HUMAN CAPITAL MANAGEMENT - INDUSTRY UPDATE | WINTER 2022 - Industry Update Winter 2022
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HUMAN CAPITAL MANAGEMENT INDUSTRY UPDATE | WINTER 2022
Houlihan Lokey Human Capital Management
Houlihan Lokey is pleased to present its Human Capital Management (HCM) Industry Update for winter 2022.
Once again, we are happy to share industry insights, a public markets overview, a snapshot of relevant macroeconomic
indicators, transaction announcements, and related details. We believe this newsletter will provide you with the most
important and relevant information you need to stay up to date with the HCM industry.
If there is additional content that you would find useful for future updates, please do not hesitate to contact us with your
suggestions.
Regards,
Thomas Bailey Andrew Shell Pat O’Brien Jon Harrison Arthur Callaghan
Managing Director Sr. Vice President Vice President Managing Director Director
TBailey@HL.com AShell@HL.com POBrien@HL.com JHarrison@HL.com Arthur.Callaghan@HL.com
404.495.7056 404.495.7002 404.495.7042 +44 (0) 20 7747 7564 +44 (0) 20 7484 4085
Larry DeAngelo—Head of Business Services R.B. McCutcheon—Senior Vice President
HCM Team and LDeAngelo@HL.com RMcCutcheon@HL.com
Additional Contacts 404.495.7019 404.495.7059
Alex Scott—Associate Bennett Tullos—Associate Mike Bertram—Associate John Quirk—Associate
AScott@HL.com BTullos@HL.com MBertram@HL.com JQuirk@HL.com
404.926.1609 404.926.1619 404.495.7040 404.926.1621
Will Mahaffey—Analyst Sean DeLaney—Analyst Elizabeth Feldman—Analyst Rebecca Tinkler—Analyst
WMahaffey@HL.com SDeLaney@HL.com EFeldman@HL.com RTinkler@HL.com
404.495.7034 404.926.1615 404.926.1637 404.926.1636
Human Capital Management—Coverage by Subsector
Staffing and VMS/MSP/ Talent Management Payroll/ HR Consulting/
Recruitment RPO and Development PEO Benefits Admin
Select Advised Transactions
Funds managed by affiliates of
a portfolio company of funds a portfolio company of
managed by affiliates of
a portfolio company of a portfolio company of Platform a portfolio company of a portfolio company of
Partners and a consortium of
has acquired investors has acquired
has been acquired by has acquired
has been acquired by
has been acquired by has been acquired by has been acquired by
a portfolio company of
a portfolio company of
Buyside Advisor Sellside Advisor Sellside Advisor Sellside Advisor Buyside Advisor Sellside Advisor Sellside Advisor Buyside Advisor
a portfolio company of a portfolio company of
INFOR BUSINESS UNIT a portfolio company of
has sold its majority stake in
a portfolio company of
a portfolio company of has been acquired by an affiliate of
has merged with has been acquired by
has been acquired by
has been acquired by has been acquired by
a portfolio company of has been acquired by to Management and
a portfolio company of
Sellside Advisor Sellside Advisor Sellside Advisor Sellside Advisor Sellside Advisor Sellside Advisor Sellside Advisor Sellside Advisor
Tombstones included herein represent select transactions closed from 2019 forward. 2
Houlihan Lokey is the trusted advisor to more
top decision-makers than any other independent
global investment bank.
No.1
2021 All U.S. Transactions
M&A
1 Houlihan Lokey 301
Advisor 2 Goldman Sachs 285
For Seven Straight Years 3 JP Morgan 282
All U.S. Transactions 4 Jefferies 199
All U.S. Transactions 2015, 2016, 2017, 2018, 2019,
5 Morgan Stanley 185
2020, and 2021 Source: Refinitiv
2021 M&A Advisory Rankings 2020 M&A Advisory Rankings 2019 M&A Advisory Rankings
All U.S. Business Services Transactions All U.S. Business Services Transactions All U.S. Business Services Transactions
Advisor Deals
Advisor Deals Advisor Deals
1 Houlihan Lokey 36
1 Houlihan Lokey 17 1 Houlihan Lokey 24
2 JP Morgan 25
2 Generational Equity 13 2 Raymond James Financial Inc 13
3 Robert W Baird & Co Inc 22
2 Jefferies LLC 13 2 Lincoln International 13
4 Goldman Sachs & Co 21
5 Canaccord Genuity Grp Inc 16
4 JP Morgan 12 4 Generational Equity 12
5 William Blair & Co 16 4 Evercore Partners 12 5 William Blair & Co 10
Source: Refinitiv. Source: Refinitiv. Source: Refinitiv.
As a market-leading business services advisory firm, Houlihan Lokey
has more than 90 dedicated business services professionals throughout
the United States and internationally to match the global needs of its
clients.
3
Select Houlihan Lokey M&A Transactions
A&M Capital Partners is focused on middle-market control transactions in
North America with total assets under management of $2.5 billion.
P2P Staffing (P2P) is a leading provider of professional staffing, locum
tenens staffing, and solutions through its TekPartners and MPLT
Healthcare (MPLT) brands. P2P provides IT staffing, professional services,
has acquired
and infrastructure solutions through its TekPartners brand and provides
physician and advanced practice provider staffing through locum, locum-to-
perm, and direct hire options through its MPLT division. P2P maintains six
offices across the United States, with branches in Florida, North Carolina,
and Wisconsin. P2P was founded in 2002 and is based in Boca Raton,
Florida.
Buyside Advisor Houlihan Lokey served as financial advisor to A&M Capital Partners.
January 2022
Addison Group is a leading, Chicago-based professional services firm
specializing in talent solutions and consulting. Founded in 1999, Addison
Group offers a full suite of resources across the technology, finance and
accounting, non-clinical healthcare, administration, human resources, and
a portfolio company of digital marketing industries. Its talent solutions include professional staffing
services and recruiting and executive search, and its leading consulting
brands include AIM Consulting, Bridgepoint Consulting, DLC, and ArcLight.
Trilantic North America is a private equity firm focused on investments in
has been acquired by
the North American region, primarily within the consumer, business
services, and energy sectors.
Houlihan Lokey served as financial advisor to Addison Group and Odyssey
Sellside Advisor Investment Partners.
January 2022
GHR is a leading provider of healthcare staffing services, offering travel
nursing, local nursing, per diem nursing, allied health, behavioral health,
education, information technology, managed services, interim leadership,
and permanent placement services to healthcare facilities nationwide. GHR
a portfolio company of Platform operates three national divisions across a broad geographic footprint of 11
Partners and a consortium of locations built through acquisition and organic expansion. GHR has helped
investors
thousands of healthcare facilities, school districts, and community-based
organizations meet their staffing needs over the past 28 years.
has been acquired by
MidOcean Partners is a premier New York–based alternative asset
manager specializing in middle-market private equity and alternative credit
investments. Since its inception in 2003, MidOcean Partners has targeted
investments in the consumer and business services sectors.
Sellside Advisor
Houlihan Lokey served as financial advisor to GHR.
December 2021
4
Select Houlihan Lokey M&A Transactions (cont.)
Founded in 2010, American Health Staffing Group (AHSG), a leading
provider of healthcare talent and technology solutions, provides travel
nursing, allied health, pharmacy, dialysis, interim leadership, managed
services, non-clinical, and SaaS technology solutions in thousands of
a portfolio company of healthcare locations in all 50 states. AHSG offers two proprietary SaaS
technology platforms, including Trio VMS, a vendor management system
designed to address complex operations for all healthcare talent, and
Insight ATS+, the first healthcare-specific applicant tracking system
delivering recruiters high-quality and efficient management systems
has been acquired by
throughout the full recruitment and placement process.
Littlejohn & Co. is a Connecticut-based investment firm focused on private
equity and debt investments primarily in middle-market companies.
Sellside Advisor
Houlihan Lokey served as the exclusive financial advisor to AHSG and
November 2021 BelHealth Investment Partners.
EmployBridge provides value-added workforce solutions and job
opportunities through focused specialty divisions. EmployBridge is
recognized by Staffing Industry Analysts as America's largest industrial
a portfolio company of funds staffing firm.
managed by affiliates of
Hire Dynamics is a top provider of light industrial workforce solutions in the
has acquired
Southeastern United States. Hire Dynamics is among the top 1% of more
than 22,000 staffing companies as a winner of ClearlyRated's "Best of
Staffing® for Client and Talent Satisfaction" for 12 consecutive years.
a portfolio company of Through approximately 70 locations, Hire Dynamics specializes in
manufacturing, logistics/e-commerce, contact center, and office support.
Apollo is a high-growth, global alternative asset manager.
Buyside Advisor
Houlihan Lokey served as financial advisor to EmployBridge and Apollo.
November 2021
Ettain group (ettain), one of the largest IT resourcing and services
providers in North America, delivers talent solutions across its technology,
healthcare IT, digital, professional, and government practice areas.
Founded in 1996, ettain has 28 offices located in 24 key regions across
a portfolio company of North America and is consistently recognized as a leader in the space.
Ettain is a proud recipient of ClearlyRated’s Best of Staffing Diamond
Award for both client and talent satisfaction for 10 consecutive years.
ManpowerGroup (Manpower), a leading global workforce solutions
has been acquired by
company, helps organizations transform in a fast-changing world of work
by sourcing, assessing, developing, and managing the talent that enables
them to win.
Sellside Advisor Houlihan Lokey served as the exclusive financial advisor to ettain group
and A&M Capital Partners.
October 2021
5
HCM Spotlight: The Great Resignation
Wage Inflation Serving as Both a Cause and Effect of the Great Resignation
More people quit their job in 2021 than during any previous year Key Drivers of Recent Turnover(1)
since the Bureau of Labor Statistics began tracking quit rates in
2000, a phenomenon that has become known as the Great Wage Cultural
Inflation Misalignment
Resignation and has continued into 2022. In December 2021,
the LTM quit rate (the % of the workforce that voluntarily
Job Increased
left their job) reached a record 32.5%, compared to the Insecurity Burnout
average annual quit rate of 26.4% for the 2016–2019 period.
COVID-19 Lack of
While most notable among employees who work in fields that
Concerns Recognition
have experienced extreme increases in demand due to the
pandemic, such as healthcare, retail, and food services, the Monthly Quits vs Nominal Wage(2)
exodus is part of a much broader trend across all sectors of
the economy. Nonfarm Quits (thousands) Nominal Wage
5,000 $35.0
A recent MIT Sloan Management Review article analyzed data $32.5
4,000
from Glassdoor and found that while compensation is a factor $30.0
3,000
contributing to the increased turnover many companies have $27.5
seen in recent months, it is only one of many reasons cited. In 2,000
$25.0
particular, cultural misalignment, job insecurity, and 1,000 $22.5
burnout are some of the best predictors of individual company
0 $20.0
attrition while controlling for industry. Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21
High transparency in prevailing market wages gives employees Rolling LTM Quit Rate(2)
a firm understanding of what they can earn in a new job. To
help stem departures and retain talent, employers have been Rolling LTM Quit Rate
35%
forced to offer even more competitive compensation and
benefit packages. The result is wage inflation serving as both 30%
a cause and effect of the Great Resignation.
25%
Evolving Demands of Labor and Expectations of Clients 20%
Open Diverse Possibilities for HCM Firms
15%
Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21
A significant effect of the Great Resignation has been wage
inflation of a level not seen in many years. For companies
providing outsourced human capital, this represents both an Select Quotes from Staffing Executives
opportunity and a threat. Employers are seeking to minimize
“Just like in any recovery in any labor market
labor costs while recognizing that previously competitive where there is high wage inflation, you can
salaries may no longer be sufficient to maintain headcount. see the churn rate and the resignation rates
go up.”
Firms with strong market positions that are able to effectively Jonas Prising, ManpowerGroup CEO, Dec. 2021(3)
pass along costs will be able to benefit from an increased bill
rate-to-pay rate spread. However, those that are not able to “While wage inflation is elevated, we're
certainly able to pass that through and
effectively navigate these complexities may suffer, with expand our gross margins.”
possible hits to fill rates and margins. Keith Waddell, Robert Half CEO, Jan. 2022(4)
(1) “Toxic Culture Is Driving the Great Resignation,” MIT Sloan Management Review, January 2022.
(2) U.S. Bureau of Labor Statistics. (3) Yahoo Finance interview. (4) Robert Half Q4 2021 earnings call. 6
HCM M&A Activity
2021 HCM Transactions by Category
2021 saw record transaction
volumes as valuations were
17%
elevated above historical norms.
The largest segment of HCM
transactions was for firms
41% providing talent acquisition
11%
357 technology. This segment is
Transactions experiencing significant tailwinds,
as companies have adjusted their
10% hiring practices during the
pandemic.
6% 8% Information technology and
7%
healthcare have been particularly
active sectors the past 12 months,
Talent Acquisition Technology Healthcare Staffing
with a combined 68 transactions.
Other professional staffing assets
Multiple Professional Staffing IT Staffing
(e.g., F&A and Creative) are also
Permanent Placement Industrial Staffing continuing to experience strong
All Other Categories demand.
Yearly HCM Transaction Volume
2021 saw 357 transactions, which represents an increase of 33% compared to 2020. This is also
significantly above the preceding five-year average of HCM M&A activity of 267 transactions per year
for the 2016 to 2020 period.
Companies with a strong growth profile, dedicated management team, and diversified yet entrenched
customer base are highly sought after by both financial and strategic buyers.
33% Growth
357
324
316
269
235
192
2016 2017 2018 2019 2020 2021
Sources: S&P Capital IQ, Staffing Industry Analysts, Mergermarket, public company filings, press releases.
Note: Represents global M&A activity. 7Historical Performance and 2021 Trends
Select Averages
Denotes Recession
All 02–07 07–12 5 Yrs LTM
EV/EBITDA Staffing Index 9.5x 10.1x 8.1x 9.8x 10.7x
Temp Employment (000s) 2,539 2,431 2,279 2,815 2,728
Temp Penetration 1.84% 1.82% 1.70% 1.91% 1.87%
9.9x
1.87%
2.79M
2000 2003 2006 2009 2012 2015 2018 2021
EV/NTM EBITDA Staffing Index(1) Temporary Employment Temporary Penetration Rate
Following the volatility in temporary employment in the U.S. in 2020 due to the varied responses to COVID-19, key
indicators largely stabilized in 2021.
The U.S. temporary penetration rate settled at 1.87% in December 2021, above its average of 1.84% since 2000. Nonfarm
employment rose by just 199,000 jobs in December, signaling a slowdown to the recovery made since the beginning of the
year. In recent years, many continental European countries have seen temporary staffing penetration rates well into the
double digits. However, these rates have softened in recent quarters for many countries. While the labor market of each
country may differ in key ways, we view the relatively lower U.S. rate as a sign that there is room for further expansion.
The Staffing Index shown above reflects a EV/NTM EBITDA multiple of 9.9x as of December 2021. Since 2000, the multiple
has averaged 9.5x, reaching a peak in January 2000 and a low in December 2008. Although expansion has been tempered
in recent months by the spread of the Delta and Omicron variants, valuations remain above pre-pandemic levels. Falling
unemployment globally, coupled with lower infection rates, is supporting the heightened multiples.
Key Market Trends
Global Economies Show Robust M&A Resilient With Abundance
Historic Levels of Dry Powder
Recovery of Interested Buyers
Economies continued to show The 357 HCM transactions in 2021 vs. Armed with brisk fundraising and nearly
remarkable strength in recovery, the 269 transactions in 2020 $2.3 trillion in dry powder, global PEs
propelled by capital markets at all-time demonstrate the market strength that is are expected to continue driving the
highs and falling unemployment. continuing into 2022. unabated dealmaking space.
Competition for Select Assets Cheap Capital Fueling M&A Investors Keep an Eye on
Driving Valuations Activity Inflation and Rates
Valuations are on the rise in a market Low interest rates and a friendly Investors are keeping a close eye on
filled with buyers holding cash and environment for capital raising are fueling interest rates, with inflation rates rising
looking to acquire assets to enhance M&A activity; U.S. and Europe leveraged globally, as regulators decide their next
competitive advantages. at 5.3x and 5.5x EBITDA, respectively. steps.
(1) Staffing Index comprises North America, the United Kingdom, Europe, APAC, and rest of world (RoW) select public
comps (see “Public Comps—Trading and Operating Performance” on page 15 for additional detail). 8Debt Capital Markets
Trends in Loan Statistics
United States
1,272 ($ in billions)
Leveraged Loan New Issuances Deal Count
1,105 1,131
948 904
794 735 787 $789
722
601 $650 $624 638
$607
478 $465 $528 $482 $492
$375 $433 $393
$236
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Average PF Total Debt/EBITDA
3.9x 4.4x 4.6x 4.7x 4.9x 4.7x 5.0x 5.0x 5.2x 5.2x 5.1x 5.3x
Europe
Leveraged Loan New Issuances Deal Count ($ in billions)
272
238
206 195
189 176 176 169
140 147 $155
$136
102 105 $106 $115
$89 $77 $91
$60 $70 $74
$57
$36
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Average PF Total Debt/EBITDA
4.2x 4.4x 4.5x 4.7x 5.0x 5.0x 4.9x 5.1x 5.4x 5.3x 5.3x 5.5x
Recent Issuances and Notable Transactions
($ in millions)
Structure 1st Lien 2nd Lien
Total
Date Borrower Sponsor(s) Use LIBOR LIBOR
Leverage
Total RC 1st Lien 2nd Lien Spread Spread
Recap/
Jan-22 Vaco Holdings Olympus Partners $740 $40 $700 -- 500 -- --
Dividend
Trilantic Capital
Jan-22 Addison Group LBO $590 $65 $525 -- 425 -- --
Partners
EmployBridge
Nov-21 Apollo Management Acquisition $200 -- $200 -- 475 -- --
Holding Co.
CHG Healthcare
Sep-21 Leonard Green Recap $1,730 $150 $1,580 -- 375–400 -- --
Services
Cornerstone
Sep-21 Clearlake Capital LBO $2,418 $300 $2,118 400 -- --
OnDemand
Aug-21 Alight Solutions Blackstone Acquisition $525 -- $525 -- 300 -- --
System One
Aug-21 Oaktree Capital Refinancing $320 -- $320 -- 400 -- --
Holdings
Jul-21 EmployBridge Apollo LBO $1,025 $300 $725 -- 475 -- --
Feb-21 TriNet -- Refinancing $500 $500 $90 -- -- -- --
trustaff and Fastaff Cornell Capital and
Feb-21 LBO $575 $50 $575 -- 425 -- --
Travel Nursing Trilantic
System One
Jan-21 Oaktree Capital LBO $335 $45 $290 -- 450 -- --
Holdings
Source: S&P Global Market Intelligence. 9Global Employment Statistics
International Comparison: Unemployment Rates(1)
7.4%
7.0%
4.1% 3.9%
3.2%
2.7%
Eurozone France Germany Japan U.K. U.S.
Global unemployment rates continued to decline through December 2021 despite the spread of the Omicron
COVID-19 variant at the end of the year. The OECD predicts unemployment rates will continue their
improvement and reach 5.5% for its 38 member countries by the end of 2022.
International Comparison: Temporary Penetration Rates(2)
15.7% 15.8%
11.2%
6.0%
2.5%
1.9%
Eurozone France Germany Japan U.K. U.S.
Penetration trends in Europe varied country by country over 2021 but remained high overall as a result of
stringent protections around permanent employment, causing employers to be more cautious about hiring full-
time employees. U.S. penetration has generally increased since the financial crisis and stood at 1.9% as of
December 2021.
Sources: Bureau of Labor Statistics (U.S.), Eurostat, Office for National Statistics (U.K.), Statistics Bureau (Japan), OECD, SIA.
Note: Eurozone comprises the following countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland,
Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
(1) U.K. data as of October 2021; all others as of December 2021.
(2) Japan and U.S. data as of December 2021; all others as of September 2021. 10U.S. Macroeconomic Indicators
Nonfarm Employment and YoY Change Temp Employment and Penetration
Nonfarm Employment (thousands) YoY Change Temp Employment (thousands) Temp Penetration Rate
155,000 12% 3,500 2.2%
150,000 8% 2.0%
3,000
4%
145,000 1.8%
0% 2,500
140,000 1.6%
(4%) 2,000
135,000 1.4%
(8%)
130,000 1,500 1.2%
(12%)
125,000 (16%) 1,000 1.0%
07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Source: U.S. Bureau of Labor Statistics. Source: U.S. Bureau of Labor Statistics.
December 2021 nonfarm employment reached 149.0 The temporary penetration rate, which measures
million, recording a monthly increase of 199,000, a temporary employment as a percentage of total
tepid rise compared to the strong gains made since nonfarm employment, increased from 1.84% in
May 2021. The 199,000 increase compares to the December 2020 to 1.87% in December 2021.
median gain of 220,000 per month over the previous Temporary employment was 2.79 million in December
five years. Higher overall employment is a driver of 2021, an increase of 5.7% since December 2006. A
HCM revenue. higher temporary penetration rate signifies a larger
market for HCM businesses.
Unemployment Rate and Participation Real and Nominal Wage Growth
U3 (headline unemployment rate) Labor Force Participation Rate Nominal Wage Real Wage CPI
68% $34
15%
$32 $31.31
66%
13% $30
64% $28
11%
62% $26
9%
$24 $22.55
7% 60%
$22
5% 58% $20
3% 56% $18
07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Source: U.S. Bureau of Labor Statistics. Source: U.S. Bureau of Labor Statistics.
The unemployment rate was 3.9% in December Nominal wages have grown 52.2% since December
2021, while labor force participation (LFP) was 2006, with the average hourly wage rate coming in at
61.9%. The LFP rate dropped sharply during the first $31.31 in December 2021, a 4.7% increase over the
few months of the pandemic before making a partial rate a year prior. Real wages decreased 2.3% over
recovery during 2020 and continuing to inch higher the same period. Wage growth is a fundamental
through 2021. Just how long the participation rate will contributor to the HCM market, especially the staffing
stay at these relatively depressed levels is up for segment.
debate.
11M&A Market Intelligence
Global M&A Activity
($ in trillions)
Value of Deals Number of Deals
64,408
51,818 51,652 50,490 49,450
48,269 $5.87
46,319
42,825 42,212 42,324
40,048 39,889 38,191
$4.14 $4.08
$3.73
$3.41 $3.46 $3.34 $3.44
$2.42 $2.55 $2.44 $2.37
$1.98
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Global M&A activity continued to grow at a record pace, with transaction values and volumes in 2021 reaching
record levels. The increase in deal value partially reflects an environment in which buyers are willing to pay
premiums for assets with competitive advantages and technologies after conserving capital during the
beginning of 2020. Deal volumes increased 30.2% in 2021 compared to 2020. As businesses continue to move
forward from the pandemic in an environment with easy access to capital, dealmaking is expected to continue,
with the focus remaining on value creation and top-line growth.
U.S. M&A Activity
($ in trillions)
Value of Deals Number of Deals
16,167
13,605
12,891 12,430
11,537 11,621 $2.55
10,807
10,232
8,630 8,807 9,132
7,901 8,319 $1.82 $1.80 $1.70
$1.49 $1.59
$1.33 $1.34
$1.04 $1.03
$0.75 $0.78 $0.81
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The U.S. experienced significant M&A activity in 2021, with transaction values nearly doubling from 2020. Deal
volume increased 30.1% in 2021 vs. 2020, on similar lines with global levels. The significant number of deals
combined with elevated valuations resulted in transaction values growing a staggering 90% in 2021 compared
to 2020. Deals are accelerating in a fiercely competitive M&A market, with an abundance of willing sellers
exiting at premium multiples. The SPAC rush in the first half of 2021 also contributed to the heightened activity
in the space, and with the substantial number of SPACs still competing for acquisitions with strategics and
sponsors, transaction volumes are expected to continue their uptrend.
Source: Refinitiv.
Notes: Regional breakdowns are by target and are based on total number of transactions. Includes minority equity deals,
equity carve-outs, exchange offers, open market repurchases, and deals with undisclosed transaction values. 12Public Comps—Segment Composition and Performance
North America United Kingdom Europe APAC and RoW
AMN Healthcare Hays Adecco Career International
ASGN Impellam Group Allgeier HRnetGroup
BG Staffing PageGroup Amadeus FiRe LIKE
Computer Task Group Robert Walters Brunel MEITEC
Cross Country Healthcare Staffline Group Groupe CRIT OUTSOURCING
Heidrick & Struggles SThree Randstad Pasona Group
Kelly Services Count: 6 Synergie PERSOL
Kforce Count: 7 Recruit Holdings
Korn Ferry BeNext-Yumeshin
ManpowerGroup Trust Tech
RCM Technologies UT Group
Robert Half Count: 11
TrueBlue
Count: 13
Public Equity Markets Performance: Two-Year Change in EV/NTM EBITDA
The recent public markets decline has put a damper on an otherwise strong period of valuation appreciation
experienced since the initial sell-off of the early pandemic days.
North America United Kingdom Europe APAC and RoW
18.0x (5.7%) (0.6%) 11.5% 11.1%
15.0x
12.0x 11.7x
9.0x 8.4x
8.3x
7.1x
6.0x
3.0x
Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22
Source: S&P Capital IQ. 13Public Comps—Benchmarking Analysis
Margin: 2022E EBITDA Margin
Margin projections for 2022 are elevated above historical levels, with cost optimizations undertaken during a
difficult 2020 and recent wage inflation offering an opportunity to boost to rate spreads.
Median 2022E: 7.2%
7.4% 7.7% 7.7%
7.2% 7.1% 6.9%
5.4% 5.4% 5.4% 5.8%
4.2% 4.6%
5-Yr Avg 3-Yr Avg 2022E 5-Yr Avg 3-Yr Avg 2022E 5-Yr Avg 3-Yr Avg 2022E 5-Yr Avg 3-Yr Avg 2022E
North America United Kingdom Europe APAC and RoW
Growth: 2021–2022E Revenue
Staffing revenues are expected to continue on their growth trajectory, supported by tight labor markets
associated with the Great Resignation and further reductions in pandemic restrictions increasing demand.
Median 2021–2022E: 8.4%
13.3%
12.2%
10.2%
6.8% 8.3%
5.5% 5.4%
3.9% 3.7%
2.3% 2.8%
1.9%
5-Yr 3-Yr ‘21– 5-Yr 3-Yr ‘21– 5-Yr 3-Yr ‘21– 5-Yr 3-Yr ‘21–
CAGR CAGR ‘22E CAGR CAGR ‘22E CAGR CAGR ‘22E CAGR CAGR ‘22E
North America United Kingdom Europe APAC and RoW
Multiple: Enterprise Value/2022E EBITDA
Valuation multiples at the start of 2022 are slightly below historical averages, with anticipated monetary policy
changes depressing valuations. Current levels indicate robust near-term growth expectations.
Median 2022E: 7.9x
9.5x 10.0x
8.9x 8.8x 8.6x 8.4x 8.9x
8.2x 8.1x
7.8x 7.3x
7.2x
5-Yr Avg 3-Yr Avg 2022E 5-Yr Avg 3-Yr Avg 2022E 5-Yr Avg 3-Yr Avg 2022E 5-Yr Avg 3-Yr Avg 2022E
North America United Kingdom Europe APAC and RoW
Source: S&P Capital IQ.
Note: Select firms are in process of reporting full-year 2021 earnings; therefore, select figures reflect estimates for Q4 2021. 14Public Comps—Trading and Operating Performance
($ in millions, except per share data) Stock % of EBITDA EV/ ’21–’22E
Price 52-Week Market Enterprise EBITDA Margin EBITDA Revenue
Company Sector 2/2/2022 High Cap. Value 2021 2022E 2021 2022E 2021 2022E Growth
North America *
Robert Half International Professional $117.00 96.8% $12,808 $12,443 $799 $979 12.4% 13.5% 15.6x 12.7x 12.6%
ASGN Professional 115.47 87.6% 6,016 6,433 473 516 11.9% 12.0% 13.6 12.5 8.4%
ManpowerGroup Diversified 107.16 85.7% 5,812 6,369 659 806 3.2% 3.7% 9.7 7.9 4.7%
AMN Healthcare Healthcare 103.26 80.0% 4,882 5,616 634 544 16.5% 13.8% 8.9 10.3 2.7%
Korn Ferry Executive Search 67.66 79.9% 3,682 3,473 499 503 20.5% 19.0% 7.0 6.9 9.0%
Kforce Professional 68.38 83.9% 1,388 1,397 124 131 7.9% 8.0% 11.3 10.7 3.9%
TrueBlue Diversified 26.53 80.6% 941 891 93 108 4.3% 4.6% 9.6 8.3 6.8%
Heidrick & Struggles Executive Search 43.74 87.4% 857 591 134 124 13.7% 12.7% 4.4 4.8 (0.7%)
Cross Country Healthcare Healthcare 22.16 72.9% 842 960 161 125 9.6% 7.7% 6.0 7.7 (2.8%)
Kelly Services Diversified 17.04 63.2% 671 710 72 124 1.4% 2.3% 9.9 5.8 7.0%
BG Staffing Diversified 14.03 83.0% 146 192 21 24 6.8% 7.2% 9.3 8.2 6.9%
Computer Task Group Diversified 9.06 77.6% 139 131 16 20 4.2% 4.9% 8.0 6.7 2.3%
RCM Technologies Diversified 6.90 55.2% 72 82 9 10 4.6% 4.7% 9.4 8.4 8.6%
Average 79.5% 9.0% 8.8% 9.4x 8.5x 5.4%
Median 80.6% 7.9% 7.7% 9.4x 8.2x 6.8%
United Kingdom *
Hays Diversified $2.00 81.7% $3,349 $3,065 $285 $382 3.4% 4.0% 10.7x 8.0x 14.1%
PageGroup Diversified 8.11 86.7% 2,561 2,463 291 338 12.5% 12.7% 8.5 7.3 14.2%
SThree Diversified 6.65 80.5% 895 864 94 109 5.3% 5.4% 9.2 8.0 13.3%
Robert Walters Diversified 9.83 81.4% 715 636 99 111 7.1% 7.1% 6.4 5.7 13.1%
Impellam Group Diversified 6.80 95.7% 308 345 0 0 NM NM NM NM NM
Staffline Group Diversified 0.76 60.1% 124 102 19 21 1.5% 1.6% 5.3 4.8 4.6%
Average 81.0% 6.0% 6.1% 8.0x 6.8x 11.9%
Median 81.6% 5.3% 5.4% 8.5x 7.3x 13.3%
Europe *
Randstad Diversified $69.11 90.5% $12,713 $12,991 $1,534 $1,682 5.6% 5.8% 8.5x 7.7x 4.9%
The Adecco Group Diversified 48.83 67.2% 8,484 9,195 1,188 1,343 5.0% 5.2% 7.7 6.8 8.3%
Amadeus FiRe Professional 193.35 81.9% 1,106 1,244 101 109 23.9% 23.5% 12.4 11.5 9.8%
Synergie Diversified 38.68 82.2% 928 811 169 185 5.6% 5.8% 4.8 4.4 6.0%
Groupe CRIT Diversified 77.13 88.5% 856 606 122 144 5.3% 5.8% 5.0 4.2 7.2%
Brunel Diversified 12.57 90.5% 634 543 62 75 6.1% 6.7% 8.7 7.2 8.8%
Allgeier Diversified 55.65 81.4% 633 717 47 73 10.3% 13.1% 15.3 9.8 22.9%
Average 83.2% 8.8% 9.4% 8.9x 7.4x 9.7%
Median 82.2% 5.6% 5.8% 8.5x 7.2x 8.3%
APAC and RoW *
Recruit Diversified $50.81 71.5% $83,030 $80,412 $3,660 $4,133 15.7% 16.1% 22.0x 19.5x 10.2%
Persol Diversified 26.68 83.3% 6,152 6,043 523 607 5.9% 6.5% 11.5 10.0 5.1%
TechnoPro Diversified 29.51 91.3% 3,179 3,087 192 201 13.3% 12.5% 16.0 15.4 10.8%
Meitec Diversified 58.24 92.2% 1,558 1,181 102 123 11.4% 12.4% 11.5 9.6 11.2%
OUTSOURCING Diversified 12.24 63.3% 1,541 2,446 281 368 5.8% 6.8% 8.7 6.6 12.6%
Career International Diversified 8.26 75.5% 1,490 1,406 58 81 5.4% 5.4% 24.4 17.3 42.9%
BeNext-Yumeshin Diversified 14.82 82.7% 1,318 1,280 0 101 NM 7.7% NM 12.7 7.7%
UT Group Diversified 30.38 76.0% 1,226 1,162 62 115 4.9% 7.2% 18.6 10.1 24.7%
Pasona Group Diversified 23.64 70.5% 926 660 223 240 7.2% 7.2% 3.0 2.7 8.2%
HRnetGroup Diversified 0.57 91.6% 568 357 60 64 15.1% 14.8% 5.9 5.5 8.6%
LIKE Diversified 16.13 72.3% 309 354 47 48 9.5% 9.3% 7.6 7.3 6.0%
Average 79.1% 9.4% 9.6% 12.9x 10.6x 13.5%
Median 76.0% 8.4% 7.7% 11.5x 10.0x 10.2%
Average 80.3% 8.7% 8.8% 10.1x 8.7x 9.6%
Median 81.7% 6.8% 7.2% 9.2x 7.9x 8.4%
Sources: S&P Capital IQ, public company filings.
Note: Trading multiples are based on share price, other market data, and broker consensus future earnings estimates from S&P
Capital IQ as of February 2, 2022. All financials calendarized to a December year end. Margins and multiples exclude outliers. 15Notable Recent M&A Transactions
Date Target Acquirer Target Segment Target Description
Motion Recruitment Partners
01/10/22 MATRIX Resources Staffing IT staffing, consulting, and telecom services
(Littlejohn & Co.)
Talent Inc. (BV Investment ATS/Talent Mgmt/
01/04/22 FlashRecruit Live-chat platform to connect recruiters and job seekers
Partners) Development
Hiring and staffing services to businesses and candidates
12/29/21 Addison Group Trilantic North America Staffing
in the United States
Professional recruitment, talent management, and people
12/09/21 NV Hudson Belgium Randstad Staffing
development services
General Healthcare
12/09/21 MidOcean Partners Staffing Offers healthcare staffing services for hospitals
Resources
Healthcare Support Ingenovis Health (Cornell
11/29/21 Staffing Florida-based medical staffing and placement firm
Staffing, Inc. Capital and Trilantic)
Leading national healthcare talent platform with a
11/22/21 AHSG Littlejohn & Co. Staffing
comprehensive suite of services
Turnberry Solutions Boom Lab, agile enterprise, business transformation,
11/16/21 Threebridge Staffing
(Abry Partners) project delivery, and ERP integration solutions
Staffing and professional recruitment services in the
11/09/21 Hire Dynamics EmployBridge (Apollo) Staffing
United States
10/21/21 Lucas Associates Korn Ferry Staffing Offers executive recruiting services
09/30/21 Cella Randstad Staffing Marketing/creative staffing and consulting
09/07/21 QAPA SA Adecco Group Staffing Offers digital workforce solutions in France
08/24/21 ettain Group ManpowerGroup Staffing Leading healthcare and IT staffing solutions provider
PRO Unlimited
08/17/21 Workforce Logiq VMS/MSP/RPO VMS, MSP, RPO, and direct sourcing talent solutions
(EQT Partners)
ATS/Talent Mgmt/ Provides talent management software-as-a-service
08/05/21 Cornerstone OnDemand Clearlake Capital Group
Development solutions
Learning Technologies ATS/Talent Mgmt/ Performance improvement and learning solutions
07/15/21 GP Strategies Corp.
Group Development worldwide
IT, engineering, and regulatory and compliance
07/01/21 Oxford Global Resources H.I.G. Capital Staffing
consultants, project teams, and strategic outsourcing
Contingent workforce management solutions for global and
06/28/21 PRO Unlimited EQT Partners VMS/MSP/RPO
Fortune 500 companies worldwide
Workforce Solutions Consulting and talent management solutions to
06/08/21 Cross Country Healthcare VMS/MSP/RPO
Group Inc. healthcare clients
06/03/21 EmployBridge Apollo Staffing Skilled light industrial staffing
Global executive search for tech-focused, consumer, and
05/25/21 True Talent Advisory LLR Partners Staffing
life sciences brands
ProPharma Group Professional staffing and niche consulting services to
05/21/21 The Planet Group Staffing
(Odyssey) diverse industries
Velocity Global BV Provides hiring, benefits, onboarding, compliance, and
04/06/21 iWorkGlobal LLC Payroll/PEO
(FFL Partners) agent-of-record services
Provides compliance services, payroll, consulting, and
04/06/21 Velocity Global FFL Partners Payroll/PEO
immigration solutions
04/06/21 Softworld Kelly Services Staffing Technical staffing, recruiting, and project services
The Planet Group Tech recruitment firm that provides permanent and contract
04/01/21 I.T. Works Recruitment Staffing
(MidOcean Partners) positions
Sources: S&P Capital IQ, Mergermarket, public company filings, press releases. 16Disclaimer
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