Antal Ventures

Investing In:• Multi-Brand• Multi-Sector• Acquisitions• Joint Ventures• Start Up's• MBO's

Investing In:

A world of Opportunity...

RECRUITMENT INTERNATIONALFebruary 2010Ri

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With the recruitment industry in the UK beginning to climb out of a long and painful recession the next phase of the economic cycle will ensure that many recruitment consultancies will be seriously considering their strategy for the next 3-5 years. This will inevitably include organic expansion, new disciplines, more consultants, some will open more locations.

However, others will decide that the time is right to take a quantum leap and that is exactly what the Board of Antal is looking for.

Whilst many believe that there will be growth in the UK, the more astute recruiters have already recognised that the domestic recruitment market is highly saturated and margins continue to fall. So where do the really big opportunities exist?

“International” is the unequivocal belief of the Antal Board, and who can argue? The company has a proven track record of overseas excellence, its Russian business was sold to the FiveTen Group in March 2008 for a significant cash amount, making it the largest CEE recruitment transaction in recent years and it has been this experience that has positioned Antal to be able to offer an exciting acquisition and joint venture proposition for the industries budding entrepreneurs.

History

Mention Antal in recruitment circles and very often the biggest misconception that surfaces is the

belief that the company is purely a franchise play, nothing could be further from the truth. Certainly there is a highly successful and phenomenally fast growing franchise network, yet for those prepared to look a little deeper there is a world of opportunity and that’s the message Antal directors, Graeme Read, Paul Russell and Tony Goodwin want the industry to appreciate.

The vastly experienced management team spoke to Recruitment International magazine, about their exciting plans and not least to substantiate their claims that International is the place to be.

Antal has been trading since 1993 and has specialised in professional recruitment pre-dominantly in the emerging and developing markets. Its secret is the strength of its relationships between its offices who are located around the globe. Today, the company has a simplistic structure and is split into three principle segments: Antal International Limited which is the wholly owned recruitment businesses and these are run by Tony, Paul and Graeme, currently of which there are 10 such businesses in operation covering; China, Poland, Germany, Netherlands, Italy, Spain, and the UAE.

The second element is Antal International Networks which has a fourth share holder in the form of industry legend Doug Bugie and is the franchise division of the company for those who want to avail themselves of an Antal branded

business. Currently opening offices in India and Germany this activity has witnessed Antal International Networks expanding into a 50 location business in just 8 years. India in particular has recently seen a number of high profiles openings.

The third business sector is called Antal Ventures and a holding company called 7A has been created solely as an investment vehicle. Under this Holding company there

Antal - The International Dimension

Antal Ventures

Investing In:• Multi-Brand• Multi-Sector• Acquisitions• Joint Ventures• Start Up's• MBO's

Investing In:

A world of Opportunity...

22 RI - February 2010 www.recruitment-international.co.uk

cover story

exists the potential for joint ventures, acquisitions and recruitment industry investments with their own brands and a primary focus on International markets. Underpinning each of these business segments is Antal’s infrastructure, experience and know how.

“When I look back at the recruitment landscape for UK recruiters who have really built and established from scratch an international network which has subsequently been taken to market and sold, there really aren’t too many examples I can think off,” says Tony. “We’ve been there, done it and have the invaluable expertise learnt the hard way, through a combination of making decisions some good and also some bad – it’s called experience.” He adds.

With their abundance of knowledge, funding and energy, Tony and his Board is now embarking on an expansion programme aimed at bringing in new entrepreneurs and recruitment companies under the 7A wing so that it can replicate its

previous success in Russia.

Paul Russell, “We are really targeting the emerging markets where maximum value will be achieved. Asia, especially China, the Middle East, Africa, India and Central and Eastern European markets and in these regions we will be looking to build multi-brand recruitment businesses that focus on all disciplines with a strength in Professional Temporaries, Contractors or even Interims.” He said.

The Proposition

Antal would like to invest in companies or teams of individuals that have the drive and determination to build on Multi Brand, Multi Sector acquisitions, Joint Ventures, Start Up’s or MBO’s.

“It’s well recognised that clients like to buy scale and that’s what we will be offering our investments; an infrastructure to catapult their businesses. We are happy to keep an existing brand or create a new start

Antal - The Intern ational Dimension

Graeme Read – Group Managing Director

Graeme joined Antal International in 1996 at a time when the group had 4 offices and has contributed in its growth to its current size and global position of strength. With direct recruitment experience, a background in finance and an in-depth knowledge of the industry and best practice, Graeme has played a fundamental role in the growth of Antal’s offices and the development of their management teams. In addition to being a main board director of Antal, and now Group Managing Director, Graeme was also a founding investor and Director of Antal International Networks, where he helped launch the Group’s franchise business unit.

With experience in both large publicly-owned and smaller privately-held companies, Graeme is instrumental in driving the expansion of Antal’s businesses whilst ensuring that the brand, vision and operational methodologies are exacted on a global basis for client and stakeholder benefit. More recently Graeme took a key role in the deal team which achieved the successful sale of their Russian business, Antal Russia Ltd to a major private equity group in March 2008.

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up. Both benefit in the same way by leveraging our expertise, synergies, network and opportunities.” Graeme comments.

Antal is completely flexible in how it will approach each investment opportunity. Typically they believe these will fall into 3 main categories, a Franchise, a Joint Venture or an outright Acquisition.

For its Joint Venture partners, Antal will consider taking a stake ranging from 25% to 75% and it will be looking for some form of co-investment. This can take the shape of equity or reduced earnings and would be ideally suited to the entrepreneurs who really want to grow their business.

As Paul says, “where do you want to open your next branch, Burnley or Beijing?” He’s not putting down the UK market in any way, Antal is equally happy to talk to companies that wish to remain focused on the UK, however, they know that the big impact is far more likely to be

achieved outside the country and they want to fund like minded recruiters.

“The main point to consider is, can I make my business international?” questions Graeme. “And the answer is invariably yes. Good recruiters in the UK can quite easily take their brand overseas and we will give them the platform to do just that. Likewise the same can still be applied to expanding their interests in the UK. We have a clearly defined system that helps all of our business to leverage off of one another.” He says.

This network of sharing clients, working on assignments with other offices is proving to be a major factor in Antal’s success as without fail every year the company generates at least 25% of its revenues from inter-office referrals. That’s a major achievement and it really does mean that the offices liaise and work with one another. In fact Antal Russia now under the FiveTen Banner counts Antal amongst it largest clients! “We can cite dozens of examples where in one country we did not have a

Antal - The Intern ational Dimension

Paul Russell – Group Finance Director

P a u l j o i n e d Antal in 1997 as G r o u p F i n a n c e Manager following 3 years of working alongside the founders of Hydrogen Group Plc, a listed recruitment business. Paul assisted Graeme in putting in place the systems, controls and financial and legal infrastructure that enabled Antal to grow at the pace that it did between 1997 and 2000 and earning itself four consecutive entries in the ‘Virgin Fast Track’ 100.

In 2001, Paul left Antal to broaden his experience and took interim roles in two large Plc’s, a small software house and a publishing group and in doing so gained valuable experience which ranged from being part of a deal team that transacted three acquisitions, leading a management reporting and staffing integration team for a relocation and also being responsible for the introduction and management of Venture Capital funding.

At the end of 2003, Tony and Graeme approached Paul to return to Antal and he helped the company restructure and attain the growth it has seen in previous years. In 2007 Paul was promoted to Group Finance Director and became a main board director for all Antal group companies. More recently Paul led the financial and commercial side of the deal team and along with Graeme achieved the sale of their Russian business to FiveTen Group.Antal Locations

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working relationship with a top blue chip. However, in another country the relationship with that same client is so strong that invariably the client gets referred to the rest of our network meaning that everyone in the organisation benefits.”

“The aim is to become a multi brand, multi sector player across many regions and then that region becomes the next acquisition target with the sum of the parts more attractive than the sum of the whole to the potential acquirer.” Graeme continues.

“Ideally we are looking for really strong management teams and businesses where the directors and owners are seeking a full or partial exit, or want a partner to add value and internationalism for an eventual exit. A key point given that margins paid for overseas companies have historically been higher than those in the UK. Companies that have the drive and ambition to possibly do it themselves over time but realise with us they can get there that much quicker. We know the markets and we have the processes that are required to set up and establish businesses.” said Paul.

Sitting beneath each of Antal’s divisions and under pinning its processes are what Graeme describes as its central infrastructure. “The global network of offices, IT and Finance back office support, marketing, training, mentoring as well as the opportunity to benefit from future transactions. Each facet has a part to play in cementing the business together, for example the

company’s intranet literally has thousands of training tips, mentoring advice and help from everyone in the company. It’s a major, major part of what makes the business tick. If you keep getting the same knock back from clients, you can search the intranet and invariably there will be ways to overcome this objection posted or simply call a peer in the group. Its that kind of culture where the business mutually support one another.

“We have a compelling reason for recruiters to talk to us. As we will be rolling brands into our business to do a roll out not a roll up,” Paul says. “We will invest in your knowledge and expertise and we will be able to offer far more than a Private Equity deal would bring to the table. However, like them we are really focused on doing a deal now because the time is right. We are ready to make some quick decisions and look forward to seeing the talent that is out there.” Paul concluded.

To contact Antal Ventures call +44 (0) 207 467 2520 or email Graeme or Paul at DealTeam@antal.com or visit www.ventures.antal.com

Tony Goodwin – Founder and Chief Executive Officer

Tony is a graduate of M i d d l e s e x U n i v e r s i t y and trained as a Chartered Accountant before moving into financial recruitment where he ran operations for HW Group (now part of Hudson Global Resources Limited). In 1993, spotting the potential of the new professional employment markets in the former Warsaw Pact countries, Tony set up his own business with an office in Budapest and named the company Antal – Hungarian for ‘Tony’. Since then Tony and his team have developed substantial businesses in highly challenging environments across the globe, including both Russia and China.

In 2001, in conjunction with the group’s managing director, Graeme Read, Tony developed a franchise brand to supplement the wholly owned organisation, Antal International Network.

Tony has been named ‘Entrepreneur of the Year’ by international accounting and advisory firm, Deloitte, and in addition to winning a string of other awards, Antal International has featured in the Sunday Times/Virgin ‘Fast Track 100’ listing no less than four times. The company has recently entered into a new phase of development with the sale of a substantial holding in its Russian business to fund international joint ventures, non-recruitment activities in Russia and to reward and motivate key business builders across the group.

Antal - The International Dimension