When I am considering handling the sale of a PEO, I look for:

While there are hundred of puzzle pieces that must fit together, these are the three components I feel most important --

The integrity, values, morals, beliefs and ethics of the shareholders, senior management and employees. This is by far the best predictor of success in Silva Capital's ability, and choice, to represent a selling PEO. As my mother always said "Birds of a feather flock together." If the PEO leaders have high, solid values, morals and integrity – so will the PEO business operation.

The integrity of the financials. Anyone can produce a PEO Company P&L. And most PEO owners use those internal reports to manage the day-to-day operations. However, every PEO should also have a third party audit completed by a firm that understands our business. Believe it or not, many regional CPA firms are not familiar with the "ins and outs" of PEO. Become an ESAC accredited PEO or use NAPEO established financial guidelines.

Prudent and honest management of risk coupled with value added high quality service. Taking on the management of Human Resources for a small employer is a serious commitment. The PEO takes full responsibility for all the risk inherent in these functions. Prudent management of employment issues, workers' compensation, and other lines of insurance is one of the most important factors in the ability of Silva Capital to sell a PEO. Additionally, the provision of high quality customer service, vs. simple administration of HR functions will keep clients and help maintain consistent profitability.

Wanda J. Silva
Silva Capital Solutions, Inc.
Kennesaw, Georgia
www.silvacapital.com

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