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Value Proposition / Exit Strategy
Management’s goal is to continue to strengthen eCareer Connections and grow the Company into a leading Internet job advertising aggregator and vertical. As eCareer Connections increases its Internet presence and brand recognition, more advertising revenue will be generated. That increase will heighten the value proposition of the company for becoming a publicly traded company or to be acquired by a larger job board aggregator or online advertising firm.
The eCareer Connections management team has proven – with its diverse talents and histories of achievement in mergers and acquisitions – that it is able to accomplish either of the above exit strategies.
There is an ongoing trend of mergers and acquisitions in the Internet job advertising business. This trend is due partially to newcomers to the market who attract the interest of big companies and partially to the very dynamic development of the Internet advertising, including new technologies as mobile advertising. In 2008-2009 more than 50 important deals were in the focus of the media and the investment community.
Monster.com, the biggest player in online recruiting, spend more than $300 million in 2008 alone. There are rumors that this giant is planning to acquire Yahoo.com’s HotJobs. If this happens, the deal will go for more than $400 million.
In June 2009, Dice.com, a giant in technology job advertising, entered in the health care job market, acquiring AllHealthcarejobs.com for cash and stock worth about $3.76 million.
Internet Brands went on a shopping spree in 2008 and 2009, acquiring seven job boards websites and other Internet advertising portals. As the latest data shows, “total spending related to acquisition purchases, earnouts and holdbacks totaled $15.2 million during the nine-month period ended September 30, 2009.”
Major acquisitions in 2009 included a health vertical with six websites, and these various acquisitions in 2008: HospitalJobsOnline.com, WHAM.com, GrooveJob.com, NursingJobs.org, AviationEmployment.com and iFreelance.com.
Jobing.com, Inc. also acquired a variety of local job boards, some with more than 400 sites.
As related to the healthcare business, eCareer Connections also will profit from the trend of large mergers and acquisitions in the industry. The health care M&A market maintained its strength in 2008 and 2009, despite global recession and investment uncertainties. Consolidation is expected to continue, particularly in some areas of healthcare services. The weak dollar will continue to attract foreign capital for important acquisitions of American companies.
In spite of the global economic slowdown, the IPO market in the U.S. has grown significantly since 2008.
In 2009, companies raised about $100 billion globally, and $22 billion in the US, through initial public offerings of common stock. The total size of the health care
IPO market increased during the last quarter of 2009 representing 12%, of the total value of deals in the fourth quarter of 2009 ($17.2 billion), or 4 IPO’s registered. Offerings such as 51job, Inc. (NASDAQ (GS): JOBS), with initial $63 million offering, Accretive Health, Inc. (NYSE: AH Proposed) with $200 million initial offering, were not an exception. In the last quarter of 2009, a total of $1.9 billion was raised by healthcare IPOs, placing the industry second in terms of revenue after the banking IPOs (Banco Santander in Brazil).
With a solid background in building successful companies from inception, to launch of IPO or buy-out, Management’s experience strongly indicates that it should be able to execute any of the above plans with rapid success. As such, the Company should become an alluring acquisition target by one of the larger companies in the field, which continue to purchase similarly constituted companies to increase their respective market shares and sustain their high rates of growth. The management of eCareer Connections is dedicated to achieving this goal.






