hcm december newsletter vf

8/10/2019 HCM December Newsletter VF

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HUMAN CAPITAL MONTHLY UPDAT

DECEMBER 2014

JON STEELEManaging DirectorCo-Head, Technology Services

[email protected]

CHIP KELSOSenior Vice PresidentHuman Capital [email protected]

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

SECTOR SPOTLIGHT

Software/Internet

Outsourcing Services

Transaction/Data Processors

Staffing/Recruiting Services


2/12


3/12


5.0x

2.1x

6.1x

0.4x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

Software /

Internet

Outsourcing

Services

Transaction

/ Data

Processing

Staffing and

Recruiting

Services

85

90

95

100

105

110

115

120

125

11-13 12-13 1-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14

3

HUMAN CAPITAL MARKET UPDATE

TEV / 2014E Revenue

1-Year Histor ical Composi te Stock Performance (%) as of 11/30/2014

TEV / 2014E EBITDA P/E 2014E

8.4%6.1%

18.0%

14.5%

3.9%

Nasdaq 18.0%

S&P 500 14.5%

HCM Outsourcing Services 8.4%

HCM Transaction / Data Processors 3.9%

HCM Software / Internet 6.1%

Staffing / Recruiting Services -5.3%

Indexed to 100 as of 11/30/2013

Operating / Trading Statist ics

16.1x

11.2x

15.6x

9.6x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

Software /Internet

OutsourcingServices

Transaction /Data

Processing

Staffing /RecruitingServices

32.4x

25.2x26.7x

15.8x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

Software /Internet

OutsourcingServices

Transaction /Data

Processing

Staffing /RecruitingServices

-5.3%

Software / Internet Outsourcing Services Transaction / Data

Processing

Staffing and Recruiting

Services

2014E Revenue Growth 16.0% 4.3% 2.0% 0.8%

2015E Revenue Growth 13.2% 4.3% 8.2% 6.2%

2014E EBITDA Margin 24.8% 19.8% 36.5% 4.6%

2015E EBITDA Margin 26.2% 19.0% 38.1% 5.6%

% 52 Week High 91.3% 96.7% 98.4% 83.3%

Debt / 2014E EBITDA 0.8x 1.5x 1.6x 0.8x

Software / Internet Outsourcing Services

Transaction / Data

Processing

Staffing and Recruiting

ServicesTop 3 Performers, by Stock Performance

Last Month Paycom Software, Inc. 64.9% Aon plc 11.3% ADP 8.5% Randstad Holding 12.0

Paylocity Holding Corporation 20.8% ADP 8.5% Edenred SA 5.5% Cros s Country Healthcare, Inc. 11.0

51job Inc. 19.9% TriNet Group, Inc. 8.3% Equi fax Inc. 5.3% Hays plc 10.1

Last 3 Months Pa ycom Softwa re, Inc. 60.4% TriNet Group, Inc. 18.1% Wa geWorks, Inc. 41.6% Cros s Country Hea lthcare, Inc. 33.7

Cal l idus Software Inc. 39.1% Paychex, Inc. 13.8% Paychex, Inc. 13.8% Kforce Inc. 16.3

Concur Technologies, Inc. 28.3% Insperi ty, Inc. 10.6% CEB 11.1% CDI Corp. 13.2

Last 12 Months Dice Holdings, Inc. 49.3% Aon plc 13.3% Equi fax Inc. 18.1% Staffl ine Group plc 39.8

Cal l idus Software Inc. 46.2% Paychex, Inc. 8.4% Paychex, Inc. 8.4% Cros s Country Healthcare, Inc. 39.7

Concur Technologies , Inc. 32.7% ADP 7.0% ADP 7.0% Synergie SA 25.9


4/12


90

95

100

105

110

115

120

125

12-13 1-14 2-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

2010 2011 2012 2013 2014

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

2010 2011 2012 2013 2014

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2010 2011 2012 2013 2014

Sequential Year-over-Year

4

HCM SOFTWARE / INTERNET

Histor ical TEV / LTM EBITDA Multiples

Historical TEV / LTM Revenue Multiples

1-Year Historical Stock Performance

Quarterly Revenue Growth

HCM Software /

Internet

S&P 500

NASDAQ


HCM Software / Internet 6.1%

S&P 500 14.5%

NASDAQ 18.0%

5-Year

Median = 4.2x

5-Year

Median = 13.2x

5-Year

Median = 23.9x

HCM Software / In ternet Composite: AIM: BDI, ASUR, ASX: SEK,CALD, CNQR, CSOD, DHX, EBIX, EHTH, HSTM, INTU, JOBS, KLSE: JOBST, LNKD, LSE: SGE, MWW, NZSE: XRO, ORCL,

SABA, SAP, ULTI and XTRA: O1BC.

Historical LTM P/E Mult iples


5/12


Date Transaction

Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA

11/25/2014 PP Benchmark, T. Rowe Price, Stripes Group Elance-oDesk 30.0$ NA NA

11/20/2014 PP Impulse International, Sunstone Tyba Solutions 3.1 NA NA

11/18/2014 M&A 1-Page Limited BranchOut, Inc. 5.4 NA NA

11/6/2014 M&A Xero Monchilla 7.1 NA NA

11/4/2014 PP Randstad Holdings NV Qandidate.com NA NA NA

11/4/2014 PP Matrix Partners, True Ventures, Lerer Ventures, Bullpen Namely 12.0 NA NA10/27/2014 PP Oak HC/FT Partners Limeade, Inc. 25.0 NA NA

10/21/2014 M&A Bertelsmann SE & Co. Relias Learning, LLC NA NA NA

10/16/2014 DEBT Monster Worldwide, Inc. N/A 125.0 NA NA

10/16/2014 M&A Hg Capital Allocate Software 167.1 2.3 x 14.4

10/14/2014 PP Accel Partners, Khosla Ventures, SVAngel, Google Ventures Checkr 9.0 NA NA

10/13/2014 PP erecruit eStaff365 NA NA NA

10/10/2014 PP Undisclosed SpareHire, Inc. 0.8 NA NA

10/9/2014 PP Undisclosed 10 Minutes With 4.0 NA NA

10/7/2014 PP Catalyst Investors Jobvite, Inc. 25.0 NA NA

10/2/2014 PP Matrix Partners Lever, Inc. 10.0 NA NA

9/30/2014 PP Barracuda Networks, Inc. Expensify, Inc. 3.5 NA NA

9/22/2014 M&A Sage PayChoice 157.8 NA NA

9/24/2014 PP Accel-KKR F.W. Davidson & Company, Inc. NA NA NA

9/24/2014 PP Drive Capital, Valor Capital, Recruit Holdings Udacity 35.0 NA NA

9/22/2014 PP Randstad Innovation Fund RolePoint, Inc. NA NA NA

9/18/2014 M&A SAP America Concur Technologies 8,468.0 11.5 NM

9/18/2014 PP BoxGroup, Lerer Hippeau Ventures, Red Sea Ventures Campus Job 1.0 NA NA

TEV /

SOFTWARE / INTERNET: DETAILED VALUATION MULTIPLES AND METRICS

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

Type Key: M&A Merger & Acquisition, PP Private Placement, SHLF Shelf Registration, IPO Initial Public Offering, EQTY Follow-on Equity Offering, DEBT Debt Offering, CVT Convertible Debt

5

SOFTWARE / INTERNET: OTHER RECENT NEWS AND EVENTS

Date Company News

11/04 Monster Worldwide Inc.(NYSE: MWW)

Monster Worldwide announced today Salvatore Iannuzzi has resigned as president and CEO, effectiveimmediately. Iannuzzi stepped down for personal reasons, according to the company. He will continue toserve as a director and non-executive chairman of the board. Timothy Yates, a director of Monster andformerly its executive VP and CFO, has been appointed CEO. Additionally, Mark Stoever, who previouslyserved as executive vice president of corporate development and internet advertising, was appointed chieoperating officer, a new position on Monsters management team.

Total

Price % of 52 Market Enterprise 2014E 2015E 2014E 2015E 2014E P/

Company 11/30/2014 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2014E EPS 2015E EPS Growth Ra

Oracle Corporation 42.41$ 98.2 % 187,931.6$ 169,462.6$ 4.4 x 4.2 x 9.0 x 8.3 x 14.6 x 13.4 x 1

SAP SE 70.39 89.8 84,081.0 85,387.2 3.9 3.7 11.3 10.4 16.4 15.3 1

LinkedIn Corporation 226.27 94.6 28,097.5 25,839.0 11.8 8.8 45.0 31.8 NM NM 2

Intuit Inc. 93.87 98.4 26,802.2 25,712.2 5.6 5.7 15.9 17.7 28.5 34.3 2Workday, Inc. 87.05 74.7 16,191.3 15,376.2 19.6 13.6 NM NM NM NM N

Sage Group plc 6.37 92.6 6,855.2 7,564.4 3.6 3.4 12.1 11.4 17.7 16.2 2

SEEK Limited 14.57 93.7 4,982.8 5,591.7 8.1 7.1 19.3 15.9 28.4 24.6 1

The Ultimate Software Group, Inc. 147.24 85.6 4,177.3 4,076.5 8.1 6.6 34.3 26.7 72.9 59.8 2

Cornerstone OnDemand, Inc. 31.77 51.4 1,701.4 1,917.8 7.3 5.6 NM NM NM NM N

51job Inc. 36.75 85.5 2,169.8 1,630.1 5.3 4.7 16.4 13.9 22.4 19.6 1

Xero Limited. 13.32 96.5 1,693.3 1,560.2 17.7 10.2 NM NM NM NM N

Paycom Software, Inc. 28.75 97.7 1,469.5 1,478.2 10.0 7.8 58.7 43.2 NM NM 3

Paylocity Holding Corporation 29.09 93.8 1,445.0 1,372.2 10.9 8.6 NM NM NM NM 0

Castlight Health, Inc. 12.43 29.6 1,122.3 940.2 21.3 11.6 NM NM NM NM

Callidus Software Inc. 15.97 92.3 776.6 748.4 5.6 4.6 52.9 37.7 NM NM 2

Healthstream Inc. 28.65 82.7 791.7 675.3 3.9 3.4 23.8 19.9 72.4 66.4 4

Benefitfocus, Inc. 27.09 35.2 692.3 673.4 5.0 3.9 NM NM NM NM N

Dice Holdings, Inc. 10.87 94.6 577.7 663.8 2.5 2.4 7.8 7.5 21.0 18.3 1

Ebix Inc. 16.21 90.3 594.6 611.0 3.0 NA 6.9 NM 10.2 NM 1

XING AG 116.27 87.4 648.8 568.4 4.6 4.1 16.1 12.5 36.2 27.3 0

Monster Worldwide, Inc. 4.35 51.2 385.9 562.3 0.7 0.7 5.7 5.3 15.9 13.8 1

eHealth, Inc. 25.87 40.9 460.9 402.9 2.2 1.9 25.1 21.5 74.9 56.5 4

Saba Software, Inc. 13.75 94.8 409.6 395.4 2.9 NA NM NM NM NM N

Halogen Software Inc. 7.71 61.8 168.8 115.1 2.0 1.7 NM NM NM NM N

Bond International Software plc 1.45 60.5 61.9 71.1 1.1 1.0 5.7 5.2 16.7 13.5 N

Asure Software, Inc. 5.23 76.4 31.6 46.7 1.7 1.5 8.5 7.5 40.2 21.8 0

Mean 6.7 x 5.3 x 20.8 x 17.4 x 32.6 x 28.6 x 1

Median 4.8 4.4 16.0 13.9 22.4 20.7 1

Market Price

TEV TEV


6/12


90

95

100

105

110

115

120

125

12-13 1-14 2-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

2010 2011 2012 2013 2014

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

2010 2011 2012 2013 2014

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

2010 2011 2012 2013 2014(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

2010 2011 2012 2013 2014


6

OUTSOURCING SERVICES

HCM Outsourcing

Services

S&P 500

NASDAQ

HCM Outsourcing Services 8.4%

S&P 500 14.5%

NASDAQ 18.0%


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

5-Year

Median = 9.8x

5-Year

Median = 1.3x

5-Year

Median = 20.2x

Histor ical TEV / LTM EBITDA Multiples Historical LTM P/E Multiples





7/12


Total

Price % of 52 Market Enterprise 2014E 2015E 2014E 2015E 2014E P/

Company 11/30/2014 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2014E EPS 2015E EPS Growth Ra

Automatic Data Processing, Inc. 85.64$ 99.3 % 41,317.0$ 40,785.4$ 3.5 x 3.6 x 17.3 x 16.9 x 28.6 x 27.7 x 2

Aon plc 92.49 99.8 27,825.6 32,927.6 2.7 2.6 12.6 12.1 16.3 15.1 1

Paychex, Inc. 47.41 98.4 17,333.1 16,773.8 6.4 5.9 15.0 13.9 26.7 24.5 2

Towers Watson & Co. 112.96 85.8 8,002.4 7,696.4 2.1 2.1 10.9 10.1 19.6 18.3 1TriNet Group, Inc. 31.66 96.6 1,443.3 1,895.6 0.9 0.8 10.9 9.5 28.1 22.6 1

Morneau Shepell Inc. 14.77 96.8 732.8 1,009.1 2.1 2.0 11.5 10.7 23.7 18.9

CBIZ, Inc. 8.65 91.5 437.6 641.2 0.9 0.8 6.7 6.1 15.1 13.7 1

Insperity, Inc. 32.65 90.0 809.0 583.5 0.2 0.2 8.1 7.2 29.8 25.0 1

Mean 2.4 x 2.2 x 11.6 x 10.8 x 23.5 x 20.7 x 1

Median 2.1 2.0 11.2 10.4 25.2 20.8 1

Market Price

TEV TEV

OUTSOURCING SERVICES: DETAILED VALUATION MULTIPLES AND METRICS

OUTSOURCING SERVICES: SELECTED M&A AND CAPITAL MARKETS ACTIVITY


OUTSOURCING SERVICES: OTHER RECENT NEWS AND EVENTS

Date Company News

11/19 Cielo Talent Management(private)

Cielo, the worlds leading provider of global talent acquisition and management solutions, was recognizedas the winner of the Europe Talent Acquisition Program of the Year award for its partnership with AnheuserBusch InBev during the annual HRO Today Services and Technology Association Awards. The winningpartnership between Cielo and AB InBev was chosen for the creation and implementation of imaginativeyet delivery-focused initiatives. The partnership has enabled AB InBev through cost savings, reduced time-to-hire, a consistent high quality of recruiting, and compelling employer brand.

7

Date Transaction


11/21/2014 M&A Xerox Intrepid Learning Solutions NA NA NA

11/20/2014 M&A Stone Point Capital Oasis Outsourcing (Nautic, Altaris) NA NA NA

11/10/2014 M&A Rhone Capital Global Knowledge (MidOcean Partners) NA NA NA

11/6/2014 M&A Mercer AUSREM NA NA NA

9/16/2014 M&A Steven Step RPO Blue Glue Limited NA NA NA

7/22/2014 M&A Arthur J. Gallagher & Co. Baker Ti lly's Employee Benefits Solutions NA NA NA

6/3/2014 M&A CBIZ Retirment Plan Services Tegrit Retirement Plan Services NA NA NA

6/2/2014 M&A TrueBlue, Inc. SeatonCorp 310.0$ 0.5 7.8

5/21/2014 M&A Carlyle Group Talent Partners NA NA NA

5/21/2014 M&A Pharos Capital Group, LLC Employee Benefit Solutions, Inc. NA NA NA

5/20/2014 PP Education Growth Partners Human Capital Institute NA NA NA

4/29/2014 M&A WilsonHCG CPH NA NA NA

4/28/2014 M&A Radius (New Company) Merger of High Street Partners and Nair & Co. NA NA NA

4/8/2014 M&A Baird Capital Workforce Insight NA NA NA

4/3/2014 M&A Hawaii Human Resources HRBenefix NA NA NA

4/3/2014 M&A Hawaii Human Resources Kiria Payroll Services NA NA NA

3/27/2014 IPO N/A Trinet Group 240.0 NA NA

3/20/2014 M&A DISA Global Solutions RS Occupational Health NA NA NA

3/14/2014 PP AMN Healthcare PipelineRx 7.0 NA NA

3/4/2014 PP CIP Capital OnCourse Learning NA NA NA

3/3/2014 M&A Morneau Shepell Inc. Groupe AST 32.0 NA NA

2/26/2014 M&A CoAdvantage Corporation Discovery Outsourcing NA NA NA2/26/2014 M&A CoAdvantage Corporation Compensation Solutions NA NA NA

2/13/2014 PP Accel-KKR LLC RiseSmart 11.0 NA NA

2/3/2014 M&A Seaton HRX NA NA NA

2/3/2014 M&A CBIZ Lewis Birch & Ricardo NA NA NA

1/29/2014 M&A ThinkHR HR That Works NA NA NA

1/23/2014 M&A Verisight Daily Access NA NA NA

1/9/2014 PP Lemhi Ventures, Timucuan AM PlanSource 12.0 NA NA

1/9/2014 M&A PetroSkills (BV Investment Partners) Resource Development Company NA NA NA

1/9/2014 M&A Acacia Partners Questco Companies NA NA NA

1/7/2014 M&A CBIZ Clearview National Partners NA NA NA

12/20/2013 M&A SimplyBiz Staffcare NA NA NA

12/19/2013 M&A Montagu Private Equity Corporate Employee Financial Services (div. of UBS AG) NA NA NA

12/10/2013 M&A Aon plc Stratford 360 NA NA NA

12/4/2013 PP undisclosed PE Bolt HR NA NA NA

11/21/2013 PP Access Venture, Point B, Dundee Venture RoundPegg 2.8 NA NA

11/7/2013 M&A Arthur J. Gallagher Employee Benefits Analysis Corporation NA NA NA

TEV /


8/12


90

95

100

105

110

115

120

125

12-13 1-14 2-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

2010 2011 2012 2013 2014

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2010 2011 2012 2013 2014

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

2010 2011 2012 2013 2014(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

2010 2011 2012 2013 2014


8

TRANSACTION / DATA PROCESSORS

HCM Transaction/

Data Processors

S&P 500

NASDAQ

HCM Transaction / Data Processors 3.9%

S&P 500 14.5%

NASDAQ 18.0%


5-Year

Median = 3.9x

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

5-Year

Median = 12.3x

5-Year

Median = 22.1x






9/12


Date Transaction


11/13/2014 M&A Accurate Background, LLC Hirease, Inc. NA NA NA

11/5/2014 M&A Phoenix Strategy Investments PI Worldwide NA NA NA

10/20/2014 M&A Institutional Shareholder Services Incentive Lab, LLC NA NA NA

10/17/2014 M&A BTS Group AB Fenestra, Inc. 2.5$ NA NA

9/23/2014 M&A Webster Financial Corp. HSA Business of JPMorgan Chase Bank NA NA NA8/4/2014 PP Undisclosed Investors FlexWage Solutions 3.5 NA NA

8/1/2014 M&A WageWorks, Inc. CONEXIS Benefits Administrators 118.0 NA NA

6/5/2014 M&A Lyceum Business Services BenePay NA NA NA

6/4/2014 PP Stonehenge Growth Capital, others SmartPay Solutions 1.4 NA NA

5/30/2014 PP Mosaik Partners TFG Card Solutions 1.8 NA NA

5/6/2014 M&A WageWorks, Inc. Crosby Benefit Systems, Inc. 4.1 NA NA

4/25/2014 M&A IRIS Software Group Cascade Human Resources NA NA NA

4/15/2014 M&A Hay Group Talent Q NA NA NA

4/9/2014 M&A Bond International Software Eurowage 14.0 2.2 x 4.8

4/3/2014 M&A John Wiley & Sons Profiles International 51.0 NA NA

3/3/2014 M&A Corporate Executive Board Co. KnowledgeAdvisors 52.0 NA NA

3/3/2014 M&A Corporate Resource Services Nationwide Screening Services NA NA NA

2/11/2014 M&A Corporate Executive Board Co. Talent Neuron 15.0 NA NA

1/16/2014 M&A Equifax TDX Group 326.8 3.7 NA

10/30/2013 M&A First Advantage Corporation Verifications, Inc. NA NA NA

10/22/2013 M&A WellTok Inc IncentOne NA NA NA10/11/2013 PP Flexpoint Ford JetPay Corp 10.0 NA NA

10/7/2013 M&A Sterling InfoSystems (Calera Capital) HR Plus NA NA NA

9/30/2013 M&A Project Management Institute Human Systems International NA NA NA

9/11/2013 M&A LexisNexis Risk Solutions Enclarity NA NA NA

8/30/2013 M&A Benu, Inc. SyncHR NA NA NA

8/28/2013 PP Corporate Executive Board Co. 9lenses, LLC 4.0 NA NA

8/14/2013 EQTY N/A WageWorks, Inc. 120.1 NA NA

7/8/2013 M&A Equifax Inc. TrustedID NA NA NA

6/4/2013 M&A ADP Payrol l S.A. NA NA NA

4/9/2013 PP Boathouse Capital Accurate Background 5.0 NA NA

3/1/2013 EQTY N/A WageWorks, Inc. 135.0 NA NA

2/26/2013 M&A LI Advantage Payroll Services Associated Payroll Consultants NA NA NA

2/4/2013 M&A Spire Capital Partners Performance Assessment Network NA NA NA

1/17/2013 M&A Ares Capital, Veronis Suhler Stevenson Cast & Crew Entertainment Services NA NA NA

1/17/2013 M&A First Advantage LexisNexis Risk Solutions, Employment Screening Business NA NA NA

1/7/2013 M&A Heartland Payment Systems Ovation Payroll NA NA NA

11/20/2012 M&A Ascensus ExpertPlan NA NA NA

TEV /

Date Company News

11/04 WANTED Technologies(TSX-V: WAN)

WANTED Technologies announced that its board of directors has adopted a shareholder rights plan toencourage fair treatment of shareholders, should a takeover bid be made for WANTED. The plan wilprovide the Board and the shareholders more time to consider an unsolicited takeover bid. The plan hasnot been adopted in response to, or in confrontation of, any specific proposal to acquire control ofWANTED. The rights issued under the plan will become exercisable only when a party acquires oannounces its intention to acquire 20% or more of the outstanding shares without approval of the Board.

TRANSACTION / DATA PROCESSORS: DETAILED VALUATION MULTIPLES AND METRICS

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


9

TRANSACTION / DATA PROCESSORS: OTHER RECENT NEWS AND EVENTS

Total

Price % of 52 Market Enterprise 2014E 2015E 2014E 2015E 2014E P/E

Company 11/30/2014 Week High Cap ($MM) V alue ($MM) Revenue Revenue EBITDA EBITDA 2014E EPS 2015E EPS Growth Rate

Automatic Data Processing, Inc. 85.64$ 99.3 % 41,317.0$ 40,785.4$ 3.5 x 3.6 x 17.3 x 16.9 x 28.6 x 27.7 x 2.6

Paychex, Inc. 47.41 9 8.4 17,333.1 16,773.8 6.4 5.9 15.0 13.9 26.7 24.5 2.6

Verisk Analytics, Inc. 61.98 9 1.8 10,554.7 11,395.2 6.6 5.8 14.2 12.7 25.9 22.9 2.0

Equifax Inc. 79.55 99.4 9,876.1 11,351.5 4.7 4.4 13.4 12.3 20.5 18.6 1.7

Edenred SA 28.84 87.4 6,564.0 7,547.0 5.9 5.4 16.1 14.2 27.4 23.4 2.2Corporate Executive Board Co. 73.21 90.4 2,497.8 2,918.9 3.2 2.9 13.3 11.7 21.7 19.7 1.5

WageWorks, Inc. 58.42 85.5 2,115.7 1,808.5 6.8 5.5 25.5 20.8 61.7 51.2 3.4

HealthEquity, Inc. 24.83 98.2 1,424.9 1,454.9 17.2 13.1 62.5 41.6 NM NM 2.4

Mean 6.8 x 5.8 x 22.2 x 18.0 x 30.4 x 26.9 x 2.3

Median 6.1 5.4 15.6 14.1 26.7 23.4 2.3

Market Price

TEV TEV


10/12


85

90

95

100

105

110

115

120

125

12-13 1-14 2-14 3-14 4-14 5-14 6-14 7-14 8-14 9-14 10-14 11-14

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

2010 2011 2012 2013 2014

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

2010 2011 2012 2013 2014

0.0x

0.1x

0.2x

0.3x

0.4x

0.5x

0.6x

2010 2011 2012 2013 2014(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

2010 2011 2012 2013 2014


10

STAFFING / RECRUITING SERVICES

Staffing / Recruiting

Services

S&P 500

NASDAQ

Staffing / Recruiting Services -5.3%

S&P 500 14.5%NASDAQ 18.0%


5-Year

Median = 10.3x

5-Year

Median = 22.2x

HCM Staffing / Recruiting Services Composite: AHS, AIM: IPEL, AIM: MTEC, AIM: STAF, ASGN, CCRN, CDI, CTGX, ENXTAM: BRNL, ENXTAM: RAND, ENXTAM: USG, ENXTPA: CEN,

ENXTPA: SDG, HSII, HSON, ISE: DQ5, KELY.A, KFRC, KFY, LSE: HAS, LSE: HVN, LSE: MPI, LSE: RWA, LSE: STHR, MAN, OM: PROE B, RECN, RHI, SWX: ADEN, TBI, TSE: 2168 and TSE: 2181.





5-Year

Median = 0.4x


11/12


Date Transaction


11/18/2014 M&A GSE Systems, Inc. Hyperspring LLC 3.0$ 0.2 x 4.2

11/14/2014 EQTY N/A Adecco 311.8 NA NA

11/7/2014 M&A ZeroChaos Incepture (Florida Blue) NA NA NA

11/5/2014 M&A Allen Austin Gaines International NA NA NA

10/30/2014 M&A Investcorp PRO Unlimited NA NA NA

10/29/2014 M&A Compunnel Software Group, Inc. Challenge Training and Consulting, Inc. NA NA NA

10/24/2014 M&A The Woodmansee Group Franklin-Belle NA NA NA

10/20/2014 M&A Team Health Holdings PhysAssist Scribes, Inc. NA NA NA

10/15/2014 M&A CTPartners Executive Search Inc. Neumann Leadership Holding NA NA NA

10/9/2014 M&A eTERA Consulting Discovery Services LLC NA NA NA

9/10/2014 M&A General Employment Enterprises Inc. Pivot Companies NA NA NA

9/2/2014 M&A Addison Group CVPartners NA NA NA

8/19/2014 M&A The Caldwell Partners Hawksmoor Search NA NA NA

8/7/2014 M&A Mitchell Martin HLP Solutions NA NA NA

TEV /

STAFFING / RECRUITING SERVICES: DETAILED VALUATION MULTIPLES AND METRICS

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


11

STAFFING / RECRUITING SERVICES: OTHER RECENT NEWS AND EVENTS

Date Company News

11/13 ZeroChaos

(private)

ZeroChaos, an Orlando-based workforce solutions company backed by private equity firm Snow Phipps, isexploring a sale, according to industry sources. Snow Phipps acquired the company in December 2010 formore than $200 million, according to press reports. ZeroChaos posted revenues of about $1.1 billion in thefirst half of 2013, a 100% increase over the same period in 2012, according to the company. The financialsponsor may be hoping to sell the ZeroChaos for around $600 million, according to one industry source.

Total

Price % of 52 Market Enterprise 2014E 2015E 2014E 2015E 2014E P/E

Company 11/30/2014 Week High Cap ($MM) V alue ($MM) Revenue Revenue EBITDA EBITDA 2014E EPS 2015E EPS Growth Rate

North A merican Staffing / Recruiting Services

Robert Half International Inc. 56.79$ 97.4 % 7,727.7$ 7,438.1$ 1.6 x 1.5 x 13.7 x 11.9 x 25.4 x 21.9 x 1.3

ManpowerGroup Inc. 66.86 76.7 5,427.4 5,250.6 0 .3 0.3 6.5 6.3 12.7 12.1 1.0

On Assignment Inc. 30.73 77.1 1,685.9 2,059.7 1.1 1.0 10.4 9.5 14.9 13.6 1.1

TrueBlue, Inc. 22.95 73.3 939.4 1,085.7 0 .5 0.4 9.3 7.4 16.1 15.0 1.6

Korn/Ferry International 27.15 82.8 1,341.6 1,085.4 1 .1 1.0 7.3 6.6 15.4 14.2 1.4

AMN Healthcare Services Inc. 17.12 95.2 820.5 957.1 0.9 0.9 11.4 10.1 24.9 20.9 2.0

Kforce Inc. 23.34 96.7 762.0 774.4 0.6 0.6 11.2 9.6 21.3 17.2 0.3

Kelly Services, Inc. 15.44 59.0 579.4 616.5 0.1 0.1 10.8 5.9 36.8 11.4 0.0

Resources Connection Inc. 15.17 94.9 590.6 490.4 0 .8 0.8 9.1 8.2 25.7 20.6 0.9

Cross Country Healthcare, Inc. 10.67 92.5 332.3 390.3 0.6 0.5 22.8 11.8 NM 33.8 5.1

CDI Corp. 17.18 89.5 339.6 299.4 0.3 0.3 7.7 7.2 20.7 18.7 NA

Heidrick & Struggles International Inc. 20.02 83.8 367.9 239.1 0.5 0.5 4.8 4.8 39.2 28.4 2.9

Computer Task Group Inc. 9.32 48.5 153.2 124.9 0.3 0.3 5.4 5.7 12.5 12.0 1.3

Hudson Global, Inc 2.81 64.8 91.8 81.7 0.1 0.1 NM NM NM NM 0.0

Mean 0.6 x 0.6 x 10.0 x 8.1 x 22.1 x 18.5 x 1.5

Median 0.6 0.5 9.3 7.4 21.0 17.2 1.3

International Staffing / Recruiting Services

Adecco S.A. 70.24$ 100.0 % 12,479.4$ 13,934.6$ 0.6 x 0.5 x 10.5 x 9.2 x 15.1 x 13.1 x 1.0

Randstad Holding 49.35 79.6 8,905.3 9,739.2 0.5 0.4 10.1 8.8 15.8 13.3 0.9

Hays plc 2.08 84.3 2,978.8 3,086.2 0.5 0.5 10.9 9.7 18.9 15.9 0.9

Temp Holdings Co., Ltd. 29.60 91.5 2,309.9 2,274.5 0.7 0.6 11.4 8.7 20.1 17.5 NA

Michael Page International plc 6.45 80.6 2,014.4 1,941.0 1.2 1.1 12.7 10.1 24.7 18.7 1.0USG People NV 10.98 62.3 883.4 1,124.7 0 .4 0.4 9.0 7.0 18.4 10.5 0.0

Brunel International NV 19.04 58.6 933.7 813.1 0 .5 0.5 8.0 7.3 14.7 13.3 0.0

SThree Plc. 4.87 70.4 661.2 678.1 0.6 0.5 11.8 9.3 20.1 15.3 0.0

Groupe CRIT SA 47.38 70.6 525.6 604.4 0.3 0.3 4.9 4.5 8.4 7.3 0.0

Synergie SA 23.98 88.5 575.8 591.1 0.3 0.3 5.6 5.1 9.2 8.3 0.0

Impellam Group PLC 7.51 90.6 330.5 373.0 0.2 NA 5.6 NA 7.2 NA NA

Staffl ine Group plc 12.80 80.4 292.0 337.1 0.4 0.4 10.2 8.2 14.1 11.9 NA

Robert Walters plc 4.36 76.7 352.6 327.4 0.3 0.3 11.6 9.7 24.7 19.9 NA

Matchtech Group Plc 8.84 86.9 230.4 235.7 0 .3 NA 9.8 NA 14.5 13.1 NA

CPL Resources plc 8.11 82.5 247.7 205.9 0.4 0.4 10.1 9.6 15.0 13.1 NA

Pasona Group Inc. 4.56 66.1 170.4 194.5 0.1 0.1 4.1 3.8 35.8 27.7 NA

Proffice AB 2.43 64.0 165.7 175.0 0.3 0.3 8.7 7.0 11.7 9.5 NA

Harvey Nash Group plc 1.20 61.7 88.5 95.8 0.1 NA 5.2 NA 8.6 NA NA

Mean 0.4 x 0.4 x 8.9 x 7.9 x 16.5 x 14.3 x 0.4

Median 0.4 0.4 9.9 8.7 15.0 13.2 0.0

Market Price

TEV TEV


12/12


EQUITY CAPITAL MARKETS

Over 500 Equity Capital Markets professionals

Over 240 investment bankers in the U.S.

Over 100 institutional sales and sales traders inthe U.S. and Europe:

Bulge-bracket distribution capability

Approximately 25% institutional equitycommissions from Europe

Over 6,200 financial advisors; offices in all50 states

Greenwich Associates ranked #2 in overall qualityof analyst service

12

IT Supply Chain Services: Quarterly Update

RAYMOND JAMES

Full-service financial services firm with investmentbanking, equity research, institutional sales andtrading, and asset management operations

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

$4.9 billion in FY 2014 revenue; equity marketcapitalization of $7.9 billion

Stable and well-capitalized platform; nogovernment/TARP financing

Industry-focused, knowledge-driven approach,backed by highly-ranked equity research team

21 domestic and international investment bankingand institutional sales offices

International operations in Brussels, Buenos Aires,Dsseldorf, Geneva, London, Paris, Sao Paulo,Toronto and Vancouver

Acquisition of Morgan Keegan consolidated andstrengthened Raymond James leadership in themiddle market

TECHNOLOGY SERVICES INVESTMENT

BANKING GROUP

Eight senior-level investment bankers with over 105years of combined experience; located in Atlantaand Boston

Services: Mergers & Acquisitions (sell-side & buy-side advisory); Public Equity and Debt Offerings;Private Placements of Equity and Debt;Divestitures; Board Advisory Services;Recapitalizations and Restructurings

134 completed transactions since February 2002:

91 M&A advisory and private placementservices transactions representing a total valueof over $9.5 billion

43 public equity and debt offerings raising over$8.0 billion in proceeds

NOTES & DISCLOSURES

Sources of data include Capital IQ, FactSet and other newsorganizations. Information obtained from third-partysources is considered reliable, but we do not guaranteethat the information herein is accurate or complete. This

report was prepared within Raymond James & AssociatesInvestment Banking Department and is for informationpurposes only. This report is not a product of RaymondJames & Associates Research Department; recipients ofthis report should not interpret the information herein assufficient grounds for an investment decision or any otherdecision.

The report shall not constitute an offer to sell or thesolicitation of an offer to buy any of the securitiesmentioned herein; past performance does not guaranteefuture results. Any performance mentioned does noinclude transaction fees and costs which would reduce aninvestors return. An investment cannot be made directly ina market index.

EBIT: Earnings BeforeInterest and Taxes

EBITDA: Earnings BeforeInterest, Taxes,Depreciationand Amortization

EPS: Earnings per Share

LTM: Last Twelve Months

NA: Not Applicable

NM: Not Meaningful

PE: Price Earnings Ratio

TEV: Total EnterpriseValue

hcm december newsletter vf

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