“NJSA Staffing Firm Success Story”
Access Capital's successful partnership with a staffing firm.
by NJ Staffing Alliance

CASE: A staffing firm headquartered in Montvale NJ initiated a strategic growth plan to diversify by acquisition, believing the current economic times would present some great opportunities. It identified an established IT services firm in New York City to acquire but with the current environment its commercial bank was not prepared to support this acquisition transaction. For the acquisition to take place, the firm needed a new financing source that would allow the transaction to be completed quickly (within 60 days), allow some of the borrowed funds to be used for the initial payment to the seller, and provide a line of credit to support the on-going financing needs of this new operation.

STAFFING FIRM: Haley Stuart provides direct hire, retained search and temporary staffing services in the highly professional and specialized fields of legal and retail. With a very experienced ownership/management team it had the capacity and energy to handle a larger, more diversified organization. With the cost advantages from using Haley Stuart’s already existing infrastructure to support the new entity and the willingness of the seller to remain active in the business with an earn-out for a portion of the sales price, this was an ideal acquisition candidate. The stumbling block was the need to find a new financing resource that would be committed to support the transaction. As an involved NJSA member, Haley Stuart’s management team knew that alternative funding resources existed within the NJSA Industry Partner Group.

NJSA INDUSTRY PARTNER: Access Capital

SERVICES PERFORMED: Haley Stuart met Access Capital at one of the “Breakfast Club in Bergen County” meetings sponsored by NJSA in 2008. The staffing firm reached out to Access regarding their challenge and requirements. Access immediately took on the role of advisor and consultant, as well as ultimately the funding source rather than playing “the hands off, uninvolved banker.” It immediately did a field exam of the entity being purchased and as a result was able to contribute its ideas and expertise regarding how the purchase and on-going operation could be structured contractually and financially. In this fashion clearly Access was as concerned and invested in making the acquisition possible as Haley Stuart.

WHAT WAS THE BENEFIT GAINED BY THE FIRM: The acquisition successfully closed within the 60-day timeline. The seller was able to pay off its bank financing, receive her initial payment, and the new entity now has its own asset-based line of credit in place to finance its current and future business needs. STRATEGIC PLAN ACCOMPLISHED!

IN THE WORDS OF THE STAFFING FIRM: “This transaction was unusual for us. We were simultaneously acquiring a business and securing funding for its ongoing operations. Access Capital was extremely helpful in advising on how best to structure the acquisition so that we could meet our and the seller’s objectives. Without the guidance of Access Capital’s team, I’m not sure we could have pulled it off.” - Jamie Schwartz

OTHER SERVICES OFFERED BY THE INDUSTRY PARTNER: As an asset-based lender specializing in the staffing industry Access finances working capital requirements and acquisitions. In today’s turbulent times Access is focusing on using its commitment to speedy transactions and client services approach as described above in the Haley Stuart example to aid and support staffing firms who are being notified that they are no longer “bankable” with their current financing institution due to internal bank credit policies.

INDUSTRY PARTNER CONTACT INFO: Vince Grillo, vgrillo@accesscapital.com, 212-644-9300 x103