IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities. Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses. The following blog has been provided by Terry Polyák of Insperity (www.insperity.com):
How A PEO Can Boost Your Business Value
If you are a business broker, you know how important it is to maximize the value of your clients’ businesses when they are ready to sell. You also know how challenging it can be to do so in a competitive and complex market. That’s why you should consider partnering with a professional employer organization (PEO) to help your clients achieve a better multiple when selling their business.
A PEO is a co-employer that provides comprehensive HR solutions to SMBs. By working with a PEO, your clients can outsource tasks such as payroll, benefits administration, compliance, and risk management, while retaining control over their core operations. A PEO can also offer access to high-quality and affordable employee benefits, such as health insurance, retirement plans, and wellness programs.
But how does a PEO increase the value of your clients’ businesses? Here are some of the key benefits that a PEO can bring to the table:
Reduce Costs and Increase Efficiency
One of the main advantages of a PEO is that it can help your clients reduce their HR-related costs and increase their operational efficiency. A PEO can leverage its economies of scale and expertise to offer lower rates and better service than your clients could get on their own. A PEO can also handle the administrative burden and complexity of HR, freeing up your clients’ time and resources to focus on their core business activities. By working with a PEO, your clients can save money, improve productivity, and streamline their processes.
Enhance Employee Benefits and Retention
Another benefit of a PEO is that it can help your clients enhance their employee benefits and retention. A PEO can offer access to a wide range of benefits options at competitive prices, allowing your clients to customize their benefits packages to suit their employees’ needs and preferences. A PEO can also provide support and guidance on benefits enrollment, communication, and administration, ensuring a smooth and hassle-free experience for your clients and their employees.
By offering better benefits, your clients can attract and retain top talent, which is crucial for their business success. Employees who are happy, healthy, and engaged are more likely to perform well, stay loyal, and refer others to your clients’ businesses. A PEO can help your clients create a positive and rewarding workplace culture, which can boost their employee satisfaction, loyalty, and productivity.
Ensure Compliance and Minimize Risk
A third benefit of a PEO is that it can help your clients ensure compliance and minimize risk. A PEO can keep your clients up to date on the latest federal, state, and local employment laws and regulations, and help them implement the necessary policies and procedures to comply with them. A PEO can also provide assistance and protection in case of audits, inspections, or lawsuits, reducing your clients’ exposure and liability.
By working with a PEO, your clients can avoid costly fines, penalties, and litigation, which can damage their reputation and bottom line. A PEO can also help your clients manage and mitigate other risks, such as workers’ compensation, unemployment claims, and employee disputes, by providing expert advice and support. A PEO can help your clients maintain a safe and compliant work environment, which can enhance their credibility and trustworthiness.
Conclusion
As you can see, a PEO can offer many benefits to your clients that can increase the value of their businesses. A PEO can help your clients reduce costs and increase efficiency, enhance employee benefits and retention, and ensure compliance and minimize risk. By partnering with a PEO, you can help your clients achieve a better multiple when selling their business and differentiate yourself from other brokers in the market.
If you are interested in learning more about how a PEO can help you and your clients, contact us today. Insperity is the originator of the PEO concept. Starting in 1986 with two employees and an idea, we are now a Publicly Traded (NYSE:Ticker NSP ) company and an example of one of America’s greatest entrepreneurial success stories. We help SMBs from 10-5,5000 employees run better, grow faster, and make more money. That is not marketing speak but rather a fact from our 38-year history helping companies nationwide.
We have the experience, expertise, and resources to help you and your clients succeed. Let’s work together to boost your business value.
Terry Polyak is a CBPA (Certified Business Performance Advisor with Insperity, a market leading company in outsourced HR services. If you have questions about the content of this article or would like to obtain information related to the services Insperity offers its clients, Mr. Polyak would welcome communication at (425) 748-7565 or Terry.Polyak@insperity.com
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, and real estate communities on subjects relevant to the purchase & sale of privately held companies and family owned businesses. IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.