Listing ID: 69983
Business Overview
This is a Wisconsin-based, full-service client-driven, talent acquisition and placement firm for today’s marketplace with 95% retention rate. The company dedicates its efforts to passionately finding and placing next-level talent for today’s marketplace. The company began by placing direct tech and IT talent which they continue to dominate. However, over the years they have expanded to also fill all types of professional positions all over United States.
The company stood the test of Covid-19 pandemic, with its operations indicating just a slight decline in 2020 from 2019 (4% decline in revenue), this business opportunity has no ceiling, no inventory, has a low overhead, and over 40% SDE margins and 25% profit margins. This ideal service business is easily scalable with the implementation of a formal marketing plan, expansion of geographical reach. The business can readily be relocated or operated 100% virtually.
The company was founded in mid 2010s delivering full-service client-driven talent acquisition and placement in diverse industries. The company’s clients range from small to large companies and Fortune 500 clients. All of the company’s business come from repeat business or referrals indicating their high competence in this field. The company uses highly talented performance-based recruiters, extensive proactive recruiting strategies, powerful recruiting tools, and success mentors for every placement. The results of this business model yields the company 95% first year retention rate for all candidates and placements. Their objective is to earn client trust, repeat business, and referrals by providing highly qualified candidates.
This company has built its business on a model of quality rather than quantity. Three attributes distinguish this company from its competitors; They have unfettered access to talent and candidates, the ability to match candidates to the culture of a company ensuring high retention rates, and high-level experience across various industries. Putting together these distinctive qualities allow Advanced Hires to deliver quickly for companies seeking the highest performing candidates in the marketplace.
Products and Services
The company is unmatched in the depth and breadth of their services. From entry level to C-Level candidate placement and everything in between. The company initially focused on placement of mainly IT roles, however, over the years the company have expanded to successfully recruit in non-IT roles for their clients. Their clients are made up of the following;
• Small and mid-sized companies requiring minimal staffing.
• Large companies with high staffing requirements.
• Fortune 500 companies with immense and specific requirement of talent and skills.
Financial
- Asking Price: $950,000
- Cash Flow: $314,048
- Gross Revenue: $845,878
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2015
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business can be sold and the new owner take immediate operation and management of the company. The current owner(s) are willing to stay on for an agreed period to help a new owner transition successfully into the business/company. The current owner(s) are willing to negotiate an equity for them to remain as an employee in the company after a successful equity arrangement has been made.
Personal
An analysis of the company’s operation and business model has revealed competitive advantages that the company has over their competitors, these advantages are; (1) The company has a very high retention, 95% which is higher than that of competitors and also higher than the industry’s standard. (2) The company is more proactive in its selection criteria. The company focuses on both the needs of the client and those of a candidate. This way, they make better matches that end up is good relationships. (3) The company is a major player in IT placement and it is a field with a higher income and more opportunities than placements in other fields
While this company has continuously performed well over the years, the company can be scaled up for a more accelerated growth. Currently, the company only employs traditional marketing methods, word of mouth, client relationship and referrals to grow its business. The company can be scaled by developing a formal marketing plan to go with this offering. On the other hand, the company can expand its geographical reach by hiring more to expand in more regions.
Additional Info
The venture was established in 2015, making the business 7 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell businesses. However, the real reason and the one they say to you might be 2 absolutely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competitors, current reduction in incomes, or a variety of other reasons. This is why it is very crucial that you not depend totally on a seller's word, however instead, make use of the vendor's solution along with your general due diligence. This will repaint an extra reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover items such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that earnings margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be met or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new clients? Many times, businesses have repeat consumers, which develop the core of their everyday profits. Specific aspects such as new competitors growing up around the location, roadway building and construction, and personnel turn over can influence repeat consumers and also negatively influence future revenues. One vital point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the higher the possibility to develop a returning client base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? How might the neighborhood mean house earnings impact future revenue potential?
