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Professional & Clerical Staffing Services in Rhode Island

Well-established for over 17 years with long-term client relationships!

CASH FLOW
$390,861

Specifications

  • Price
    $1,426,000

  • Revenue
    $3,716,080

  • Cash Flow
    $390,861

  • Location
    Providence, Rhode Island

  • Intangible Assets
    Long-term client relationships, word-of-mouth referrals, well-respected in the community

  • Reason for Sale
    Retirement planning

Well-established for over 17 years, this full-service staffing firm has several long-term client relationships in place! Providing staffing for temporary, temp-to-hire, and direct hire placements in the state of Rhode Island, clients include a variety of businesses and corporations, large and small. The team consists of 2 FT employees (the owner and 1 Staffing Specialist), as well as 1 on-call Staffing Coordinator and 55-60 temp employees on assignment as needed. Placements range from part-time, short-term positions to long-term opportunities. Several of their placements have remained in those positions for 10-15 years. Currently, they are receiving 5-10 new orders on a weekly basis. Their placement process can take anywhere from 2 weeks to 2 months, depending on the needs of the client. Well-respected in their community and known for providing exceptional service and always being accessible to their clients, this staffing firm is in a prime position for growth under new ownership.

 

Certified as a Rhode Island WBE/DBE, many national firms contact this company to partner with them; one such healthcare company was awarded a bid to set up a contact center in Rhode Island and develop the healthcare program for the state. Partnering with this staffing firm resulted in direct hire business for the VP of Human Resources, Business Analysts, Business Consultants, Instructional Designer, and recruiting personnel including skill assessments and language assessments.

 

Priced at $1,426,000 a 12.5% down payment of $178,250 returns $208,500 in the first year after debt payments – a 117% return on investment! This business already has a solid reputation in place and the majority of new business comes from word-of-mouth referrals. Creating an internet presence with a website and social media accounts would certainly expand the client base and increase revenue.

Business Highlights

Year Established: 2004

Location: Providence, Rhode Island

Service Area: 100% within Rhode Island

Services: Full-service staffing for temporary, temp-to-hire, and direct hire placements, payrolling services

Clients: Diversified: small businesses to large corporations

Certifications: Rhode Island WBE/DBE

Lease: 1,100 sq. ft. leased building w/ reception area & 3 private offices: $1,200/month  

Reason for Selling: Retirement planning

Personnel: 2 FT employees (1 Owner & 1 Staffing Specialist), 1 on-call Staffing Coordinator; plus 55-60 temp employees on assignment

Seller Training Period: 3-6 months

Growth Opportunities: Create internet presence with a website and social media accounts

Current Owners’ Responsibilities: Staffing, financials, payroll

Financial Highlights

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-March 2020
P&L Statement
Accrual
P&L Statement
Accrual
P&L Statement
Accrual
P&L Statement
Accrual
Notes
20202019201820172016
GROSS SALES$929,020$3,183,843$2,411,147$2,044,842$2,459,336
Annualized$3,716,080
Net Income Shown on Financial Statement$50,821$236,595$73,296$33,591$39,596
ADDBACKS
Compensation to Owner$40,504$119,583$124,966$97,396$162,360
11% Tax on total W2 Salaries$4,455$13,154$13,746$10,714$17,860
Depreciation$0$0$30$61$3,047
Interest$1$20$0$0$47
Meals & Entertainment$0$534$577$545$609
Contributions/Donations$200$1,450$1,780$2,480$2,370
Cell Phone$297$1,188$1,188$1,188$1,188$1,188/year
Car Lease$1,346$5,387$5,387$5,387$5,387$5,387/year
Personal Fuel$175$700$700$700$700$700/year
Owner's Health Insurance$0$12,250$0$0$0
TOTAL ADDBACKS$46,978$154,266$148,374$118,471$193,568
Seller's Cash Flow = Total Addbacks + Net Income$97,799$390,861$221,670$152,062$233,164
Annualized
Profit Margin10.52 %12.27 %9.19 %7.44 %9.48 %
Profit Margin: 12%

Valuation

Funding Example

Purchase Price:

$1,426,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2019 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2019 Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.