November 18, 2022 – Toronto-based Caldwell posted Q4 revenues of $35.9 million (Canadian), a 11.6 percent decrease from a year ago. Full year revenues rose by 31 percent, from $119.5 million last year to $156.2 million. Financial results include those of IQTalent Partners, Inc.
“This was an exceptional year in our firm’s history, as we shattered previous records for revenue and profit” said John Wallace, CEO. “Consolidated revenue for the year was $156.2 million, representing a year-over-year increase of over 30 percent, and our operating profit of $10.6 million was 79 percent higher than the prior year and the highest in our history, including our recording $2.6 million in purchase price costs related to the IQTalent acquisition. Fiscal 2022 was a year of revenue and profit achievement and execution excellence. We couldn’t be prouder of the entire Caldwell/IQTalent team.”
“While we celebrate our accomplishments in fiscal 2022, we are focused on the future,” said Mr. Wallace. “We have seen the business leaders at our clients become more cautious with concerns about an economic downturn or recession on the horizon. This has translated into a reduction in hiring demand, especially in the technology and retail sectors. We saw headwinds begin late summer and build through early fall – especially in our IQTalent segment, whose clients are weighted towards the technology sector. Accordingly, we have taken actions to right size the staff with business levels for the near term.”
“We are superbly confident regarding the strength of our company, our team, our service offerings, our balance sheet, and our future,” Mr. Wallace said. “Our clients value our ability to provide seamless support for their talent acquisition needs at all levels, and by continuing to diversify our mix of products and services and identify opportunities to cross-collaborate between our two business segments, we expect to amplify our current success in the long-term. We also continue to seek out strategic business and technology acquisition opportunities that align with our client driven talent offerings. Our most recent acquisition of The Counsel Network has been a terrific addition to our Caldwell service offering in Canada, bringing a high-caliber group of search professionals focused on legal roles for law firms and corporate in-house functions.”
Caldwell recently expanded with the opening of new locations in Annapolis, MD and Tysons Corner, VA, in the Washington, D.C. area. In conjunction, the firm added Byron Marchant as a partner and Tiffany Faucette as an associate. The moves expand the firm’s capabilities and add focus on the sports and entertainment industry, federal and state public sector, and the public utilities space. “This is an exciting next step for Caldwell,” said Mr. Beck. “We’re thrilled to have such exceptional people join our outstanding team and lead our continued growth in the mid-Atlantic market and our firm.”
Mr. Marchant serves in the board and CEO practice. He joined Caldwell from the U.S. Naval Academy Alumni and Foundation, where he served as president and CEO for over 13 years. His tenure was highlighted by his steady, strategic leadership through the 2009 recession and the ongoing COVID-19 pandemic, said Caldwell. Mr. Marchant oversaw the most successful campaign in organization’s history, raising more than $541 million in support of the Naval Academy’s Strategic Plan 2020. Previously, Mr. Marchant served as executive vice president, general counsel, and chief administrative officer for Black Entertainment Television (BET).
Caldwell Acquires The Counsel Network
Caldwell has acquired The Counsel Network Inc., a Canada-based executive search firm specializing in the Canadian legal market. The acquisition of was an all-cash deal, and no securities of Caldwell were issued in connection with the acquisition. “The Counsel Network is the most respected, connected, and powerful legal recruitment firm in Canada,” said Michael DeCosta, managing partner of Caldwell’s professional services practice. “This combination brings together two strong executive search brands with exceptional reputations borne of a true passion for achieving the best results for clients and candidates.”
“Byron has a successful track record that cuts across a wide range of areas – from his impressive tenure leading the U.S. Naval Academy Alumni and Foundation to his role in the $3 billion acquisition of BET by Viacom to his background with technology and nuclear submarines in the Navy and everything in between,” said Jay Millen, managing partner of Caldwell’s board and CEO practice. “He’s an incredibly accomplished individual with an exceptionally wide network of content, which together make him a true asset to the team.”
Ms. Faucette has a 30-year track record in the professional sports world as an award-winning LPGA instructor, competitor, entrepreneur, and author, delivering a rare combination of sports and business acumen, said Caldwell. Additionally, she launched FG Enterprises, which conceived, developed, patented, and released globally available products, as well as an instructional book. She has made numerous appearances on television and talk radio, including The Golf Channel, NBC, ABC, and Fox. Ms. Faucette holds a bachelor’s degree in marketing from Florida State University.
A New Alliance
Caldwell forged an international alliance partnership with Johnson Partners, a consulting firm working in board search, executive search, and leadership succession with offices across Australia. In connection with the alliance, Johnson Partners has acquired the business of Caldwell’s non-owned New Zealand licensee, and integrated Caldwell’s Australian team. Johnson Partners will become Caldwell’s external search partner for Australia and New Zealand, and Caldwell will become Johnson Partners’ external search partner for North America and the U.K.
“Johnson Partners is one of the region’s most successful and influential executive search firms, widely recognized for their long-lasting collaborative partnerships with clients,” said Mr. Beck. “This reciprocal alliance is beneficial in several ways. First, it will allow us to jointly conduct transformative searches across the globe at the very highest levels of management and operations, with a keen eye towards delivering outstanding outcomes for our clients. Second, we believe this considerable expansion with the Johnson Partners team will drive greater worldwide revenue opportunities for Caldwell, further creating value for our shareholders.”
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media