![ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Backoffice Administration FaaS Star Performers
SMB focused North American Companies1
Services
F&A, Consulting, Virtual Strategic CFO
Administration
Cloud Backoffice Accounting
Status
Addison Group
[Odyssey Investment Partners]
3+ deals: 2019 – acquired DLC
$354k Rev/FTE
VACO
[Olympus Partners]
4+ deals: – 2019 – acquired Aventine Hill
$82k Rev/FTE
AcctTwo
[$2m, multiple]
2018‐ acquired Leap the Pond
$134k Rev/FTE
Consero [$55m, BV] $200k Rev/FTE
ScaleFactor [$43m] $62k Rev/FTE
Ceterus [$20m] $45k Rev/FTE
Signature Analytics [$9m] $134k Rev/FTE
Bookkeeper360 [$1m] NY 30 FTE $85k Rev/FTE
Buyers &
Funded
Services
F&A, Consulting, Virtual Strategic CFO
Administration
Cloud Backoffice Accounting
B2BCFO 200 EE $119k Rev/FTE
TechCXO 100 EE $212k Rev/FTE
Belay 300 EE $329 Rev/FTE
EGFS 100 EE $132k Rev/FTE
Scaled
Interim CFO or Fractional CFO
9Gauage TX $138k Rev/FTE
ARG CA $158k Rev/FTE
Accelerated Growth Advisors IL $100k Rev/FTE
CFO AllianceFL HQ (20 EE) $228k Rev/FTE
CFO Selections WA $127k Rev/FTE
CFO Systems NE $134k Rev/FTE
Credo GA $113k Rev/FTE
GSquared PA HQ , 20 EE $176k Rev/FTE
OutoftheBox OR $133k Rev/FTE
ProbackofficeCA HQ + AZ, 90 EE $66k Rev/FTE
Relevante PA $53k Rev/FTE
Sayva Solutions CA $340k Rev/FTE
ScaleFinance NC $177k Rev/FTE
Stokes SC $115k Rev/FTE
TGG Accounting CA HQ (4) $106k Rev/FTE
AccountfullySC $100k Rev/FTE
Arthur Lawrence ConsultingTX (2)
$170k Rev/FTE
CharlesRiverCFO MA HQ $133k Rev/FTE
Fully Accountable $76k Rev/FTE
Global Value Add TX $158k Rev/FTE
GrowthforceTX (1) 50 EE $107k Rev/FTE
IgniteSpot$68k Rev/FTE
KruzeCA (1) $161k Rev/FTE
LTBD VA $117k Rev/FTE
Nomad Financial NYC $74k Rev/EE
Patrick Accounting TN $174k Rev/FTE
PCG CA (1) 18 FTE $166k Rev/FTE
ProfitBuilders KS $118k Rev/FTE
SmartBooksMA HQ $75k Rev/FTE
VenturityTX $90k Rev/FTE
Award
Winning
Private
Co
Vendor Subscription Partners
Carta CA $88k Rev/FTE
ThinkHR CA $148k Rev/FTE
Tools
Neat PA $702k Rev/FTE
Solution
Partners
The above list is not intended to be exhaustive but merely illustrative.
1
Notes: 1. The list is merely illustrative of award‐winning firms and is not intended to be exhaustive. 2.
Funding based on CrunchBase 3. EE # based on LinkedIn employee count , FTE based on award rankings](https://image.slidesharecdn.com/2backofficestarperformers2019-200420160401/85/private-backoffice-star_performers_2019-2-320.jpg)
![ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Average Revenue Per Employee
Private Small to Midmarket
Industry Avg Rev/FTE Count
Financial Services $ 346,504 2392
Within the financial services industry, analysis of the top private company INC5000
award winners that provide outsourced finance and accounting services highlights
various industry service models.
Industry Service Model Avg Rev/ FTE
BPO with FAO Backoffice $159,305
CPA with VAR and FAO $188,818
FAO focused on SMBs $121,801
F&A Staffing & Consulting $229,264
VAR with FAO services $197,916
Avg Rev/FTE $171,270
Revenue per Employee by Business Model Star Performers
Industry
Model
Avg Rev/FTE for
private companies
Star
Performers
Professional Services $200k Grobstein Teeple $263k Rev/FTE
The Siegfried Group $256k Rev/FTE
Corporate Tax Advisors $250k Rev/FTE
Credo $400k Rev/FTE
F&A Staffing <$150k Addison Group $354k Rev/FTE
Sayva Solutions CA $340k Rev/FTE
Belay 300 EE $329 Rev/FTE
Embark TX $307k Rev/FTE
CFO AllianceFL HQ (20 EE) $228k Rev/FTE
Outsourcing <$100k Consero [$55m, BV] $200k Rev/FTE
FaaS >$200k [Multiple funded]
The above list is not intended to be exhaustive but merely illustrative.
Industry Commentary.
From the ERGO database: of the 550 “cloud accounting” providers there is an
avg revenues of $105,000/per FTE versus $171,270 avg for INC5000 award
winners, and the top 20% star performers exceed $200,000 in annual revenues
per full‐time employee.
Of the top private INC5000 award winners, on average they increased revenues
by $1.2m per year since they were founded.
2 Rev/FTE by Industry for 2019 INC award winners](https://image.slidesharecdn.com/2backofficestarperformers2019-200420160401/85/private-backoffice-star_performers_2019-4-320.jpg)
Uploaded byCharles Bedard
private backoffice star_performers_2019
The document discusses various business models - including professional services, outsourcing, and finance and accounting as a service (FaaS) - for backoffice administration companies, highlighting attributes of each model. It provides data on average revenue per employee for different industry service models and lists examples of high performing companies. Contact information is provided for Charles Bedard of ERGO Comps to discuss strategic options and market intelligence for backoffice administration firms.
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private backoffice star_performers_2019
- 1. ERGO Comps, LLC O:281.756.7178 www.ERGOcomps.com Backoffice Administration FaaS Star Performers Star Performers attributes include: Award Winners Outperform their industry competitors Demonstrate greater profits per employee Maximize the NLTV of each customer beyond basic accounting Tech-enabled beyond professional services, staffing, outsourcing creates higher revenues per FTE Backoffice Portfolio Capabilities Startup to Small Business Backoffice Administration ~$4k MRR Funded & Midmarket Trusted Advisor ~10k MRR
- 2. ERGO Comps, LLC O:281.756.7178 www.ERGOcomps.com Backoffice Administration FaaS Star Performers SMB focused North American Companies1 Services F&A, Consulting, Virtual Strategic CFO Administration Cloud Backoffice Accounting Status Addison Group [Odyssey Investment Partners] 3+ deals: 2019 – acquired DLC $354k Rev/FTE VACO [Olympus Partners] 4+ deals: – 2019 – acquired Aventine Hill $82k Rev/FTE AcctTwo [$2m, multiple] 2018‐ acquired Leap the Pond $134k Rev/FTE Consero [$55m, BV] $200k Rev/FTE ScaleFactor [$43m] $62k Rev/FTE Ceterus [$20m] $45k Rev/FTE Signature Analytics [$9m] $134k Rev/FTE Bookkeeper360 [$1m] NY 30 FTE $85k Rev/FTE Buyers & Funded Services F&A, Consulting, Virtual Strategic CFO Administration Cloud Backoffice Accounting B2BCFO 200 EE $119k Rev/FTE TechCXO 100 EE $212k Rev/FTE Belay 300 EE $329 Rev/FTE EGFS 100 EE $132k Rev/FTE Scaled Interim CFO or Fractional CFO 9Gauage TX $138k Rev/FTE ARG CA $158k Rev/FTE Accelerated Growth Advisors IL $100k Rev/FTE CFO AllianceFL HQ (20 EE) $228k Rev/FTE CFO Selections WA $127k Rev/FTE CFO Systems NE $134k Rev/FTE Credo GA $113k Rev/FTE GSquared PA HQ , 20 EE $176k Rev/FTE OutoftheBox OR $133k Rev/FTE ProbackofficeCA HQ + AZ, 90 EE $66k Rev/FTE Relevante PA $53k Rev/FTE Sayva Solutions CA $340k Rev/FTE ScaleFinance NC $177k Rev/FTE Stokes SC $115k Rev/FTE TGG Accounting CA HQ (4) $106k Rev/FTE AccountfullySC $100k Rev/FTE Arthur Lawrence ConsultingTX (2) $170k Rev/FTE CharlesRiverCFO MA HQ $133k Rev/FTE Fully Accountable $76k Rev/FTE Global Value Add TX $158k Rev/FTE GrowthforceTX (1) 50 EE $107k Rev/FTE IgniteSpot$68k Rev/FTE KruzeCA (1) $161k Rev/FTE LTBD VA $117k Rev/FTE Nomad Financial NYC $74k Rev/EE Patrick Accounting TN $174k Rev/FTE PCG CA (1) 18 FTE $166k Rev/FTE ProfitBuilders KS $118k Rev/FTE SmartBooksMA HQ $75k Rev/FTE VenturityTX $90k Rev/FTE Award Winning Private Co Vendor Subscription Partners Carta CA $88k Rev/FTE ThinkHR CA $148k Rev/FTE Tools Neat PA $702k Rev/FTE Solution Partners The above list is not intended to be exhaustive but merely illustrative. 1 Notes: 1. The list is merely illustrative of award‐winning firms and is not intended to be exhaustive. 2. Funding based on CrunchBase 3. EE # based on LinkedIn employee count , FTE based on award rankings
- 3. ERGO Comps, LLC O:281.756.7178 www.ERGOcomps.com Industry Model Alternatives FaaS versus traditional models Model Type Services Outsourcing FaaS Business Model Nonrecurring project‐ based services Outsourced functional services based on cost savings via “Lift and Shift” staffing model Managed solutions delivered via the cloud for transaction processing and recurring services Contract Length Project based 1 to 3 years 3+ years Rev/FTE $200k <$100k >$200k Recurring Revenues <10% 20% to 60% >60% Gross Profit Margin 25% to 45% 35% to 55% >65% Valuation (Revenue) <1X 2X >2X Source: Based on private company award winning top performers. Traditional professional services 42,800 accounting firms in the United States, plus staffing and professional services with a mix of project, retainer, hourly transactional service pricing Outsourcing firms include Domestic fractional, interim, part‐time support onsite or remote Domestic help desk + shared service model Nearshore Offshore Hybrid model FaaS attributes include Virtual services model Greater than 10% of revenues spent on technology beyond R&D investments
- 4. ERGO Comps, LLC O:281.756.7178 www.ERGOcomps.com Average Revenue Per Employee Private Small to Midmarket Industry Avg Rev/FTE Count Financial Services $ 346,504 2392 Within the financial services industry, analysis of the top private company INC5000 award winners that provide outsourced finance and accounting services highlights various industry service models. Industry Service Model Avg Rev/ FTE BPO with FAO Backoffice $159,305 CPA with VAR and FAO $188,818 FAO focused on SMBs $121,801 F&A Staffing & Consulting $229,264 VAR with FAO services $197,916 Avg Rev/FTE $171,270 Revenue per Employee by Business Model Star Performers Industry Model Avg Rev/FTE for private companies Star Performers Professional Services $200k Grobstein Teeple $263k Rev/FTE The Siegfried Group $256k Rev/FTE Corporate Tax Advisors $250k Rev/FTE Credo $400k Rev/FTE F&A Staffing <$150k Addison Group $354k Rev/FTE Sayva Solutions CA $340k Rev/FTE Belay 300 EE $329 Rev/FTE Embark TX $307k Rev/FTE CFO AllianceFL HQ (20 EE) $228k Rev/FTE Outsourcing <$100k Consero [$55m, BV] $200k Rev/FTE FaaS >$200k [Multiple funded] The above list is not intended to be exhaustive but merely illustrative. Industry Commentary. From the ERGO database: of the 550 “cloud accounting” providers there is an avg revenues of $105,000/per FTE versus $171,270 avg for INC5000 award winners, and the top 20% star performers exceed $200,000 in annual revenues per full‐time employee. Of the top private INC5000 award winners, on average they increased revenues by $1.2m per year since they were founded. 2 Rev/FTE by Industry for 2019 INC award winners
- 5. ERGO Comps, LLC O:281.756.7178 www.ERGOcomps.com Reasons to Contact Charles Bedard Spend an hour discussing options versus weeks researching. More than 400 firms reviewed every year across these communities Who We Have Helped …our approach starts by forecasting the ROI impact of your CorpDev options. Key highlights include: ˃ Save time before conducting research ˃ Review your comparables, strategic buyers, and the emerging private companies ˃ Discuss competitive analysis and market intelligence ˃ Identify opportunities and options → CONTACT ERGO by email at ERGO@ERGOcomps.com or simply call us direct: 1‐281‐756‐7178