Closed transaction · February 2021

Precise Hire

MDR & Associates took Precise Hire, a background check company, through to closing in February 2021.

Precise Hire logo

The transaction

  • ClosedFebruary 2021
  • SectorBusiness & consumer services
  • LocationDallas, Texas
  • Founded2003
  • BuyerFinancial buyer
  • Engagement to closing60 days
  • Represented byMDR & Associates
  • Todayprecisehire.com

The company today, in its own words. FCRA-compliant employment background checks, drug testing, MVR and verifications for employers, founded 2003 in McKinney, Texas, with most reports back in under four hours.

The sale

How it ran

Precise Hire, a background check company in Dallas, came to us 60 days before it closed in February 2021. It was sold to a financial buyer, found through the same confidential process every company we represent goes through: a blind profile, buyers qualified before they learn the name, and more than one at the table where the company draws them.

What that buyer examined is what any buyer of service businesses examines — the factors below, in that order.

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What decided the price

What buyers look at in a service business

Recurring and contracted revenue

The strongest single driver. Revenue under contract, on a schedule, or under a maintenance agreement is worth a multiple of the same revenue sold ad hoc.

Owner dependence

If customers buy because of you, the buyer is not buying a business. Reducing this is the highest-return work available before a sale.

Customer retention and length

Churn and average tenure tell a buyer what they are really acquiring. Have the numbers ready before they ask.

The full list, and who the buyers are: Selling a service business in Texas.

Your company

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