Share
THE SITUATION
- An investor client asked Stax to evaluate the market position and growth potential for an employment background screening company. The company conducts a range of background screens for HR departments, including criminal, education/employment, and credit. In addition to assessing macro-level trends in the employment screening industry,
Stax examined company specific customer loyalty and satisfaction, new sales opportunities, customer purchasing criteria, sustainability of the firm’s offshore operations, and the company’s practice of channel player alignment, through partnering with other HR service companies to increase stickiness of overall offerings and solutions.
THE ASSIGNMENT
- We began this work with secondary research to understand general trends in the employment background screening industry and assess market competitors. In addition, we conducted primary phone interviews with select competitors and industry experts,and executed a broad-based web survey among HR managers.
THE FINDING
- At the time the US market for employee background screenings was expected to grow in the low single digits due to an economic rebound in hiring and Stax estimated the specific screening company to benefit from this modest growth.
- The target company performed well on key purchasing criteria, and current customers were satisfied, loyal, and reluctant to switch to another provider.
- In terms of growth, we found strong opportunities to expand sales opportunities into other categories; most customers would consider purchasing additional categories of background checks from the screening company.
Read More
CTE represents an attractive growth market with opportunities across multiple vendor categories. Read more about what factors are driving the CTE market and the history behind them.
Grant Thornton Stax and Shea & Company brought together PE investors and GovTech executives from Vision Government Solutions, ClearGov, CivicPlus, and Ignatius to discuss how AI is transforming the future of GovTech.
The investigation management and digital intelligence software market is consolidating, presenting an interesting opportunity for middle market PE investors. Read more here.
Grant Thornton Stax congratulates Orion Legal MSO, a managed services organization supporting law firms, on its partnership with John Foy & Associates. Read more.
Global Practice Leader Paul Edwards highlights the value of the final year before a sale and how investors can utilize this time to generate better outcomes. Read more.
The US ECE market remains an attractive growth arena for operators, product and service providers, and investors. Read what insights Miriam El-Baz and Alex Erines have to share.