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Jan 15
2008
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BBSI in Another Staffing AcquisitionPosted by Dan Doran in Staffing Acquisitions |
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Fresh on the heels of its Phillips Temps acquisition, Barrett Business Service, Inc (BBSI) has announced the acquisition of First Employment Services in Arizona. BBSI expects the transaction to be accretive to earnings during the fist year.
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.