retirement Plan Services
SeatonCorp
Talent Partners
Employee Benefit Solutions, Inc.
Human Capital Institute
CPH
Merger of High Street Partners and Nair & Co.
Workforce Insight
HRBenefix
Kiria Payroll Services
Trinet Group
RS Occupational Health
PipelineRx
OnCourse Learning
Groupe AST
Discovery Outsourcing
Compensation Solutions
RiseSmart
HRX
Lewis Birch & Ricardo
HR That Works
Daily Access
PlanSource
Resource Development Company
Questco Companies
Clearview National Partners
Staffcare
Corporate Employee Financial Services (div. of UBS AG)
Stratford 360
Bolt HR
RoundPegg
Employee Benefits Analysis Corporation

Transaction
Value ($MM)

NA
NA
NA
NA
NA
NA
NA
310.0
NA
NA
NA
NA
NA
NA
NA
NA
240.0
NA
7.0
NA
32.0
NA
NA
11.0
NA
NA
NA
NA
12.0
NA
NA
NA
NA
NA
NA
NA
2.8
NA

TEV /
Revenue
NA
NA
NA
NA
NA
NA
NA
0.5 x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

EBITDA
NA
NA
NA
NA
NA
NA
NA
7.8 x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

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 recognized
as 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 winning
partnership between Cielo and AB InBev was chosen for the creation and implementation of imaginative,
yet delivery-focused initiatives. The partnership has enabled AB InBev through cost savings, reduced timeto-hire, a consistent high quality of recruiting, and compelling employer brand.

HUMAN CAPITAL MONTHLY UPDATE

TRANSACTION / DATA PROCESSORS

1-Year Historical Stock Performance
125
120

HCM Transaction / Data Processors

S&P 500
NASDAQ

3.9%
14.5%
18.0%

NASDAQ

Indexed to 100 as of 11/30/2013

S&P 500

115
110

HCM Transaction /
Data Processors

105
100
95
90
12-13

1-14

2-14

3-14

5-14

4-14

6-14

7-14

8-14

Quarterly Revenue Growth

15.0%

10-14

11-14

Historical TEV / LTM Revenue Multiples

Year-over-Year

Sequential

9-14

7.0x
6.0x

10.0%

5-Year
Median = 3.9x

5.0x

5.0%

4.0x
3.0x

0.0%

2.0x

(5.0%)

1.0x
0.0x

(10.0%)
2010

2011

2012

2013

2010

2014

Historical TEV / LTM EBITDA Multiples

2011

2012

2013

2014

2013

2014

Historical LTM P/E Multiples

18.0x

35.0x

5-Year
Median = 12.3x

16.0x
14.0x

5-Year
Median = 22.1x

30.0x
25.0x

12.0x
10.0x

20.0x

8.0x

15.0x

6.0x

10.0x

4.0x
5.0x

2.0x
0.0x
2010

2011

2012

2013

2014

0.0x
2010

2011

2012

HCM Transaction / Data Processors Composite: ADP, EFX, ENXTPA: EDEN, EXBD, PAYX, VRSK and WAGE.

HUMAN CAPITAL MONTHLY UPDATE

TRANSACTION / DATA PROCESSORS: DETAILED VALUATION MULTIPLES AND METRICS

Price
11/30/2014

Company
Automatic Data Processing, Inc.
Paychex, Inc.
Verisk Analytics, Inc.
Equifax Inc.
Edenred SA
Corporate Executive Board Co.
WageWorks, Inc.
HealthEquity, Inc.

85.64
47.41
61.98
79.55
28.84
73.21
58.42
24.83

Market
Cap ($MM)

Total
Enterprise
Value ($MM)

99.3 % $ 41,317.0
98.4
17,333.1
10,554.7
91.8
99.4
9,876.1
87.4
6,564.0
90.4
2,497.8
85.5
2,115.7
98.2
1,424.9

$ 40,785.4
16,773.8
11,395.2
11,351.5
7,547.0
2,918.9
1,808.5
1,454.9

% of 52
Week High

Mean
Median

TEV
2014E
Revenue

TEV
2015E
Revenue

2014E
EBITDA

2015E
EBITDA

Market Price
2014E EPS
2015E EPS

2014E P/E
Growth Rate

3.5 x
6.4
6.6
4.7
5.9
3.2
6.8
17.2

3.6 x
5.9
5.8
4.4
5.4
2.9
5.5
13.1

17.3 x
15.0
14.2
13.4
16.1
13.3
25.5
62.5

16.9 x
13.9
12.7
12.3
14.2
11.7
20.8
41.6

28.6 x
26.7
25.9
20.5
27.4
21.7
61.7
NM

27.7 x
24.5
22.9
18.6
23.4
19.7
51.2
NM

2.6
2.6
2.0
1.7
2.2
1.5
3.4
2.4

6.8 x
6.1

5.8 x
5.4

22.2 x
15.6

18.0 x
14.1

30.4 x
26.7

26.9 x
23.4

2.3
2.3

TRANSACTION / DATA PROCESSORS: SELECTED M&A AND CAPITAL MARKETS ACTIVITY

Date
Announced

Type

Acquiror / Investor

Target / Issuer

11/13/2014
11/5/2014
10/20/2014
10/17/2014
9/23/2014
8/4/2014
8/1/2014
6/5/2014
6/4/2014
5/30/2014
5/6/2014
4/25/2014
4/15/2014
4/9/2014
4/3/2014
3/3/2014
3/3/2014
2/11/2014
1/16/2014
10/30/2013
10/22/2013
10/11/2013
10/7/2013
9/30/2013
9/11/2013
8/30/2013
8/28/2013
8/14/2013
7/8/2013
6/4/2013
4/9/2013
3/1/2013
2/26/2013
2/4/2013
1/17/2013
1/17/2013
1/7/2013
11/20/2012

M&A
M&A
M&A
M&A
M&A
PP
M&A
M&A
PP
PP
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
PP
M&A
M&A
M&A
M&A
PP
EQTY
M&A
M&A
PP
EQTY
M&A
M&A
M&A
M&A
M&A
M&A

Accurate Background, LLC

Phoenix Strategy Investments
Institutional Shareholder Services
BTS Group AB
Webster Financial Corp.
Undisclosed Investors
WageWorks, Inc.
Lyceum Business Services
Stonehenge Growth Capital, others
Mosaik Partners
WageWorks, Inc.
IRIS Software Group
Hay Group
Bond International Software
John Wiley & Sons
Corporate Executive Board Co.
Corporate Resource Services
Corporate Executive Board Co.
Equifax
First Advantage Corporation
WellTok Inc
Flexpoint Ford
Sterling InfoSystems (Calera Capital)
Project Management Institute
LexisNexis Risk Solutions
Benu, Inc.
Corporate Executive Board Co.
N/A
Equifax Inc.
ADP
Boathouse Capital
N/A
LI Advantage Payroll Services
Spire Capital Partners
Ares Capital, Veronis Suhler Stevenson
First Advantage
Heartland Payment Systems
Ascensus

Hirease, Inc.
PI Worldwide
Incentive Lab, LLC
Fenestra, Inc.
HSA Business of JPMorgan Chase Bank
FlexWage Solutions
CONEXIS Benefits Administrators
BenePay
SmartPay Solutions
TFG Card Solutions
Crosby Benefit Systems, Inc.
Cascade Human Resources
Talent Q
Eurowage
Profiles International
KnowledgeAdvisors
Nationwide Screening Services
Talent Neuron
TDX Group
Verifications, Inc.
IncentOne
JetPay Corp
HR Plus
Human Systems International
Enclarity
SyncHR
9lenses, LLC
WageWorks, Inc.
TrustedID
Payroll S.A.
Accurate Background
WageWorks, Inc.
Associated Payroll Consultants
Performance Assessment Network
Cast & Crew Entertainment Services
LexisNexis Risk Solutions, Employment Screening Business
Ovation Payroll
ExpertPlan

Transaction
Value ($MM)

NA
NA
NA
2.5
NA
3.5
118.0
NA
1.4
1.8
4.1
NA
NA
14.0
51.0
52.0
NA
15.0
326.8
NA
NA
10.0
NA
NA
NA
NA
4.0
120.1
NA
NA
5.0
135.0
NA
NA
NA
NA
NA
NA

TEV /
Revenue
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
2.2 x
NA
NA
NA
NA
3.7
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

EBITDA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
4.8 x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

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

TRANSACTION / DATA PROCESSORS: OTHER RECENT NEWS AND EVENTS

Date

Company

News

11/04

WANTED Technologies
(TSX-V: WAN)

WANTED Technologies announced that its board of directors has adopted a shareholder rights plan to
encourage fair treatment of shareholders, should a takeover bid be made for WANTED. The plan will
provide the Board and the shareholders more time to consider an unsolicited takeover bid. The plan has
not been adopted in response to, or in confrontation of, any specific proposal to acquire control of
WANTED. The rights issued under the plan will become exercisable only when a party acquires or
announces its intention to acquire 20% or more of the outstanding shares without approval of the Board.

HUMAN CAPITAL MONTHLY UPDATE

STAFFING / RECRUITING SERVICES

1-Year Historical Stock Performance
Staffing / Recruiting Services
S&P 500
NASDAQ

125
120

-5.3%
14.5%
18.0%

NASDAQ
S&P 500

Indexed to 100 as of 11/30/2013

115
110
105
100

Staffing / Recruiting
Services

95
90
85
12-13

1-14

2-14

3-14

4-14

5-14

6-14

Quarterly Revenue Growth

40.0%

Sequential

7-14

8-14

9-14

10-14

11-14

Historical TEV / LTM Revenue Multiples

Year-over-Year

0.6x

5-Year
Median = 0.4x

30.0%
0.5x

20.0%
0.4x

10.0%
0.3x

0.0%
0.2x

(10.0%)
0.1x

(20.0%)
0.0x

(30.0%)
2010

2011

2012

2013

2010

2014

Historical TEV / LTM EBITDA Multiples

2011

2012

2013

2014

Historical LTM P/E Multiples

14.0x

35.0x

5-Year
Median = 10.3x

12.0x

5-Year
Median = 22.2x

30.0x

10.0x

25.0x

8.0x

20.0x

6.0x

15.0x

4.0x

10.0x

2.0x

5.0x
0.0x

0.0x
2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

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.

10

HUMAN CAPITAL MONTHLY UPDATE

STAFFING / RECRUITING SERVICES: DETAILED VALUATION MULTIPLES AND METRICS

Price
11/30/2014

Company
North American Staffing / Recruiting Services
Robert Half International Inc.
ManpowerGroup Inc.
On Assignment Inc.
TrueBlue, Inc.
Korn/Ferry International
AMN Healthcare Services Inc.
Kforce Inc.
Kelly Services, Inc.
Resources Connection Inc.
Cross Country Healthcare, Inc.
CDI Corp.
Heidrick & Struggles International Inc.
Computer Task Group Inc.
Hudson Global, Inc

International Staffing / Recruiting Services

Adecco S.A.
Randstad Holding
Hays plc
Temp Holdings Co., Ltd.
Michael Page International plc
USG People NV
Brunel International NV
SThree Plc.
Groupe CRIT SA
Synergie SA
Impellam Group PLC
Staffline Group plc
Robert Walters plc
Matchtech Group Plc
CPL Resources plc
Pasona Group Inc.
Proffice AB
Harvey Nash Group plc

56.79
66.86
30.73
22.95
27.15
17.12
23.34
15.44
15.17
10.67
17.18
20.02
9.32
2.81

70.24
49.35
2.08
29.60
6.45
10.98
19.04
4.87
47.38
23.98
7.51
12.80
4.36
8.84
8.11
4.56
2.43
1.20

% of 52
Week High

Market
Cap ($MM)

97.4 % $
76.7
77.1
73.3
82.8
95.2
96.7
59.0
94.9
92.5
89.5
83.8
48.5
64.8

7,727.7
5,427.4
1,685.9
939.4
1,341.6
820.5
762.0
579.4
590.6
332.3
339.6
367.9
153.2
91.8

100.0 % $ 12,479.4
79.6
8,905.3
84.3
2,978.8
91.5
2,309.9
80.6
2,014.4
62.3
883.4
58.6
933.7
70.4
661.2
70.6
525.6
88.5
575.8
90.6
330.5
80.4
292.0
76.7
352.6
86.9
230.4
82.5
247.7
66.1
170.4
64.0
165.7
61.7
88.5

Total
Enterprise
Value ($MM)
$

7,438.1
5,250.6
2,059.7
1,085.7
1,085.4
957.1
774.4
616.5
490.4
390.3
299.4
239.1
124.9
81.7

TEV
2014E
Revenue

TEV
2015E
Revenue

2014E
EBITDA

Market Price
2014E EPS
2015E EPS

2015E
EBITDA

2014E P/E
Growth Rate

1.6 x
0.3
1.1
0.5
1.1
0.9
0.6
0.1
0.8
0.6
0.3
0.5
0.3
0.1

1.5 x
0.3
1.0
0.4
1.0
0.9
0.6
0.1
0.8
0.5
0.3
0.5
0.3
0.1

13.7 x
6.5
10.4
9.3
7.3
11.4
11.2
10.8
9.1
22.8
7.7
4.8
5.4
NM

11.9 x
6.3
9.5
7.4
6.6
10.1
9.6
5.9
8.2
11.8
7.2
4.8
5.7
NM

25.4 x
12.7
14.9
16.1
15.4
24.9
21.3
36.8
25.7
NM
20.7
39.2
12.5
NM

21.9 x
12.1
13.6
15.0
14.2
20.9
17.2
11.4
20.6
33.8
18.7
28.4
12.0
NM

1.3
1.0
1.1
1.6
1.4
2.0
0.3
0.0
0.9
5.1
NA
2.9
1.3
0.0

Mean
Median

0.6 x
0.6

0.6 x
0.5

10.0 x
9.3

8.1 x
7.4

22.1 x
21.0

18.5 x
17.2

1.5
1.3

$ 13,934.6
9,739.2
3,086.2
2,274.5
1,941.0
1,124.7
813.1
678.1
604.4
591.1
373.0
337.1
327.4
235.7
205.9
194.5
175.0
95.8

0.6 x
0.5
0.5
0.7
1.2
0.4
0.5
0.6
0.3
0.3
0.2
0.4
0.3
0.3
0.4
0.1
0.3
0.1

0.5 x
0.4
0.5
0.6
1.1
0.4
0.5
0.5
0.3
0.3
NA
0.4
0.3
NA
0.4
0.1
0.3
NA

10.5 x
10.1
10.9
11.4
12.7
9.0
8.0
11.8
4.9
5.6
5.6
10.2
11.6
9.8
10.1
4.1
8.7
5.2

9.2 x
8.8
9.7
8.7
10.1
7.0
7.3
9.3
4.5
5.1
NA
8.2
9.7
NA
9.6
3.8
7.0
NA

15.1 x
15.8
18.9
20.1
24.7
18.4
14.7
20.1
8.4
9.2
7.2
14.1
24.7
14.5
15.0
35.8
11.7
8.6

13.1 x
13.3
15.9
17.5
18.7
10.5
13.3
15.3
7.3
8.3
NA
11.9
19.9
13.1
13.1
27.7
9.5
NA

1.0
0.9
0.9
NA
1.0
0.0
0.0
0.0
0.0
0.0
NA
NA
NA
NA
NA
NA
NA
NA

Mean
Median

0.4 x
0.4

0.4 x
0.4

8.9 x
9.9

7.9 x
8.7

16.5 x
15.0

14.3 x
13.2

0.4
0.0

STAFFING / RECRUITING SERVICES: SELECTED M&A AND CAPITAL MARKETS ACTIVITY

Date
Announced

Type

Acquiror / Investor

Target / Issuer

11/18/2014
11/14/2014
11/7/2014
11/5/2014
10/30/2014
10/29/2014
10/24/2014
10/20/2014
10/15/2014
10/9/2014
9/10/2014
9/2/2014
8/19/2014
8/7/2014

M&A
EQTY
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A

GSE Systems, Inc.

N/A
ZeroChaos
Allen Austin
Investcorp
Compunnel Software Group, Inc.
The Woodmansee Group
Team Health Holdings
CTPartners Executive Search Inc.
eTERA Consulting
General Employment Enterprises Inc.
Addison Group
The Caldwell Partners
Mitchell Martin

Hyperspring LLC
Adecco
Incepture (Florida Blue)
Gaines International
PRO Unlimited
Challenge Training and Consulting, Inc.
Franklin-Belle
PhysAssist Scribes, Inc.
Neumann Leadership Holding
Discovery Services LLC
Pivot Companies
CVPartners
Hawksmoor Search
HLP Solutions

Transaction
Value ($MM)
$

3.0
311.8
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

TEV /
Revenue
0.2 x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

EBITDA
4.2 x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

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

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, is
exploring a sale, according to industry sources. Snow Phipps acquired the company in December 2010 for
more than $200 million, according to press reports. ZeroChaos posted revenues of about $1.1 billion in the
first half of 2013, a 100% increase over the same period in 2012, according to the company. The financial
sponsor may be hoping to sell the ZeroChaos for around $600 million, according to one industry source.

11

HUMAN CAPITAL MONTHLY UPDATE

IT Supply Chain Services: Quarterly Update

RAYMOND JAMES

Full-service financial services firm with investment

banking, equity research, institutional sales and
trading, and asset management operations

TECHNOLOGY SERVICES INVESTMENT

BANKING GROUP

Eight senior-level investment bankers with over 105

years of combined experience; located in Atlanta
and Boston

Services: Mergers & Acquisitions (sell-side & buyside 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:

Founded in 1962; public since 1983 (NYSE: RJF)

$4.9 billion in FY 2014 revenue; equity market
capitalization of $7.9 billion
Stable and well-capitalized platform; no
government/TARP financing

Industry-focused, knowledge-driven approach,

backed by highly-ranked equity research team

21 domestic and international investment banking

and institutional sales offices

91 M&A advisory and private placement

services transactions representing a total value
of over $9.5 billion

International operations in Brussels, Buenos Aires,

Dsseldorf, Geneva, London, Paris, Sao Paulo,
Toronto and Vancouver

43 public equity and debt offerings raising over

$8.0 billion in proceeds

Acquisition of Morgan Keegan consolidated and

strengthened Raymond James leadership in the
middle market

NOTES & DISCLOSURES

EQUITY CAPITAL MARKETS

Over 500 Equity Capital Markets professionals

Over 240 investment bankers in the U.S.

Over 100 institutional sales and sales traders in

the U.S. and Europe:
Bulge-bracket distribution capability
Approximately 25% institutional equity
commissions from Europe

Over 6,200 financial advisors; offices in all

50 states

Greenwich Associates ranked #2 in overall quality

of analyst service

Sources of data include Capital IQ, FactSet and other news

organizations. Information obtained from third-party
sources is considered reliable, but we do not guarantee
that the information herein is accurate or complete. This
report was prepared within Raymond James & Associates
Investment Banking Department and is for information
purposes only. This report is not a product of Raymond
James & Associates Research Department; recipients of
this report should not interpret the information herein as
sufficient grounds for an investment decision or any other
decision.
The report shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities
mentioned herein; past performance does not guarantee
future results. Any performance mentioned does not
include transaction fees and costs which would reduce an
investors return. An investment cannot be made directly in
a market index.
EBIT: Earnings Before
Interest and Taxes

LTM: Last Twelve Months

EBITDA: Earnings Before

Interest, Taxes,
Depreciation
and Amortization

NM: Not Meaningful

EPS: Earnings per Share

NA: Not Applicable

PE: Price Earnings Ratio
TEV: Total Enterprise
Value

12