Conducted numerous valuation methodologies and thorough research for Steinkeller Solutions, a highly specialized staffing firm focused on Life Sciences, Technologies, Healthcare IT, and Energy. Assessed Bloomberg data, company financials, and company strategy to make an informed strategic sale recommendation to a sponsor to William Blair bankers.

1. Steinkeller Solutions
Alexander Alger | Karch Bachman | Hunter Enama | Alexander Schlatter
WilliamBlairCaseCompetition

2. Table of Contents
o Executive Summary
o Industry Overview
o Company Overview
o Valuation Analysis
o Strategic Options
o Final Thoughts
WilliamBlairCaseCompetition
3
5
13
20
9
27

3. Executive Summary

4. Executive Summary
Robust Fundamentals
o Steinkeller Solutions is redefining the staffing industry as a
marketplace information specialist with direct and long-term
relationships
o Steinkeller Solutions is focused on high-margin and niche
verticals poised for compelling growth in the coming years
o Top-graded management team motivated to continue Steinkeller’s
growth and success
o Implied Valuation: $575M-$650M
o 2019E Revenue: $254M
o 2019E EBITDA: 18% margin
Valuation Overview
Sell-Side Advisory Potential Buyers
o Our thorough and extensive research of the
current M&A industry landscape coupled with
the current market conditions leads us to
suggest that Management pursue a near-term
transaction with a Tier I Financial Sponsor or
a Tier I Strategic Buyer
ExecutiveSummary
4

5. Industry Overview

6. Industry Overview
General Information
o US Staffing & Temporary Agencies Industry Value ~ $185B
(2019)
o Annual Growth 2014-19: 4.5%
o Annual Growth Projection 2019-24: 0.5%
o Nearly 20,000 staffing firms and 17 million staffing employees
o Every day, staffing business send more than 3 million employees
to work in America
o Staffing provides vital support and flexibility to businesses,
exposing employees to valuable opportunities and flexibility
Industry Trends
o Technology is driving change across all industries and companies
are forced to continually evolve and adapt
o Increasingly mobile society is allowing for greater ease of
connectivity
o Current shortage in talent, as employers are demanding greater
expertise and the best talent is often already employed
o On-demand, independent consulting is becoming a more widely
accepted alternative career path to FTEs
LTM (S&P 500 vs. Select Comparables) Product Services and Segmentation
22.6%
17.4%
16.9%
16.8%
9.8%
9.0%
7.5%
Industrial Staffing
Office, clerical and
administrative staffing
Professional and managerial
staffing
Information technology
staffing
Healthcare staffing
Engineering and scientific
staffing
S&P 500 RHI KFRC KELYA BBSI HSII
Sources: IBISWorld, American Staffing Association 6
IndustryOverview

7. Growth Drivers
Number of Temporary Employees
o Number of workers available is influenced by changes in attitudes
and willingness of employees to work on a temporary basis
o Susceptible to impact from overall economic conditions
o Contingent workforce has seen consistent growth recently (10%+ CAGR)
o Availability of qualified employees to fulfill specialized demand
Economic Conditions
o State of the economy will impact the demand for staffing
companies
o Unemployment rate impacts the number of contingent workers employed, as
temporary employees provided by staffing companies are very disposable
o Current tax rate benefits the business community, helping the bottom line
o Increased regulation has led companies in highly-regulated
industries to more frequently outsource to staffing companies
o Favorable M&A landscape has brought about consistently healthy
M&A activity over the past decade
Technological Change
o Many companies are investing more into technology
o Technology continues to adjust the competitive landscape of the industry
o Utilization of technology-based methodologies to more easily
source jobs and improve efficiency for recruiters
o Mobile recruiting and social media have become the easiest way to connect and
communicate, as 96% of people own a cell phone (81% smartphones)
o Artificial Intelligence and automation will likely be the next breakthrough to
improve staffing operations
Referrals
o Easiest way for companies to expand their outreach
o Allows for staffing companies to grow their candidate pool faster, and smarter
o “Word of mouth” is the cheapest way to advertise or recruit
o Referrals tend to see lower turnover rates and greater productivity
7
IndustryOverview
Sources: IBISWorld, American Staffing Association

8. M&A Landscape
Deal Rationale
o The staffing industry is highly fragmented, but has seen many
companies turn to strategic acquisitions for growth
o Financial sponsors appear relatively inactive, but are occasionally
seen buying into growth
o Professional staffing companies in the areas of IT, healthcare and
life sciences continue to generate the greatest buyer demand
o The accompanying figures illustrate M&A activity through Q2 of
2019
Number of Deals
M&AActivity by Industry Sector Strategic vs. Financial Buyers
97
68
59
103 103 105 105
132
122
139 142
70
0
20
40
60
80
100
120
140
160
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(Q1)
23%
17%
17%
13%
12%
7%
6% 4% 1%
Light Industrial/Clerical
Healthcare
Executive Search
IT Staffing
PEO
Technical
Other
F&A
Legal
94%
6%
Strategic
Financial
Source: Duff & Phelps 8
IndustryOverview

9. Company Overview

10. Company Overview
Value Proposition & Key Competitive Advantages
o Steinkeller Solutions is a highly specialized staffing firm that provides talent to high growth end markets
o Steinkeller Solutions is focused on high-margin and niche verticals through a centralized office structure and limited geographic footprint
when compared to traditional professional and general staffing models
o Steinkeller Solutions is redefining the staffing industry as a marketplace information specialist with direct and long-term relationships with
key decision makers, knowledge of upcoming projects, and in-demand skillsets-driving candidates to work directly with Steinkeller
Solutions
o Contract Length and dynamics are 40 weeks+ with high extension rates billing out $120+ per Hour- almost double Traditional Staffing
Key Stats 2019E Revenue Breakdown
$264M 2019E Revenue
35% 5 year Organic Revenue CAGR
34% Gross Margins
18% EBITDA Margins
~$120 Average Bill Rates
90% Contract Placements
100% Direct Client Relationships
$2M+ Revenue per Producer
CompanyOverview
Source: William Blair Case 10

11. Staffing Sectors
Technologies
o Data Conversions
o Integrations
o Financial Management
o Core HR
o Service Mapping
o Incident management
Life Sciences
o Data Conversions
o Integrations
o Financial Management
o Core HR
o Service Mapping
o Incident management
Healthcare IT
o Quality Systems Auditing & Assessment
o Clinical Affairs
o Regulatory
o Validation
o Manufacturing
Energy
o Implementation
o Revenue Cycle
o Optimization
o Project management
o Go-Live Support
o Integration Specialists
CompanyOverview
~100 Clients
~50 Clients
~150 Clients
~40 Clients
Source: William Blair Case 11

12. S
W
T
O
S.W.O.T. Analysis
o Direct focus on high-margin and niche
verticals
o National Coverage with Centralized Offices
Placing Talent across The US
o Tenured Management Team with 150+ years of
combined experience provides expertise in
various specialties to advance the business
o Strong direct relationships with clients
o Cyclical business model is dependent on the
strength of the economy
o Leveraged with 62% debt
o Not much cash on hand for future acquisitions
o Rapidly changing end-markets
o Automation and artificial intelligence changing
the landscape of staff recruiting
o Low-unemployment rates means less
candidates and more competition
o Adjustments to current low-tax rate will cut
into the business’s margins
o Massive end markets with long runway to
grow
o Undersupply of labor to IT Market (17%)
o Potential further specialization in rapidly
changing end-markets
o Continue to invest internal recruiting through
the use of strong referral network for new
market opportunities and hiring new producers
12
CompanyOverview
Sources: IBISWorld, American Staffing Association, Hoover’s D&B

13. Valuation Analysis

14. Valuation OverviewValuationAnalysis
Enterprise Value ($ in thousands)
2019E EBITDA Multiple 11.7x7.4x 15.9x9.5x 17.9x13.7x5.3x 20x
Source: Bloomberg, William Blair Case 14

15. Comparable Companies Analysis
Commentary
o Few “pure play” competitors due to diversified business line and
premium services
o Comparable companies are relatively larger in terms of both market
cap and revenue
o Combination of staffing firms and HR solutions and consulting
firms
Derived Valuation
ValuationAnalysis
Source: Bloomberg 15
*values in thousands except for share price
Sales Gross Profit EBITDA EBIT Net Income Revenue Gross Profit EPS Net Income
Tier I: <$1,500,000 MKT CAP
Barrett Business Services Inc. BBSI US $86.77 $648,015 $578,080 $934,320 $593,680 $52,810 $48,930 $47,550 -0.70% 10.02% 74.70% 24.93%
Heidrick & Struggles International Inc. HSII US 26.79 512,540 479,610 717,610 209,670 84,360 72,020 54,030 6.70% 0.22% 64.70% 8.80%
Huron Consulting Group Inc. HURN US 58.56 1,340,000 1,660,000 829,100 273,590 102,160 63,190 25,310 10.40% 5.45% -1.30% 89.33%
Kelly Services Inc. KELYA US 23.25 926,894 948,350 5,510,000 972,200 128,900 94,300 115,100 0.00% 1.74% 12.20% 14.52%
Kforce Inc. KFRC US 37.27 893,000 871,000 1,440,000 418,610 89,090 81,240 57,980 1.40% -3.23% 41.00% -2.41%
TrueBlue Inc. TBI US 21.82 874,330 879,890 2,470,000 665,600 121,730 74,880 66,950 -1.10% -0.33% 21.40% 9.27%
Mean $865,797 $902,822 $1,983,505 $522,225 $96,508 $72,427 $61,153 2.78% 2.31% 35.45% 24.07%
Median $883,665 $875,445 $1,187,160 $506,145 $95,625 $73,450 $56,005 0.70% 0.98% 31.20% 11.90%
Tier II: >$1,500,000 MKT CAP
ManpowerGroup Inc. MAN US $84.04 $5,029,000 $5,930,000 $21,230,000 $3,580,000 $855,500 $734,900 $497,100 -4.70% -3.71% 4.70% -8.43%
Robert Half International Inc. RHI US 54.57 6,420,000 6,420,000 5,930,000 2,410,000 674,260 609,200 453,220 7.40% 2.73% 25.80% 3.14%
TriNet Group Inc. TNET US 60.55 4,310,000 4,190,000 3,660,000 664,000 266,000 241,000 189,000 8.40% 3.46% 2.40% 0.56%
Mean $5,253,000 $5,513,333 $10,273,333 $2,218,000 $598,587 $528,367 $379,773 3.70% 0.83% 10.97% -1.58%
Median $5,029,000 $5,930,000 $5,930,000 $2,410,000 $674,260 $609,200 $453,220 7.40% 2.73% 4.70% 0.56%
Growth Rates
Name Ticker Price Market Cap Enterprise Value
LTMFinancial Statistics
Name Price/Sales Price/Earnings EV/EBITDA
Barrett Business Services Inc. 0.69x 13.98x 10.95x
Heidrick & Struggles International Inc. 0.71x 9.75x 5.68x
Huron Consulting Group Inc. 1.62x 51.78x 16.27x
Kelly Services Inc. 0.16x 9.22x 5.61x
Kforce Inc. 0.62x 6.95x 9.78x
ManpowerGroup Inc. 0.24x 10.51x 6.93x
Robert Half International Inc. 1.08x 14.36x 9.50x
TriNet Group Inc. 1.18x 23.06x 15.75x
TrueBlue Inc. 0.35x 12.96x 7.23x
Maximum 1.62x 51.78x 16.27x
Mean 0.74x 16.95x 9.74x
Median 0.69x 12.96x 9.50x
Minimum 0.16x 6.95x 5.61x
Steinkeller Solutions 2019EEBITDA
Comparable Companies Multiple Range 9.5x 11x
Enterprise Value Range $447,080 $517,671
$47,061

16. Precedent Transactions Analysis
Commentary
o Acquisitions in staffing industry typically executed by strategic
sponsors
o Relevance given heavier weighting than recency when choosing
precedents
o Larger deals (Tier II) had higher mean and median multiples
across the board
Derived Valuation
ValuationAnalysis
Source: Bloomberg 16
*values in thousands except for share price
Date Transaction Purchase Deal Equity Transaction
Announced Acquirer Target Type Consideration Premium Value Value Sales EBIT EBITDA
Tier I: <$600,000 TV
12/28/2018 DBAYAdvisors Ltd. Harvey Nash PLC Strategic Sponsor Cash 12.99% $95,490 $102,260 0.11x 16.36x 13.26x
8/9/2016 Merlin Global Acquisition Inc. Monster Worldwide Inc. Strategic Sponsor Cash 25.00% 302,270 405,348 0.66x 18.20x 6.26x
3/9/2016 Adecco Group AG Penna Consulting PLC Strategic Sponsor Cash 8.62% 94,560 90,340 1.07x 19.48x 16.21x
1/28/2015 Gattaca PLC Networks International Ltd. Strategic Sponsor Cash & Stock 30.40% 57,530 63,270 0.37x 12.78x 11.44x
12/29/2014 Programmed Maintenance Services Ltd.ProgramSkilled Workforce Ltd. Strategic Sponsor Cash & Stock 30.00% 374,020 544,100 0.32x 9.07x 7.22x
12/1/2010 Chandler Macleod Group Ltd. Ross Human Directions Ltd. Strategic Sponsor Cash 3.54% 62,620 60,009 0.16x 5.81x 4.65x
11/2/2010 ABRYPartners LLC COMFORCE Corp. Financial Sponsor Cash 76.21% 44,660 114,080 0.18x 8.55x 6.69x
Mean 26.68% $147,307 $197,058 0.41x 12.89x 9.39x
Median 25.00% $94,560 $102,260 0.32x 12.78x 7.22x
Tier II: >$600,000 TV
12/22/2015 Recruit Holdings Co Ltd. Recruit Global Staffing BV Strategic Sponsor Cash 24.69% $1,346,470 $1,546,690 0.65x 22.36x 16.10x
11/30/2015 Randstad NV Proffice AB Strategic Sponsor Cash 26.10% 1,716,940 1,773,940 0.43x 12.58x 9.14x
7/20/2011 Randstad NV SFN Group Inc. Strategic Sponsor Cash 48.30% 726,660 715,930 0.34x 14.60x 10.06x
Mean 33.03% $1,263,357 $1,345,520 0.47x 16.51x 11.77x
Median 26.10% $1,346,470 $1,546,690 0.43x 14.60x 10.06x
Transaction Value /
Overall Sales EBIT EBITDA
Maximum 1.07x 22.36x 16.21x
Mean 0.43x 13.98x 10.10x
Median 0.36x 13.69x 9.60x
Minimum 0.11x 5.81x 4.65x
Transaction Value /
Steinkeller Solutions 2019EEBITDA
Precedent Transactions Multiple Range 10x 12x
Enterprise Value Range $470,610 $564,732
$47,061

17. Discounted Cash Flow AnalysisValuationAnalysis
Steinkeller Solutions
($ in thousands)
CAGR CAGR
2017 2018 2019E ('17 - '19E) 2020 2021 2022 2023 2024 ('20 - '24)
Sales $166,663 $203,458 $263,983 25.85% $304,194 $342,887 $384,033 $426,277 $468,905 11.43%
% growth 22.08% 29.75% 15.23% 12.72% 12.00% 11.00% 10.00%
Cost of Sales 111,911 134,657 174,493 200,564 225,687 251,542 278,146 304,788
Gross profit $54,752 $68,801 $89,490 27.85% $103,630 $117,200 $132,492 $148,131 $164,117 12.18%
% margin 32.85% 33.82% 33.90% 34.07% 34.18% 34.50% 34.75% 35.00%
Selling, General & Administrative 28,666 34,995 44,877 51,105 57,605 64,134 70,762 77,369
EBITDA $27,941 $35,918 $47,061 29.78% $55,152 $62,598 $71,747 $81,192 $91,060 13.36%
% margin 16.76% 17.65% 17.83% 18.13% 18.26% 18.68% 19.05% 19.42%
Depreciation & Amortization 1,855 2,114 2,448 2,627 3,004 3,389 3,823 4,312
EBIT $26,086 $33,804 $44,613 30.78% $52,525 $59,594 $68,358 $77,369 $86,747 13.36%
% margin 15.65% 16.61% 16.90% 17.27% 17.38% 17.80% 18.15% 18.50%
Taxes (21%) 5,478 7,099 9,369 11,030 12,515 14,355 16,248 18,217
Tax-Effected EBIT $20,608 $26,705 $35,244 30.78% $41,495 $47,079 $54,003 $61,122 $68,530 13.36%
Plus: Depreciation & Amortization 1,855 2,114 2,448 2,627 3,004 3,389 3,823 4,312
Less: Capital Expenditures (1,667) (1,628) (2,112) (2,129) (2,400) (2,629) (2,880) (3,154)
Less: Increase in Net Working Capital (6,313) (6,075) (6,460) (6,632) (6,693)
Unlevered Free Cash Flow 20,796 27,191 35,580 30.80% 35,680 41,608 48,303 55,433 62,996 15.27%
WACC 7.57%
Discount Period 0.5 1.5 2.5 3.5 4.5
Discount Factor 0.96 0.90 0.83 0.77 0.72
Present Value of Free Cash Flow $34,401 $37,295 $40,248 $42,938 $45,363
Historical / Estimated period Projection period
Cumulative Present Value of FCF $200,245
Terminal Year EBITDA (2024E) 91,060
Implied Exit Multiple 12.7x
Terminal Value $1,153,605
Discount Factor 0.72
Present Value of Terminal Value $830,705
% of Enterprise Value 80.6%
Enterprise Value $1,030,950
Enterprise Value
Terminal Value
Perp Growth Exit Mult.
Enterprise Value $1,030,950 $838,913
Less: Total Debt (54,000) (54,000)
Less: Preferred Securities - -
Less: Noncontrolling Interest - -
Plus: Cash and Cash Equivalents 4,200 4,200
Implied Equity Value $981,150 $789,113
Less: Liquidity Premium (20%) (196,230) (157,823)
Net Equity Value $784,920 $631,291
Plus: Total Debt 54,000 54,000
Less: Cash and Cash Equivalents (4,200) (4,200)
Adjusted Enterprise Value $834,720 $681,091
Adjusted Enterprise Value
Terminal Value FCF (2024E) 62,996
WACC 7.57%
Terminal Value $1,153,605
Perpetuity Growth Rate 2.00%
Adjusted Enterprise Value $834,720
2019E EBITDA 47,061
Implied EV/EBITDA 17.7x
Perpetuity Growth Rate
Implied EV/EBITDA
Derived ValuationCommentary
o A conservative approach to revenue growth and gradual margin
enhancements reaffirms the firm’s intrinsic valuation being higher
than industry peers
o A relatively high Enterprise Value must be adjusted to account for
a liquidity premium accompanied with public companies
o A much higher valuation is observed under the Perpetuity Growth
approach
Source: William Blair Case 17

18. Discounted Cash Flow Analysis (cont.)
Key Assumptions
o A conservative approach to revenue growth and gradual margin
enhancements reaffirms the firm’s intrinsic valuation being higher
than industry peers
o Cash flows are discounted using a mid-year convention approach
o Implied Enterprise Values are adjusted and reduced by accounting
for a 20% liquidity premium
o Steinkeller Solutions’levered beta has been levered from the
industry average unlevered beta
o Weighted Average Cost of Capital calculated to be 7.57%
Cost of Capital
Perpetuity Growth
o Adjusted Enterprise Value of $834,720,000
o Adjusted Equity Value of $784,920,000
Exit Multiple
o Adjusted Enterprise Value of $681,091,000
o Adjusted Equity Value of $631,290,000
$834,720 1.50% 1.75% 2.00% 2.25% 2.50%
6.57% 931,875 973,138 1,018,916 1,069,993 1,127,344
7.07% 847,457 880,934 917,711 958,304 1,003,338
7.57% 776,989 804,614 834,720 867,655 903,838
8.07% 717,284 740,410 765,440 792,621 822,242
8.57% 666,058 685,654 706,740 729,495 754,125
Implied Enterprise Value
Perpetuity Growth Rate
WACC
$681,091 7.7x 8.7x 9.7x 10.7x 11.7x
6.57% 595,425 650,134 704,843 759,552 814,262
7.07% 584,620 638,188 691,757 745,326 798,895
7.57% 574,078 626,535 678,992 731,450 783,907
8.07% 563,792 615,166 666,540 717,914 769,288
8.57% 553,754 604,072 654,390 704,708 755,026
Implied Enterprise Value
Exit Multiple Approach
WACC
Pre-Tax Cost of Debt 9.26%
Corporate Tax Rate 21.00%
After Tax Cost of Debt 7.31%
Risk Free Rate 2.06%
Historical Market Yield 7.96%
Beta 1.01
Cost of Equity 8.00%
Cost of Debt Calculation
Cost of Equity Calculation
Amount % Total Cost of Capital
Debt 54.0 62.1% 4.54%
Equity 33.0 37.9% 3.03%
WACC 87.0 7.57%
Weighted Average Cost of Capital
ValuationAnalysis
Source: William Blair Case 18

19. Leveraged Buyout Analysis
Commentary
o A buyout model may likely imply an Enterprise Value that is less than
other valuation methods
o Cash source of 10% Management Rollover used
o Assumes 25% required Sponsor IRR
o Debt is amortized for 15 years and steadily paid down over the investment
lifecycle
Credit Metrics Sensitivity Analysis
o Implied Enterprise Value of $569,153,000
o Exit Multiple of 9.7x EBITDA
$569,153 7.7x 8.7x 9.7x 10.7x 11.7x
20.00% 556,153 592,748 629,343 665,938 702,533
22.50% 531,387 564,397 597,407 630,417 663,427
25.00% 509,476 539,315 569,153 598,991 628,830
27.50% 490,043 517,069 544,095 571,120 598,146
30.00% 472,768 497,293 521,818 546,343 570,868
EBITDA Exit Multiple
RequiredIRR
Implied Enterprise Value / EBITDA
xEBITDA Amort % Total Amount
Senior Debt 5.5x 15.0 48.2% $303,336
Subordinated Debt - - - -
Management Rollover 10.0% 62,884
Sponsor's Equity 41.8% 262,624
Total Sources 100.0% $628,845
Transaction Value 90.5% $569,153
Existing Debt 8.6% $54,000
Transaction Expenses 0.9% 5,692
Total Uses 100.0% $628,845
Sources and Uses
6.4x
5.5x
4.8x
4.2x
3.7x
3.3x
2.3x
2.6x
3.0x
3.3x
3.8x
- -
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
2019 2020 2021 2022 2023 2024
Debt/EBITDA EBITDA/Interest Expense
ValuationAnalysis
Source: William Blair Case 19

20. Strategic Options

21. Potential Acquisition Targets
Chose to expand position in the
fast-growing renewable energy
market segment
Acquire technology platform
focused on predictive analytics
staffing
Uses AI to screen and shortlist candidates by
analyzing resumes, assessments, conversations,
and performance data
Exclusively focused on staffing and executive
recruitment for the renewable energy market
StrategicOptions
21

22. Potential Financial Sponsors
Tier I
StrategicOptions
FFL Partners is a private equity firm headquartered in San Francisco, California. The firm seeks
to invest in the business services, financial services, healthcare, and industrials sectors.
WestView Capital Partners is focused on growth-oriented companies operating in the
business service, software and information technology service, consumer, healthcare
technology, outsourcing and growth industrial sectors. The firm is headquartered in Boston,
Massachusetts.
Stone Point Capital is a private equity firm headquartered in Greenwich, Connecticut
The firm invests in the global financial services, HR benefits & employer services, and
outsourcing & technology companies.
Flexpoint Ford is a private equity investment firm that invests in the healthcare, life
science, manufacturing, e-commerce, education and insurance sectors. The firm was
founded in 2005 and is headquartered in Chicago, Illinois.
Name Description AUM Dry Powder
$4.7B
$3.3B
$14.2B
$1.8B
$2.6B
$1.9B
$672M
$616M
Source: PitchBook 22

23. Potential Financial Sponsors (cont.)
Tier II
StrategicOptions
Altaris Capital Partners is a private equity investment firm that invests in businesses that
operates in the healthcare sector. The firm is headquartered in New York, New York.
One Equity Partners is a middle-market private equity firm that invests in the industrial,
healthcare and technology sectors in North America and Europe. The firm is headquartered in
New York, New York.
Kinderhook Industries is a private equity firm that focuses on middle-market firms. The
firm invests in the middle market businesses operating in the business services,
environmental services, healthcare services and light manufacturing sectors. It is
headquartered in New York, New York.
Parthenon Capital Partners is a private equity firm headquartered in Boston,
Massachusetts. The firm invests in companies within the financial services, healthcare
services and business services through acquisitions or growth equity investments.
Name Description AUM Dry Powder
$2.8B
$1.8B
$3.1B
$6.9B
$608M
$553M
$2.1B
$1.1B
Source: PitchBook 23

24. o Made frequent M&A transactions in recent years
o $26.6B in revenue in 2018
o Staffs healthcare, IT, life sciences, and more
o Consistently Strategic partnerships in the areas of Technology
and Finance & Accounting services
o Ranks in the top five U.S search firms
o 4,000 clients, including 70% of the Fortune 100
o Supplies critical STEM skill sets with a focus on IT, healthcare
and life sciences
o Reputation of excellence over the past 33 years
o Operates in North America and Europe
o One of the largest staffing firms in the US
o Large working capital surplus available for acquisition
o Looking for opportunities in healthcare staffing
Potential Strategic BuyersStrategicOptions
Name Description Rationale
Tier I
One of the biggest staffing firms in the US, Kelly Services provides temporary employees to
companies operating in the light industrial, technical, and professional sectors, including
information technology specialists, marketers, and accountants. It also places engineers (through
Kelly Engineering Resources), scientists (Kelly Scientific Resources), substitute teachers (Kelly
Educational Staffing), and government personnel (Kelly Government Solutions).
ASGN Incorporated (formerly known as On Assignment) is a specialist staffing agency that
places professionals, from IT consultants to lab assistants, with clients in need of temporary (or
permanent) help. The firm operates through several divisions: Apex (IT and engineering staffing
for temporary, temp-to-hire, and permanent placements); Oxford (engineering, life sciences, and
specialized high-end IT consultants); and ECS (cloud, cybersecurity, and software).
Kforce is a corporate matchmaker, placing skilled technology and finance workers with the
companies that need them. The specialty staffing firm provides temporary staffing services (and,
to a lesser extent, permanent placement) in information technology, accounting, and government.
It also offers web-based services such as online resumes, job postings, career management
information, and interactive interviews.
Randstad North America, Inc. is primarily engaged in supplying temporary or continuing help on
a contract or fee basis. The help supplied is always on the payroll of the supplying establishments,
but is under the direct or general supervision of the business to whom the help is furnished.
Source: Hoover’s D&B 24

25. o Total cash on hand is $275M+
o Sophisticated matching technology
o World’s first accounting and finance staffing firms
o The third largest staffing firm in the world behind Adecco and
Randstad
o Operating in 80 countries with about 400,000 clients
o Provides management solutions for small and mid-sized
companies in the US
o Total cash on hand is $35M
Potential Strategic Buyers (cont.)
Tier II
StrategicOptions
Adecco, Inc. is primarily engaged in supplying temporary or continuing help on a contract or fee
basis. The help supplied is always on the payroll of the supplying establishments, but is under the
direct or general supervision of the business to whom the help is furnished
Robert Half International carries the full load of personnel services. The company places
temporary and permanent staff through eight divisions: Accountemps, Robert Half Finance and
Accounting, Robert Half Legal, OfficeTeam (general administrative), Robert Half Technology
(information technology), Robert Half Management Resources (senior level professionals), and
The Creative Group (advertising, marketing, and Web design).
ManpowerGroup is one of the world's largest providers of temporary employees. It offers
services through brands that include ManpowerGroup Solutions, Manpower, Experis
(accounting, finance, health, and engineering positions), Manpower UK, and Right
Management, which provides management consulting services focused on leadership
development and assessment.
Barrett Business Services (BBSI) is employed in helping businesses. Its professional
employment organization (PEO) services business provides outsourced human resource
services, such as payroll management, benefits administration, risk management,
recruiting, and placement. The company also offers temporary and long-term staffing
services, such as on-demand or short-term staffing, on-site management, contract staffing,
master-vendor programs.
Name Description
o World’s largest Human Resources provider and temporary staffing
firm in the world
o 5,200 branch's in over 60 countries
o Specialize in office, industrial, technical, financial, legal and more
25Source: Hoover’s D&B
Rationale

26. Selected Buyers
FFL Partners is a private equity firm that seeks to invest in the business services,
financial services, healthcare, and industrials sectors. With over $600M available in dry
powder from their massive fundraising in 2015, FFL is poised to make a significant
acquisition. Historically, FFL has been attracted to Human Resource (HR) and
Human Capital (HC) based firms. Over the past couple decades they have added
Accordion, Crisis Prevention Institute, and Korn Ferry to their portfolio. The addition of
Steinkeller Solutions would be the perfect compliment, adding a staffing firm with
significant growth perspective to an already successful collection of HR and HC firms.
Kelly Services is one of the largest staffing firms in the US. They pursue acquisitions as
a way to acquire temp workers with skill sets relevant to current industry needs. Kelly
has historically targeted small specialty employment services firms serving technology,
telecom, and other fast-changing industries. Thus far in 2019, Kelly Services has made
several acquisitions with its cash on hand, as they continue to utilize investing activities.
Additionally, they have identified the healthcare industry as an industry of target.
We believe that Steinkeller Solutions is the exemplary company that would bolster
Kelly Services demands and success.
Source: Hoover’s D&B, PitchBook 26
StrategicOptions

27. Final Thoughts

28. Final Thoughts
Sale Process
o We recommend that Steinkeller Solutions conduct a Broad
Auction in order to gain as much exposure as possible to
Financial Sponsors and Strategic Acquirers
o We believe that the Steinkeller Management Team is instrumental
to future growth of the company and will be viewed as an asset by
a financial sponsor
o Implied Valuation: $575M-$650M
o 2019E Revenue: $254M
o 2019E EBITDA: 18% margin
Valuation Overview
Sale Timing Potential Buyers
o We recommend a sale to take place soon while the cost of
borrowing is still at record lows and while financial sponsors are
actively looking for new opportunities in the space
o We believe that the firm’s revenue growth and margins will begin
to slow and earnings may become volatile if economic
uncertainties continue to increase
FinalThoughts
28