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Recruitment Leaders Connect
The year ahead #RLCon
Today’s WiFi Access
Network: VENUE GUESTS, Password: EVENT
Kevin Green, CEO
13th February 2014

Recruitment Leaders
Connect Summit
UK labour market – What's going
on?
Recruitment Industry Trends
The Impending Talent Crisis
Three models of Recruitment
success
The REC’s Good Recruitment
Campaign
UK Labour Market
Economy grew by 1.9% in 2013 and forecast 2.5% in
2014
Record Employment – even with economy not back to
2008 levels
Unemployment – Falling from 7.7 in August to 7.1 %
Youth unemployment and long term unemployment still
too high
Skills and talent shortages, worsening in many sectors
Perm starting Salaries rising
Immigration, living costs and productivity the key
issues
REC Jobs Data

Vacancies at 15 year high
Every Sector in growth
Perm jobs month on month
increase since October 2012

Employment confidence increasing
Hiring intentions improving temp &
Perm
65% of employers will increase their
perm headcount in the next three
months
Per consultant: Permanent
Average value of sales
per consultant is £83,955
Below the pre-recession
peak of £96,954
Average number of
placements are 21
REC Industry Forecast
Emerging talent crisis
Two Speed Labour Market
Ageing Population
Social attitudes to work
Social media – opportunity and threat!
Government’s understanding of work
Increased flexibility

Competition
Choice
Free labour market
Models of
Recruitment
Success
Model 1 – The specialist Inch wide
and mile deep
Deep expertise in their niche
Know where the talent is
Candidate centric model
Use content to attract candidates
Highly effective use of social
media
Have global reach
Possibility of margin growth
Consultants are true consultants
Model 2 – The low cost operator
Often in the contingent labour
market
Low margins / high volumes
Compete on compliance – process
heavy
Excellent at winning tenders / PSL
Use economy of scale to create
value
Growth via acquisition
May often go through intermediaries
Consultants are operators
Model 3 – Traditional plus
Branch model with regional focus
Generalists – temps and perm
Full service model
Often do commercial / office/ industrial
To thrive it’s about the plus
+ Focus on SME’s – lots of eggs in lots of baskets
+ Relentless focus at avoiding intermediaries / PSL
+ Defend margins – via relationships
+ Consolidate on to one site
+ Offer clients onsite offering
The REC Good Recruitment
Campaign

April Go Live !
The REC Good Recruitment
Campaign
Any Questions?
Thank You for
listening
Sub heading
Recruitment Leaders Connect
The year ahead #RLCon
Today’s WiFi Access
Network: VENUE GUESTS, Password: EVENT
Recruitment Leaders
February 2014

Ken Brotherston
Chairman
Agenda
• Recruitment market drivers…a salutary tale (Part 1)
• The essential qualities of today’s recruiter

• Crowdsourcing and TheJobPost
• Threats and opportunities in 2014

A new approach to finding talent
Recruitment market drivers
• Economic cycle
– Downturn lasted a long time
– Upturn isn’t yet as strong as it needs to be

• Impact of technology
– Direct hiring more effective than ever
– Rise of online databases

• Recruitment business models
– MSP’s, ATS’s, RPO’s etc. now bedded in
– Industry is polarising rather than consolidating

A new approach to finding talent
Value

Historical value proposition of Recruitment

Closing

Assessment

Identification

£

A new approach to finding talent
Current value proposition of Recruitment

Closing

Assessment

Value

Identification

£

A new approach to finding talent
Essential qualities for today’s recruiter
• Relationship oriented
– Long term view –
take time to get to know client
– Responsive, available
– Anticipate issues and
offer solutions
– Not cheap but takes long
term commercial view

Trusted

A new approach to finding talent
Essential qualities for today’s recruiter

• Market knowledge
– Aware of Industry/sector issues
and impact on talent
– Knowledge of key players
and who is up and coming
– Up to date with trends in talent,
compensation and new
processes/business models.

Respected

A new approach to finding talent
A smarter way to solve complex problems

Crowdsourcing
...an open call to a large group

First identified by Jeff Howe
– Wired Magazine in 2005

A new approach to finding talent
Crowdsourcing platforms that we all use

35
Crowdsourcing in recruitment …..it’s not
if or when but how

A new approach to finding talent
TheJobPost - our philosophy
• Our offering has to work for employers and recruiters
– Employers need access to the whole recruitment supply chain
– Recruiters need an effective economic model

• Facilitation rather than management
– Let the recruiter know who the employer is
– Allow them to engage with each other

• Need to cover permanent and contract
– TJP is the only platform to offer a contract solution
– Allows even the smallest firm to engage on contract roles
– Fully compliant: salary and margin paid every week

A new approach to finding talent
We deliver excellent results for these companies

A new approach to finding talent
Threats and opportunities in 2014
• The ‘run faster’ model of recruitment
will continue to decline
• Crowdsourcing will disrupt the industry
• Effective engagement is a huge opportunity
–
–
–
–

Consolidate your existing relationships
Allows access and engagement with new employers
More effective management of your BD costs
Higher profitability

• A salutary tale….part 2

A new approach to finding talent
Recruitment Leaders Connect
The year ahead #RLCon
Today’s WiFi Access
Network: VENUE GUESTS, Password: EVENT
Private Equity and the recruitment
sector; what is the attraction?
Chris Harper
Managing Director
Baird Capital
About The Presenter
• 25 years within private equity
• Managing Director at Baird Capital
• Significant experience of investing in the recruitment sector:

2
Baird in the Human Capital and
Recruitment Sector
A group-wide sector focus

Private
Equity
Investing
Human
Capital

Analysts

Investment
Banking

Research

M&A

3
Human Capital Services Focus
HR Outsourcing Services

HR Technology

Unparalleled Experience
• Dedicated coverage of all
major human capital sectors
―

Staffing

―

HRO/BPO

―

RPO

―

PEO

―

Payroll

―

Benefits Admin.

―

Recruiting

―

HR ERP

―

Corporate Training

Baird’s HCS
Platform

(1)

Corp.

• Transaction Experience
―

Over 80 M&A and equity
transactions since 1995
HR Professional Services

1) Illustrates select, relevant market participants.

4
A Long History and Commitment to the
Human Capital Sector
Undisclosed Value

$32,600,000

Aug. 2001

Undisclosed Value

Undisclosed Value

Sale to

Sale to

QD Group
QD Group, Inc.
$27,600,000
Common Stock

Initial Public Offering
$114,000,000

Limited
Sale to

Acquisition of

Business Computer
Services Inc.
(d/b/a Pay America)

$94,400,000
Common Stock

TMP Worldwide

SM

Follow-on Offering

$205,600,000

$55,900,000

$850,000,000

Sale of

Sale to

$89,700,000
Common Stock

Sale to

$68,700,000

$1,980,300,000
Common Stock

Sale to

$24,900,000
Common Stock

Sale to

to

Initial Public Offering
$32,900,000

$1,922,900,000

$439,000,000

Follow-on Offering
$174,000,000

$113,900,000

$20,000,000

Private Placement
$600,600,000

Undisclosed Value

Undisclosed Value

sm

Sale to

1997

Acquisition of

Sale to

1998

1999

Sale to

Acquisition of

2000

2001

2002

Undisclosed Value

Undisclosed Value

Undisclosed Value

Sale to

Undisclosed Value

Sale to

Acquisition of

Sale to

Acquisition of

2003

Undisclosed Value

Sale to

A Portfolio Company of

$65,625,000
Common Stock

Sale to

£105,000,000

Undisclosed Value

Sale to

$94,000,000

Sale to

Undisclosed Value

A Portfolio Company of

Sale to

A Portfolio Company of

£260,000,000

A Portfolio Company of

£234,000,000

Project Capital
HR Outsourcing Services

2005

2004

Sale to

Undisclosed Value

Sale to

Initial Public Offering
$60,000,000

$200,000,000

$233,480,000

$100,000,000

$97,300,000

Undisclosed Value

Refinancing of

A Portfolio Company of

Sale to

A Portfolio Company of
Acquisition of

Sale to

Sale to

Acquisition of

$40,000,000

A Portfolio Company of

A Portfolio Company of

Sale to

Follow-on Offering

Co-Advisor

$21,000,000

$54,400,000

A Portfolio Company of

Sale to

Sale to
(Advisor to Minority Shareholders)

Undisclosed Value

$226,366,046
Common Stock

Significant Investment
by

$431,300,000

Undisclosed Value
Undisclosed Value

Undisclosed Value

Undisclosed Value

$50,000,000

®

Acquisition of

A Portfolio Company of

Sale to
sale to

A Subsidiary of

A division of

a Portfolio Company of

a portfolio company of
Sale to

Sale to

Acquisition of

Acquisition of

Sale to

$101,135,295
Common Stock

Sale to

Sale to

Follow-on Offering

2006

2007
2007

2008

2009

2010
5

2011

2012

2013
Experienced and Dedicated Research
Coverage
Mark Marcon

Current Coverage

Senior Research Analyst, Human Capital Services


Over the past 12 years, focused on
building the leading position covering
the Human Capital Services sector



Prior to joining Baird, spent six years
with Wachovia



Publishes Human Capital Services
Metrics, Analysis, and Perspective on
a monthly basis (“HCS MAP”)

6
Annual Business Solutions Conference
Over 700 total attendees, with 850 one-on-one meetings held
Selected 2012 Conference Attendees
2012 Key Statistics

19
Number of years Baird has
hosted its Annual Business
Services Conference

71
Number of companies
presenting at the conference

194
Institutional investors in
attendance

183
Private equity sponsors in
attendance

7
Private Equity: A Quick Guide
•
•
•

•
•

There is a large and diverse pool of private equity investors from venture (SEP)
through mega buy-out (KKR)
PE funds are increasingly offering differentiated strategies:
– Sector, geography, size, turnaround, buy and build. etc…
– But all have the same goal. To deliver strong returns to investors.
Investments are usually made from a 10 year fund
– Invest in first 5 years, realise before end of year 10
– Capital commitment from pension funds or similar seeking superior returns
– Commonly 5% of pension assets in PE funds
Performance is measured through IRR and money multiple
Key points:
– Life of funds and performance measures: dictates goal to exit within 3 to 5
years
– Superior returns sought by investors in private equity funds:
• 5% per annum above risk free
• 1.5x to 2.0x money multiple
– Private equity seek to invest in businesses which can deliver strong returns
within reasonable risk boundaries
• 2.5x money multiple
• 30% IRR
8
Key Drivers of Returns
• Enterprise Value (EV) growth
• Profit growth
• Multiple arbitrage
• Cash flow
• Yield
• Debt reduction
• Refinancing

9
What makes the recruitment sector
attractive to Private Equity?
• A business where
shareholders are open to
investment

• Large number of
recruitment businesses led
by hungry smart people

• Is capable of doubling in
value over 4 to 5 years

• Proven ability to grow
profits (cycles allowing)
• International growth
• Operationally geared
• Business capable of
dominating a niche
• Good history of
M&A, secondary buyouts
and IPO markets providing
exits

• That could be made
attractive to a buyer at the
time of exit

10
The evidence: some of the investments

11
Key Investment Criteria

•
•
•
•

•
•
•
•

Where we are in the cycle
Valuation
Availability of debt
Management hunger, alignment, depth and
capability
Credible growth story
Positive market dynamic
High quality company
Clear exit potential
12
Investment Considerations
Geographic footprint

Activities, sector
coverage & focus

Scalable and
repeatable

Client dependency

Can I make a
return out of
an
investment
in this
business

Quality of earnings
Contract vs Perm

NFI, margins, profits
, flexibility

Management

Growth left
‘on the table’
13
Valuation
Primary drivers are profits and scale:
Medium sized players trade at a
premium compared to the
smallest tier…

EV / 2014F EBITDA

We observe more diversity in
majors’ ratings – but overall they
benefit from higher ratings

17x
16x

15x

Robert Walters
£273m, 14.9x

The smallest listed
players are rated the
lowest…

14x

Sthree
£481m, 12.4x

13x
Matchtech
£143m, 12.1x

12x
EV / 2014F EBITDA.

Michael Page
£1,497m, 13.6x
Hays
£1,878m, 12.4x

USG
£681m, 11.2x

InterQuest
£34m, 11.1x

11x

Amadeus
£256m, 10.9x

10x

Proffice
£171m, 8.6x

9x

CDI
£217m, 8.4x

8x

Staffline
£111m, 7.5x

Penna
£29m, 7.0x

7x

Netw orkers
£43m, 6.6x

6x
5x

Randstad
£7,368m, 11.1x

Brunel
£929m, 11.1x

On Assignment
£1,143m, 10.6x

Robert Half
£3,458m, 10.9x

Kelly Services
£562m, 8.1x

Adecco
£8,896m, 11.0x

Manpow er
£4,201m, 8.5x

Harvey Nash
£76m, 6.2x

Hydrogen
£25m, 5.2x

Impellam
£153m, 5.0x

4x
3x
10

Source DC Advisory

100

EV (£m)

1,000

Notes:
(1) Logarithmic scale
(2) Financials calendarised to 30 June 2014
(3) Share price data taken on 28-Jan-2014

14

10,000
Select Sector Transactions
(currency in millions)
Target / Acquiror
The Agency Staffing (US)
Groupe Crit
Intelligence Holdings (JPN)
Temp Holdings
Healthcare Locums Plc (UK)
Toscafund Asset Management
Cross Country Healthcare (Clinical
Trial Services Division (US)
ICON Public Limited Company
USG Energy (nka Redwave) (NL)
Rabo Capital
CHG Healthcare Services (US)
Ares Management / Leonard Green
TMC Group NV (NL)
Gilde Buy Out Partners
Air Energi (UK)
LGV Capital
Insight Global (US)
Ares Management
NES Global Talent (UK)
AEA Investors
Pinstripe (US)
Accel KKR LLC
Fircroft (UK)
Equistone
Talent2 International (AUS)
Allegis Group
Apex Systems (US)
On Assignment Inc.
Star Group BV(NL)
Parcom Capital
SFN (US)
Randstad NV
Aston Carter (UK)
Allegis Group
Comforce Corp. (US)
ABRY Partners LLC

Announced
Date

Target Business Description

Enterprise
Value

EV /
Revenue

EV /
EBITDA

N/A

N/A

0.9x

7.0x

July-2013

Provider of staffing solutions for technical, professional, admin, and industrial sectors

N/A

Mar-2013

Provider of clinical trial services including contract staffing and permanent placement

¥68,000

Feb-2013

Provider of temporary and permanent staff to the healthcare and social care sectors

£39

0.2

N/M

Feb-2013

Provider of contract staffing and permanent placement to the healthcare industry

$56

0.9

N/A

Feb-2013

Provider of personnel for the onshore and offshore energy industry

€80

N/A

N/A

Oct-2012

Provider of healthcare staffing services

c. $1,000

N/A

Oct-2012

Provider of specialist staff to the technology, ICT and construction sectors

£54

1.2

7.7

Oct-2012

Provider of contract, project, and staff hire personnel to the oil and gas industry

c. £85

N/A

c. 8.0

Oct-2012

Provider long term, short term and temp-to-permanent technical staffing services primarily
for IT professionals

$810

1.2

10.5

Oct-2012

Provider of staffing and engineering services to oil and gas and engineering sectors

£234

0.5

10.0

Aug-2012

Provider of pure-play recruitment process outsourcing

$50

1.3

8.8

Jun-2012

Provider of technical recruitment services principally to the oil and gas industry

£140

N/A

7.7

May-2012

Provider of human resource advisory, payroll, recruitment and learning services

A$142

0.4

6.4

Mar-2012

Provider of IT staffing and workforce solutions

$600

0.9

9.2

Nov-2011

Provider of staffing for offshore and marine projects in the oil and gas and power industries

N/A

N/A

N/A

Jul-2011

Provider of staffing services to a vast range of industries in the US and Canada

$771

0.4

11.2

Feb-2011

Provider of recruitment and staffing services with a focus in consultancy, finance and IT

c. £100

0.4

8.0

Nov-2010

Provides outsourced staffing management and staffing solutions to large employers

$154

0.2

9.0

0.7x
0.7x

8.8x
8.8x

Mean
Median

_____________________
Source: MergerMarket, CapIQ, Company filings and press releases.

15

c. 10-11
Private Equity Valuations
Date
Oct-13
Oct-12
Oct-13
Jul-13
Dec-12
Oct-12
Oct-12
Jun-12
Jul-12
Feb-12
Jul-11
Nov-10
Jul-10
Jun-10
Nov-09
Dec-08
Nov-07
Jul-07
Mar-07
Sep-06

Company
AMS
NES
Swift
Nigel Frank
SR Group
NES
Air Energi
Fircroft
Nurse Plus
Pertemps
Red Commerce
Pulse
Teaching Personnel
ICS
FDM
Air Energi
AMS
Teaching Personnel
Aston Carter
NES

Vendor
Graphite
Graphite
Gresham
n/a
Founders
Graphite
Palatine
Founders
Founders
Founders/AIM
Inflexion
Hg
RJD
Inflexion
P2P
Founders
Advent
Founders
Founders
Bridgepoint

Buyer
New Mountain Capital
AEA Investors
Wellspring Capital Management
ISIS
Baird
AEA Investors
LGV
Equisitone
Key Capital
LDC
Dunedin
Blackstone
Graphite
Blackstone
Inflexion
Palatine
Graphite
RJD
Baird
Graphite

EV
260
234
110
44
ND
234
ND
140
15
ND
44
75
45
110
25
30
100
24
42
86

Mean

EV/EBITDA
12.8
10.3
7.5
7.4
n/a
10.3
7.0
7.0
6.5
n/a
8.0
6.5
6.9
7.0
4.7
5.6
12.0
6.8
7.8
8.0
7.9

Debt availability is currently a brake on valuations at lower valuations
UK Private equity multiples are generally in the range 5.0x to 7.5x EBITDA
16
Recent Exits
Holding
Period

Date

Company

Vendor

Entry

Exit

Years

Dec-07

Oct-13

5.8

AMS

Graphite

Jun-06

Nov-13

7.4

Sep-06

Oct-12

Aug-09

Buyer

Enterprise Value

Growth in PE Money
EV
Multiple

Entry

Exit

New
Mountain
Capital

100

260

2.6

3.5

Swift

Gresham Wellspring

n/d

110

n/d

2.0

6.1

NES

Graphite

70

234

3.3

4.7

Oct-12

3.2

Palatine

30

ND

n/a

4.5

Dec-05

Jul-11

5.6

Air Energi
Red
Commerce

AEA
Investors
LGV

Inflexion

Dunedin

15

44

2.9

4.4

Jun-99

Nov-10

11.4

Pulse

Hg

Blackstone

ND

75

n/a

3.7

Jul-07

Jul-10

3.0

Teaching
Personnel

RJD

Graphite

24

45

1.9

3.0

Aug-08

Jun-10

1.8

ICS

ND

110

n/a

2.7

2.7

3.6

Mean

Inflexion Blackstone

5.18

17
Baird Human Capital
Case Studies

18
A Specialist Global Recruitment Company
•

NES Global Talent (“NES”) is one of the fastest growing providers of specialist personnel to the
international oil & gas, power and infrastructure sectors

•

Industry leading productivity levels
― Achieved through the rapid identification, placement and ongoing support of highly qualified engineers globally
― Engineers paid c. £100k per annum (often materially more) for contracts typically lasting 12 - 18 months

•

EBITDA has increased every year since 2004, equivalent to a compound annual increase of 22%
― Driven by the Global division, which has increased both EBITDA and NFI at over 35% per annum
― Global division EBITDA has increased from less than £2m to over £20m since 2004

•

2012F NFI and EBITDA of £59m and £24m, respectively

•

Attractive end markets with long term growth prospects

•

High barriers to entry in global markets

•

Highly fragmented market in which NES is a sector leader
― Well placed to lead consolidation and become the global market leader

•

Headquartered in the UK, serves clients through a global network of 32 offices and employs c. 450
staff

19
Case Study: £105 million Debt
Refinancing of NES (June 2012)
•

NES required increased working capital facilities with greater operational flexibility to support 20%+
p.a. international growth

•

£105,000,000

A broad group of traditional and alternative lenders were approached to participate in the enlarged
working capital and term loan facilities

•

RBS led a club with HSBC and Lloyds to provide a £105 million, 5-year committed debt package
consisting of:

Refinancing of

A Portfolio Company of

―
―

£40 million invoice discounting facility

―
•

£25 million term loan

£40 million committed revolving credit facility

The lenders indicated that an additional £25 - £30 million of acquisition financing could be available
to a purchaser

Traditional Lenders Approached

Alternative Lenders Approached

20
Case Study: £234 million sale of NES to
AEA Investors (October 2012
•

£234,000,000

A select group of potential private equity and strategic buyers were introduced to the
management team prior to the formal process launch
―

A Portfolio Company of

Significant buyer interaction with the management team was encouraged
throughout the process

•
•

Eight indications of interest were received in August, with five potential buyers invited to
proceed

•

Prior to management presentations scheduled for early September, potential buyers were
encouraged to progress their due diligence and financing discussions with lenders

•

Sale to

Financial, commercial, legal and insurance vendor diligence reports were prepared to
facilitate potential buyers review of the global business

Following the management presentations, one potential buyer attempted to pre-empt the
process

Highly Targeted Process

―
15 Information
Memorandums Distributed

July

Diligence continued with four other potential buyers

•

Three final offers, with SPA mark-ups and no outstanding diligence, were submitted less
than four weeks after management presentations

8 Indications of
Interest Submitted

August

•

5 Management
Presentations Held

All three bidders elected to roll the existing debt financing structure to increase the
deliverability of their offers

September

•

AEA signed the transaction within 72 hours of the final bids being submitted

3 Final Bids
with SPA
October
Mark-ups

―

•

Graphite realised a money multiple in excess of 4.5x

AEA, with significant experience in the oil & gas sector and developing the international
profile of its portfolio companies, will support the management team through NES’ next
growth phase
21
Aston Carter: A Case Study
Aston Carter CEO, Sean Zimdahl;
“Baird Capital Partners Europe has been a great partner. The team
brought deep sector knowledge and investment experience to our
business, which really helped us develop the initial growth strategy.
Then through tougher markets they were highly supportive of
managing the cost base and retaining the key people at a level that
enabled the business to grow quickly as markets improved. Their
operational expertise and international network was a real help.”

Aston Carter
Baird US introduced the acquirer of the business

Actions:
●

Accessed Baird resources to develop strategy for overseas growth and exit

●

Introduced operating partner John Hubert as non-executive Chair, helped development of

‘2012 Mid-Market Management Team of the Year’

Value Creation

senior management structure to aid international development
●

Incentivised the senior managers to drive continued growth

(£ in millions)

●

Significantly improved MIS reporting and financial/cash management to support growth

£40.0

●

Baird US introduced the acquirer of the business

£13.4

£30.0

Results:

●

Geographic expansion (Netherlands, Singapore, Hong Kong, UK, France, Sweden)

●

Built the customer base significantly by further penetrating core FS sector customers,
developing new customers and growing consulting/corporate accounts

●

Paid debt down c. 40%

●

Rapid execution of strategy supported the business in the recession and has enabled rapid

£20.0

£4.4

£1.3

£32.2

£13.1

£10.0
£0.0

profit growth early in the recovery

22

Investment EBITDA
Cost
Growth

Debt
Multiple Equity at
Reduction Expansion
Exit
Baird Human Capital
What about 2014

23
Prospects for 2014

• Increasing volume of M & A transactions
– Economic cycle attractive
– Pent up demand
• Buyers:
– Trade seeking access to growth markets and people
– PE: Need to deploy capital

• Vendors:
– PE need to exit to deliver returns to investors
– owner managers seeking return on hard work

• A return of the IPO?
– Excess capital seeking a home
– Exit for larger PE backed businesses?
24
Summary
• Sector is attractive to private equity buyers
• Valuations are: 5.0x to 7.5x LTM EBITDA
• Debt availability is currently a brake on both valuations and ability
to execute
– Questionable availability below £10m
– Perfect track record required
– Alternative lenders (at a price)

• Critical success factors include:
– Management depth and quality
– Clear focus and discipline
– Credible growth story
– Scale and geography
– Exit planning: Ultimately being able to answer the
question...Who will buy and why?

25
Thank You

26
Recruitment Leaders Connect
The year ahead #RLCon
Today’s WiFi Access
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Recruitment Leaders Connect
The year ahead #RLCon
Today’s WiFi Access
Network: VENUE GUESTS, Password: EVENT
The Mobile Opportunity

Matt Alder
matt@metashift.co.uk
metashift limited © 2013
@mattalder

metashift limited © 2013
What I’m going to talk about
• The Mobile Landscape
• Opportunity: Conversion
• Practicalities / Case Study

metashift limited © 2013
Landscape

© MetaShift 2012
metashift limited © 2013
A New Age

metashift limited © 2013
Mobile isn’t actually mobile

metashift limited © 2013
Mobile and Social

metashift limited © 2013
Mobile & Search

Google expects a site to load on a
smartphone / tablet in 1 second
metashift limited © 2013
Big News….

metashift limited © 2013
Mobile First Disruption

Hotel Tonight
Tinder
Uber

Hailo
metashift limited © 2013
+

Action Orientated Medium

70% of mobile searchers act within
an hour; only 30% of PC searchers
do
Source Mobile Marketer

metashift limited © 2013
+

What about Recruitment?

88% of UK Job Seekers have used
a mobile device to search for jobs
in the last year
Google Consumer Survey 2013

metashift limited © 2013
% Job Board
mobile web
traffic

Recruitment = Exponential Growth

2010

Now

SOON

metashift limited © 2013
Conversion

© MetaShift 2012
metashift limited © 2013
Online Candidate Attraction
Social Media

At least 60% on
mobile

SEO

Google desktop
search declining

Email

More personal
email read on
mobile / tablet

Advertising

Persuasion

Apply or
Register

20% to 30% of
recruitment web
traffic on mobile
metashift limited © 2013
Social Media

SEO

At least 60% on
mobile

Google desktop
search declining

Email

More personal
email read on
mobile / tablet

Advertising

How much talent
is being leaked?
Can you multiply
ROI on current
activities?

20% to 30% of
recruitment web
traffic on mobile

metashift limited © 2013
Optimisation & Conversion Rates

metashift limited © 2013
Practicalities

© MetaShift 2012
metashift limited © 2013
Adaptive (Device Specific) Design

metashift limited © 2013
Candidate Journey and Cloud Apply

Indeed Search for Software
Engineers in Peterborough

Career micro-site selling the
opportunity

Cloud Apply
metashift limited © 2013
Key Points
• The majority of your traffic will soon be mobile
• The opportunity and the threat is enormous

•

Experiment and Optimise

•

Work on every device (Adaptive Design)

•

Reduce registration / apply friction

metashift limited © 2013
matt@metashift.co.uk

metashift limited © 2013
Recruitment Leaders Connect
The year ahead #RLCon
Today’s WiFi Access
Network: VENUE GUESTS, Password: EVENT
LinkedIn and the future of Recruitment
Rebecca Drew
Enterprise Account Executive EMEA
Search & Staffing
LinkedIn

©2014 LinkedIn Corporation. All Rights Reserved.
LinkedIn: A global pool of talent
13M+

BELGIUM

5M+

2M+

FRANCE

SPAIN

TURKEY

6M+

1M+

1M+

ITALY

CANADA

1M+

NETHERLANDS

7M+
9M+

4M+

UNITED KINGDOM

SWEDEN

DENMARK

93M+
UNITED STATES
OF AMERICA

1M+
SAUDI ARABIA

16M+

24M+

UNITED ARAB EMIRATES

2M+

INDONESIA

PHILIPPINES

1M+

MALAYSIA

1M+

2M+
1M+

INDIA

SINGAPORE

BRAZIL

5M+
AUSTRALIA

3M+
SOUTH AFRICA

277M+

Members
worldwide

1M+
NEW ZEALAND

+2
187M

New members per second
Monthly unique visitors
Connect the world’s professionals to
make them more productive and
successful

©2014 LinkedIn Corporation. All Rights Reserved.
The global economic graph

Opportunities

Skills

©2014 LinkedIn Corporation. All Rights Reserved.

Companies Educational
institutions

People

Professional
knowledge
The global economic graph

Opportunities

Skills

©2014 LinkedIn Corporation. All Rights Reserved.

Companies Educational
institutions

People

Professional
knowledge
©2014 LinkedIn Corporation. All Rights Reserved.
The Social Web
Social networking has
changed the behavior of
online users.
Changes the way users
- Process information
- Make buying decisions
- Look for employment
People expect
information to be
relevant and
personalised.
©2014 LinkedIn Corporation. All Rights Reserved.

99
What is Social Recruiting?

Social Recruiting is building a community of
relevant followers who you can market to and in
turn leverage their networks for business success

©2014 LinkedIn Corporation. All Rights Reserved.
Clients
Candidates

Consultants
Hire

Market

Sell

Engage the world’s
best passive talent
for clients and
internally

Engage most
effectively and
efficiently with
professionals

Engage decision
makers and build
trust with Clients

©2014 LinkedIn Corporation. All Rights Reserved.
What you should be doing for FREE
Identity: build personal, professional brand
Your visual
identity and
headline
Skills & Expertise

Thought
Leading
Updates

1. Photo
2. Headline
3. Updates
4. Summary

Recommendations

Summary and
Experience

Groups &
Associations

©2014 LinkedIn Corporation. All Rights Reserved.
Insights: share and learn knowledge
Pulse

Relevant, recommended
news

©2014 LinkedIn Corporation. All Rights Reserved.

Thought-leadership

Engaging, informative
insights

105
©2014 LinkedIn Corporation. All Rights Reserved.
Add insights to improve your workflow and efficiency
Outlook Integration

Google Toolbar

©2014 LinkedIn Corporation. All Rights Reserved.

Email Signature

PlugIns & APIs

107
Why are followers important..

61%

of members are more likely to share information as a
result of following a company

3x

more likely to apply for jobs posted by companies they
follow

6x

more likely to view your Careers Page

78%

more likely to accept an approach

©2014 LinkedIn Corporation. All Rights Reserved.
Social Recruitment Best Practice
Social
Recruitment
Build Followers
Leverage Ad
Impressions
Leverage
Consultants
Establish
Branding

Right Job
Right Person
Proactive
Headhunting
©2014 LinkedIn Corporation. All Rights Reserved.

109
LinkedIn Data Insights
Employee Profile Views

©2014 LinkedIn Corporation. All Rights Reserved.

111
FREE
LinkedIn
Audit with
Data Insights
for all
Attendees
Recruitment Leaders Connect
The year ahead #RLCon
Today’s WiFi Access
Network: VENUE GUESTS, Password: EVENT
Recruitment Trends 2013
Dan Martin, Broadbean
Download UK Recruitment Trends 2013
UK Recruitment Trends 2013
Like A Phoenix From the Flames!

Unemployment Rate Falls To
7.1% In Job Surge

Britain powers ahead of the rest of Europe:
IMF upgrades UK growth for 2014 to 2.4% just a
year after warning Osborne he was 'playing with
fire' by imposing cuts
But what does the data show?

VACANCIES GROWTH
But what does the data show?

APLICATIONS GROWTH
Digging beneath the headlines
Digging beneath the headlines

1

+ 47.0% AUTOMOTIVE

2
3
4

+ 44.8% MEDICAL & NURSING
+ 42.1% BUILDING & CONSTRUCTION
+ 35.6% PUBLIC SECTOR

5

+ 32.6% TRANSPORT & RAIL
Digging beneath the headlines

1

- 12.0% TRAVEL & TOURISM

2
3
4

- 9.4% GRADUATES & TRAINEES
- 6.9% RETAIL
- 6.8% SENIOR APPOINTMENTS

5

- 6.6% INSURANCE
Some regional surprises
Scotland + 3.2%

Northern
Ireland + 3.9 %

Midlands + 14%

Wales + 18.3%

North + 8.8%

South, East &
London + 2.4%
Improvements yet to hit the pay packet
Salary Trends
36000

34000

2013 Growth 1.2%

32000

30000
jan

feb

mar

apr

may

jun

jul

aug

2012

sept

oct

nov

dec

jan

feb

mar

apr

may

2013

jun

jul

aug

sept

oct

nov

dec
Improvements yet to hit the pay packet

1

+ 8.3% AUTOMOTIVE

2
3
4

+ 5.1% SCIENCE & RESEARCH
+ 4.7% CALL CENTRE & CS
+ 4.2% SENIOR APPOINTMENTS

5

+ 2.8% PROCUREMENT
Improvements yet to hit the pay packet

1

- 16.0% TELCOMMUNICATIONS

2
3
4

- 12.1% BANKING
- 10.9% FASHION
- 10.2% PHARMA

5

- 9.2% AEROSPACE
Some sectors out of balance
60

60

55

55

Hospitality & Catering

50
45

50
45

Retail

40

40
HR & Personnel

2013 APV

35

35
Banking

30
Accountancy
25
Financial Services

Sales

20
15

FMCG

Recruitment
Manufacturing
Fashion
Marketing

IT

Social Care
Education & Training

Engineering

Insurance

30
Building & Construction

20
15
Automotive
10

Pharma

10

Electronics
Legal

5

25

5
Medical & Nursing 0

0
-5

-5

-10

-10
-8 -6 -4 -2

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

2013 Vacancy Growth (%)

30

32

34

36

38

40

42

44

46

48

50
Spotlight on Recruitment
Recruitment under review…

Vacancy changes in the Recruitment sector
Full year growth
4.2%

Last 6 months
growth 12.5%
Recruitment under review…

Application Rate Trends in the Recruitment sector
Recruitment under review

Salary movements in the Recruitment sector
Last 12 months - 2.0%
Download UK Recruitment Trends 2013
Thank You!
Dan Martin, Managing Director
danm@broadbean.com
+44 (0)20 7536 1661
Tweet @BroadbeanEMEA
Follow Broadbean Technology on Linkedin
Friend Broadbean Technology on Facebook
Recruitment Leaders Connect
The year ahead #RLCon
Today’s WiFi Access
Network: VENUE GUESTS, Password: EVENT

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Recruitment Leaders Connect - #RLCon - Feb 13th

  • 1. Recruitment Leaders Connect The year ahead #RLCon Today’s WiFi Access Network: VENUE GUESTS, Password: EVENT
  • 2. Kevin Green, CEO 13th February 2014 Recruitment Leaders Connect Summit
  • 3. UK labour market – What's going on? Recruitment Industry Trends The Impending Talent Crisis Three models of Recruitment success The REC’s Good Recruitment Campaign
  • 4. UK Labour Market Economy grew by 1.9% in 2013 and forecast 2.5% in 2014 Record Employment – even with economy not back to 2008 levels Unemployment – Falling from 7.7 in August to 7.1 % Youth unemployment and long term unemployment still too high Skills and talent shortages, worsening in many sectors Perm starting Salaries rising Immigration, living costs and productivity the key issues
  • 5. REC Jobs Data Vacancies at 15 year high Every Sector in growth Perm jobs month on month increase since October 2012 Employment confidence increasing Hiring intentions improving temp & Perm 65% of employers will increase their perm headcount in the next three months
  • 6.
  • 7.
  • 8.
  • 9. Per consultant: Permanent Average value of sales per consultant is £83,955 Below the pre-recession peak of £96,954 Average number of placements are 21
  • 15. Social media – opportunity and threat!
  • 19. Model 1 – The specialist Inch wide and mile deep Deep expertise in their niche Know where the talent is Candidate centric model Use content to attract candidates Highly effective use of social media Have global reach Possibility of margin growth Consultants are true consultants
  • 20. Model 2 – The low cost operator Often in the contingent labour market Low margins / high volumes Compete on compliance – process heavy Excellent at winning tenders / PSL Use economy of scale to create value Growth via acquisition May often go through intermediaries Consultants are operators
  • 21. Model 3 – Traditional plus Branch model with regional focus Generalists – temps and perm Full service model Often do commercial / office/ industrial To thrive it’s about the plus + Focus on SME’s – lots of eggs in lots of baskets + Relentless focus at avoiding intermediaries / PSL + Defend margins – via relationships + Consolidate on to one site + Offer clients onsite offering
  • 22. The REC Good Recruitment Campaign April Go Live !
  • 23. The REC Good Recruitment Campaign
  • 26. Recruitment Leaders Connect The year ahead #RLCon Today’s WiFi Access Network: VENUE GUESTS, Password: EVENT
  • 28. Agenda • Recruitment market drivers…a salutary tale (Part 1) • The essential qualities of today’s recruiter • Crowdsourcing and TheJobPost • Threats and opportunities in 2014 A new approach to finding talent
  • 29. Recruitment market drivers • Economic cycle – Downturn lasted a long time – Upturn isn’t yet as strong as it needs to be • Impact of technology – Direct hiring more effective than ever – Rise of online databases • Recruitment business models – MSP’s, ATS’s, RPO’s etc. now bedded in – Industry is polarising rather than consolidating A new approach to finding talent
  • 30. Value Historical value proposition of Recruitment Closing Assessment Identification £ A new approach to finding talent
  • 31. Current value proposition of Recruitment Closing Assessment Value Identification £ A new approach to finding talent
  • 32. Essential qualities for today’s recruiter • Relationship oriented – Long term view – take time to get to know client – Responsive, available – Anticipate issues and offer solutions – Not cheap but takes long term commercial view Trusted A new approach to finding talent
  • 33. Essential qualities for today’s recruiter • Market knowledge – Aware of Industry/sector issues and impact on talent – Knowledge of key players and who is up and coming – Up to date with trends in talent, compensation and new processes/business models. Respected A new approach to finding talent
  • 34. A smarter way to solve complex problems Crowdsourcing ...an open call to a large group First identified by Jeff Howe – Wired Magazine in 2005 A new approach to finding talent
  • 36. Crowdsourcing in recruitment …..it’s not if or when but how A new approach to finding talent
  • 37. TheJobPost - our philosophy • Our offering has to work for employers and recruiters – Employers need access to the whole recruitment supply chain – Recruiters need an effective economic model • Facilitation rather than management – Let the recruiter know who the employer is – Allow them to engage with each other • Need to cover permanent and contract – TJP is the only platform to offer a contract solution – Allows even the smallest firm to engage on contract roles – Fully compliant: salary and margin paid every week A new approach to finding talent
  • 38. We deliver excellent results for these companies A new approach to finding talent
  • 39. Threats and opportunities in 2014 • The ‘run faster’ model of recruitment will continue to decline • Crowdsourcing will disrupt the industry • Effective engagement is a huge opportunity – – – – Consolidate your existing relationships Allows access and engagement with new employers More effective management of your BD costs Higher profitability • A salutary tale….part 2 A new approach to finding talent
  • 40. Recruitment Leaders Connect The year ahead #RLCon Today’s WiFi Access Network: VENUE GUESTS, Password: EVENT
  • 41. Private Equity and the recruitment sector; what is the attraction? Chris Harper Managing Director Baird Capital
  • 42. About The Presenter • 25 years within private equity • Managing Director at Baird Capital • Significant experience of investing in the recruitment sector: 2
  • 43. Baird in the Human Capital and Recruitment Sector A group-wide sector focus Private Equity Investing Human Capital Analysts Investment Banking Research M&A 3
  • 44. Human Capital Services Focus HR Outsourcing Services HR Technology Unparalleled Experience • Dedicated coverage of all major human capital sectors ― Staffing ― HRO/BPO ― RPO ― PEO ― Payroll ― Benefits Admin. ― Recruiting ― HR ERP ― Corporate Training Baird’s HCS Platform (1) Corp. • Transaction Experience ― Over 80 M&A and equity transactions since 1995 HR Professional Services 1) Illustrates select, relevant market participants. 4
  • 45. A Long History and Commitment to the Human Capital Sector Undisclosed Value $32,600,000 Aug. 2001 Undisclosed Value Undisclosed Value Sale to Sale to QD Group QD Group, Inc. $27,600,000 Common Stock Initial Public Offering $114,000,000 Limited Sale to Acquisition of Business Computer Services Inc. (d/b/a Pay America) $94,400,000 Common Stock TMP Worldwide SM Follow-on Offering $205,600,000 $55,900,000 $850,000,000 Sale of Sale to $89,700,000 Common Stock Sale to $68,700,000 $1,980,300,000 Common Stock Sale to $24,900,000 Common Stock Sale to to Initial Public Offering $32,900,000 $1,922,900,000 $439,000,000 Follow-on Offering $174,000,000 $113,900,000 $20,000,000 Private Placement $600,600,000 Undisclosed Value Undisclosed Value sm Sale to 1997 Acquisition of Sale to 1998 1999 Sale to Acquisition of 2000 2001 2002 Undisclosed Value Undisclosed Value Undisclosed Value Sale to Undisclosed Value Sale to Acquisition of Sale to Acquisition of 2003 Undisclosed Value Sale to A Portfolio Company of $65,625,000 Common Stock Sale to £105,000,000 Undisclosed Value Sale to $94,000,000 Sale to Undisclosed Value A Portfolio Company of Sale to A Portfolio Company of £260,000,000 A Portfolio Company of £234,000,000 Project Capital HR Outsourcing Services 2005 2004 Sale to Undisclosed Value Sale to Initial Public Offering $60,000,000 $200,000,000 $233,480,000 $100,000,000 $97,300,000 Undisclosed Value Refinancing of A Portfolio Company of Sale to A Portfolio Company of Acquisition of Sale to Sale to Acquisition of $40,000,000 A Portfolio Company of A Portfolio Company of Sale to Follow-on Offering Co-Advisor $21,000,000 $54,400,000 A Portfolio Company of Sale to Sale to (Advisor to Minority Shareholders) Undisclosed Value $226,366,046 Common Stock Significant Investment by $431,300,000 Undisclosed Value Undisclosed Value Undisclosed Value Undisclosed Value $50,000,000 ® Acquisition of A Portfolio Company of Sale to sale to A Subsidiary of A division of a Portfolio Company of a portfolio company of Sale to Sale to Acquisition of Acquisition of Sale to $101,135,295 Common Stock Sale to Sale to Follow-on Offering 2006 2007 2007 2008 2009 2010 5 2011 2012 2013
  • 46. Experienced and Dedicated Research Coverage Mark Marcon Current Coverage Senior Research Analyst, Human Capital Services  Over the past 12 years, focused on building the leading position covering the Human Capital Services sector  Prior to joining Baird, spent six years with Wachovia  Publishes Human Capital Services Metrics, Analysis, and Perspective on a monthly basis (“HCS MAP”) 6
  • 47. Annual Business Solutions Conference Over 700 total attendees, with 850 one-on-one meetings held Selected 2012 Conference Attendees 2012 Key Statistics 19 Number of years Baird has hosted its Annual Business Services Conference 71 Number of companies presenting at the conference 194 Institutional investors in attendance 183 Private equity sponsors in attendance 7
  • 48. Private Equity: A Quick Guide • • • • • There is a large and diverse pool of private equity investors from venture (SEP) through mega buy-out (KKR) PE funds are increasingly offering differentiated strategies: – Sector, geography, size, turnaround, buy and build. etc… – But all have the same goal. To deliver strong returns to investors. Investments are usually made from a 10 year fund – Invest in first 5 years, realise before end of year 10 – Capital commitment from pension funds or similar seeking superior returns – Commonly 5% of pension assets in PE funds Performance is measured through IRR and money multiple Key points: – Life of funds and performance measures: dictates goal to exit within 3 to 5 years – Superior returns sought by investors in private equity funds: • 5% per annum above risk free • 1.5x to 2.0x money multiple – Private equity seek to invest in businesses which can deliver strong returns within reasonable risk boundaries • 2.5x money multiple • 30% IRR 8
  • 49. Key Drivers of Returns • Enterprise Value (EV) growth • Profit growth • Multiple arbitrage • Cash flow • Yield • Debt reduction • Refinancing 9
  • 50. What makes the recruitment sector attractive to Private Equity? • A business where shareholders are open to investment • Large number of recruitment businesses led by hungry smart people • Is capable of doubling in value over 4 to 5 years • Proven ability to grow profits (cycles allowing) • International growth • Operationally geared • Business capable of dominating a niche • Good history of M&A, secondary buyouts and IPO markets providing exits • That could be made attractive to a buyer at the time of exit 10
  • 51. The evidence: some of the investments 11
  • 52. Key Investment Criteria • • • • • • • • Where we are in the cycle Valuation Availability of debt Management hunger, alignment, depth and capability Credible growth story Positive market dynamic High quality company Clear exit potential 12
  • 53. Investment Considerations Geographic footprint Activities, sector coverage & focus Scalable and repeatable Client dependency Can I make a return out of an investment in this business Quality of earnings Contract vs Perm NFI, margins, profits , flexibility Management Growth left ‘on the table’ 13
  • 54. Valuation Primary drivers are profits and scale: Medium sized players trade at a premium compared to the smallest tier… EV / 2014F EBITDA We observe more diversity in majors’ ratings – but overall they benefit from higher ratings 17x 16x 15x Robert Walters £273m, 14.9x The smallest listed players are rated the lowest… 14x Sthree £481m, 12.4x 13x Matchtech £143m, 12.1x 12x EV / 2014F EBITDA. Michael Page £1,497m, 13.6x Hays £1,878m, 12.4x USG £681m, 11.2x InterQuest £34m, 11.1x 11x Amadeus £256m, 10.9x 10x Proffice £171m, 8.6x 9x CDI £217m, 8.4x 8x Staffline £111m, 7.5x Penna £29m, 7.0x 7x Netw orkers £43m, 6.6x 6x 5x Randstad £7,368m, 11.1x Brunel £929m, 11.1x On Assignment £1,143m, 10.6x Robert Half £3,458m, 10.9x Kelly Services £562m, 8.1x Adecco £8,896m, 11.0x Manpow er £4,201m, 8.5x Harvey Nash £76m, 6.2x Hydrogen £25m, 5.2x Impellam £153m, 5.0x 4x 3x 10 Source DC Advisory 100 EV (£m) 1,000 Notes: (1) Logarithmic scale (2) Financials calendarised to 30 June 2014 (3) Share price data taken on 28-Jan-2014 14 10,000
  • 55. Select Sector Transactions (currency in millions) Target / Acquiror The Agency Staffing (US) Groupe Crit Intelligence Holdings (JPN) Temp Holdings Healthcare Locums Plc (UK) Toscafund Asset Management Cross Country Healthcare (Clinical Trial Services Division (US) ICON Public Limited Company USG Energy (nka Redwave) (NL) Rabo Capital CHG Healthcare Services (US) Ares Management / Leonard Green TMC Group NV (NL) Gilde Buy Out Partners Air Energi (UK) LGV Capital Insight Global (US) Ares Management NES Global Talent (UK) AEA Investors Pinstripe (US) Accel KKR LLC Fircroft (UK) Equistone Talent2 International (AUS) Allegis Group Apex Systems (US) On Assignment Inc. Star Group BV(NL) Parcom Capital SFN (US) Randstad NV Aston Carter (UK) Allegis Group Comforce Corp. (US) ABRY Partners LLC Announced Date Target Business Description Enterprise Value EV / Revenue EV / EBITDA N/A N/A 0.9x 7.0x July-2013 Provider of staffing solutions for technical, professional, admin, and industrial sectors N/A Mar-2013 Provider of clinical trial services including contract staffing and permanent placement ¥68,000 Feb-2013 Provider of temporary and permanent staff to the healthcare and social care sectors £39 0.2 N/M Feb-2013 Provider of contract staffing and permanent placement to the healthcare industry $56 0.9 N/A Feb-2013 Provider of personnel for the onshore and offshore energy industry €80 N/A N/A Oct-2012 Provider of healthcare staffing services c. $1,000 N/A Oct-2012 Provider of specialist staff to the technology, ICT and construction sectors £54 1.2 7.7 Oct-2012 Provider of contract, project, and staff hire personnel to the oil and gas industry c. £85 N/A c. 8.0 Oct-2012 Provider long term, short term and temp-to-permanent technical staffing services primarily for IT professionals $810 1.2 10.5 Oct-2012 Provider of staffing and engineering services to oil and gas and engineering sectors £234 0.5 10.0 Aug-2012 Provider of pure-play recruitment process outsourcing $50 1.3 8.8 Jun-2012 Provider of technical recruitment services principally to the oil and gas industry £140 N/A 7.7 May-2012 Provider of human resource advisory, payroll, recruitment and learning services A$142 0.4 6.4 Mar-2012 Provider of IT staffing and workforce solutions $600 0.9 9.2 Nov-2011 Provider of staffing for offshore and marine projects in the oil and gas and power industries N/A N/A N/A Jul-2011 Provider of staffing services to a vast range of industries in the US and Canada $771 0.4 11.2 Feb-2011 Provider of recruitment and staffing services with a focus in consultancy, finance and IT c. £100 0.4 8.0 Nov-2010 Provides outsourced staffing management and staffing solutions to large employers $154 0.2 9.0 0.7x 0.7x 8.8x 8.8x Mean Median _____________________ Source: MergerMarket, CapIQ, Company filings and press releases. 15 c. 10-11
  • 56. Private Equity Valuations Date Oct-13 Oct-12 Oct-13 Jul-13 Dec-12 Oct-12 Oct-12 Jun-12 Jul-12 Feb-12 Jul-11 Nov-10 Jul-10 Jun-10 Nov-09 Dec-08 Nov-07 Jul-07 Mar-07 Sep-06 Company AMS NES Swift Nigel Frank SR Group NES Air Energi Fircroft Nurse Plus Pertemps Red Commerce Pulse Teaching Personnel ICS FDM Air Energi AMS Teaching Personnel Aston Carter NES Vendor Graphite Graphite Gresham n/a Founders Graphite Palatine Founders Founders Founders/AIM Inflexion Hg RJD Inflexion P2P Founders Advent Founders Founders Bridgepoint Buyer New Mountain Capital AEA Investors Wellspring Capital Management ISIS Baird AEA Investors LGV Equisitone Key Capital LDC Dunedin Blackstone Graphite Blackstone Inflexion Palatine Graphite RJD Baird Graphite EV 260 234 110 44 ND 234 ND 140 15 ND 44 75 45 110 25 30 100 24 42 86 Mean EV/EBITDA 12.8 10.3 7.5 7.4 n/a 10.3 7.0 7.0 6.5 n/a 8.0 6.5 6.9 7.0 4.7 5.6 12.0 6.8 7.8 8.0 7.9 Debt availability is currently a brake on valuations at lower valuations UK Private equity multiples are generally in the range 5.0x to 7.5x EBITDA 16
  • 57. Recent Exits Holding Period Date Company Vendor Entry Exit Years Dec-07 Oct-13 5.8 AMS Graphite Jun-06 Nov-13 7.4 Sep-06 Oct-12 Aug-09 Buyer Enterprise Value Growth in PE Money EV Multiple Entry Exit New Mountain Capital 100 260 2.6 3.5 Swift Gresham Wellspring n/d 110 n/d 2.0 6.1 NES Graphite 70 234 3.3 4.7 Oct-12 3.2 Palatine 30 ND n/a 4.5 Dec-05 Jul-11 5.6 Air Energi Red Commerce AEA Investors LGV Inflexion Dunedin 15 44 2.9 4.4 Jun-99 Nov-10 11.4 Pulse Hg Blackstone ND 75 n/a 3.7 Jul-07 Jul-10 3.0 Teaching Personnel RJD Graphite 24 45 1.9 3.0 Aug-08 Jun-10 1.8 ICS ND 110 n/a 2.7 2.7 3.6 Mean Inflexion Blackstone 5.18 17
  • 59. A Specialist Global Recruitment Company • NES Global Talent (“NES”) is one of the fastest growing providers of specialist personnel to the international oil & gas, power and infrastructure sectors • Industry leading productivity levels ― Achieved through the rapid identification, placement and ongoing support of highly qualified engineers globally ― Engineers paid c. £100k per annum (often materially more) for contracts typically lasting 12 - 18 months • EBITDA has increased every year since 2004, equivalent to a compound annual increase of 22% ― Driven by the Global division, which has increased both EBITDA and NFI at over 35% per annum ― Global division EBITDA has increased from less than £2m to over £20m since 2004 • 2012F NFI and EBITDA of £59m and £24m, respectively • Attractive end markets with long term growth prospects • High barriers to entry in global markets • Highly fragmented market in which NES is a sector leader ― Well placed to lead consolidation and become the global market leader • Headquartered in the UK, serves clients through a global network of 32 offices and employs c. 450 staff 19
  • 60. Case Study: £105 million Debt Refinancing of NES (June 2012) • NES required increased working capital facilities with greater operational flexibility to support 20%+ p.a. international growth • £105,000,000 A broad group of traditional and alternative lenders were approached to participate in the enlarged working capital and term loan facilities • RBS led a club with HSBC and Lloyds to provide a £105 million, 5-year committed debt package consisting of: Refinancing of A Portfolio Company of ― ― £40 million invoice discounting facility ― • £25 million term loan £40 million committed revolving credit facility The lenders indicated that an additional £25 - £30 million of acquisition financing could be available to a purchaser Traditional Lenders Approached Alternative Lenders Approached 20
  • 61. Case Study: £234 million sale of NES to AEA Investors (October 2012 • £234,000,000 A select group of potential private equity and strategic buyers were introduced to the management team prior to the formal process launch ― A Portfolio Company of Significant buyer interaction with the management team was encouraged throughout the process • • Eight indications of interest were received in August, with five potential buyers invited to proceed • Prior to management presentations scheduled for early September, potential buyers were encouraged to progress their due diligence and financing discussions with lenders • Sale to Financial, commercial, legal and insurance vendor diligence reports were prepared to facilitate potential buyers review of the global business Following the management presentations, one potential buyer attempted to pre-empt the process Highly Targeted Process ― 15 Information Memorandums Distributed July Diligence continued with four other potential buyers • Three final offers, with SPA mark-ups and no outstanding diligence, were submitted less than four weeks after management presentations 8 Indications of Interest Submitted August • 5 Management Presentations Held All three bidders elected to roll the existing debt financing structure to increase the deliverability of their offers September • AEA signed the transaction within 72 hours of the final bids being submitted 3 Final Bids with SPA October Mark-ups ― • Graphite realised a money multiple in excess of 4.5x AEA, with significant experience in the oil & gas sector and developing the international profile of its portfolio companies, will support the management team through NES’ next growth phase 21
  • 62. Aston Carter: A Case Study Aston Carter CEO, Sean Zimdahl; “Baird Capital Partners Europe has been a great partner. The team brought deep sector knowledge and investment experience to our business, which really helped us develop the initial growth strategy. Then through tougher markets they were highly supportive of managing the cost base and retaining the key people at a level that enabled the business to grow quickly as markets improved. Their operational expertise and international network was a real help.” Aston Carter Baird US introduced the acquirer of the business Actions: ● Accessed Baird resources to develop strategy for overseas growth and exit ● Introduced operating partner John Hubert as non-executive Chair, helped development of ‘2012 Mid-Market Management Team of the Year’ Value Creation senior management structure to aid international development ● Incentivised the senior managers to drive continued growth (£ in millions) ● Significantly improved MIS reporting and financial/cash management to support growth £40.0 ● Baird US introduced the acquirer of the business £13.4 £30.0 Results: ● Geographic expansion (Netherlands, Singapore, Hong Kong, UK, France, Sweden) ● Built the customer base significantly by further penetrating core FS sector customers, developing new customers and growing consulting/corporate accounts ● Paid debt down c. 40% ● Rapid execution of strategy supported the business in the recession and has enabled rapid £20.0 £4.4 £1.3 £32.2 £13.1 £10.0 £0.0 profit growth early in the recovery 22 Investment EBITDA Cost Growth Debt Multiple Equity at Reduction Expansion Exit
  • 63. Baird Human Capital What about 2014 23
  • 64. Prospects for 2014 • Increasing volume of M & A transactions – Economic cycle attractive – Pent up demand • Buyers: – Trade seeking access to growth markets and people – PE: Need to deploy capital • Vendors: – PE need to exit to deliver returns to investors – owner managers seeking return on hard work • A return of the IPO? – Excess capital seeking a home – Exit for larger PE backed businesses? 24
  • 65. Summary • Sector is attractive to private equity buyers • Valuations are: 5.0x to 7.5x LTM EBITDA • Debt availability is currently a brake on both valuations and ability to execute – Questionable availability below £10m – Perfect track record required – Alternative lenders (at a price) • Critical success factors include: – Management depth and quality – Clear focus and discipline – Credible growth story – Scale and geography – Exit planning: Ultimately being able to answer the question...Who will buy and why? 25
  • 67. Recruitment Leaders Connect The year ahead #RLCon Today’s WiFi Access Network: VENUE GUESTS, Password: EVENT
  • 69. Recruitment Leaders Connect The year ahead #RLCon Today’s WiFi Access Network: VENUE GUESTS, Password: EVENT
  • 70. The Mobile Opportunity Matt Alder matt@metashift.co.uk metashift limited © 2013
  • 72. What I’m going to talk about • The Mobile Landscape • Opportunity: Conversion • Practicalities / Case Study metashift limited © 2013
  • 74. A New Age metashift limited © 2013
  • 75. Mobile isn’t actually mobile metashift limited © 2013
  • 76. Mobile and Social metashift limited © 2013
  • 77. Mobile & Search Google expects a site to load on a smartphone / tablet in 1 second metashift limited © 2013
  • 79. Mobile First Disruption Hotel Tonight Tinder Uber Hailo metashift limited © 2013
  • 80. + Action Orientated Medium 70% of mobile searchers act within an hour; only 30% of PC searchers do Source Mobile Marketer metashift limited © 2013
  • 81. + What about Recruitment? 88% of UK Job Seekers have used a mobile device to search for jobs in the last year Google Consumer Survey 2013 metashift limited © 2013
  • 82. % Job Board mobile web traffic Recruitment = Exponential Growth 2010 Now SOON metashift limited © 2013
  • 84. Online Candidate Attraction Social Media At least 60% on mobile SEO Google desktop search declining Email More personal email read on mobile / tablet Advertising Persuasion Apply or Register 20% to 30% of recruitment web traffic on mobile metashift limited © 2013
  • 85. Social Media SEO At least 60% on mobile Google desktop search declining Email More personal email read on mobile / tablet Advertising How much talent is being leaked? Can you multiply ROI on current activities? 20% to 30% of recruitment web traffic on mobile metashift limited © 2013
  • 86. Optimisation & Conversion Rates metashift limited © 2013
  • 88. Adaptive (Device Specific) Design metashift limited © 2013
  • 89. Candidate Journey and Cloud Apply Indeed Search for Software Engineers in Peterborough Career micro-site selling the opportunity Cloud Apply metashift limited © 2013
  • 90. Key Points • The majority of your traffic will soon be mobile • The opportunity and the threat is enormous • Experiment and Optimise • Work on every device (Adaptive Design) • Reduce registration / apply friction metashift limited © 2013
  • 92. Recruitment Leaders Connect The year ahead #RLCon Today’s WiFi Access Network: VENUE GUESTS, Password: EVENT
  • 93. LinkedIn and the future of Recruitment Rebecca Drew Enterprise Account Executive EMEA Search & Staffing LinkedIn ©2014 LinkedIn Corporation. All Rights Reserved.
  • 94. LinkedIn: A global pool of talent 13M+ BELGIUM 5M+ 2M+ FRANCE SPAIN TURKEY 6M+ 1M+ 1M+ ITALY CANADA 1M+ NETHERLANDS 7M+ 9M+ 4M+ UNITED KINGDOM SWEDEN DENMARK 93M+ UNITED STATES OF AMERICA 1M+ SAUDI ARABIA 16M+ 24M+ UNITED ARAB EMIRATES 2M+ INDONESIA PHILIPPINES 1M+ MALAYSIA 1M+ 2M+ 1M+ INDIA SINGAPORE BRAZIL 5M+ AUSTRALIA 3M+ SOUTH AFRICA 277M+ Members worldwide 1M+ NEW ZEALAND +2 187M New members per second Monthly unique visitors
  • 95. Connect the world’s professionals to make them more productive and successful ©2014 LinkedIn Corporation. All Rights Reserved.
  • 96. The global economic graph Opportunities Skills ©2014 LinkedIn Corporation. All Rights Reserved. Companies Educational institutions People Professional knowledge
  • 97. The global economic graph Opportunities Skills ©2014 LinkedIn Corporation. All Rights Reserved. Companies Educational institutions People Professional knowledge
  • 98. ©2014 LinkedIn Corporation. All Rights Reserved.
  • 99. The Social Web Social networking has changed the behavior of online users. Changes the way users - Process information - Make buying decisions - Look for employment People expect information to be relevant and personalised. ©2014 LinkedIn Corporation. All Rights Reserved. 99
  • 100. What is Social Recruiting? Social Recruiting is building a community of relevant followers who you can market to and in turn leverage their networks for business success ©2014 LinkedIn Corporation. All Rights Reserved.
  • 102. Hire Market Sell Engage the world’s best passive talent for clients and internally Engage most effectively and efficiently with professionals Engage decision makers and build trust with Clients ©2014 LinkedIn Corporation. All Rights Reserved.
  • 103. What you should be doing for FREE
  • 104. Identity: build personal, professional brand Your visual identity and headline Skills & Expertise Thought Leading Updates 1. Photo 2. Headline 3. Updates 4. Summary Recommendations Summary and Experience Groups & Associations ©2014 LinkedIn Corporation. All Rights Reserved.
  • 105. Insights: share and learn knowledge Pulse Relevant, recommended news ©2014 LinkedIn Corporation. All Rights Reserved. Thought-leadership Engaging, informative insights 105
  • 106. ©2014 LinkedIn Corporation. All Rights Reserved.
  • 107. Add insights to improve your workflow and efficiency Outlook Integration Google Toolbar ©2014 LinkedIn Corporation. All Rights Reserved. Email Signature PlugIns & APIs 107
  • 108. Why are followers important.. 61% of members are more likely to share information as a result of following a company 3x more likely to apply for jobs posted by companies they follow 6x more likely to view your Careers Page 78% more likely to accept an approach ©2014 LinkedIn Corporation. All Rights Reserved.
  • 109. Social Recruitment Best Practice Social Recruitment Build Followers Leverage Ad Impressions Leverage Consultants Establish Branding Right Job Right Person Proactive Headhunting ©2014 LinkedIn Corporation. All Rights Reserved. 109
  • 111. Employee Profile Views ©2014 LinkedIn Corporation. All Rights Reserved. 111
  • 113.
  • 114. Recruitment Leaders Connect The year ahead #RLCon Today’s WiFi Access Network: VENUE GUESTS, Password: EVENT
  • 115. Recruitment Trends 2013 Dan Martin, Broadbean
  • 116. Download UK Recruitment Trends 2013
  • 118. Like A Phoenix From the Flames! Unemployment Rate Falls To 7.1% In Job Surge Britain powers ahead of the rest of Europe: IMF upgrades UK growth for 2014 to 2.4% just a year after warning Osborne he was 'playing with fire' by imposing cuts
  • 119. But what does the data show? VACANCIES GROWTH
  • 120. But what does the data show? APLICATIONS GROWTH
  • 121. Digging beneath the headlines
  • 122. Digging beneath the headlines 1 + 47.0% AUTOMOTIVE 2 3 4 + 44.8% MEDICAL & NURSING + 42.1% BUILDING & CONSTRUCTION + 35.6% PUBLIC SECTOR 5 + 32.6% TRANSPORT & RAIL
  • 123. Digging beneath the headlines 1 - 12.0% TRAVEL & TOURISM 2 3 4 - 9.4% GRADUATES & TRAINEES - 6.9% RETAIL - 6.8% SENIOR APPOINTMENTS 5 - 6.6% INSURANCE
  • 124. Some regional surprises Scotland + 3.2% Northern Ireland + 3.9 % Midlands + 14% Wales + 18.3% North + 8.8% South, East & London + 2.4%
  • 125. Improvements yet to hit the pay packet Salary Trends 36000 34000 2013 Growth 1.2% 32000 30000 jan feb mar apr may jun jul aug 2012 sept oct nov dec jan feb mar apr may 2013 jun jul aug sept oct nov dec
  • 126. Improvements yet to hit the pay packet 1 + 8.3% AUTOMOTIVE 2 3 4 + 5.1% SCIENCE & RESEARCH + 4.7% CALL CENTRE & CS + 4.2% SENIOR APPOINTMENTS 5 + 2.8% PROCUREMENT
  • 127. Improvements yet to hit the pay packet 1 - 16.0% TELCOMMUNICATIONS 2 3 4 - 12.1% BANKING - 10.9% FASHION - 10.2% PHARMA 5 - 9.2% AEROSPACE
  • 128. Some sectors out of balance 60 60 55 55 Hospitality & Catering 50 45 50 45 Retail 40 40 HR & Personnel 2013 APV 35 35 Banking 30 Accountancy 25 Financial Services Sales 20 15 FMCG Recruitment Manufacturing Fashion Marketing IT Social Care Education & Training Engineering Insurance 30 Building & Construction 20 15 Automotive 10 Pharma 10 Electronics Legal 5 25 5 Medical & Nursing 0 0 -5 -5 -10 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 2013 Vacancy Growth (%) 30 32 34 36 38 40 42 44 46 48 50
  • 130. Recruitment under review… Vacancy changes in the Recruitment sector Full year growth 4.2% Last 6 months growth 12.5%
  • 131. Recruitment under review… Application Rate Trends in the Recruitment sector
  • 132. Recruitment under review Salary movements in the Recruitment sector Last 12 months - 2.0%
  • 133. Download UK Recruitment Trends 2013
  • 134. Thank You! Dan Martin, Managing Director danm@broadbean.com +44 (0)20 7536 1661 Tweet @BroadbeanEMEA Follow Broadbean Technology on Linkedin Friend Broadbean Technology on Facebook
  • 135. Recruitment Leaders Connect The year ahead #RLCon Today’s WiFi Access Network: VENUE GUESTS, Password: EVENT

Editor's Notes

  1. Average productivity level continues to increaseAverage value of permanent sales per consultant is £83,955Below the pre-recession peak of £96,954Average number of placements are 21
  2. Factors taken into account: GDP; wage , vacancy levels, consumer, business and recruitment industry confidence, labour supply, regulatory landscape, and technological influence. Forecast provides an optimistic, pessimistic and realistic forecast.Realistic forecast is for a 7.3% growth in 2013/2014; 8.3% in 2014/2015 and 9.6% in 2015/16All three forecast predict that the industry will exceed the pre-recession peak in 2013/14
  3. I set up TJP to enable companies to access the best talent easily and remove some of the inefficiencies around the recruitment industry
  4. And finally we hold an annual services conference attended by the great and the good of the industry.Indeed It was at this conference that Sean first met Allegis , as well as a number of other potential suitors.
  5. It becomes so important when you realize that the mobile internet is becoming people’s preferred access point even in their own homes
  6. I am going to talk about 4 things:LinkedInChanging world of Recruitment- surveyWhat you can be doing for freeVery brief overview of our paid for solutions
  7. >2 New members per second as of 12/31/13 based on internal estimates187M Monthly unique visitors for Q4’13 according to comScore using LinkedIn + SlideSharehttp://press.linkedin.com/about
  8. Our mission statement
  9. Map all of these -
  10. Efficient vehicle to connect talent and opportunity. Job liquidity – massively important part of this graph
  11. the first value of the company is members first. Any time we want to do something new the first question we ask is, “How will this impact the individual member around the world?”- and if it’s not a positive way, then those ideas are cast aside.
  12. To engage the worlds best passive talent, you need to have a strategy in place that allows you to ‘segment’ ‘target’ and ‘position’Engaging the right professional with the right brand message requires identify the right person engage them with content that is compelling; and spur them to an action. This is what LinkedIn enables, better than anyone else. Your peers are telling us that social professional networks have already changed the way they find talent for their clients. In a recent survey that we conducted for the UK they named social professional networks the #1 long-lasting trend in recruitment and identified them as by far the #1 source of quality placements.
  13. .