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Selling a Staffing Agency in Columbus

Central Ohio runs on warehouses, distribution centers and light manufacturing, and plenty of that work is staffed by agencies. Buyers know it, and they shop here.

Columbus Business Brokers Desk explains what they look at first, and what moves the price of a staffing company.

Rather talk it through? (614) 555-0148

Staffing coordinator on a headset reviewing a shift schedule on two monitors in a small Columbus office

What a buyer checks first

  1. Share of gross profit from the top three clients
  2. Gross margin by client and by type of placement
  3. Workers' comp claims history and premium rate
  4. Who at the agency each client actually calls
  5. How payroll is funded between billing and collection
  6. Any open wage, overtime or misclassification claims

Gross Profit Matters More Than Revenue

Staffing companies often show big sales numbers on thin margins. Buyers look past the top line and ask what's left after you pay the workers, their payroll taxes and their insurance.

A company billing $8 million at a healthy margin can be worth more than one billing $15 million on razor thin spreads. Be ready to show gross profit by client and by placement type for at least three years.

Direct hire fees, specialized placements and payrolling arrangements each carry different margins. Separate them in your reports so a buyer doesn't average them together.

Is One Big Client a Problem?

Usually, yes. It's common for a Columbus agency to have grown on one warehouse or plant account. If that client is a third of your gross profit, a buyer sees a company that could lose a third of its value with one phone call.

A long relationship helps, a written contract helps more, and a contact at the client who isn't tied to you personally helps most.

Your best client is also your biggest risk the day you decide to sell.

Workers' Comp Follows the Business in Ohio

Ohio runs workers' comp through the state's Bureau of Workers' Compensation. When a staffing company is sold, the buyer can inherit the seller's claims history, and that history drives the premium rate.

For an agency, workers' comp is one of the largest costs after wages. A clean record supports your price. A rough one shows up in the buyer's math. Our guide to the Ohio BWC account transfer explains how it works.

Unemployment experience moves too, which matters in a business with a lot of turnover. See the unemployment account transfer guide.

Relationships Have to Outlast You

Buyers want to see recruiters and account managers who talk to clients every week. If every plant manager in town has only your cell number, the buyer will want a long transition, an earnout, or both.

Start handing off accounts well before you sell. A year of a client hearing from someone else is worth a lot at the closing table.

Who Buys Staffing Companies Here?

Regional and national staffing firms buy agencies to enter Central Ohio or add a branch. Private equity backed groups buy them as add ons. Individual buyers with industry experience use SBA loans for smaller, steadier agencies.

Each one values your client list differently, which is why it pays to have more than one at the table. Our page on what your company is worth covers the general math.

For a private estimate, use the value form or call (614) 555-0148.

Call the desk: (614) 555-0148