Sectorwatch:Contract Staffing ServicesApril 2019

2

Contract Staffing ServicesApril 2019

Sector Dashboard [4]

Public Basket Performance [5]

Operational Metrics [7]

Valuation Comparison [10]

Recent Deals [13]

Appendix [14]

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

3

Overview

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.

Dashboard• Summary metrics on the sector• Commentary on market momentum by

comparing the most recent 12-month performance against the last 3-year averages.

Public Basket Performance• Summary valuation and operating metrics

for a basket of comparable public companies

Valuation Comparison• Graphical, detailed comparison of valuation

multiples for the public basket

Recent Deals• The most recently announced deals in the

sector

4

Dashboard

Operating Metrics

Valuation

Revenue Growth Momentum

0.2% 1 - year revenue growth compared to revenue growth

average for last 3 years

Pricing / Gross Margin

-0.7% 1 - year gross profit % compared to gross profit %

average for last 3 years

Profitability Momentum

0.5% 1 - year EBITDA % compared to EBITDA % average for

last 3 years

Current revenue growth rate exceeds the average of the last 3 years by this

amount, indicating that market momentum is increasing

Current gross profit margin is less than the average of the last 3 years gross

profit margins, indicating customer pricing power

Current EBITDA margin exceeds the average of the last 3 years EBITDA margin

by this amount, a condition that may attract new entrants

4.5%

6.2%

29.5%

0% 10% 20% 30% 40%

Median LTM Rev. Growth %

Median LTM EBITDA Margin %

Median LTM GP Margin %

0.7x

10.8x

11.8x

17.2x

0x 5x 10x 15x 20x

Median TEV / LTM Revenue

Median TEV / LTM EBITDA

Median TEV / LTM EBIT

Median Price / LTM Earnings

5

Public Basket

Company TEV $mLTM Rev

$m

Rev Growth

YoY GP %EBITDA

%TEV / Rev X

TEV / EBITDA

X # FTEsRev / FTE $k

Kforce Inc. 956 1,418 4% 29% 6% 0.7 10.8 2,400 591

ASGN Incorporated 4,433 3,400 29% 30% 11% 1.3 11.9 4,300 791

ManpowerGroup Inc. 5,570 21,991 5% 16% 4% 0.3 6.1 30,000 733

Robert Half International Inc. 7,472 5,800 10% 42% 11% 1.3 11.4 18,900 307

Adecco Group AG 10,066 27,327 1% 19% 5% 0.4 7.8 34,000 804

Average 5,699 11,987 10% 27% 7% 0.8 9.6 17,920 645

Median 5,570 5,800 5% 29% 6% 0.7 10.8 18,900 733

share price as of 02Apr19

6

Public Basket Valuation Trends

Public EBITDA Multiples over Time

Public Revenue Multiples over Time

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

Jan-1

9

Apr-

19

TEV/Revenue - Median TEV/Revenue - Average

0x

5x

10x

15x

20x

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

Jan-1

9

Apr-

19

TEV/EBITDA - Median TEV/EBITDA - Average

10.6x

0.6x

0x

3x

6x

9x

12x

15x

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

Jan-1

9

Apr-

19

TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

7

Operational Metrics

LTM Gross Profit Margin % LTM EBITDA %

- 4% 8% 12% 16% 20%

Median

ManpowerGroup Inc.

Adecco Group AG

Kforce Inc.

ASGN Incorporated

Robert Half International

Inc.

- 20% 40% 60%

Median

ManpowerGroup Inc.

Adecco Group AG

Kforce Inc.

ASGN Incorporated

Robert Half International

Inc.

8

Operational Metrics

LTM Revenue Growth %LTM Revenue per

Full Time Employee x 000’s

- 10% 20% 30%

Median

Adecco Group AG

Kforce Inc.

ManpowerGroup Inc.

Robert Half International

Inc.

ASGN Incorporated

$- $300 $600 $900

Median

Robert Half International

Inc.

Kforce Inc.

ManpowerGroup Inc.

ASGN Incorporated

Adecco Group AG

9

Operational Metrics

Accounts Receivable TurnoverAverage Days

Sales Outstanding

0x 2x 4x 6x 8x 10x

Median

ManpowerGroup Inc.

Adecco Group AG

Kforce Inc.

ASGN Incorporated

Robert Half International

Inc.

0 20 40 60 80 100 120

Median

Robert Half International

Inc.

ASGN Incorporated

Kforce Inc.

Adecco Group AG

ManpowerGroup Inc.

10

Valuation

TEV / LTM Revenue TEV / LTM EBITDA

0.0x 0.5x 1.0x 1.5x 2.0x

Median

ManpowerGroup

Inc.

Adecco Group AG

Kforce Inc.

Robert Half

International Inc.

ASGN Incorporated

0x 4x 8x 12x 16x 20x

Median

ManpowerGroup

Inc.

Adecco Group AG

Kforce Inc.

Robert Half

International Inc.

ASGN Incorporated

11

Valuation

TEV / LTM EBIT Price / LTM Earnings

0x 4x 8x 12x 16x 20x

Median

ManpowerGroup

Inc.

Adecco Group AG

Kforce Inc.

Robert Half

International Inc.

ASGN Incorporated

0x 10x 20x 30x

Median

ManpowerGroup Inc.

Kforce Inc.

Adecco Group AG

Robert Half International

Inc.

ASGN Incorporated

12

Valuation

Historical Valuation Multiples versus Gross Profit

Historical Valuation Multiples versus Revenue Growth Rate

6x 8x 11x 11x 12x

16.3%

18.6%

29.5%

41.6%

30.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0x

2x

4x

6x

8x

10x

12x

14x

LTM

GP%

EBIT

DA(x

)

EBITDA(x) LTM GP%

6x 8x 11x 11x 12x

4.5%

0.9%

4.4%

10.1%

29.5%

0%

5%

10%

15%

20%

25%

30%

35%

0x

2x

4x

6x

8x

10x

12x

14x

LTM

RG

R%

EBIT

DA(x

)

EBITDA(x) LTM RGR%

13

Recent Transactions

Date Target Buyer

Total Transaction

Value Target

Revenue TEV /

Revenue TEV /

EBITDA

25Jan19 Keystone Consultants, LLC Contract Land Staff, LLC - - - -

17Jan19 eTERA Consulting, LLC HAYSTACKID LLC - - - -

8Oct18 Global Heat Transfer Ltd. Forum Energy Technologies, Inc. 52.00 - - -

5Jun18 PDS Tech, Inc. AKKA Technologies SE - 260.00 - -

30Apr18 Motion Recruitment Partners, LLC - - - - -

3Nov17 ADvTECH Limited Old Mutual Investment Group (Pty) Limited - 274.61 - -

31Aug17 Reach Group - - - - -

19Jul17 Staffing Options and Solutions, Inc. The Stepping Stones Group, LLC - - - -

12Jun17 Virtual Resource Management Corporation

Industrial Staffing Services, Inc. - - - -

13Jun17 ADvTECH Limited Old Mutual Investment Group (Pty) Limited - 276.58 - -

15May17 Brightwork Limited Staffline Group plc - 45.20 - -

4Apr17 entero LLC Bucher & Christian Consulting, Inc. - 13.00 - -

1Mar17 ADvTECH Limited Public Investment Corporation Limited - 257.19 - -

16Jan17 True North Service, Inc. LogiGear Corporation - - - -

1Jan17 Incepture Inc. HM Health Solutions, Inc. - - - -

25Nov16 JcbNext Berhad - 0.06 1.77 4.8x 3.1x

1Nov16 TeamSoft, Inc. Peoplelink, LLC - - - -

20Sep16 System One Holdings, LLC Thomas H. Lee Partners, L.P. - - - -

14Sep16 ADvTECH Limited Old Mutual plc, Investment Arm - 214.91 - -

3Jun16 Hancock Staffing Command Center, Inc. 1.39 - - -

28Apr16 ADvTECH Limited - - 202.52 - -

29Mar16 PVR Technologies, Inc ALTEN Calsoft Labs, Inc. - - - -

19Jan16 PeopleSourcer, Inc. Cohesion Corporation - - - -

14

APPENDIX:

Public Basket

Constituents

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Contract Staffing ServicesApril 2019

15

Public Basket

Kforce Inc.

Kforce Inc. provides professional staffing services and solutionsin the United States and internationally. It operates throughTechnology (Tech), Finance and Accounting (FA), andGovernment Solutions (GS) segments. The Tech segmentprovides temporary staffing and permanent placement servicesto its clients primarily in the areas of information technology,such as systems/applications architecture and development,project management, enterprise data management, businessintelligence, artificial intelligence, machine learning, networkarchitecture, and security. This segment serves clients in variousindustries comprising financial services, communications,insurance services, and government sectors. The FA segmentoffers temporary staffing and permanent placement services toits clients in areas, such as general accounting, businessanalysis, accounts payable, accounts receivable, financialanalysis and reporting, taxation, budget preparation andanalysis, mortgage and loan processing, cost analysis,professional administration, outsourced functional support,credit and collections, audit services, and systems and controlsanalysis and documentation. Kforce Inc. was founded in 1962and is headquartered in Tampa, Florida.

Date Key Development Headline3/31/19 ManTech International Corporation (NasdaqGS:MANT)

completed the acquisition of Kforce Government Holdings, Inc. from Kforce Inc. (NasdaqGS:KFRC).

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

Revenue Multiples - Kforce Inc.

TEV/Revenue Average

0x

5x

10x

15x

20x

EBITDA Multiples - Kforce Inc.

TEV/EBITDA Average

0x

15x

30x

45x

60x

P/E Multiples - Kforce Inc.

P/E Average

16

Public Basket

ASGN Incorporated

ASGN Incorporated provides IT and professional services in thetechnology, digital, creative, healthcare technology,engineering, life sciences, and government sectors in the UnitedStates, Europe, and Canada. The company’s Apex segmentoffers technical, digital, and creative and scientific professionalsfor contract, contract-to-hire, and permanent placementpositions to Fortune 1000 and mid-market clients; IT staffingand consulting services comprising IT infrastructure, applicationdevelopment, project management, and healthcare ITprofessionals; and creative, marketing, advertising, and digitalprofessionals. It also provides scientific, engineering, and clinicalresearch staffing and services for temporary and permanentassignments, such as chemists, clinical research associates,clinical lab assistants, engineers, biologists, biochemists,microbiologists, molecular biologists, biostatisticians, drugsafety specialists, SAS programmers, medical writers, foodscientists, regulatory affairs specialists, lab assistants, and otherskilled professionals. The company was founded in 1985 and isheadquartered in Calabasas, California.

Date Key Development Headline4/1/18 On Assignment, Inc. (NYSE:ASGN) completed the acquisition of

ECS Federal, Inc. from Roy Kapani, Lindsay Goldberg LLC and management.

0.0x

0.5x

1.0x

1.5x

2.0x

Revenue Multiples - ASGN Incorporated

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - ASGN Incorporated

TEV/EBITDA Average

0x

10x

20x

30x

40x

P/E Multiples - ASGN Incorporated

P/E Average

17

Public Basket

ManpowerGroup Inc.

ManpowerGroup Inc. provides workforce solutions and servicesin the Americas, Southern Europe, Northern Europe, and theAsia Pacific Middle East region. The company’s recruitmentservice portfolio includes permanent, temporary, and contractrecruitment of professionals, as well as administrative andindustrial positions. It also offers various assessment services;training and development services; career management; andoutsourcing services related to human resources functionsprimarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company providesworkforce consulting services; contingent staffing andpermanent recruitment services; professional resourcing andproject-based solutions in information technology, engineering,and finance fields; solutions in the areas of organizationalefficiency, individual development, and career mobility; andrecruitment process outsourcing, TAPFIN managed, and talentbased outsourcing services, as well as Proservia services in theareas of digital services market and IT infrastructure sector. Itoperates through a network of approximately 2,700 offices in80 countries and territories. The company was founded in 1948and is based in Milwaukee, Wisconsin.

0.0x

0.1x

0.2x

0.3x

0.4x

0.5xRevenue Multiples - ManpowerGroup Inc.

TEV/Revenue Average

0x

3x

6x

9x

12x

15xEBITDA Multiples - ManpowerGroup Inc.

TEV/EBITDA Average

0x

10x

20x

30x

P/E Multiples - ManpowerGroup Inc.

P/E Average

18

Public Basket

Robert Half International Inc.

Robert Half International Inc. provides staffing and riskconsulting services in North America, South America, Europe,Asia, and Australia. The company operates through threesegments: Temporary and Consultant Staffing, PermanentPlacement Staffing, and Risk Consulting and Internal AuditServices. It places temporary personnel for accounting, finance,and bookkeeping; temporary and full-time office andadministrative personnel consisting of executive andadministrative assistants, receptionists, and customer servicerepresentatives; full-time accounting, financial, tax, andaccounting operations personnel; and information technologycontract consultants and full-time employees in the areas ofplatform systems integration to end-user technical and desktopsupport, including specialists in application development,networking, systems integration and deployment, databasedesign and administration, and security and business continuity.The company also offers temporary and full-time employees inattorney, paralegal, legal administrative, and legal secretarialpositions; and senior level project professionals in theaccounting and finance fields for financial systems conversions,expansion into new markets, business process reengineering,business systems performance improvement, and post-mergerfinancial consolidation. The company was founded in 1948 andis headquartered in Menlo Park, California.

0x

1x

2x

3xRevenue Multiples - Robert Half International

Inc.

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Robert Half International

Inc.

TEV/EBITDA Average

0x

10x

20x

30x

40xP/E Multiples - Robert Half International Inc.

P/E Average

19

Public Basket

Adecco Group AG

Adecco Group AG, together with its subsidiaries, providesworkforce solutions to businesses and organizations worldwide.The company provides temporary staffing, permanentplacement, and outsourcing services for clerical and supportpersonnel in the areas of office-based employment; andcandidates for blue collar job profiles across various industrialand service sectors under the Adecco brand names, as well asrecruitment on demand and online staffing platform forhospitality and events under Adia brand name. In addition, thecompany provides managed service provision and recruitmentprocess outsourcing solutions under the brand name ofPontoon; career transition under the Lee Hecht Harrison brandname; and talent development services, such as leadershipcoaching, career development programs, assessment andfeedback tools, and change management support under theLee Hecht Harrison brand name. Adecco Group AG wasfounded in 1957 and is headquartered in Zurich, Switzerland.

Date Key Development Headline1/23/19 Group Fimmus BVBA acquired Adecco Home Services Nv from

Adecco Group AG (SWX:ADEN).

11/13/18 Managers of SARL PMS Médicalisation acquired SARL PMS Médicalisation from Adecco Group AG (SWX:ADEN) in a management buyout transaction.

4/15/18 Adecco Group AG (SWX:ADEN) signed a definitive agreement to acquire General Assembly Space, Inc. for an enterprise value of approximately $410 million.

0.0x

0.2x

0.4x

0.6x

0.8x

1.0xRevenue Multiples - Adecco Group AG

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Adecco Group AG

TEV/EBITDA Average

0x

10x

20x

30xP/E Multiples - Adecco Group AG

P/E Average

20

CONTACT INFO7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&Aand private capital transactions and provide market assessments and benchmarking. As a close-knit team with a long history togetherand a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluatenew markets. Securities offered through 7M Securities LLC.

Leroy Davis, Partner 704.899.5962 leroy@7mileadvisors.com

Tripp Davis, Partner 704.899.5762 tripp@7mileadvisors.com

Andy Johnston, Partner 704.899.5961 andy@7mileadvisors.com

Ben Lunka, Managing Director 704.496.2995 ben@7mileadvisors.com

Jeff Stoecklein, Managing Director 312.796.9330 jeff@7mileadvisors.com

Mark Landry, Managing Director 561.972.0609 mark@7mileadvisors.com

Kristina Sergueeva, Director 704.899.5149 kristina@7mileadvisors.com

Neil Churman, Director 281.742.9340 neil@7mileadvisors.com

John Cooper, Director 704.973.3996 john@7mileadvisors.com

Tim Frye, Director 704.973.3994 tim@7mileadvisors.com

Nicholas Prendergast, Financial Analyst 704.973.3995 nicholas@7mileadvisors.com

Ariail Siggins, Marketing Director 704.981.2908 ariail@7mileadvisors.com

Sydney Larese, Associate 704.973.3998 sydney@7mileadvisors.com

Marty Johnson, Associate 704.973.3999 marty@7mileadvisors.com

Rory Julyan, Associate 704.981.2520 rory@7mileadvisors.com

Garth Martin, Associate 704.973.3997 garth.martin@7mileadvisors.com

Dennis Fox, Associate 704.706.9168 dennis@7mileadvisors.com

Steve Buffington, Associate 704.960.1828 steve@7mileadvisors.com

Emily Halstenberg 704.409.9912 emily@7mileadvisors.com