When looking for a valuation or possible sale of a staffing company there is a big difference in using a generalist business broker and a mergers and acquisition adviser that specializes in just the staffing industry. Staffing industry advisers know the current market values and more importantly who the qualified buyers are and what they are currently paying for acquisitions and how they are structuring transactions. Most staffing M&A advisers will have a free conversation about your company's prospects for sale and can give you a good estimate of your company's current market value after about a 15 to 20 minute phone conversation. A more formal valuation will require the signing of a Non Disclosure Agreement (NDA) and the providing of certain information including the most recent trailing twelve month financials.
Current market conditions favor a seller right now because there are more buyers than sellers active in the marketplace. Values are very fair and the amount of cash down at closing is reasonable. There are about four or five reputable staffing specialist M&A advisers currently servicing the staffing industry and I would recommend calling one or more of them for advise before going to market with your company. Some of these advisers work primarily with larger over $10M in revenue companies but all will be polite in telling you whether or not they can help you.
Sam Sacco
Partner
R. A. Cohen Consulting
Wilmington, NC
910-509-0691