Not too long ago, I received a call from a local staffing firm. Miami, FL . Recently Reduced / Strong Growth: Staffing Firm. “Our business is … When sizing … The business is associated with one of the nation’s largest and most successful professional staffing firms – with over 800 locations world-wide. If your staffing firm has a blog, resource center, eBook library, company newsletter or any other types of content, you already have the building blocks in place. During this webinar, Craig Hopewell will present legal and practical tips for staffing industry executives who are ready to sell their business. When our economy thrives, so does the Staffing & Employment Services sector, making it a perfect time to consid… Their level of professionalism from the onset was noticed, and their communication and execution during the campaign was top notch. Subscribe to our e-mail newsletter to receive updates. Team | Contact Us© 2020 Golden One Ventures. Of late, it’s been holding up satisfactorily, with private equity having a significant presence. December 02, 2020, Filling a Vital Need Apply. How to Start a Staffing Business. Larger businesses are best sold through investment banks or merger and acquisition companies. A Sales Methodology Custom-Built for IT Staffing Businesses . Exceptional managers and executives are difficult to come by, so when you have them, work hard to retain them because they are a key factor to potential acquirers. Whether it’s a merger or acquisition that strategically benefits off of location, it gives both companies a wider distribution, reach and market share basically overnight. Total business assets: $112,550. To read the full article written on SIA’s The Staffing Stream, click here. Even if you aren’t looking to sell your staffing firm right now, try to keep all these areas in tip-top shape. As the staffing industry continues to grow, private equity groups and established firms are keen on investing in companies with high-growth potential and a foreseeable strategic position. Internal advanced systems and workflows also result in a seamless post-sale integration. In the U.S., PE firms have a lot of liquidity and can get a deal done. “Over the past two years — and […] Owning and selling your staffing firm is a crucial stage of your role as a business owner and during the sale process, there are a handful of misconceptions you might encounter. This significantly attracts any acquirer because a smooth sailing ship will always reach its destination. Selling your staffing business is an important decision. PREMIUM CONTENT: Largest IT Staffing Firms in the United States: 2018 Update. Here are a few steps you can take to give assignment selling a try: Make a list of your ideal customers’ biggest questions. You never know when an opportunity to sell might present itself. Contact us today for more information. Keep your internal talent pool happy and motivated as they will be a major component to your success during negotiations. He can be reached at eric (at) goldenoneventures (dot) com. Get the latest updates on our articles, white paper and resources on Mergers & Acquisitions and Staffing & Recruiting. Acquirers all have various reasons to buy, and it’s essential that your company fits the bill. The small 1600 square foot office is centrally located in Sacramento. Once you have found a potential buyer, you will have to navigate the sales process. 13 Factors That Determine How Much It Cost to Open a Staffing Agency 1. While having your concepts come to being is incredibly rewarding; selling your company is the way you might like to cash in on all your hard work, while also, giving your business another life. It’s also a very lucrative way to cash in on all your hard work. November 30, 2020, Covid roundup: Vaccination mandates; California workplace safety requirements The best way to deal with these questions is to take on an M&A advisor to guide you through one of … Preparing for a Sale of your Business. You never know when an opportunity to sell might present itself. Here are a few things that every staffing owner should take to heart when considering to sell: A Great Team Speaks of a Great Leader Staffing and recruiting firms thrive on the talent they provide their clients. This ultimately determines the value of your company. competitor. An important step in selling a Staffing business is finding the right business broker. To illustrate how comparable business sales can be used to value a staffing firm, let’s consider a typical business with these financial parameters: Annual gross sales: $1,000,000. December 02, 2020, Coronavirus (COVID-19) Resource Center A staffing technology innovator, he has developed broad and deep product and technical experience consulting to staffing firms over the past 15 years. A great deal of thought and analysis usually precedes such a decision. When considering selling, staffing owners should remember a few things: Seeking M&A Advisory for the Staffing Industry? Subscribe here to receive updates by email. How can your staffing firm start using assignment selling? There's a marketing methodology called "inbound" that does quite well for staffing services looking to boost sales. Show that your firm has climbing revenue projections for the coming years, and make certain that you are able to prove yearly incline through your historical financials. To sell your staffing business, check out: Houlihan Lokey; How much will it cost to sell my staffing business? While seeing what was once just a vision become a reality and come to life is very fulfilling, selling your company is one way to achieve further growth. It requires the staffing firm recruiters to compete with other staffing agencies. Eric Allison is managing partner of Golden One Ventures, a boutique M&A firm catering to the middle market for the staffing and recruiting industry. Staffing is a hot industry overall as a low risk, high competition field with a steady industry growth rate around 3-4% per year. Annual growth rates are telling of revenue projections, and make certain that your company is projecting towards an incline. Not ready to Apply? The business is cash flowing positively and growing rapidly. During due diligence, when potential buyers discover anything that you may have missed or may have misrepresented, they can use it as leverage to reduce the value of your business and it may be detrimental to the buyer’s interest to purchase. Mergers and acquisitions in the staffing industry are on the rise this year, but the act of buying or selling a staffing firm is no mean feat. Even if you aren’t looking to sell your staffing firm right now, try to keep all these areas in tip-top shape. All rights reserved. Meanwhile, sell-side investment bankers and business brokers often recommend that potential sellers of staffing firms have a “Quality of Earnings” report done by an independent highly-regarded accounting or financial advisory firm before going to market, and generally require a potential seller to obtain a Q of E report on its business if the seller’s EBITDA exceeds $5 million — particularly … The Type of Staffing Agency . The world of sell-side M&A is measured in months and years, not days and weeks. Selling Branch Manager at Roth Staffing. The business is associated with one of the nation’s largest and most successful professional staffing firms – with over 830 locations world-wide. Jonathan has acted as an independent consultant for some of the largest staffing companies in the … Advanced Processes and Proprietary Technology Speaks of Innovation and Agility. Acquirers all have various reasons to buy, and it’s essential that your company fits the bill. Staffing firms are one of the most sought-after businesses due to stability and profits. I created our sales methodology after spending more than 15 years selling and leading sales teams in the IT staffing and consulting industry. The company is a niche staffing firm that specializes in placing insurance professionals nationwide for companies operating in, or around, insurance and insurance related products. Not only are there numerous moving parts to navigate, but emotions can run high in this process. Team | Contact Us | © 2020 Golden One Ventures. This advice is especially true if you’re selling a business. This shows acquirers your company’s competitive edge. This established New Jersey staffing firm is for sale and is associated with one of the nation’s largest and most successful professional staffing firms - with over 825 locations world-wide. All companies need to stay on top of technological advancements if they want to stay relevant. The opinions expressed by guest authors do not necessarily reflect the positions of Staffing Industry Analysts. Companies seeking to tap into other places often merge with other firms with a deeper market penetration in certain areas. Unemployment rates are down, the housing market is steady and buyers are actively looking for small businesses to buy in growing cities in the Southeast. You never know when an opportunity to sell might present itself. Performing due diligence before placing your company on the market will help any potential deal run smoothly. Clients often measure the work of a staffing firm recruiter by using feedback. Selling to a PE firm is still a great option. What you decide will have far-reaching effects on yourself, your family, the customers and employees of your business. In staffing, there are essentially three types of buyers: 1. Keep your internal talent pool happy and motivated as they will be a major component of your success during negotiations. Selling a Staffing Company Selling your business is an important decision because of its potentially far-reaching effects on your family, staff, customers, employees and yourself. The contrary would affect the valuation of your firm. of yours... you can actually cut … As the #1 provider of working capital in the industry backed by the resources of a Fortune 1000 company, we are uniquely positioned to offer you an extremely flexible and competitive price.. Every staffing firm is different, and our pricing structure reflects that. Before getting to the solution, let’s first look where the opportunity is. Net income: $45,000. There is high demand from strategic buyers, especially if you specialize in IT or healthcare staffing, which are growing at double digit rates. by Sam Miller | Jun 27, 2018. on What You Need To Know When Selling Your Staffing Firm, Call for Nominations to this year’s Global Power 100 – Women in Staffing List, Protecting the UK Staffing Industry During Coronavirus, ‘Unselling’: Ideas for Driving Staffing Sales in Today’s Economy, Covid-19: Examples of Steps Being Taken to Hire and Retain Critical Staff, How to Advance Diversity & Inclusion in Your Contingent Workforce — and Why It Matters, How to Reduce Time-To-Fill with Workflow Automation, How Statement-of-Work Solutions Can Help Businesses Recover from Covid-19, Covid roundup: Vaccination mandates; California workplace safety requirements. Accurate numbers indicate you have a well-run business. “I’m not going to use an agency that’s only supplied office staff,” says Whitney. Your Geographic Foothold Signifies Expanding Market Share. A good valuation can mean the difference between a good or great retirement pot or alternatively it could mean the difference between a modest or healthy venture capital fund for a new business venture. Only do business with A+ Staffing if you seek a partner who will work all hours of the day to ensure your vision is executed at the highest levels. Here are a few things that every staffing owner should take to heart when considering to sell: Staffing and recruiting firms thrive on the talent they provide their clients. At first, I thought it was someone calling to inquire about Haley Marketing ’s services, but in less than 3 seconds I knew it was a sales call. This shows acquirers your company’s competitive edge. Staffing merger-and-acquisition activity in the US remains robust, according to several M&A specialists. Eric Allison Generally a business broker will charge 8-12% of the sales price of an staffing business including inventory depending on the deal size. Having your books in order strongly indicates that you have a well-run business. Accurate numbers are of utmost importance when selling. There is nothing wrong with any of that. EBITDA: $62,350. Annual growth rates pique every prospect’s interest and your profitability speaks of everything in a buyer’s eyes. Date Posted: 10/29/2020. This adds an extra layer of pressure to respond quickly to the customer (candidate or company.) Exceptional executives are a key factor to potential acquirers. It’s no secret that our global economy is flourishing, with financial experts claiming 2015 to be the best year for America since the Great Recession of 2009. Selling your staffing agency can be a lucrative way to cash in on your success as a staffing firm owner. We partnered with A+ Staffing for a direct selling holiday campaign. How Statement-of-Work Solutions Can Help Businesses Recover from Covid-19 Selling the staffing business that you have worked so hard to build can be a daunting experience. Mergers can give buyers a wider market share without having to do all the work themselves, this gives both companies wider distribution, reach and market share. When company owners build their business, they often do so with the vision of being acquired by a large corporation. Instead of supplying your sales teams with the same exact purchased lists or Bullhorn reports as every. March 4, 2020. Instead of starting from scratch in a new area or building up a new list of clientele, large companies usually decide to acquire another firm in the area that they want to expand to. We are in Award Winning Broker that does not charge an upfront fee and only get paid if we sell your staffing business. How elevated your profits are will ultimately determine the value of your company. In an age when the reputation of a staffing firm can travel as quickly as a viral video, it’s unwise to bid for business that you don’t understand, or to send in workers who are fluent in the industry. Clean and healthy financials are a vital success factor in every deal. Staffing firms with advanced processes and proprietary technology speak of its capacity for innovation. Owners’ equity: $55,200. If you want to start a business of your own and help others find work, you may want to look into a staffing company. Whenever you sell your staffing firm, and whatever your reasons for doing so, one thing remains constant: you will be looking for the best possible valuation for it. Pricing for your staffing firm. Mergers can give the buyer a whole new market share without having to do all the work themselves, as the business is already in place with an entire team already trained for it. Nowadays, owners often put up their startups with a vision of someday being acquired by a large conglomerate. Sellers rarely decide to put their business on the market on the spur of the moment. Does that sound like your IT staffing firm? Staffing firm recruiters must perform competently to gain steady work and steady pay. They can afford to pay you a reasonable price for your business, or part of your business. Even if you aren’t looking to sell your staffing firm right now, try to keep all these areas in tip-top shape. If you have been thinking about selling your IT staffing company, now is a good time to contact one of our licensed bankers. All rights reserved. Now, the woman who called was very pleasant and very professional. FOR SALE: This “high volume” staffing business is for sale. Naturally, acquirers will examine your management team and the database of professionals available for placement. Staffing firms with advanced processes and proprietary technology speak of its capacity for innovation. Performing your own due diligence even before placing your company out on the market will save time and a higher probability that a potential sale will run smoothly and swiftly. Synergy Business Brokers have over 15 years of experience. Differences Between Selling to Women vs. Men (Yes, Gender is a Factor) 4 Ways to Get on the Approved Vendor List for IT Staffing; How to Align Sales & Marketing – and Drive Revenue; 8 Ways a Staffing Agency Can Stand Out and Find Clients Buying a staffing firm with unique technology can maintain or even develop an acquirer’s competitive edge. What Buyers Look for in a Staffing Firm Acquisition. Staffing firm owners considering putting their firm up for sale can use this report to become better informed about valuations, deal-structuring options, M&A advisors, and potential acquirers. Don’t allow yourself to get too high or too low during the process. Naturally, acquirers will examine your management team and the database of professionals available … Selling can be the ultimate end-goal for many staffing firm owners, and that bodes well as far as the market goes. single. This busy and profitable staffing firm is for sale and the price has been recently reduced. At Menemsha group, we have designed a proven methodology exclusively for selling IT staffing services. A major factor that will determine the overall cost of opening a staffing agency in the United States of America is the type of staffing agency the owner of the business wants to start.
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