CTPartners Executive Search (NYSEMKT:CTP), an executive search firm, priced its IPO on 7th December, 2010 at $13 per share.
Business Overview (from prospectus)
We are a leading global retained executive search firm. We believe that with 21 global offices, over 300 search professionals and staff, and a significant revenue base, we are able to compete effectively with other global retained executive search firms. We help our clients build stronger leadership teams by facilitating the recruitment and hiring of senior executives, officers and board members. Our retained executive search services focus on successfully making placements for our clients in a timely manner. We provide these services through 15 offices in the Americas, Europe and Asia Pacific, as well as through a licensing arrangement with six associated offices in Latin America (we refer to such offices as “our associated offices in Latin America”). In 2009, we were engaged to perform 962 searches, including 667 performed directly by us and 295 performed by our associated offices in Latin America, and we generated net revenue of $73.9 million and operating income of $5.7 million. Included in our 2009 net revenue is $250,650 in license fees from our associated offices in Latin America.
Offering: 2.3 million shares at $13 per share. Net proceeds of approximately $12.5 million will be used to cash out performance units granted to executive-search consultants and for debt repayment.
Lead Underwriters: William Blair, C.L. King & Associates
Revenue increased $35.4 million, to $86.0 million in the first nine months of 2010 from $50.6 million in the first nine months of 2009...Compensation and employee benefits expense increased $28.5 million to $62.4 million in the first nine months of 2010 from $33.9 million in the first nine months of 2009...Operating income increased $3.9 million to $7.0 million in the first nine months of 2010 from $3.2 million in the first nine months of 2009...Net income increased $3.4 million to $6.7 million in the first nine months of 2010 from $2.3 million in the first nine months of 2009...
The executive search industry is highly competitive and fragmented. Our most direct competition comes from the larger executive search firms that compete on a global scale, including Egon Zehnder International, Heidrick & Struggles International (NASDAQ:HSII), Korn/Ferry International (NYSE:KFY), Russell Reynolds Associates, Inc. and Spencer Stuart. We primarily compete with these competitors based upon our relationships with the key decision-makers, as well as our reputation for offering a unique value proposition to our clients. In large part, the genesis of our differentiation is an intense focus on making timely, successful placements that match the needs of our clients. To ensure that we are meeting our clients as well as our expectations, we carefully track our placement rate, average days to placement and stick rate. Furthermore, our size and culture enable us to quickly adapt to current market conditions and demands.