Staffing Company Valuations

As announced, BBSI is paying approximately $5m for Phillips, with a portion deferred based on the first year's performance. Phillips posted approximately $7.5m in revenues for 2007. No further details were released, but you can see that Barrett paid approximately $.66 on the dollar for Phillips- a fairly typical valuation for a firm this size.

Why This Staffing M&A Worked

This deal represents a common trend in the industry: larger players continue to buy up smaller niche companies that either fill out a geographic need or an industry niche. Transactions like these offer a clear exit trajectory to companies that are properly prepared to integrate with larger, public suitors.