Staffing
companies that are going through challenges in these
economic times may have an opportunity to turn their
situation around.
As part of a
Staffing Management and Solutions Group, we are
offering the staffing industry a program to manage and operate diversified staffing companies; providing services primarily in growing secondary markets as well as major metropolitan areas throughout the United State. A seasoned, versatile Management team leads the
Group with proven experience in merging, acquiring, and integration of staffing companies.
Executive
Summary
This is to take advantage of this economy where smaller staffing firms are struggling to survive. This gives us the opportunity to buy books of business on an earn out basis and to take use economy of scales to curb expenses.
Currently the company is seeking acquisition targets. These acquisitions will be in a wide variety of fields including but not limited to professional, accounting, engineering, bio tech / pharm and information technology staffing, and other professional services.
Its business projections envision an increasingly vibrant, growing firm, providing temporary and permanent placement services to clients across the United States. The company is intent on becoming a major national competitor that will produce the targeted ROI.
The Management Team, with other owner/managers of Target Acquisition Prospects will create a world- class network of offices, built on a philosophy of integrity, superior service, entrepreneurial empowerment, and value enhancement.
Its professional leadership team has the skills and experience to integrate and manage a potential $50-$100 million dollar-plus organization. Our philosophy encourages a decentralized, entrepreneurial operating structure, which promotes decision-making, accountability, and local name recognition at the branch level supported by strong, centralized corporate finance and administration, information systems, and marketing.
We, as a merger and acquisition team in the staffing industry will bring together entrepreneurs who are excelling because of innovative Management principals and techniques. Our senior Management experience in the staffing industry will leverage their best practices, replicating them in appropriate markets. These entrepreneurs benefit from the success of the entire organization, while doing the things they love - building the business through relationships and nurturing the company’s human resources.
We will then put these consolidated companies into a central private company. This will provide access to capital for acquisitions and internal growth. It will also provide liquidity to take place as the exit strategy would consist of selling the enterprise.
The company negotiates mutually satisfying agreements with owners who are looking at a combination of exit strategy and growth opportunities. Those who remain with the business as managers, work on earn-out and incentive agreements. Management is looking for a broad range of contract employment services. Emphasis is targeted toward diverse niche markets providing higher profit margins.
Management will be both market-responsive and proactive in acquisitions and new business/product development, market research and operational structure to provide crucial Management and communications resources enterprise-wide.
The Management team initiates state-of-the-art systems for back office support and information systems management as each office is acquired. Therefore, companies are integrated methodically and carefully, without allowing the process of integration to hinder the acquisition process.
In every case, the company strives to cultivate an existing combination of corporate strength and entrepreneurial spirit.
Every effort is made to retain productive Management in place. It readily looks to owners who elect to stay with the company for contributions to the Management centralized operations model to improve training, administration practices, information Management, communications, human resource Management, policy development and financial Management.
Senior Management’s sense of fairness, operational expertise, and well-honed integration plan offer distinct advantages the Equity Investment firm and to those owners who want to reap the benefits of business participation without the risk.
Many of the viable firms joining us are in the $5 to $10 million range. Founders and managers of acquired companies enjoy a measure of autonomy in marketing, public relations, policy implementation, and product development and delivery.
Management brings to these companies proven leadership, and a demonstrated desire and ability to boost their collective market share of the $86 billion currently being channeled into the contract staffing industry.
Consulting Services Overview
Staffing Services Program offers the opportunity to achieve new heights for value-enhancement and profitability in the staffing industry. By providing a complete “turn-key” program, we greatly speed up your newly acquired staffing companies’ learning curve and increase results. We will help in mergers and acquisitions, opening direct hire and contracting in different product lines. We can also help with your present product lines in the form of operational and financial controls.
We will help in the training your company’s direct hire and contracting personnel. We will also help with your present operations in the form of system and financial controls.
We offer all the tools and training you will need to be successful. We have a combined 30-year track record of proven real-world success in the staffing industry. We will also work with you on how to present your company as a more valued staffing firm as compared to the rest of the staffing world. This will translate into a positive portrait that will help your company’s profile.
Strategic Goals
The long-term goal is to build a $50-100 Million-plus, staffing organization with a national reputation for excellence. As we look toward the next millennium; international expansion is a strategic objective.
The company is focused on equity investment companies who are strategically targeting acquiring offices to grow a premier, full-service staffing organization, which provides temporary and permanent personnel wherever there is a viable market. It is intended that between 50 and 60 percent of the placements in each office will satisfy commercial clients’ needs for clerical and light industrial employees, the balance will be niche markets such as information technology, financial, accounting, engineering, and bio tech / pharm., and other professional services.
These goals will be accomplished through synergistic acquisitions, internal/organic growth, and diversified niche product development and rollout. We seek acquisitions that work well with its big-picture objectives, adding talents and expertise that benefit other offices and geographic locations. Their business plans outline the acquisitions of healthy businesses and provide Management with the tools and resources to grow within their geographic areas, always leveraging already successful business practices. Central support and training, not feasible for smaller independent businesses, help these acquisitions to thrive. A proven model take the best practices of successful, niche acquisitions and spreads the capabilities across the company, making the whole much better that the sum of the parts.
Strong gradual integration into the corporate model and a conservative approach to financial control ensures that brings a significant portion of revenues to benefit the company and support a firm foundation for its growth.
Acquisition Strategy
Our strategy supports its goal of creating a $50-100 million company in the next one to three years by acquiring successful, existing staffing business in the $5 million to $10 million range. Exceptional companies with over $10 million offer attractive possibilities, as will smaller companies with strong growth potential.
The ideal new company has significantly penetrated its market and has a stellar reputation for outstanding customer service with strong, ongoing client relations. Special consideration is given to niche businesses with processes that can be replicated in other markets. Every effort is made to retain existing Management and owners, who are empowered to leverage their unique talents and expertise to continue developing already successful operational styles and method.
The acquisition process:
A comprehensive integration starts with stringent due diligence prior to acquisition to help determine issues that need attention in advance to a final agreement. This step helps both parties by including methods to determining the true value of the business, identifying financial levels that may need modification, focus on operations practices to be integrated into management procedures, and communications processes that assure a smooth transition.
Owners are encouraged to remain with management, and help identify an eventual internal replacement. The total merger requirements of the businesses are explored. A systematic, step-by-step process is developed to ensure that integration is accomplished as quickly and simply as possible and communicated along the way in a sensitive, timely fashion to employees, customers, vendors, and other stakeholder.
Following acquisition:
Recognizing that integration means, we have developed sensitive, standardized policies and procedures for dealing with human resources issues, which are critical to merging companies and cultures. The first step is transferring back office operations to administrative headquarters for maximum efficiency. Training, administration, information systems, communications human resources management and etc.
Policy development and financial management are centralized systems shared by all offices. Managers are encouraged to tailor marketing, public relations, policy implementation, and products development/delivery to reflect their unique Management styles and specific markets, in instances where the company name is changed to a division of the holding company ; a significant part of the integration process involves signage, stationery, promotional items, and advertising.
Building a consistent corporate culture that newly -acquired employees readily accept is an ongoing challenge for us. At the same time, a policy of entrepreneurial empowerment encourages the acquired officer to retain the qualities that makes it special. The feeling of ownership is fostered in acquired businesses with incentives, bonuses, and stock options to motivate and reward positive attitudes throughout the company.
As we help Target Acquisition companies; it integrates the expertise of the principals and key personnel into its network-wide operations through the diligent application of a comprehensive integration strategy. Product and service development is coordinated through central product managers, drawing on the strengths of their special industry expertise in each area. Marketing and customer service are honed, processes streamlined and perfected, and products and services rolled out across the country to increase market penetration in each location.
Operating Model
Below you will find an outline of the staffing model we develop and implement into the Target Acquisition companies. In today’s competitive environment, a staffing company must attain its competitive leverage by performing its operating functions better than the competition.
The Operating Model consists of systems and procedures that maximize the time consultants spend on every proactive, primary activity that can be achieved during prime time. The Model facilitates the rapid replication of the delivery of services to a broadening client base. The Operating Model achieves above average production results per full time employee while minimizing unnecessary operating costs.
The more time invested in the activities that drive the staffing process, the more results to the bottom line.
Key components are:
• Desk and Office Operating Layout
• Forms and Operational Process
• Time Management and Work Flow
• Daily Activity Meeting
• Confidential Office Evaluation Process
• Letterbank/Marketing Materials
• Administrative Cycling and Support
• Proposal/Presentation Templates
• Activity Benchmarks: Daily, Weekly, Quarterly
• Credit Policy and Procedures
• Collection Policy and Procedures
• Payroll Policy and Procedures
• Workers Compensation Policy and Procedures
• Office Opening Procedures – Satellite and “Cold Start”
• Activity Reporting: Daily, Weekly, Quarterly
• System Automation
We will be a viable, creative Management organization with a keen eye on the future. A functional Management structure centers on sound Management principals that avoid duplication of effort and improve accountability. Performance-oriented job descriptions are in place for all key personnel. Centralized office administration, planning, and payroll functions allow site managers the freedom to develop business, serve clients, and improve their staff.
Overall operations are administered from the administrative office, directing sales, and operations personnel. This ensures achievement of performance objectives and provides ongoing support and consistent, expert guidelines to all reporting staff. Key managers are assisted in establishing sales and operations goals. Financial growth and profitability are kept on track through careful monitoring of revenue and expenses.
Accounting and finance operations are coordinated through the corporate office in conjunction with our back office software capabilities. Each company acquired establishes its own operational and performance objectives for accounting and administrative departments and ensures the accuracy and completeness of personnel records. The company’s controller oversees the receipt, review, audit, and distribution of funds for purchases, and provides Management with timely financial reports and statements. The Corporate CFO will spearhead our financial strategies for growth and prepare the company for our ongoing financial strength and eventual exit strategy. The CFO will put together an accounting team that will include a controller, and necessary staff to utilize our back office software. It is expected that this procedure will allow us to integrate each acquisition in to the system within 90 days of closing.
Centrally generated advertising, direct marketing, and public relations support company growth and help the company build on its reputation throughout the organization. Advertising campaigns and collateral materials originate from the corporate office for use nationwide. Local offices handle advertising to identify qualified applicants for client positions, also depending on established word-of-mouth and direct contact sources.
Advantages to joining the Rollup
With sound financial backing and a proven experience in successful mergers and acquisitions, we can offer significant advantages to businesses joining this national organization. By merging thriving companies, we can leverage the wealth of experience they can share. We can provide increased buying power and the ability to negotiate better terms and agreements. More services and products generally mean more customers and profitability. As businesses and Management mature, we can also offer a larger pool to tap for future managers and leaders. Together these attributes place those associated with the company in a stronger position to meet market demands.
The company’s Management believes that it can gain significant market share by offering a higher quality of service and level of expertise than is normally found among smaller temporary service providers working alone. It will offer special employee screening and testing services, free Internet-based training modules, and access to customized reports over the Internet such as accounting and database management . Since enhanced services typically allow higher markups on pricing, the company believes that this strategy can increase profitability in each office.
Because the company appreciates the entrepreneurial spirit that makes the business it acquires successful, senior Management encourages owners to remain with the company and enjoy the benefit of business participation with far less risk. Most owners retain their local presence and build on the reputation they have already established, but they have the added capabilities of national services to offer their clients. Enhanced education and training opportunities help them and their employees grow and prosper. Centralized marketing provides professional collateral materials to support sales efforts. Centralized procurement of legal services, insurance, computing, consulting and employees benefits contracts provide immediate cost savings.
A significant advantage to those joining us is the proven, long-range leadership and solid ethical culture that senior Management nurtures in the company. This begins with the comprehensive integration plan for merging business interest and cultures, recognizing the successful business practices that made the acquired firm attractive in the first place. While owners who remain with the business have a sense of autonomy in many operations procedures, central administration of payroll, benefits, taxes, accounting procedures and regulation compliance can free his or her time to build the business and help the staff grow.
Throughout the transition period, we keep sensitive, timely communications flowing to employees, customers, vendors, and other stakeholders as the merging process proceeds. Whenever possible, staff members are kept in place to take advantage of their experience and expertise. If a position must be eliminated or changed because of the economy of consolidation, the person holding that position is offered another place in the company.
In this thriving economy, sellers find their businesses have good value, perhaps, the best ever. Owner’s, who decide to move on to another business or retirement for the long-term, find the certainty of financial reward through an agreed-upon price with an organized exit strategy.
Acquired partners will benefit competitively from Management’s focusing its marketing and sales efforts on small- and midsize firms. The company believes the larger national staffing service providers do not currently target this market segment extensively, which may not be able to provide services to smaller accounts on a profitable basis. We believe that, consequently, it will experience less direct competition from companies with greater resources than itself.
Furthermore, the company believes that with the combined expertise of its member companies it will have a competitive advantage over individual staffing service providers with fewer resources and services. Its competitive position is enhanced by the ability to offer a wide variety of skills in some of the most important markets for temporary work.
OPERATING PERSONNEL
The central driving force a staffing organizations rate of success will be the quality of hiring, training, motivation, and reward utilized in developing staff to carry out the primary activities and processes that deliver the Company’s services to its clients. The daily execution of the Staffing Process is in direct correlation to revenue and profitability. Operating Employees drive the Staffing Process.
These are the services we will help to provide to insure your Company creates Value:
• Recruiting/Hiring Process
• Defined Roles and Responsibilities
• Compensation Plan
• Career Pathing
• Consultant Review Process
• Recognition Program
• Progressive Discipline Program
KEY PROBLEM AREAS
These are the problem areas that we will help to provide an answer to:
• Not enough direct sourcing of candidates
• Too much agency usage
• HR staff that is too junior and doesn’t understand the fundamentals of effective recruiting
• Recruiter Review Process
• No appropriate database or applicant tracking system
Management Training
Initially, each member of the team will receive in depth training regarding the full-service Staffing Consultant role. The New Consultant Training Program will be essential to the Company’s ability to grow fast. Consultants leaving the class will have a thorough understanding and a demonstrable working knowledge of the concepts, processes, tasks, presentations, etc. needed to perform in their new role. This will enable them to hit the ground running and bring faster returns all around.
Additional training will include:
• Mentor Training Program
• Management /Leadership Training
• Advanced New Business Development
Recruiting and Sales Training
Initially, each member of the Recruiting team will receive in depth training regarding the full-service Staffing role. The New Recruiting and Sales Training Program will be essential to the Company’s ability to grow fast. Recruiters leaving the class will have a thorough understanding and a demonstrable working knowledge of the concepts, processes, tasks, presentations, etc. needed to perform in their new role. This will enable them to hit the ground running and bring faster returns all around. Training will include:
• Cold Calling
• Competitive Research (finding companies to target when recruiting)
• Recruiting Call Presentations
• Handling Recruiter Call Objections
• Qualifying Candidates
• Interviewing Techniques
• Covering Counter-Offers
• Reference Checks
• Salary Negotiations
• Making an Offer
• Closing Candidates on Offer
• Coaching Candidates through Resignation Process
Training and Consulting Benefits
An understanding of recruiting, direct sourcing, and its proper implementation should alleviate many of the key problems within corporate recruiting environments. The following are some of the benefits we will be able to provide with their training services:
• An understanding of the fundamentals of recruiting and direct sourcing should enable companies to find the best possible talent rather than the best available talent. Some recruiting organizations are just not experienced enough yet to be able to do this. HR professionals only handle recruiting or the corporate recruiting staff is not being utilized properly.
• Costs in the areas of agency usage and Internet usage will be cut dramatically as your organization begins to understand how to recruit effectively on their own. Many companies are spending too much money in these areas. This is because they either don't have a recruiting organization or their internal recruiters are not experienced enough. Some companies are spending $1mm - $3mm dollars per quarter on agency fees and at least $250,000 per year on contracts with Internet job boards. If we can train HR recruiting departments how to recruit effectively, a company will find more value in these departments and this will also be a way to provide additional career paths and growth opportunities to the HR professionals.
• This is a great market to implement this service. The reason is because there's more talent now that the market has taken a downturn. Therefore, this is a great time for new recruiters to get their "feet wet" and have their skills honed by the time the market bounces back. Your company will be well prepared when the market turns around.
In today’s competitive environment, a staffing company must attain its competitive leverage by performing its operating functions better than the competition.
Technology will affect how business is done
In many ways, staffing services providers are being influenced by new technologies. Most obvious are the many new shill sets, occupations and technical specialties that are being born virtually daily. The incessant pace of change in business life has created demand for staff that must be tested and trained for new technical skills. The changing workplace itself is dramatically affecting staffing.
Also a major issue is the increasing functionality of software that can assist with resume sorting, skills matching, testing, training, billing and dispatching. This in turn has changed the expectations of staffing firms’ clients, and put a premium on those that can offer new capabilities or participate in vendor-managed arrangements. Software is also beginning to link the front office with the back office, supplier with customer and master vendor with subcontractors.
Obtaining workers comp won’t get easier
Officials say that the full impact of the Sept. 11 tragedy is just beginning to be felt in the insurance industry. Insurers must charge higher premiums to cover their claims. And after writing workers compensation policies at a loss for several years, some companies are out of business. Some banks and insurers now ask for quarterly financial statements. Eventually this cycle will come around, but don’t look for a soft market in 2010.
Expect more outsourcing of HR functions
Although staffing is clearly a critical function for any organization, we expect to see much greater outsourcing of many personnel functions that have typically been performed by the corporate human resources department. In smaller firms operating below the threshold for a HR manager, we already have seen the growth of professional employer organizations. These alternative small business models are being facilitated today by a host of Web-based applications.
Smaller and larger companies are finding advantage in the outsourcing of payroll, benefits administration, background checking, corporate communications, on-the-job training, career services, sourcing, relocation and other HR administrative tasks. This new area of business process outsourcing will provide additional opportunities for staffing services providers but can also generate competitors for their core staffing services.
Screening and testing will be important
In the wake of Sept. 11, we have seen more demand from clients for workers who have been screened prior to hiring. Clients also are stepping up work force surveillance and implement new security policies. Now more than ever, background checks are becoming a critical part of the HR function - including, educational credentials, previous job experience, convictions and gaps in resumes. This will put pressure on staffing firms to find the bad apples by more thoroughly vetting potential employees.
New grads will have a tough time
About 1.3 million bachelor’s degrees will be awarded next year - 10% higher than the number economists predicted five year ago. The number of two-year degrees is estimated to be 14% higher than the figure predicted five years ago. Unfortunately all those new grads will find a tight job market.
Staffing stocks will go up
If the stock market precedes the economic recovery by six months, then staffing stocks will be at the front end. We think there will be moderate improvement in share prices as long as the recovery plods along, except for IT staffing specialists, whose stocks may languish until 2005.
Firms will compete for scarce workers
“The downturns are not killing the free-agent mindset.” said Management consultant and author Bruce Tulgan at the ASA meeting. Despite the abundance of unemployed people, staffing companies will still have to work to attract talent. There are still scarcities in the health professions such as high-level networking engineers and game developers - and that is unlikely to change soon.
Growth Strategy
We believes that by successfully executing this growth strategy, your firm will be positioning itself to enjoy the benefits the industry has experienced within the general business climate, as well as positioning itself to fully realize its competitive advantages.
Our growth strategy is to maximize market penetration, revenue generation, and net earnings by introducing its services to your current markets, then systematically introducing service into new markets. The key elements of the growth strategy are:
• Leverage existing client relationships and develop new ones.
• Introduce new services through separately branded business units.
• Maximize cross-selling opportunities provided by complimentary services offered by separately branded business units.
• Facilitate the efficient utilization and development of all staff.
• Continual “multiplication by division” of resources and profit centers.
• Provide Priority Client Program to link markets.
• Acquire strategic businesses.
Acquisition and Growth Plan
Stage One
A. Acquire one or several companies with Equity Investment Partners to have a revenue stream of $5-10 Million).
B. Grow internally through existing Management & synergy of combined talents. Establish optimum business practices to enhance value of company through centralized back office processes. Establish lean productive infrastructure to support Stage Two. (Months 3-5)
Stage Two
a. After successful implementation of Company infrastructure/integration an Acquisition Strategy based on leverage, value enhancement, product, and geographical criteria will be developed that will produce the desired exit.
b. Identification of Acquisition Targets (Months 5-10)
c. Negotiation (Months 6-12)
d. Building Management team and Organization (Months 8-18)
Stage Three
Implement Strategy
1
888-984-4701
or 24-Hour
"On Call" Service | Email
Us | Apply
Online
