July 13, 2023 – Toronto-based Caldwell posted Q3 revenues of $25.9 million (Canadian), a 37.5 percent decrease from a year ago. The firm reported a “suppressed hiring environment” impacted business in its fiscal third quarter. “Our third quarter professional fees of $25.9 million represents a 21 percent sequential increase from our second quarter and our return to profitability,” said John Wallace, CEO. “At Caldwell, our executive search team has drawn on their experience and expertise to deliver strong results in a slower market. We have leveraged our capabilities and industry diversification, we have managed to the cycle, and by growing our partner team by 12 percent over last year – when we posted record high revenue – we are very well-positioned as search volumes recover.”
“At IQTalent, our on-demand talent acquisition augmentation business, our first and second quarter restructuring and the spin-off of our IQRecruit software business in the third quarter have had the intended cost-saving benefits,” Mr. Wallace said. “We have enhanced our sales capability and are focused on diversifying our industry coverage. As revenue growth returns, we are re-balancing our workforce to limit our exposure to future market swings.
“We remain confident in the strength of our spectrum of service offerings and see the increased collaboration between our two business segments as confirmation of the value of providing clients with seamless talent acquisition support,” said Mr. Wallace.
Professional fees in Caldwell’s executive search operations fell 19 percent year-over year in the third quarter to (Canada) $21.5 million (U.S.) $15.8 million. The decrease was 22.7 percent in constant currency. The Caldwell division saw a 14.7 percent decrease in the number of assignments and a lower average fee per assignment of (Canadian) $150 (U.S.) $110, down from (Canadian) $177 (U.S.) $130 in the year-ago quarter. However, professional fees in the firm’s IQTalent segment fell 70.7 percent, and the search firm noted the on-demand hiring market in the U.S. continues to be suppressed. Total professional fees at IQTalent were (Canadian) $4.5 million (U.S.) $3.3 million.
At the end of last year, Caldwell 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.”
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.”
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).
“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.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media