Staffing Industry Mergers & Acquisitions
Sometimes the next best move for your staffing business is to combine your competencies with another firm. Whether that means buying or selling, it’s a great time to make deals.
Merger & Acquisition Expertise
Over 25 years, we have helped connect many staffing agencies with interested buyers and sellers. The best part? We do it for free as an added bonus to our funding and back office services. Working closely with dozens of M&A experts and specialists, like myself, we have the pulse on how to sell your staffing firm, how to buy, and how to improve your value.
How To Prepare For A Staffing M&A
When it comes to M&A, preparation is key. Six months to a year before you officially start the process, there are steps you can take to prepare your company for a sale.
Get a Partner Who Has Been There Before
Look for experienced partners in the legal, finance, or investment banking fields. Whatever route you go, choose someone who has executed a staffing merger or acquisition before. When in doubt, ask industry peers who have been through the process.
Set Yourself Up for Business Valuation
Successful, profitable staffing companies are always in demand. If you feel like there is room for improvement from an operational standpoint, make changes now to increase your future value. Does your team need improvement? What areas are most profitable, and what’s not? These are some questions to ask yourself before you start the process.
Audit your financials
Making your financials easy to understand is key. Consider hiring an outside firm to audit your financials and make sure they are as clean and easy to read as possible.
If selling, price realistically
If your offer sounds too good to be true, it probably is. Buyers are going to be wary of pitfalls if you price too low, and ignore you outright if you price too high.
If buying, do your research
Get an M&A team in place, set screening criteria, build profiles, and create a “Master List” of targets.
Stay ahead of merger and acquisition staffing issues
During mergers and acquisitions (M&A), staffing issues can include cultural integration challenges, discrepancies in compensation and benefits between merging entities, and uncertainties about job security that may lead to increased turnover. Aligning different corporate cultures and operational systems can also pose significant challenges, requiring careful management and clear communication strategies.
- Conduct Thorough Due Diligence: Understand the operational and cultural dynamics of both entities to plan integration strategies that minimize disruption.
- Develop a Comprehensive Integration Plan: Outline clear steps for merging operations, including IT systems, HR policies, and corporate culture. This plan should also set realistic timelines and designate responsibilities.
- Communicate Transparently: Keep all stakeholders informed throughout the merger process. Regular updates and an open-door policy for addressing concerns can help in managing uncertainties and maintaining trust.
- Invest in Change Management: Provide training and support to help employees adjust to new systems and processes. Acknowledging and addressing employee concerns is crucial in retaining talent and ensuring operational continuity.
How We Can Help With Your Firm’s Merger
Is it time to talk M&A? Our 400+ clients are always looking for ways to combine competencies. Let our experts help you in the process and make it as easy as possible.
