The document discusses Hudson Global, a talent solutions company that recently sold off its European and Asian operations. It received $39 million from the sales. The company also appointed a new CEO who previously led an investment firm. The summary analyzes Hudson Global's valuation and liquidation value, suggesting a potential buyout is likely given the change in leadership and asset value. Risks include the company trying to rebuild through acquisitions instead of a sale.

1. Hudson Global:
A Potential Buyout
ISAAC CAMARGO
isaac.camargo@aol.com
+1 305 338-3478
M A Y 6 , 2 0 1 8

2. Isaac Camargo | isaac.camargo@aol.com | +1 305 338-3478
About Hudson Global
• Hudson is a global talent solutions company with expertise in recruitment process outsourcing and managed
services
• Headquartered in New York, NY
• The company’s core service offerings include Permanent Recruitment, Temporary Contracting, Recruitment Process
Outsourcing and Talent Management Solutions
• Hudson was a spinoff from TMP Worldwide (Monster.com) in 2003
• Listed on the NASDAQ as HSON
• Hudson RPO delivers professional talent solutions to large, long-term clients in multiple sectors with operations
across the globe
• In 2017, Hudson RPO delivered $60 million in revenue, $42 million in gross margin, and is expected to generate
positive EBITDA an cash flow in 2018, before corporate overhead
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As of December 31, 2017
Source: Hudson Global

3. Isaac Camargo | isaac.camargo@aol.com | +1 305 338-3478
Strategic Divestitures
• On April 2, 2018, Hudson Global announced it has completed the sales of its recruitment and talent management
operations in Europe and Asia Pacific to strategic buyers in three transactions
• Hudson received total proceeds of $39.0 million in cash at closing, subject to customary post-closing adjustments
• Net proceeds included $24.8 million for recruitment and talent management operations in Benelux, $7.7 million for
the recruitment and talent management operations in the rest of Europe, and $6.4 million for the recruitment and
talent management operations in Asia Pacific
• All Hudson debt has been transferred to the buyers with the divestitures
• As of December 31, 2017 based on pro forma financials after the divestitures, Hudson Global had $45.1 million of
cash and no debt on its balance sheet
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As of April 2, 2018
Source: GLOBE NEWSWIRE

4. Isaac Camargo | isaac.camargo@aol.com | +1 305 338-3478
Management Change
• The company also announced on April 2, 2018 that Jeffrey E. Eberwein has been appointed chief executive officer
• Mr. Eberwein, who currently serves as chairman of the company’s board of directors, will succeed Stephen A. Nolan
effective April 1, 2018
• Richard K. Coleman, Jr., Hudson's chairman of the compensation committee, will become chairman of the board
effective April 1, 2018
• Prior to becoming Hudson’s CEO, Mr. Eberwein was CEO of Lone Star Value Management, LLC, an investment firm he
founded in 2013
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As of April 2, 2018
Source: GLOBE NEWSWIRE

5. Isaac Camargo | isaac.camargo@aol.com | +1 305 338-3478
Valuation
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As of May 6, 2018
1As of May 2017
Based on my analysis, HSON stock is trading near its estimated current liquidating value per share. The $39.0 million
of proceeds the company received in April from its divestitures of its recruitment and talent management operations
in Europe and Asia Pacific contributed to the increase in liquidating value. This makes the risk/reward quite
favorable. The most likely scenario is a sale of the RPO business or whole company. The recently announced CEO
change to Jeffrey E. Eberwein in April, who was CEO of Lone Star Value Management, LLC and has accumulated 8.4%
of the company’s common stock1, provides additional reasons to believe the company is on the path to a buyout.
Further analysis is needed to determine an approximate buyout price. A potential buyer is Trueblue Inc (NYSE: TBI).
Total net assets for common stock 83,659$
Estimated liquidating value per share 1.9$
Book value per share 2.6$
Current-asset value per share 2.1$
Cash-asset value per share (0.3)$
Market price per share 1.9$

6. Isaac Camargo | isaac.camargo@aol.com | +1 305 338-3478
Risks
・HSON begins to acquire RPO businesses to attempt to gain scale and corporate level profitability
・Cannot find buyer or cannot agree with buyer upon a price
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7. Isaac Camargo | isaac.camargo@aol.com | +1 305 338-3478
Appendix
I wrote this report myself, and it expresses my own opinions. By creating and publishing this report I am by no way advocating to buy or sell the
aforementioned securities. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this
report.
This report contains statements and statistics that have been obtained from sources believed to be reliable, but are not guaranteed as to accuracy or
completeness. The past performance of a mutual fund, stock, or investment strategy cannot guarantee its future performance.
I currently hold a long position in HSON.
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