贝恩咨询-人力资源 - 尽职调查报告

InvestmentDueDiligenceAssessment,23December1999,2,Z5112OSF,Disclaimer,TheinvestmentopportunitydescribedbelowhasnotbeenrecommendedorapprovedbyBainSGCowenSecurities;AnalystReports;CompanyWebsites,isaChina-basedstart-upcompanyestablishedin1998focusedontheonlinerecruitmentmarketItskeypartnerteamincludes1Bainpartner(RickYan)and3formerBisseekingtoraiseUS$3Minexchangefora5%equitystakeinthebusiness,UnderlyingChinaonlinerecruitingmarketgrowthandpenetration(includedinbusinessplantargets)Adjacente-businessopportunities(notincludedinbusinessplantargets),hasaclick-and-mortarbusinessmodelforjobplacements,consistingofanewspaper,CareerPostWeekly,launchedinOct1998awebsite,launchedinJan1999Itiscurrentlyoneoftheleadingplayersineachofthehigh-endmultinationalrecruitmentadvertisingmarketsofBeijing,ShanghaiandGuangzhou500,000readershiprelationshipwith5,000HRmanagersresumebankhas50,000subscribers(highlyeducatedprofessionalsandmiddlemanagers:relativelyaffluent,highlypaidcustomerbase)istargetinggrowththroughacombinationofinitiatives:growthofcoreonlinerecruitingbusinessinexistingandnewcitymarketsembarkingonadjacente-businessopportunitiestoserveitscoreaffluentcustomerbase(ebay,businessmodelsforChina)intoanumbrellabrandwithastrongportfolioofverticalapplicationsestablishingane-commercebusinessincubator,China-specificlegalandregulatoryriskIntrinsicallylowentrybarriersSpeedinreachingscale,InvestmentOverview,6,Z5112OSF,BainroleBusinessPlanDevelopmentAccountingAdvisoryBoardRecruitingSupportCreativeSeedFundingTemporaryManagementTechnicalFundraisingSupportLegalFacilities/SpaceStrategicPartnerIntroductions,Criteria,Marketpotential,Businessconcept,Leadershipopportunity,Team,Bainvalueadded,Bainlearning,Baincompensation,Company:,ProposedTerms:ToinvestUS$0.5Minexchangefor0.83%equitystakeincompany,Requiredresources:,OverviewSeeattached,RecommendationSeeattached,Currentinvestors:,Contact/principals:RickYan,X,X,Comments,Chinasinternetgrowthpotentialisveryhighgivenitscurrentembryonicstage(internetpenetrationfrom4%in1998to16.5%in2002)IntheUS,theonlinerecruitingmarketisoneofthemostsuccessfulB2Cbusinessmodels(US$265Mmarketrevenuein1999)InChina,theonlinerecruitingmarketisinearlystagesbuttheunderlyingpotentialishigh(opportunitytoimprovecurrentlyinefficientrecruitingprocesses/channels),Uniqueclick-and-mortarbusinessmodelwithnewspaperandonlinemediaOpportunitytoleverageemployerandjobseekercustomerbaseintoadjacentbusinessopportunities,iscurrently#1or#2inBeijing(0.7RMS),Shanghai(5.5RMS)andGuangzhou(0.3RMS)NocompetitorhaslockedupexclusiverelationshipswithleadingChinaportals,TheseniormanagementteamhashadseveralyearsworkexperienceinChinawithBainAllotherprice-to-salesmultiplesbasedonDecember10,1999marketcapitalizationand1999forecastrevenue(Q1-3actual,Q4forecast)Source:CompanyFinancials;PrivatePlacementMemorandum,OnlineRecruitmentPrice-to-SalesMultiples,InternetPortalMultiple(Chinavs.US),Price-to-SalesMultiple,Price-to-SalesMultiple,Marketcapitalisation:$1,141M$146M$150MRevenue:$16M$7M$14M,11,Z5112OSF,InvestmentRisks,ExecutiveSummary,Chinainternetregulatoryrisk,Currently,regulationsonforeigninternetparticipationinChinaareunclearofficially,upto49%foreignownershipisallowedbutactiveforeignoperatinginvolvementisprohibitedunofficially,significantforeignoperatinginvolvementisalreadyinplaceinmanye-businessventuresImpactofWTOshouldbepositive,butinitialMIIreactionshavenotbeenpositiveunderWTO,upto49%foreignownershipandactiveforeignoperatinginvolvementisallowedhowever,MinisterWuofMIIhasadvocatedaclampdownofforeignparticipationwithoutspecificdetailsSeveralministriesaimingtocontrolinternetregulationswiththeMinistryofInformationandIndustry(MII)partnersarecomfortablewithChinarisksbasedonmultiplediscussionswithseniorgovernmentofficialsChinesetitlelawnotwelldevelopedphysicalandintellectualpropertynotwellprotected,Tisnotwithoutrisks.,Standardoperatingrisks,12,Z5112OSF,PreandPost-MoneyValuation,$36M,$57M,2000Sales:$4.25M$4.1M$4.1MblendedPrice-to-salesmultiple*:13.4x9.5xprice-to-salesmultiple:38x16x11x,Source:PrivatePlacementMemorandum;BainAnalysisNote:price-to-salesblendedmultiplebasedonvaryingprice-to-,Pre-Money:8.3%PostMoney:7.7%,Pre-Money:5.3%PostMoney:5.0%,$3Minvestmentbeingraised,ExecutiveSummary,Pre-Money:7.5%PostMoney:6.9%,*Price-to-salesmultiplebasedonyear2000projections,$40M,svaluationisonthehighend,drivenbythehighprice-to-salesmultipleofitsonlinerecruitmentbusiness.,13,Z5112OSF,PotentialReturns,LowCase:,Post-moneyValuation,US$60M,Year2002Valuation,RevenueUS$7.85MfromCareerPostUS$4.82MPrice-to-salesmultiple4xforCareerP,3YearReturn,2.2x,Assumptions,Valuation,ReturnonMoney,IRR,29%,US$130M,Theexpectedreturnsareattractivebutnotblockbuster.,ExecutiveSummary,14,Z5112OSF,Agenda,ExecutiveSummaryDetailedBusinessAssessmentUSMarketBenchmarksChinaMarketDFinancials,15,Z5112OSF,USInternetPenetrationandOnlineRecruitmentForecast(1998-2002F),USMarketBenchmarks,TheUSonlinerecruitingmarketisprojectedtobeUS$1Bin2002.,Source:IDC;GoldmanSachsResearch;Euromonitor;ForresterResearch;BainEstimates,16,Z5112OSF,PricingModels:USMarkets,Source:CompetitorWebsites;IndustryAnalystReports;Interbiznet;ForresterResearch;BainAnalysis,MostoftheleadingonlinejobsearchsitesintheUSofferhighmarginJobBoardservices,accountingforthebulkofonlinerecruitmentrevenues.,USMarketBenchmarks,Description:,Estimatedmarketsize(1998):,Keyplayers:,JobBoard,Recruitersarechargedforeachjobpostedonrecruitingsite/network,US$85M,MCareerBCHDCW,Subscription,Recruitersarechargedaflatfeepertimeperiodforpostingjobsonrecruitingsite/network,US$16M,HR,Upgrade,Recruitersarechargedanupgradepremiumsothattheycanincreasetheexposureoftheirjobs(listedatthefrontofanysearch),US$5M,HeadH,*Basedon1998financials,Typicalpricing:,$20-200perjobpermonth(averageof$100perjobpermonth),$1,000peryearforunlimitedjobpostings,$25-$75premiumperjobpermonth,Typicalgrossmargin*:,75%,85%,98%,BasicCharges,AdditionalCharges,17,Z5112OSF,USOnlineRecruitmentExamples,*Asof10December1999,TargetingprofitablecustomersandhavingastrongmarketpositionarekeytothesuccessofonlinerecruitmentbusinessesintheUS.,USMarketBenchmarks,TargetMarket:,Marketposition:,H,#1choiceforcorporaterecruiters,100,000jobpostings2,520clients,HeadH,#1siteamongindividualsinthe$75K-$100Kannualincomebracket#3playerinmassmarketonlinerecruitment,175,000jobpostings1,104clients,CareerB,Massmarketrecruiting#5playerinmassmarketonlinerecruitment,100,000jobpostings870clients,Grossmargin1999Revenue/clientSalesandmarketingspend/revenue,85%US$4,80088%,98%US$4,800245%,75%US$13,908182%,FinancialMeasures(1999):,Valuation:(Price-to-salesmultiple*),71x,21x,11x,Partnerships:,None,ProvidescontenttostrategicpartnerssuchasPeopleWebC,PartnershipwithMicrosofttolaunchcareerchannelonMSN;agreementwithseveralLycosNetworkmembers,Grossmargin1999Revenue/clientSalesandmarketingspend/revenue,Source:CompetitorWebsites;IndustryAnalystReports;CompanyFinancials,18,Z5112OSF,RecruitmentBusinessValueChain,ForCorporatecustomer:,ForJobseeker:,Customeracquisition,DevelopnetworkofcorporatecustomersBuildstrongrelationshipswithHRmanagers,Buildresumedatabase,Matchmaking,Advertisequalityofresumedatabase,AdvertisequalityofcorporatecustomersTieupwithinternetportals/newspapers,Servicing,ExpandproductandserviceofferingHRwebsitemanagementexecutivesearch,Expandproductandserviceofferingjobseekervirtualcommunitycareerdevelopmentinformationservices,Walletdeepening,CustomerloyaltyprogramsAdjacentbusinessopportunities,CustomerloyaltyprogramsAdjacentbusinessopportunities,Activities:,Relationshipmanagement,Increasingdifferentiationandbarrierstoentry,USMarketBenchmarks,Havingaccesstoaresumedatabaseandmatchmakingjobseekerswithcorporatesareonlythefirststepsintheonlinerecruitmentbusinessvaluechain.,Benefits:,Increasednumberofjobpostings,Increasednumberofjobpostings,IncreasedcustomerloyaltyIncreasedjobseekerchurn,IncreasedcustomerloyaltyIncreasedrevenue/customer,Source:LiteratureSearches,19,Z5112OSF,KeySuccessFactors,Description:,Performancemeasures:,Examples:,Highemployerretention,Highnumberofrepeatcustomers(employers)usingservicesfromyeartoyearStrongrelationshipswithrecruitersandjobhunters,PercentagerepeatcustomersRevenues/customer,H,Qualityresumedatabase,Effectivelymaintainandleveragehighqualityjob-seekerresumebase,providingforthebestrecruitmentresultsforbothemployersandjob-seekers,NumberofreputablecorporatecustomersPercentagesuccessfulplacements,HHeadH,Exclusivepartnerships,Agreementwithportalsand/orbusinesssitestobetheexclusiveprovider/advertiserofjobsearchproductsandservices,NumberofeyeballsNumberofjobpostings,CareerBMHeadH,USMarketBenchmarks,Thesuccessofonlinerecruitmenthasbeenattributedtothreekeysuccessfactors.,20,Z5112OSF,Agenda,ExecutiveSummaryDetailedBusinessAssessmentUSMarketBenchmarksChinaMarketDFinancials,21,Z5112OSF,Source:IDC;GoldmanSachsResearch;Euromonitor;ForresterResearch;BainEstimates,InternetPenetration(%),OnlineRecruitingSpend(US$M),InternetPenetration(%),OnlineRecruitingSpend(US$M),OnlineRecruitingSpendCAGR(1998-2002E),OnlineRecruitingSpendCAGR(1998-2002E),79%,104%,USMarket,ChinaMajorCities(Beijing,ShanghaiandGuangzhou),ChinaMarketDynamics,USandChinaInternetPenetrationandOnlineRecruitingForecast(1998-2002F),TheChinaonlinerecruitingmarketisprojectedtobeUS$25Min2002,afractionoftheUSmarketsize.Basedonbusinessplanprojections,thisimpliesa20%,22,Z5112OSF,InternetUserSegmentation,Source:CNNICReport,ChinaMarketDynamics,sonlinerecruitingbusinessmodelistargetingthemajorityofChinasinternetusers.,23,Z5112OSF,RecruitmentWebsiteCharacteristics,Source:WebsiteSearch,Type,JobAgencyWebsite,Thereare3typesofrecruitmentwebsitesinChina.,Characteristics,No.ofWebsites,Example,HRWebsite,ClassifiedAdvertisement,RecruitmentismaincontentPrivatelyownedcompanyMainlymanagerial,technicaljobsProvidejobopportunitiesinbigcitiesSomearerelatedtotheheadhunters,RecruitmentismaincontentSponsoredbygovernmentNon-profitorganizationLowprofilejobrecruitmentservicePersonneldocumentmanagementserviceincludedFocusonregionallabormarket,InternetcontentproviderRecruitingisminorportionoftheircontentBusinesswebsite,localcitywebsiteandindustrywebsiteareincluded,Z,www.Work-job.Com(XianTalentMarket)job.iii-(WuxiTalentMarket)(NorthernChinaTalentMarket),48,58,68,ChinaMarketDynamics,24,Z5112OSF,ChinaOnlineRecruitmentCompetitorMarketSharebyGeography(1999),Source:PrivatePlacementMemorandum,iscurrentlythe#1or#2playerinBeijing,GuangzhouandShanghai.,ChinaMarketDynamics,25,Z5112OSF,OnlineRecruitmentCompetitorProfiles,Source:WebsiteSearch,China-HR.com,Z,C,Investor,JobAvailability*,CustomerReaction,PositionProvided,CompanyServed,BusinessModel,Partners,e-channelManagementConsultingCompany,ShenzhenCJOLHumanResourcesCo,LTD,Managerial,TechnicalStaff,Managerial,TechnicalStaff,4518,1313resumesacceptedcurrently,34067acceptedresumesaccumulated,Managerial,TechnicalStaff,AllianceConsultingLtd.,2830,4522,59687registeredindividuals,Bothforeigncompaniesandlocalcompanies,mainlyhighprofilejobs,FocusonMNCandHi-techcompanies228companiesserved,6807companiesregisteredBothlocalcompaniesandforeigncompanies,Combinationheadhuntingwebsiterecruitmentservicejobmagazine,Combinationwebsiterecruitmentserviceheadhuntinge-commerce,CombinationheadhuntingwebsiterecruitmentservicejobmagazineBBS,S,41partnersincludingSohu,Netease,Sinaand263Net,12partnersincludingYahooChina,Netease,263Net,ChinaMarketDynamics,*Asof20Dec1999,26,Z5112OSF,OnlineRecruitmentRelationshipwithPortals,anditscompetitorshaverelationshipswithseveralofthemostleadingportalsinChina-however,nocompetitorhasbeenabletolockupexclusiverelationships,51job,China-HR:,CJOL:,NumberofHomepages,CooperativeRelationships,Zhaopin:,Note:CNNIC-ChinaNationalNetworkInformationCenter;9,906websitesinsurveySource:July1999CNNICSurveyof52549users;BainPhoneInterviews,ChinaMarketDynamics,CustomerSurveyofHomePageUsage(N=9,906),27,Z5112OSF,CooperativeRelationshipDetails,Portals,R,Deal,Exclusivity,Sohu,China-HR.com51JZ,SsrecruiterdatabaseProvidesbannerareasCsLs,No,Netease,China-HR.com51JCJOL.com,SsrecruiterdatabasePsHighlightssignificantrecruitersCsLs,No,YahooChina,China-HR.com51JCJOL.comZ,Classifiedadvertisement,No,Source:BainPhoneInterviews,ChinaMarketDynamics,Nocompetitorhaslockedupexclusiveportalrelationships.,28,Z5112OSF,Profile:KeyPortals,Source:WebSiteSearch,Portals,Business,Establishment,PageView(aday),RecruitmentCom.Partnership,RecruitmentService,Rankings,S,S,Netease,GlobalChineseICP,ISP/ICP,ICP,GlobalChineseICP,December1998,February1997,1998,May1997,2.8million,2million,450K,N/A,China-,China-Z,SChina-HR.comZChinaT,China-C,No,No,Yes,No,1,2,3,5,ChinaMarketDynamics,Currently,onlyoneofthemajorChinaportalsoffersitsownonlinerecruitmentservice-however,theentrybarriersarelow,andtherefore,futureparticipationbytheportalsisnotinconceivable,29,Z5112OSF,Agenda,ExecutiveSummaryDetailedBusinessAssessmentUSMarketBenchmarksChinaMarketDFinancials,30,Z5112OSF,sprojectedrevenueforthefirstthreeyearsofgrowthisrealisticcomparedwithUSbenchmarks.Itsexpectedprofitabilityoverthesameperiodisalsoreasonablegiventhathybridcustomeracquisitioncostsarelowerthanthatofpureonlineplays(Career-Posthasalowercostacquisitionmodel).,Projections(Hybridbusinessmodel),H(Pureonlineplay),CareerB(Pureonlineplay),Source:BusinessPlan;IndustryAnalystReports;CompanyFinancials,Financials,Revenue/ProfitTrajectoryComparison,No.ofCustomers:3,4515,7226,9062,520870Revenue/Customers(US$):1,2171,643$1,853$4,802$13,908GrossMargin(%):63%72%72%97%85%NA74%84%76%OperatingMargin(%):-4%22%14%-238%-63%NA-1,748%-386%-172%Marketing/SalesRatio:0.450.350.411.080.88NA9.643.351.82,CAGR,74%,CAGR,316%,CAGR,737%,($0.2M),$2.0M,$1.8M,($0.6M),($1.5M),($13.2M),($2.5M),($7.4M),($12.0M),Revenue,COGS,Marketing,OtherCosts,Revenue,COGS,Marketing,OtherCosts,Revenue,COGS,Marketing,OtherCosts,31,Z5112OSF,RevenueDrivers,Regional:,Beijing21%Shanghai38%Guangzhou/Shenzhen27%NorthChina3%EastChina(exShanghai)6%SouthChina(exGZ/SZ)5%,NonRecruitment,CareerPost,#majoraccounts,Revenue/