Experience w/ or acquired a staffing company? Things to look for, good & bad

by a searcher from Harvard University - Harvard Business School

5 years ago

Recently found an opportunity in the space and was hoping to talk to someone or get some advice. In my quick research, I know that "key-man" risk (owner's name is tied to the biz and often holds most to all of the relationships) is one big factor; however, with one opportunity I am looking at, the owner only manages the internal workings of the company and, for 1/2 of the year, its done remotely. Thanks for any and all feedback!

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3 comments

searcher from University of Cambridge

I have experience with staffing business. First question is it a temp or perm staffing. business? If temp then it is high volume and low margin especially if it is general staffing and not professional staffing e.g. finance & legal or medical. If permanent placement business then margins are higher but the geography of the business will drive your revenue model e.g. in some countries it is normal to pay for the search of a candidate in other region you will only get paid if your candidate was successfully placed and survived the probation period. In general it is a very competitive business with not much of a competitive advantage that one can build. There are no or vey low barriers to entry. Happy to talk more and to connect with you on this topic to share more insights.

5 years ago | like reply | 2 likes

searcher from University of New Hampshire

Josh what is the industry of the staffing company? I have some knowledge in that space as I almost made an acquisition in that space. Let me know if I can help

5 years ago | like reply | 0 likes

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