Download - Capstone Headwaters
3January 2019www.capstoneheadwaters.com
Sources: Capital IQ , Pitchbook, FactSet, and CSHW Research
Capstone Headwaters
As technology continues to drive rapid transformation throughout a wide
spectrum of industries, operators are embracing new ways to work and
businesses are looking for ways to adapt their approach to talent. The evolution
of the employment environment requires the Human Resources (HR) & Staffing
industry to adapt as there is an increased need to deliver optimal solutions to
corporate clients and individuals seeking employment. Additionally, with the US
economy operating at or close to full employment, the HR & Staffing industry
has experienced accelerated demand for comprehensive solutions.
During 2018, Capstone Headwaters identified a corresponding uptick in merger
and acquisition (M&A) activity as operators pursued acquisitive growth
strategies to address operational needs. With 202 transactions announced or
closed, there was a continuance of strong M&A activity seen over the past
several years. Professional staffing companies (including IT, healthcare & life
sciences, engineering and finance) continue to see the most widespread
demand from buyers and investors. From a general standpoint, buyers have
desired companies with a strong blend of both recurring revenue growth and
profitability, with significant attention paid to customer diversification and the
gross margin impact of potential acquisitions. Additionally, proven management
teams desiring to stay on post-transaction remain highly sought after.
TABLE OF CONTENTS
M&A Overview
Employment Environment
Segment Highlight
Notable Transactions
Select Transactions
Public Company Data
Firm Track Record
HUMAN RESOURCES &
STAFFING SERVICES
Q1 2019MERGER & ACQUISITION OVERVIEW
133
182159 153
164
202
0
30
60
90
120
150
180
210
2013 2014 2015 2016 2017 2018
M&A Activity: HR & Staffing
Nu
mb
er
of
Tra
nsa
ctio
ns
CONTRIBUTORS
John Ferrara
Founder & CEO
617-619-3325
Todd McMahon
Managing Director
617-619-3334
Bob Balaban
Managing Director
303-792-9400
Chad Gardiner
Senior Vice President
720-465-8888
3.0%
3.5%
4.0%
4.5%
5.0%
According to the Bureau of Labor Statistics (BLS), the US
unemployment rate was 3.9% in December, a slight
increase from the 10-year low of 3.7% sustained from
September through November.1 High levels of the
workforce employment has resulted in a scarcity of talent.
This need has driven demand for staffing solutions.
Buyers look positively on this trend, as it enables
strategics to augment slower organic growth and private
equity buyers to invest in a stable industry. Additionally,
comprehensive HR solutions play a pivotal role in
recruiting and retaining employees. Operators that
equipped with a sophisticated suite of comprehensive HR
solutions are better suited to retain talent in an
increasingly competitive employment environment.
For the eighth consecutive month, the number of
unemployed civilians was less than the total number of
job openings in the US during November 2018, according
to the BLS. When the ratio of unemployed workers to job
openings dropped below one in April 2018, it was the first
time of such an occurrence since the Labor Department
began collecting data in 2000.2 Further, according to
Federal Reserve data, the amount of time it takes for the
median unemployed person to find their next job is nearly
10 weeks. One reason for the shortfall is that companies
are having trouble finding workers with the exact
qualifications needed. Moving forward, these
unemployment dynamics are expected to serve as a
catalyst for Staffing industry growth moving and the
corresponding M&A activity that will follow.
MERGER & ACQUSITION OVERVIEW (CONTINUED)
UNEMPLOYMENT IN DECEMBER: A
SLIGHT INCREASE FROM HISTORIC LOW3.9%
Human Resources & Staffing Services | Q1 2019
Source: US Bureau of Labor Statistics
WEEKS FOR MEDIAN DURATION OF
UNEMPLOYMENT DURING NOVEMBER9+
2
Un
em
plo
ym
en
t (%
)
4.0
5.0
6.0
7.0
8.0
9.0
Unemployed Job Openings
Nu
mb
er
in M
illio
ns
6.9 million
jobs
6.3 million
workers
EMPLOYMENT ENVIRONMENT
Strategic buyers accounted for 74.8% of deal activity.
Unlike years prior, this activity was largely driven by
lesser-known private companies, as opposed to public
operators who accounted for only 12 transactions in the
space. Strategic buyers have sought opportunistic
acquisitions that can provide new technologies, talent,
and enhancements to growth and profitability.
Meanwhile, private equity groups (PEGs) have also been
active in the space as target companies have, in some
instances, opted for a financial buyer to provide capital
for growth. From the PEG perspective, companies with
scale, excellent historical and projected growth rates, and
motivated management teams seeking to continue the
growth of their businesses are proving to be very
attractive investment platforms for many private equity
investors interested in the space.
5.9%
68.9%
9.9%
15.3%STRATEGIC
Public
Private
FINANCIAL
Direct
Add-on
Buyer Breakdown: HR & Staffing
Sources: Capital IQ , Pitchbook, FactSet, and CSHW Research
MARKET CONSOLIDATION
SEGMENT HIGHLIGHT: LEGAL STAFFING
The challenges that exist in today’s overall job market are
reflected by those that exist in the Legal industry. There is
a constant need for operators to improve processes, skills,
and cost structures, particularly amid an era of continuous
technological change and implementation. This,
compounded with the sophisticated and ever-evolving
nature of the Legal industry, has rendered an
environment of change and growth. In particular, the job
market for paralegals is experiencing significant growth
with the US Bureau of Labor Statistics estimating that
employment of paralegals and legal assistants will grow
15% from 2016 to 2026.
Staffing Industry Analysts (SIA) estimates that the top
eight firms in the industry each generated at least $25
million in revenue and together accounted for 50%
market share with approximately $500 million in revenue.
The three largest companies are Special Counsel, HCMC
Legal, Inc. (Hire Counsel and Mestel & Company), and
Beacon Hill Staffing Group.3
Human Resources & Staffing Services | Q1 2019
3
Date Target Acquirer Target Description
01/14/19 Omniver Driven Offers eDiscovery services.
12/28/18Kelly Legal
Managed
Trustpoint.
One
Provides employment solutions
for the legal community.
12/14/18Amstemps
Staffing
Hire
Dynamics
Provides professionals for legal
roles, among many others.
07/25/18Link Legal
SearchJurisolutions
Provides strategic executive
search solutions to law firms.
02/28/18JHill’s
Staffing
Marcum
Search
Provides executive recruiting
services for the legal industry.
01/29/18Update
LegalDriven
Provides legal recruiting and
placement services
Select Legal Staffing Transactions
Source: Capital IQ, Pitchbook and Capstone Headwaters Research
While the Legal Staffing sector has experienced relatively
less M&A activity in terms of volume than other areas of
the industry, the quality and importance of the deals has
been robust. In a recent wave of deal activity, the
segment has been reshaped by the acquisitions of
significant players in the space.
In late December 2018, Kelly Services (NasdaqGS: KELYA)
sold its legal staffing business unit to Trustpoint.One
(terms undisclosed). Branded as Kelly Legal Managed
Services, Kelly’s legal operations provides legal recruit and
staffing solutions to the legal community. Trustpoint.One
provides legal services including eDiscovery, managed
review, depositions and translations. This is
Trustpoint.One’s third recent acquisition; it acquired
Alderson Court Reporting and Confluent Translations
during the fourth quarter. With the Kelly acquisition, it
will now have about 150 legal staffing clients globally.
Already in 2019, the Legal segment has experience
significant activity with the acquisition of eDiscovery firm
Omnivere by Driven Inc., a legal eDiscovery and data
management solutions provider based in Falls Church,
Virginia (undisclosed). The newly-combined company
offers law firms and corporate counsel one provider for
software, services, consulting, and staffing across the
OVERVIEW
entire data lifecycle. This includes dynamic technology
and staffing solutions for information governance,
eDiscovery, managed services, and managed document
review. Commenting on the acquisition in the press
release, Driven CEO Ozzy Jimenez said, “The acquisition of
Omnivere further extends [Driven’s] geographical reach
and operational scale.”5 Last year, Driven acquired
Update Legal, the fourth-largest US legal staffing firm
As profitability becomes more
challenging to achieve, corporate
legal departments become
increasingly operationalized and
self-sufficient and competition
diversifies to incorporate alternate
service providers, there is mounting
pressure for law firms to keep pace.
When it comes to the business of
law, there are three keys to success:
innovation, strategic human capital
growth, and prioritization of talent
management.
“
”- Mary Rosenfeld D’Eramo, Vice President of Operations, Mestel
& Company, Legal Industry Snapshot Q3 2018 4
Paychex, Inc. acquires Oasis Outsourcing Holdings, Inc.
(Announced November 2018, $1.0 billion Enterprise Value, 6x NTM Revenue)
On December 20, 2018, Paychex closed its acquisition of Oasis for a purchase price of
approximately $1.0 billion, net of approximately $200.0 million in cash acquired. The acquisition
was financed through a combination of cash on hand of approximately $400.0 million and
temporary borrowings under existing credit facilities of approximately $800.0 million. The
Company is in the process of securing permanent financing for the acquisition.
It was noted in the In the Paychex 10Q: “[Paychex] anticipates that the acquisition of Oasis, will
have an incremental impact to total revenue in the range of $155 million to $175 million in fiscal
2019. Excluding one-time costs related to the acquisition.” 7
Founded in 1996 and headquartered in Florida, Oasis is the nation’s largest privately owned
professional employer organization (PEO) and an industry leader in providing human resources
outsourcing services. Serving more than 8,400 clients nationwide, it specializes in providing human
resources services, employee benefits administration, risk management services and staffing
solutions to small-and-medium-sized businesses.
“This acquisition reinforces Paychex's commitment to meet the HR technology and advisory needs
of [its] clients and their employees in ways that are transforming their experience, and accelerates
top-line growth,” commented Martin Mucci, President and CEO of Paychex in the press
release. “This acquisition will strengthen [Paychex’s] PEO growth strategy, gain scale for new
products with our insurance carrier partners, provide a new client base to offer Paychex retirement
and time and attendance products, and augment [its] experienced management team.” 8
Several notable transactions were announced or completed in the industry in 2018 and early 2019. Select transactions are
outlined below, followed by a more comprehensive list on the following pages.
Acquires
4
NOTABLE TRANSACTIONS
Kelly Services acquires Global Technology Associates and NextGen Resources
(Announced January 2019, undisclosed)
Kelly Services has acquired two companies: Global Technology Associates, LLC (GTA), a leading
provider of engineering, technology and business consulting solutions and services in the
telecommunication industry; and NextGen Global Resources, LLC (NextGen), a leading provider of
telecommunications, wireless and connected technology staffing solutions in the US. Both
companies provide services to the largest carriers and OEMs in the telecommunication industry,
and the acquisitions position Kelly as one of the largest engineering workforce solutions
companies in the fast-growing 5G technology space. Terms of the acquisitions were not disclosed.
The acquisitions expand Kelly’s presence in a niche engineering market, where there is tremendous
room for growth. It was noted in the press release that the telecommunication industry analysts
say $500 billion will be spent between now and 2025 preparing for the onset of 5G technology.
Both GTA and NextGen are positioned to capitalize on that growth.6
“Acquiring NextGen and GTA represent forward-looking investments in a relatively untapped
specialty market that’s primed for growth,” said George Corona, President and CEO of Kelly
Services. “Kelly is committed to being a specialty talent solutions and outcome-based services
provider, and both firms are deeply specialized, bringing together impressive pools of talented
engineers with strong technical, telecom and 5G expertise. Equally important, [Kelly’s] businesses’
core missions and values align: companies that put people at the heart of all we do, and we take
integrity and service excellence seriously.”
Acquires
Human Resources & Staffing Services | Q1 2019
&
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
01/08/18 Bolder StaffingIntermountain
Staffing
Offers recruitment services and recruits for temporary,
temp-to-hire, payroll service, and direct hire positions.- - -
01/07/18 Payroll MaxxEvolution Payroll
Processing
Offers payroll solutions such as payroll processing, HR,
tax solutions, and workforce management services.$10.7 - -
12/28/18Kelly Legal
Managed ServicesTrustpoint.One
Provides employment solutions for the legal
community.- - -
12/20/18 CieloPermira
Advisers
Provides recruitment process outsourcing, and talent
acquisition and management solutions.- - -
12/17/18 ZRG PartnersRFE Investment
Partners
Provides senior level executive search and human
capital management services.- - -
12/13/18Management
Decisions
Motion Recruitment
Partners
Provides IT staffing services and contingent workforce
solutions that supplement in-house resources.- - -
12/17/18 JDC GroupConsulting Solutions
InternationalProvides IT executive search and placement services. - - -
11/26/18Oasis
OutsourcingPaychex
Operates as a professional employer organization that
provides workforce solutions for businesses$1,000.0 6.0x* -
11/20/18 Surge ResourcesGPB Capital
Holdings
Offers human resources services, such as workforce
management programs.- - -
10/29/18 Jensen Partners BuybackOperates as executive recruiters for sourcing capital
raising talent in the alternative investment industry.- - -
10/10/18AddisoinEmerson
Staffing SolutionsCloudteam Provides cable/telecom infrastructure staffing services. - - -
09/19/18Remedy Employer
ServicesCoAdvantage
Provides human resources, payroll administration,
employee benefits, and risk management solutions.- - -
08/28/18 Key ResourcesStaffing 360
SolutionsProvides staffing services. $12.2 0.3x -
08/22/18 REPCRUIT PeopleKeysOffers an online recruitment platform to enable to
replicate top performers and automate hiring process. - - -
08/15/18Pro-Touch
NursesW3global
Provides permanent and temporary nursing and allied
health professionals. - - -
08/09/18 HCS HealthcareHealthCare
Support Staffing
Provider of healthcare recruiting and employee staffing
services.
08/08/18Zogg Insurance
PEOG&A Partners
Provides professional employer organization (PEO) and
administration services in Texas.- - -
08/01/18 CelergoAutomatic Data
ProcessingProvides payroll management services. - - -
08/01/18Five Star
StaffingHIRE Strategies
Provides recruitment services for personnel in the
administrative and accounting profession. - - -
07/25/18Link Legal
SearchJurisolutions
Provides strategic executive search solutions to law
firms and in-house legal departments. - - -
07/20/18 3CiManagement
Analysis & Utilization
Provides information technology (IT) staffing services
for various organizations. - - -
07/19/18 HighGround YouEarnedItProvider of an employee engagement and
performance platform. - - -
07/17/18 charitySTRONGGovernance
MattersOffers recruitment services for board members. - - -
5
SELECT TRANSACTIONS
*NTM Revenue multiple
Source: Capital IQ, Pitchbook, FactSet, and Capstone Headwaters Research
Human Resources & Staffing Services | Q1 2019
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
07/10/18 First Transitions Felix Global Provides career transition services in the US. - - -
07/10/18Accounts of
Platinum ColoradoG&A Partners
Comprises a PEO and human resource outsourcing
business. - - -
07/10/18 Synuity G&A Partners Provider of human resources outsourcing services. - - -
07/05/18Inkinen &
AssociatesHuliau Capital Provides executive search and consulting services. - - -
07/03/18 USA Payroll Asure Software Offers payroll products and services. $3.5 - -
07/02/18Employer
SolutionsINSURICA Operates as a professional employer organization. - - -
07/02/18Paramount
StaffingProman
Provider of recruitment services intended to serve
different staffing needs of clients.- - -
06/29/18 Rake FuseMachinesProvider of a talent acquisition and candidate
engagement platform.- - -
06/21/18Shape
AnalyticsReflektive
Provider of a real-time intelligence and predictive
analytics platform for employee data. - - -
06/21/18 GlassdoorRecruit
Holdings
Provider of an online job searching platform designed
to help people find jobs and companies they love.$1,200.0 7.0x
06/18/18Aequor
Healthcare
DW Healthcare
Partners
Personnel provider, specializes in staffing physicians,
therapists, nurses, technologist, and allied healthcare.CF CF CF
06/11/18 Aasonn RizingDeploys enterprise HR and talent management cloud-
based solutions.- - -
06/07/18 1st Solution USA Optomi Provides IT recruitment services to healthcare sector. - - -
04/09/18PDA & Leaders
For Today
AMN Healthcare
Services
Provide executive search and interim management
staffing to healthcare delivery organizations.$37.0 1.6x -
03/29/18 Asperia AscensusDesigns, administers, and consults third-party
administration services and retirement benefits plans. - - -
03/27/18 Avintus AscensusProvides payroll processing, retirement plan
administrative services, and HR outsourcing solutions. - - -
03/21/18 Anthology Randrr Developer of an anonymous job searching and
recruiting platform. - - -
03/21/18Smart Rhino
LabsRandall-Reilly Offers recruiting services in the trucking industry. - - -
03/07/18 Tempus Webster CapitalOperates as a healthcare staffing company that offers
temporary staffing services to hospitals. - - -
03/06/18The Frontier
Group of Georgia
Career
Management
Provides individual career transition solutions,
redeployment solutions, and executive coaching.- - -
02/28/18JHill's Staffing
ServicesMarcum Search Provides executive recruiting services for legal industry. - - -
02/22/18Cobb Pediatric
Speech ServiceStepping Stones
Provides job placement services for occupational
therapists, physical therapist, and school psychologists. - - -
02/20/18 Vettery AdeccoCreates an online hiring marketplace that helps people
to find jobs. ~$100.0 - -
Note: highlighted deals are Capstone Headwaters transactions; CF=confidential
Source: Capital IQ, Pitchbook, FactSet, and Capstone Headwaters Research
SELECT TRANSACTIONS (CONTINUED)
6
Human Resources & Staffing Services | Q1 2019
Price % 52 Wk Market Enterprise LTM EV / EBITDA
Company 02/08/19 High Cap Value Revenue EBITDA Margin LTM NTM
Heidrick & Struggles International $32.34 71.4% $613.1 $448.9 $700.1 $74.7 10.7% 6.0x 5.3x
Korn Ferry $45.83 66.4% $2,597.4 $2,437.7 $1,883.7 $265.6 14.1% 9.2x 7.7x
Mean 12.4% 7.6x 6.5x
Median 12.4% 7.6x 6.5x
Harmonic Mean 12.2% 7.3x 6.3x
PUBLIC COMPANY TRADING & OPERATING DATA: PROFESSIONAL & COMMERICAL
Source: Capital IQ as of February 8, 2019 7
Price % 52 Wk Market Enterprise LTM EV / EBITDA
Company 02/08/19 High Cap Value Revenue EBITDA Margin LTM NTM
Adecco Group AG $50.60 66.0% $8,390.7 $9,803.6 $27,648.4 $1,264.1 4.6% 7.8x 7.5x
ASNG Inc $62.86 66.7% $3,298.7 $4,412.0 $3,149.2 $345.2 11.0% 12.8x 10.0x
Kelly Services, Inc. $22.92 70.9% $887.7 $875.0 $5,521.5 $113.5 2.1% 7.7x 6.8x
Kforce Inc. $35.49 81.6% $878.0 $951.1 $1,418.4 $88.9 6.3% 10.7x 9.6x
ManpowerGroup Inc. $80.28 64.5% $4,963.8 $5,520.9 $21,991.2 $882.5 4.0% 6.3x 6.3x
Randstad Holding NV $49.68 73.5% $9,097.0 $10,718.0 $27,522.7 $1,090.9 4.0% 9.8x 8.0x
Resources Connection, Inc. $16.67 85.5% $528.9 $546.0 $723.6 $63.0 8.7% 8.7x 9.1x
Robert Half International Inc. $63.06 78.9% $7,527.7 $7,166.7 $5,800.3 $653.5 11.3% 11.0x 10.2x
TrueBlue, Inc. $24.71 82.8% $971.2 $1,004.2 $2,499.2 $115.0 4.6% 8.7x 8.1x
Mean 6.3% 9.3x 8.4x
Median 5.6% 8.7x 8.1x
Harmonic Mean 4.8% 8.9x 8.2x
EV = enterprise value; LTM = last twelve months
$ in millions, except per share data
NM = Not Meaningful
Human Resources & Staffing Services | Q1 2019
Price % 52 Wk Market Enterprise LTM EV / EBITDA
Company 02/08/19 High Cap Value Revenue EBITDA Margin LTM NTM
AMN Healthcare Services, Inc. $63.00 92.4% $2,952.7 $3,404.5 $2,116.5 $254.9 12.0% 13.4x 12.2x
Cross Country Healthcare, Inc. $9.83 71.6% $356.3 $419.5 $835.3 $34.0 4.1% 12.3x 11.4x
Mean 8.1% 12.8x 11.8x
Median 8.1% 12.8x 11.8x
Harmonic Mean 6.1% 12.8x 11.8x
PUBLIC COMPANY TRADING & OPERATING DATA: HEALTHCARE
PUBLIC COMPANY TRADING & OPERATING DATA: EXECUTIVE & RETAINED SEARCH
FIRM TRACK RECORD
8
has been acquired by has been acquired by has been acquired by
has been acquired byhas been acquired by
camdenvale
has been acquired by
has been acquired by has been acquired by
has been acquired byhas been acquired by
has been acquired by
CERTIFIED IT &
ITRICITY
FREEDOM DATA
has acquired
CERTIFIED I.T.
ITRICITY FREEDOM DATA
has acquired
ARIES GROUP INC.
valuation and
financial advisoryhas been acquired by
NORTHERN
HEALTHCARE CAPITAL
debt financing
has recapitalized with has recapitalized withhas recapitalized with
A PRIVATE
INVESTMENT GROUP
ONLINE PLATFORM
PROVIDING PERMANENT
PLACEMENT TO FINANCIAL
SERVICES
CONFIDENTIAL
corporate sale
(IN PROCESS)
SUPPLEMENTAL
STAFFING SERVICES
CONFIDENTIAL
corporate sale
(IN PROCESS)
has been acquired byhave been acquired by
Human Resources & Staffing Services | Q1 2019
PROVIDER OF OIL AND
GAS STAFFING SERVICES
CONFIDENTIAL
buy-side engagement
(IN PROCESS)has been acquired by has recapitalized with
1. US Bureau of Labor Statistics, “Job Openings and Labor Turnover Survey,” https://www.bls.gov/web/jolts/jlt_
labstatgraphs.pdf, accessed January 17, 2018.
2. US Bureau of Labor Statistics, “The Unemployment Situation,” https://www.bls.gov/news.release/pdf/empsit.pdf, accessed
January 17, 2018.
3. Crain Communications Inc., “Largest Legal Staffing Firm in the United States; 2018 Update,”
https://www2.staffingindustry.com/Research/Research-Reports/Americas/Largest-Legal-Staffing-Firms-in-the-United-
States-2018-Update, accessed January 17, 2018.
4. Mestel & Company, “Legal Industry Snapshot Q3 2018,” http://www.mestel.com/legal-industry-snapshot-q3-2018/,
accessed January 17, 2018.
5. Driven, Inc., “Driven, Inc. Acquires Omnivere,” http://www.driven-inc.com/driven-inc-acquires-omnivere/, January 17,
2018.
6. Kelly Services, “Kelly Services® Expands Engineering Footprint with the Acquisitions of Global Technology Associates, LLC
and NextGen Global Resources, LLC,” https://globenewswire.com/news-release/2019/01/08/1681915/0/en/Kelly-
Services-Expands-Engineering-Footprint-with-the-Acquisitions-of-Global-Technology-Associates-LLC-and-NextGen-
Global-Resources-LLC.html, accessed January 17, 2019.
7. Paychex, Inc., “Form 10-Q,” https://otp.investis.com/clients/us/paychex_inc/SEC/sec-outline.aspx?FilingId=13122524&Cik
=0000723531&PaperOnly=0&HasOriginal=1, February 12, 2019.
8. Paychex, Inc., “Paychex to Acquire Oasis Outsourcing,” https://www.paychex.com/newsroom/news-releases/paychex-to-
acquire-oasis-outsourcing, accessed January 16, 2018.
9
CITATIONS
Disclosure: This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisi-
tion activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any reference to or omission of
any reference to any company in this report should not be construed as a recommendation to buy, sell or take any other action with respect to any security of
any such company. We are not soliciting any action with respect to any security or company based on this report. The report is published solely for the
general information of clients and friends of Capstone Headwaters. It does not take into account the particular investment objectives, financial situation or
needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all
investors. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied
upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary
mate- rially. We are under no obligation to update the information contained in this report. Opinions expressed are our present opinions only and are
subject to change without notice. Additional information is available upon request. The companies mentioned in this report may be clients of Capstone
Headwaters. The decisions to include any company in this report is unrelated in all respects to any service that Capstone Headwaters may provide to such
company. This report may not be copied or reproduced in any form, or redistributed without the prior written consent of Capstone Headwaters. The
information contained herein should not be construed as legal advice.
Human Resources & Staffing Services | Q1 2019
HUMAN RESOURCES & STAFFING SERVICES REPORT CONTRIBUTORS
10
Human Resources & Staffing Services | Q1 2019
Todd McMahon
Managing Director
[email protected] | 617-619-3334
Todd McMahon possesses over 20 years of transaction, financial services and corporate executive
experience. Prior to Capstone Headwaters, Todd was President of Array Financial Services, a Boston
based boutique M&A advisory firm he founded in 2002. He began his career at Putnam Investments,
later moving to Bank Boston’s investment banking group. Later, Todd served as Managing Director at
Ross Crossland Weston/RCW Mirus, where he was responsible for managing the firm’s technology
investment banking practice. Todd’s investment banking experience is complemented by his
involvement as an entrepreneur and investor where he was involved in various consolidation
transactions, raised over $30mm of debt and equity financing and was responsible for managing all
aspects of operations. He earned his MBA from Boston University and his BA from the University of
Massachusetts.
John Ferrara
Founder & CEO
[email protected] | 617-619-3325
John Ferrara is the Founder and CEO of Capstone Headwaters and is responsible for the firm’s
investment and merchant banking operations, as well as managing client transactions. John has executed
well over 150 transactions and related engagements and his entrepreneurial endeavors have included
serving as a founding member of seven financial service practices and a principal shareholder in five
startup businesses. Under his leadership, Capstone has expanded to 19 offices in the US, UK, and Brazil
with an international platform that spans more than 300 professionals in 33 countries worldwide.
Prior to 2002, when he acquired the practice he initially founded from Arthur Andersen to form
Capstone, John served as a Regional Managing Partner with Andersen Corporate Finance LLC. While
with Andersen, John held various national and global leadership positions. He started his career in
Lehman Brothers' M&A group in New York, London and Riyadh, later becoming a founding member of
Rodman & Renshaw's M&A practice in New York. After a break to compete in Australia's semi-
professional baseball league, John joined The Deloitte Consulting Group in Los Angeles to focus on
turnaround and interim management engagements.
MIDDLE MARKET INVESTMENT BANK OF THE YEAR
2017
US - DEBT FINANCING ADVISORY OF THE YEAR
2018
US MIDDLE MARKETS INVESTMENT BANK OF THE YEAR
2018
INVESTMENT BANKING FIRM OF THE YEAR
2019
TURNAROUND AWARDS
HUMAN RESOURCES & STAFFING SERVICES REPORT CONTRIBUTORS
11
Human Resources & Staffing Services | Q1 2019
Bob Balaban
Managing Director
[email protected] | 303-792-9400
Bob Balaban joined Capstone Headwaters in 2011 and brings over 25 years of investment banking and
operating experience. Bob has served as the lead banker on over 75 merger and acquisition transactions
primarily in the business services marketplace. He has also been involved with over a dozen startup
companies, including Great Plains Accounting Software, Inc., a software company that was ultimately
acquired by Microsoft Corp. as well as InaCom Corp., a distribution company that he helped grow to
several billion dollars in annual revenue before it was acquired by Hewlett Packard. He has appeared in
numerous national business publications, including the Wall Street Journal and Fortune Magazine and on
national television as an expert in mergers and acquisitions.
Chad Gardiner
Senior Vice President
[email protected] | 720-465-8888
Chad joined in 2012 and brings over 14 years of experience in investment banking and capital markets.
Mr. Gardiner was previously a Vice President at New Century Capital Partners where he focused on
raising capital and advising on mergers and acquisitions. Mr. Gardiner has raised private and public
capital and provided mergers and acquisitions advice for both public and private businesses. Mr.
Gardiner has advised on numerous sell-side and buy-side merger transactions, including: the $1.6 billion
sale of Digital Insight to Intuit, Ad.Venture Partners' acquisition of 180 Connect for $158 million, and
Providea Solutions' recapitalization by WestView Capital Partners.
Prior to New Century Capital Partners, Mr. Gardiner was an associate at Yucaipa Companies, a private
equity firm in Los Angeles, where he was responsible for managing the due diligence processes for
targeted investments. Mr. Gardiner assisted in making the first acquisition for the Yucaipa Global Fund, a
billion dollar fund, and prepared an investment presentation for President Clinton and the Dubai
Investment Group. Mr. Gardiner previously worked at Deutsche Bank and Merrill Lynch, where he
completed private placements and mergers and acquisitions.
MIDDLE MARKET INVESTMENT BANK OF THE YEAR
2017
US - DEBT FINANCING ADVISORY OF THE YEAR
2018
US MIDDLE MARKETS INVESTMENT BANK OF THE YEAR
2018
INVESTMENT BANKING FIRM OF THE YEAR
2019
TURNAROUND AWARDS
12
www.capstoneheadwaters.com
Capstone Headwaters is an elite investment banking firm dedicated to serving the corporate finance needs of middle market
business owners, investors and creditors. Capstone Headwaters provides merger & acquisition, private placement, corporate
restructuring and financial advisory services across 16 industry verticals to meet the life cycle needs of emerging enterprises.
Headquartered in Boston, MA and Denver, CO, Capstone Headwaters has 19 offices in the US, UK and Brazil with a global
reach that includes over 300 professionals in 33 countries.
BUILT FOR THE MIDDLE MARKET
INTERNATIONAL
300+ professionals
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UNITED STATES
160+ professionals
17 offices
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