Select Transactions

Midwest Area Company – Many direct clients and Cognizant. Clients include Leading Insurance Broker, International FinTech Client, Healthcare Solutions Provider, Multinational Hospitality Company, Consumer Electronics Manufacturer, Highest end luxury retailer, Major global technology company, Multinational IT consulting and outsourcing company, NTT Data, BNSF, and others. 190 candidates on billing. 103 onsite (98 on W2 and 5 C2C) and 87 offshore (70 on W2 and 19 C2C). 60 on billing with direct clients and 135 on billing with primary vendors. Comes with full back office. 4 onsite and 16 offshore. The current revenue run rate is $24M. The current hourly gross margin is around $1520. The seller is looking for 4200 times the hourly gross margin as the sale price. 70% paid at closing. Seller Note 30% will be paid at the end of 12 months. Motivated Seller. The buyer must pay a fee.

"Acquired for $4.5M, 100% paid at closing with no guarantee." 

East Coast Area and India Company – Long-established company. Providing customized talent acquisition solutions to clients. Providing Full-Time Hiring, Contract Hiring and SOW based work. Prime vendor to 3 of the Big Six Indian Big Tech companies.35+ clients in USA and India. The USA MSA includes Virtusa, Persistent, Hexaware, and L&T. The Indian MSA includes Fujitsu, UPS, Oracle, Satyam Ventures, Birla Soft, ACS, CapGemini, and Jade Global. The Company provides talent solutions across USA, India, and UK-EU. The company also has training services. Also, Campus & Off-Campus hiring solutions. The company owns the database ATS system with around 400,000 candidates. The 1^st year potential revenue in India is more than INR7 Cr and in India is more than $1.8M. Currently 3 candidates are on billing.  The current hourly gross margin is $29. Looking for $1.1M as the valuation for all the 35+ active MSAs that the company has. 70% paid at closing and balance paid in 6 months.

"Acquired for $1M. 54% paid at closing. Balance paid in 2 months with 90% guarantee."

Two small companies – One of the companies is in the East Coast Area and one in the South-Central Area. 24 candidates on 25 projects. Many on long-term projects. ChanceLight and 2-10 Home Buyers Warranty as direct clients. Very good Tier-1 clients including Hays/Cognizant Consulting, Insight Global, ARTech, Cirrus Labs, DAICS Global, UBS, Agile, Populus and Oakland. The current revenue run rate is around $4M. The current hourly gross margin is around $225. The seller is expecting 3800 times the hourly gross margin as sale price with 70% paid at closing and balance paid in 6 months with 90% guarantee. The buyer must pay a fee.

"Acquired for 3800 times the hourly gross margin. 70% paid at closing. Balance paid in 6 months with 90% guarantee."

East Coast Area Company - Very long-established company. $40M revenue

Overview:

• Reputable company with over 20 years in business, specializing in staffing solutions, primarily focused on contingent labor in IT and business professional labor categories.
• Offers Project (SOW) and Managed Service offerings to over 10 clients.
• Provides offshore resources and FTE search solutions.
• Diverse client base, with 5+ active clients in both financial services and life sciences sectors, as well as multiple clients in the hospitality, retail, and consumer goods verticals.

Business Models:

• Primarily serves direct end clients, including a few implementation partners with active resources in 35+ states.
• Serves local and state government clients, with excellent retention rates.
• Key clients include one of the Fortune 500 multinational pharmaceutical, biotechnology, and medical technologies corporation (SOW), a company that provides solutions to pharmaceutical companies, European Life Sciences Client (MSP), a company that provides patient support (MSP), a wealth management company (MSP), State Government Clients, Major US Financial Institution, a multinational manufacturing conglomerate (SOW & MSP), Federal Reserve Banks (MSP), Emerging Publicly Traded Life Sciences Client, Genpact, and Hexaware.
• Client contracts allow for expansion into additional labor categories such as clinical/scientific and light industrial/engineering.

Client Attraction/Growth Opportunities:

• Strong appeal to partners providing support services in multiple labor categories and countries, with an ability to leverage existing contracts and client base.
• Offers extensive project-based and managed service solutions (onsite, offshore, or hybrid) with enormous potential for expansion.
• Potential to expand globally using the existing enterprise client list, despite no current presence in Canada or Europe.
• In-house immigration team managing visa processing, with less than 20% of active resources on H-1 visas.

Company Structure:

• Diversity-owned (MBE) with tier 1 status and over 30 direct clients.
• Balanced client concentration with a diverse client base.
• Three synergistic organizations under common ownership:
  1. One org addressing clients’ SBE needs.
  2. One org focused on providing support and Global offshoring capabilities and providing opportunities in the Indian market.
  3. The organization in the US organization is in good financial standing with a strong brand in the HCM space.

Financials:

• Current yearly revenue run rate: approximately $40 million.
• Current hourly gross margin: around $3,425.
• Sale price: 4,500 times hourly gross margin.
• Payment terms: 75% at closing, 15% after 6 months, and 10% after 12 months, with a 90% guarantee.

"Acquired for 3500 times the hourly gross margin. 55% paid at closing. Balance paid in 3 more payments in 2 years."

Texas Area Company – All H-1B candidates – Total 46 candidates. 44    on H-1B. One C2C and one on OPT. 40 candidates on billing. Many good Tier-1 clients including ACS Solutions, CEO Foundry, Cigniti, eTeam, Experis, Indotronix, Judge, Nityo, Orion, Sconcepts, and Symbiotic. The current revenue run rate is more than $5.4M. The current hourly gross margin is more than $300. The seller is looking 3800 times hourly gross margin as sale price. 70% paid at closing and balance paid in 6 months with 90% guarantee. The seller is open for 3200 times hourly gross margin as sale price with no guarantee. Motivated seller. Open for negotiation. The Buyer must pay a fee.

"Acquired for 3200 times the hourly gross margin. 100% paid at closing. No guarantee."

Midwest Area Company – 37 candidates on billing. 24 on H-1B. 6 OPT and 1 CPT. 6 on C2C. Very good Tier-1 vendors include ARTech, Harvey Nash, Hays (Cognizant), Insight Global, IRG, Star Tech, Synechron, and Torque. The current annual revenue run rate is more than $3.1M. The current hourly gross margin is around $367. The seller is looking for 3200 times the hourly gross margin as the sale price. 70% down payment paid at closing. Balance paid in 6 months. 90% guarantee. 

"Acquired for 3200 times the hourly gross margin. 60% down payment and balance paid in 6 months with 90% guarantee."

South Atlantic Area Company – More than 30 years established company. This company is providing quality cyber security consulting, IT professional  services and Workforce solutions that support federal, state and local contracts. The company has Top Secret Clearance. The company is a certified Small Disadvantage Business. Certified by MDOT (Maryland) and Virgina SwaM. All the business is earned as an SDB. The Company is teamed with Link Technologies to get SEWP VI NASA GWAC, to team with SEWP Primes or go after direct government business. The Company is eligible to submit a new application to GSA Schedule 70 GWAC that lapsed in 2024. The Company is listed in SAM.gov. The Company has applied to many Vendor Registration sites. The Company has the Secret Safeguarding capability. The Buyer will be introduced to the Leidos-HireGenetics Manager. The Buyer must be an US Citizen to get the DoD Clearance and eventually Top Secret Clearance. The Seller will sponsor. The Buyer will be listed as the KMP (Key Management Personnel). The current clients include Leidos (HireGenetics – NRC, DOJ, FAA, Energy, HUD, CA State, CIA, DOE, SSA, C1N ) with Fieldglass access, AT&T (USAF BIM, DIA SITE III, VA), SNAP (Prince George County), Lockheed Martin (RMS, INTEL, USPS), TechBlue (SOCOM, Accenture Gen AI), Link Technologies, CGI, Accenture, GDIT, IBM, ClearAvenue, and GovCIO. A total of 13 candidates on projects. All are US Citizens. Two with DoD clearance. The current revenue run rate is around $1.4M. The current hourly gross margin is more than $115. The seller is looking for $575,000 as sale price. 70% down payment and the balance paid in 6 months with 90% guarantee.  The seller is willing to stay in the company and help the buyer to grow the business with his Top-Secret Clearance. Very motivated seller.

"Acquired for $650,000 on the 8th day of listing. Received 4 offers and 3 LOIs. 70% down payment and balance paid in 6 months with guarantee."

Texas Area Company – Good Tier-1 clients. Exceptionally good skills. 10 candidates on 11 projects. 7 on H-1B and 3 on OPT (2 got picked in this year lottery). The current revenue run rate is around $1.57M. The current hourly gross margin is more than $108. Looking for 3300 times hourly gross margin as sale price. 70% paid at closing and balance paid in 6 months with 90% guarantee. Motivated seller. The buyer must pay a fee.

"Acquired for 2800 times hourly gross margin with 70% down payment and balance paid in 6 months with 90% guarantee.

Bay Area CA Company – Good Tier 1 Clients including CAI (Portal), Randstad (Portal), Clear Point, Disha, Akkodis, Strategic Staffing Solutions, and Open Computing. Candidates are working at State of NJ, State of DE, State of PA, FedEx, PA State of Polic, and many others. 23 candidates on billing. Only 6 on W2. No H-1B or OPT or CPT. The current revenue running rate is more than $3.2M. The current hourly gross margin is around $250. The seller is looking for $750,000 as the sale price. 70% paid at closing and the balance paid in 6 months with 90% guarantee.

"Acquired for 3000 times hourly gross margin. 75% down payment and balance in 6 months."

CA Area Company – All Direct Clients. 6 consultants on billing. 2 US Citizens and 1 H-1B on W2, 1 on 1099 and 1 C2C. Direct Clients include Extreme Networks (Staffing SOW) and Johnson & Johnson (Staffing SOW). Cargil for Full Time placements. Recent and Past clients include American Express, Paypal, Delta Dental, CISCO, eBay, Kaygen, Enfos, Wells Fargo, Rapid Flow, Move Inc., State of Florida, State of California, and Realtor.com. GSA filing is getting completed. Yearly Revenue is around $950,000. The gross yearly gross margin is more than $285,000. The seller is looking for 3 times the yearly gross margin as a sale price or best offer. 70% payment at closing. Balance paid in 6 months with 80% guarantee.

"Acquired for 2.6 times yearly gross margin. 75% down payment and balance in 6 months."

Bay Area Company. Client's Includes A) HCL, B) Global Manufacturer and Distributor of Semiconductor equipment, and C) Multinational Conglomerate. Around 95 candidates are on billing. Around 33 W2s. Only a few on H-1B. Mostly Non-IT Skills. Some IT skills. Good, experienced Recruiting and delivery team. The current revenue run rate is more than $12M per annum. The current hourly gross margin is around $870. Looking for 4500 times hourly gross margin as valuation. 100% paid at closing. Buyer must pay a fee.

"Acquired for 4000 times hourly gross margin. 70% down payment and balance in 6 months."

Southwest Area Company—Established Company. Vontier as Direct Client. Very good Tier 1 clients like Beacon Hill, Broadridge Tech, Caspex, Cloud Wave, HireGenics, People 2.0, TEK Systems, UST Global, Vendorpass, and others. 48 projects. 24 on H-1B, 3 on H4-EAD, and 1 CPT. 7 C2C. 2 on 1099. 4 Others. 10 more candidates on the bench (9 H-1B and 1 OPT). Varied Skillsets. The current revenue running rate is more than $7M. The current hourly gross margin is around $665. Looking for 3200 times the hourly gross margin as the sale price. 75% paid at closing and the balance paid in 6 months. 90% guarantee. 

"Acquired for 3000 times hourly gross margin for H-1B candidates and 2600 times hourly gross margin for others. 70% down payment and balance in 6 months."

Midwest Area Company – Excellent Implementation partners and VMS/MSPs.  Implementation partners include CapGemini, Brillio, Birlasoft, Nagarro, TATA Elxsi, Incedo, and others. VMS/MSPs include Scouts, CAI – Vector (State of VA, GA, FL, AR, CT, ID, IN), CareerStaff Unlimited (12+ Healthcare Clients), Reflik, Prosperix, Knowledge Services (State of MI) and BountyJobs. 12 candidates on billing. 9 on W2 and 3 on C2C. 7 on H-1B. 1 US Citizen and 1 EAD. 10 more H-1Bs in the pipeline. The current annual revenue run rate is around $1.4M. The current hourly gross margin is more than $122. Looking for a majority shareholding partner at $600,000 valuation. Negotiable. 70% payment at the closing, and the balance paid in 6 months. 

"Got a 60% partner at 4000 times hourly gross margin valuation."

Eastern Area Company – Federal contracts company with Top Security Clearance. Company listed in 2022 as one of the 500 fastest growing companies in North and South America. 200+ Cleared Resources. 75+ Cleared Resources at Top Secret SCI CI Poly and 6+ Resources cleared Full Scope Ply (NSA/CIA). Services offered include Cybersecurity (Identity and Access Management Solutions, Security Monitoring Implementation, SOC Monitoring, and IA), Cloud Computing and Virtualization (SaaS, IaaS, SoftVirt, ITaaS and PaaS), Data Center Monitoring, Application Performance Monitoring, Expert Level Programming Services (Java, Kotlin, Swift, iOS and Android). Employees have Certifications including CISSP, CISM, Azure Solutions Architect, AWS, Google Cloud, Splunk Enterprise Architect and MicroFocus. Software (OEM) Vendor Partners with Dell, Google, CA, MicroFocus, PLAID, Oracle, Broadcom, RedHat, Adobe, Amazon, and Microsoft. Services Teaming Partners with Northrop Grumman, Peraton, ManTech, General Dynamics, Oracle, L3Harris and ECS. Client List include DoD, US Marine Corp, DLA, US Coastal Guard, Department of Navy, DCSA, US Army, Pentagon Force Protection Agency, DNDC, DISA, DoD National Intelligence Agencies, NSA, NRO, NGIA, DIA, CIA, DoJ, NOAA, IRS, Treasury, DOE, DVA, CDC, NIH, GSA, Freddie Mac, Fannie Mac, NYC HRA, and The City of Morgantown, WV. 32 active contracts. With value of more than $11B through 2030. Revenue realized to date since company inception $100M+.  2021 Revenue $31M. Prime Contracts with GSA IDIQ, Oracle, RedHat, Adobe, STARS III GWAC, NOAA and Broadcom. Estimated 2022 gross revenue will be around $36M. Estimated 2022 EBITA is around $2M. 2021 EBITA is around $1.7M. Looking for 6 times EBITA as sale price. 70% down payment. Balance paid in 12 months. 90% guarantee. The seller will leave 30 days working capital. The seller is willing to stay with minority shares and grow the business.

"Acquired for 5.72 times EBITDA. Include $2.7M in AR and $3M in working Capital in the valuation. 50% paid at closing. 25% in 12 months and 25% after 18 months. 90% guarantee. The seller is staying back with 25% share in the company."