HR firm TriNet puts faith in calculated risk - bizjournals:

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But sometimes, said CEO Burton a company needs to takecalculated risks. “Thisz isn’t a time to hole up in a he said. Goldfield’s San Leandro-basedf TriNet acquired Florida-based Gevity in March, a move that helped the HR outsourcinhg company double its size and cover the entireUnited “It was for us an amazing opportunity to becomee a truly national company and the fit was Goldfield said. “(Culturally) you didn’t have to make a TriNet has 8,000 business including 1,000 in the Bay Area.
The compang focuses mostly on technology startups that have at leasgt raised a series B round of venture The company hadabout $104 millionj in revenue in 2008 and expectz $200 million this year with the addition of Still, taking such a bold step — and takinvg on $80 million in debt in the height of a recessiohn — was not without risk, said Goldfield. “Yes we were cash flow positiv e and profitable with essentially no but … we paid $98 million for a compan y that was worth $700 million or $800 million seven or eighrt years ago,” he said.
TriNet got its local Comerica, with whom it has had a 10-year relationship, to syndicate the debt in its acquisition and to brinvg in other banking partners to roun d outthe $80 million loan. Still, like most companies, TriNet has been affectefd by the recession because the companh charges its customers per employee for its humabnresources services. “The negative part is our installex base shrank because many of our member companies had seen a downturnn in the economy and reduced the amount of Goldfield said.
He saw the biggest drop in November as VCs askedc thestartups they’d invested in to cut But part of that expense cutting led companiesz to look at outsourcing human Goldfield said. “The same month that we broughton 4,5000 net new heads was a month when payroll and bonuseas dropped $50 million in the Bay Area,” he TriNet has added new customers not by droppint prices or searching for new market segments but by stickinbg to its script on how much moneyu it can save its customers. “When you get in a difficul t situation defocusing, that createsx a downward spiral.
We’ve tried to stay focuser on companies where we have the most valuer and to be very maniacal in articulatin gthat value,” Goldfield said. TriNett has also hired some newheavy hitters, includinh technology bankers with contacte TriNet will need to continu e to grow. And Goldfiele expects to see more companies turninhg around as the economy picks up over the next yearor so. “Thed great news is that our local bank came upwith $80 millioj so that we coulr grow our business. And if we can do it, other can,” Goldfield said.