Payroll_Sector_Industry_Briefing_teaser_24.pdf

Payroll HR WFM workforce management work tech industry deal comps briefing on payroll WFM HR industry comparables M&A deal transactions valuations multiples

1. 1
CFO Services –
F&A, consulting
and advisory
Comparable
Company
Analysis
Valuation comparison of Private vs Investor
Backed vs Public
Industry Landscape.Payroll and add-on backoffice, compliance, HR, and tax solutions provided by
multiples model types and thousands of service providers. The majority ofthe market segmented by
size and vertical.
Market. Market size and growth by segment available upon request
Managed core
Payroll HR
Workforce
Management
Industry Briefing
Teaser
TEASER
Just as the Internet increased the value of the
core payroll processing industry to deliver
broader scope of add-on products; emerging
work tech leaders are again changing the
landscape, adding more products and solutions,
BUT also changing how payroll is paid.
Acquisition by Buyer Market Map
Public Comps Analysis
Industry Briefing Overview
Industry Market Map Catalog
Company Analysis
Industry Analysis

2. 2Payroll Sector Industry Briefing Teaser
Sector Executive Summary includes Deal Stats & Trends, Valuation & Comps Analysis, and Deal Corporate Development Strategies
AGENDA
Comps Analysis
Deal Stats & Trends
Industry Market Map
Leaderboard, Rankings & Findings
Corporate Development
Strategies to Capitalize

Multiple payroll models exist with varied value propositions; contact Charles to discuss how to capitalize on these various models.

3. 3Payroll Sector Public Comparables: Glimpse of Valuation Trends by Year
EV / Revenue
By yearend 2023, multiples were 6.1x for payroll and
WFM for 1.2xrespectively. Both industry revenue
multiples had its peak in 2021, driven by a strong
market.
EV / Revenue
Unlike with payroll and workforce management
industry, HR services and staffing & payrolling public
companies have a much more stable revenue
multiple from 2017 to 2023. By end-2023, HR
Services multiples ae tending up form their historical
averages with an EV/sales multiple of 4.2x compared
to less than 1x for PEO and for staffing & payrolling.
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
2023202220212020201920182017
Payroll
WFM Workforce Management
Fintech with Payroll
Work Tech with Payroll
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x
2023202220212020201920182017
HR Services
Staffing & Payrolling
PEO

Contact Charles to discuss how to capitalize on these multiple valuation trends

4. 4Discover What You Don’t Know
Deal Insights
Gaining knowledge, to have an EDGE. A key to know
what’s next.
M&A Corporate Development
Putting everything into Action.
Industry Market Maps
Where is the growth and competition?
Industry Market Map Rankings & Findings Briefing includes:
ERGO
BRIEFING
Industry
Deal
Insights
Comps
Intelligence
M&A Corporate
Development
Discover the indispensable insights you never knew
you needed until you experience them firsthand.

5. 5Payroll Sector Industry Briefing Overview
Industry Briefing is specific to your payroll model and situation
AnalysisFindings Advice ApplicationInsights
We offer the things you don’t know, that you SHOULD!
Insights to increase profitability and value.

6. 6Industry Market Map Catalog
WFM Industry:
 48 Private Firms + ## Early Stage
 75+ Funded Sponsored Investor Backed Firms
 7 Public
Payroll Services is comprised of 2k+ firms in North America that provide payroll
North America:
Payroll Software MarketMap
 25 Private Firms + 13 Early Stage
 50+ Funded Sponsored Investor Backed Firms
 10 Public

7. 7
CFO Services –
F&A, consulting
and advisory
Comparable
Company
Analysis
Valuation comparison of Private vs Investor
Backed vs Public
Industry Landscape.More than 2,000 payroll service providers in North America across various
models: payroll, HR, accounting, software, EORs, PEOs, BPOs, Benefits, etc.. Payroll add-on
products and services are numerous across thebackoffice, compliance, HR, and tax solutions.
The majority of the market segmented by size and vertical.
Market. Market size and growth by segment available upon request.
Managed core
Payroll HR Workforce
Management
Industry M&A Deal
Comps Briefing
Contact Charles for
a detailed overview
on historical and
future M&A in the
payroll industry
The payroll industry is in the middle of a
seismic change….

8. 8
CFO Services –
F&A, consulting
and advisory
Comparable
Company
Analysis
Valuation comparison of Private vs Investor
Backed vs Public
About the ERGO Comps Industry Deal Comps Briefing:
30 minutediscussion with Charles
Managed core
Payroll HR
Workforce
Management
Industry Briefing
Snapshot
Contact Charles for
a confidential
discussion about the
industry deal trends
Seismic change on the horizon...
Acquisition by Buyer Market Map
Public Comps Analysis
Industry Briefing Overview
Industry Market Map Catalog
Company Analysis
Industry Analysis
Managed core Payroll HR Workforce Management Industry Briefing Snapshot