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
Grant Thornton Stax recently supported Hypergene, a portfolio management solutions backed by Thoma Bravo, on its recent merger with Stratsys. Read about the deal here.
Our teams across the US offered to spread some holiday cheer, rallying together to donate toys to local charities. Read about our various efforts, as well as charities you can donate to.
Grant Thornton Stax supported Pairsoft, a leading provider of procure-to-pay automation and payment solutions, on its recent majority growth investment by TA Associates. Read more.
Grant Thornton Stax recently supported Moss, a global producer of innovative brand experiences, on its acquisition by Vomela, a Riverside Company. Read more about the deal here
Will Barden, Partner, has been named among "The Consulting Report's" Top 25 Strategy Leaders of 2025. Click here to read more about the award.
In partnership with Raymond James and Farragut Square Group, Grant Thornton Stax recently hosted a breakfast event to share our investment analysis of the Pharma Technology market.