Pro HR, LLC
Pro HR, LLC
has been acquired by
Barrett Business Services, Inc.
Capital Alliance Corporation initiated
this transaction and assisted in its closing.
Pro HR, LLC
The Selling Company: Pro HR, LLC was formed in 1997 to market and sell Professional Employer Organization services such as payroll, benefits management, workers’ compensation insurance policies and health insurance policies for its client organizations. Under the law, a co-employer relationship existed between Pro HR and its clients and Pro HR functioned as the full service human resource department, thereby permitting client companies to focus on their core competencies. Revenue grew from zero to approximately $130 million annually.
Why the Company Was Sold: The shareholders (in their mid-thirties) had accomplished their goal of establishing and growing a high quality company in their region and chose to liquidate their holdings in order to pursue real estate development opportunities and other interests.
Capital Alliance’s Performance: Our significant industry knowledge help to focus our research to identify a strategic acquirer who was very interested in establishing a strong foot print in our clients geographic region. Capital Alliance generated interest from several strategic and financial acquirers before introducing this well capitalized strategic acquirer looking to expand into the seller’s market. The acquirer was introduced to the seller on November 28th, where we assisted in the price negotiations. The acquirer submitted an indication of interest two days later, and closed the transaction on January 1 – 34 days after our initial introduction.
Terms of the Transaction: The selling shareholders received an all cash offer well above expectations with a short-term deferral for approximately 25% of the purchase price related to an acquisition that was completed just prior to the closing.
The Acquiring Company: Barrett Business Services, Inc. (NYSE) operates as a human resource management company. The company offers a range of human resource management services that encompasses payroll processing; employee benefits and administration; workers’ compensation coverage; risk management and workplace safety programs; and human resource administration, which includes functions such as recruiting, interviewing, drug testing, hiring, placement, training and regulatory compliance. It also provides staffing services, which include on-demand or short-term staffing assignments, contract staffing, long-term or indefinite-term onsite management, and human resource administration.