Well-Established Outsourced HR & Payroll Service Provider, Generating Substantial Volumes of Recurring Revenue Via Auto-Renewal Contracts

National specialist HR and payroll service provider, with an established foothold in a niche sector, serving a diverse client base of SMEs, covering three key disciplines of Managed Payroll, HRMIS System Provision and Professional HR Advisory services. The company offers a comprehensive range of add-on services, including employment law and contract advice, change management, HR policy support and Board/director development.

Key Aspects

• Exceptional knowledge, expertise and superior service offering has forged the company an excellent reputation within a niche sector, as well as a growing presence in the SME market.
• Outstanding quality control, with a payroll accuracy well above the industry standard.
• Auto-renewing contracts in place across the entire client base, generating a substantial proportion of guaranteed recurring revenues, with favourable cancellation terms.
• No one client represents more than 13% of sales, mitigating the risks associated with overreliance.
• Successfully obtains new contracts through tendering for projects, winning 37.5% of the tenders it bid for within the last 12 months.
• Strong working relationships with suppliers ensure continuity of quality and supply.
• Customer-centric ethos and highly-flexible approach to all projects unrivalled by larger organisations.

Opportunities

• Opportunity to expand the company’s client base, recruiting additional SME clients via tendering for new contracts.
• Opportunity to expand HR advisory service, offering support services to larger companies to assist their current HR departments.
• Opportunity for an acquirer to mobilise an existing field-based sales team to extend reach and volume of sales opportunities.
• Ideal opportunity for an acquirer, operating in a similar marketplace and with additional resources, to facilitate the company's business development plans and accelerate its future growth.
• Capitalise on the company's expanding project pipeline, recently negotiating a long-term contract with a national organisation operating multiple sites, with potential requirements to oversee c2.3k staff.
• Opportunity for an acquirer to gain an established foothold in a niche sector, with an established client base of over c300 clients across multiple organisations.
• Opportunity for a complementary acquirer to bring in-house a niche service offering and unrivalled expertise to diversify its existing provision, with a view to capitalising on cross-selling and up-selling potential.