21 Year IT Staffing Business – Long Term Staff in Place – $100,000+ Average Contract Value – Strong Social Presence – Long Term Contracts

Pending

Website Closers® presents an established 21-year-old Online IT Staffing Agency that has excelled in fostering healthy, longterm relationships with their internal team members and their client base. They offer contract, contract-to-hire, and direct placement contractors and consultants primarily in the IT vertical, with their core audience consisting of clients in the middle to upper market positions within organizations.

They have seen historic success in the healthcare market, having carried multiple hospitals and healthcare industry clients for 20 years. The brand also currently operates in other markets as well, such as retail, manufacturing, non-profit, city and local government, and airlines, holds a federal government Cage number to support contracts, and has worked with the Department of Energy in the past. Their vast reach across multiple fields is compounded by the fact they have placements in 40 U.S. states, with the potential to grow even further throughout the U.S. an abroad.

Business Broker Takeaways:

1. Seasoned, highly skilled team in place. Throughout the over 20 years that the company has been in operation, they have built and operated their agency around a lean business model, and the incredibly strong and long-term team they have assembled and put into place facilitates that. Their core team consists of 3 recruiters, 2 sales people, 1 operational leader/contributor and 1 sales support position. Marketing, HR, Legal and Finance are currently directly operated by contract services, with these contract relationships being long-standing ones with the company. This team is fully remote, resulting in lower overhead cost structure.
2. They’ve been showing excellent profits in the last few years. The brand sold over $33 million in revenue over the past 3 years, and is already on pace for a great 2024. Despite the tight markets of 2023, the company managed to be highly recession-resistant, growing year over year by the end of 2023 and holding margin percentage across lines. This puts them in a fantastic position to expand their portfolio lines and geographical locations.
3. They’ve built a strong marketing strategy. The brand currently utilizes marketing consultants from Creative Dreams Agency by way of Think Global Holdings. These are personal relationships with the owners and available to continue with buyer. The company has supplemented their partnership with this agency by building their online community to over 40,000 followers, using social media to promote their culture and post company jobs online, primarily on LinkedIn.
4. Easy to Learn and Transition. Whether you want to run this firm absentee, semi-absentee, or you are excited to dive in and run the operation as the CEO, this business is ready for a new owner, with preparation already underway to facilitate an easy transition and a training/learning process. This lowers the overall risk profile and makes this business stand out among other online staffing agencies for sale.

Though their average contract values vary greatly based on size and demand from their clients, most clients will start out with one placement and grow over time. Their contract value can start at $100,000 and grow to multi-millions in value, with permanent placements averaging an 18% fee on salaries.

The average customer contract length, meanwhile, falls between 6 to 12 months, while many have continually renewed for more than 10 years. The brand operates any contract from short term, at about 1 month, to a full 12 months, which is renewable annually. Their contract-to-hire conversion is after 1,000 hours worked.

Scale Opportunities

There is potential for substantial growth in this brand’s future, which could be approached with several different tactics. One strategy the buyer should consider would be a strategic expansion of the sales team, as by combining the strengths of their core team with an expanded sales force and enhanced lead generation efforts, they could better position themselves as a dynamic player in the market and more easily capitalize on emerging opportunities and gain a stronger foothold in established markets.

The company might also consider other staffing lines, including Accounting and Healthcare, and creating and growing a strong partner community. They could also promote cross-selling among their existing client base, bolstering the revenue that they’re currently generating from their most loyal consumers.

Conclusion

This acquisition offers an exceptionally established brand based off a foundation that has been 21 years in the making. With their deep-seated customer relationships, a growing national presence and a senior, proven team at their heart, this deal offers the buyer the rare opportunity to acquire a highly seasoned brand that still has a wealth of potential waiting for it. Additionally, the current CEO/coowner is willing to stay on board and is open to different structures they feel make sense for the business moving forward, which will help the buyer more quickly adapt to their ownership role.