Mergers & Acquisitions

Buying or selling?

Berg Consulting Group facilitates Mergers and Acquisitions exclusively for the Background Screening Industry.

Now in our 17th year, Berg Consulting has completed more deals in our industry than ALL other intermediaries combined. Our experienced team and proven methods have helped large and small businesses successfully reach their goals. Whether buying or selling, size is no barrier, from a $60,000,000 transaction to a small company doing $1500 a month. Our professionals match parties to create the optimum win-win for all involved.

We have the industry information, long standing relationships, and in-depth knowledge of who is buying, who is selling, proper valuations, and more. We know who has the money, who’s ready to buy, and who is thinking about selling. Our extensive experience maximizes your results.

Businesses For Sale

1. Industry Segment: Employment Screening, Tenant Screening and Drug Testing

  • $2.8M in sales
  • Location: SE USA but can be moved anywhere
  • Very Profitable
  • 3rd Party Platform

2. Industry Segment: Pre-Employment, Drug Testing

  • $750K in sales
  • Location: SE USA but can be moved anywhere
  • 3rd Party Platform

3. Industry Segment: Background Checks

  • $1.7M in sales
  • Location: SW USA but can be moved anywhere
  • Proprietary Party Platform
  • Very Profitable

4. Industry Segment: Tenant and Employment Screening

  • $1.9M in sales
  • Location: Midwest
  • 3rd Party Platform
  • Very Nicely profitable
  • Buyer needs a lot of motivation to sell

Businesses Wanted

1. Industry Segment: Retail Background Checking Companies

  • $2-10M+ in EBITDA
  • Location: No restrictions
  • Proprietary software platform ideal
  • Internal infrastructure already in place a must
  • Unique product or service desirable but not required
  • Willing to pay typical industry multiples

2. Industry Segment: Non-CRA. Possible Software Provider (3rd Party Platform, Service Provider, ATS, HRIS, etc.), Any Established Co. with Growth Potential

  • $750K-5M+ in EBITDA
  • Location: No restrictions
  • Internal infrastructure already in place a must
  • Unique product or service desirable
  • Willing to pay aggressive multiples

3. Industry Segment: Retail Background Checking Company

  • One client wants companies larger than $20M in sales and another with $2-5M in sales
  • Location: No restrictions
  • Software platform is not critical
  • Unique product or service desirable but not required
  • Willing to pay typical industry multiples

4. Industry Segment: Retail Employment Background Screener. Smaller Than $500,000 in Sales

  • Buyer is NAPBS accredited
  • Profitability not critical
  • Software platform is not critical
  • Management can stay or leave
  • Willing to structure deal: for cash and/or continuing stream of income based on future success

5. Industry Segment: Background Screening, Tenant Screening, Drug Testing (Though No Interest in TPA or MRO)

  • $5-30M in sales
  • Location: No restriction
  • Buyer: Existing pre-employment screening company
  • Profitability not critical
  • Software platform not critical
  • Seller management to stay on for transition and potentially longer
  • Willing to value company on multiple sales or EBITDA
  • Will pay typical industry multiples

6. Industry Segment: Anything Pre-Employment Related (Background, Tenant, Drug, ATS, 3rd Party Platform)

  • $5-50M in sales
  • Location: No restriction
  • Buyer: Investment company not currently in industry
  • Profitability: At least $1.5M in EBITDA
  • Software platform not critical
  • Buyer willing to keep management onboard
  • Will pay high typical industry multiples

Deals Done by Berg Consulting Group (this is only a sampling)

1. Industry Segment: Background Checks

  • Company: Graymark
  • Sales: $1,250,000
  • EBITDA: $76,000
  • Net to New Owners: $345,000
  • Multiple Received
    • On Sales: 1.07
    • On EBITDA: 17.7
    • On Net to New Owners: 3.88

2. Industry Segment: Criminal Researcher

  • Company: Criminal Data Specialists
  • Sales: $355,000
  • EBITDA: $4,000
  • Net to New Owners: $160,000
  • Multiple Received
    • On Sales: 0.84
    • On EBITDA: N/A
    • On Net to New Owners: 2.2

3. Industry Segment: Pre-Employment Assessment Testing

  • Company: American Tescor
  • Sales: $3,750,000+
  • EBITDA: $750,000
  • Multiple Received
    • On Sales: 2.4
    • On EBITDA: 12.0

4. Industry Segment: Assessment/Personality Profiles

  • Company: Hilson Research
  • Sales: $1,200,000
  • EBITDA: $500,000
  • Multiple Received
    • On Sales: 3.3
    • On EBITDA: 8.0

5. Industry Segment: Background Checks

  • Company: ASi
  • Sales: $1,280,000
  • EBITDA: $250,000
  • Multiple Received
    • On Sales: 1.1
    • On EBITDA: 5.1

6. Industry Segment: Background Checks

  • Company: Cannot be disclosed
  • Sales: $6,500,000
  • Multiple Received
    • On Sales: 1.7
    • On EBITDA: 7.2

7. Industry Segment: Background Checks

  • Company: Omnia Background Search
  • Sales: $472,000
  • EBITDA: $0
  • Multiple Received
    • On Sales: 1.5
    • On EBITDA: N/A

8. Industry Segment: Background Checks

  • Company: Robert Arden
  • Sales: $800,000
  • EBITDA: $100,500
  • Net to New Owners: $390,000
  • Multiple Received
    • On Sales: 1.6
    • On EBITDA: 12.5
    • On Net to New Owners: 3.2

9. Industry Segment: Background Checks

  • Company: Confidential
  • Sales: $800,000
  • EBITDA: $5,000,000+
  • Multiple Received
    • On Sales: 1.6
    • On EBITDA: 6.8

10. Industry Segment: Drug TPA

  • Company: Florida Drug Screening
  • Sales: $3,373,000
  • EBITDA: $475,000
  • Multiple Received
    • On Sales: 0.74
    • On EBITDA: 5.3

11. Industry Segment: Background Checks

  • Company: Factual Business Information
  • Sales: $1,200,000
  • EBITDA: $400,000
  • Multiple Received
    • On Sales: 1.5
    • On EBITDA: 4.5

12. Industry Segment: Drug TPA

  • Company: Accurate Biomedical
  • Sales: $800,000
  • EBITDA: ($5,000)
  • Multiple Received
    • On Sales: 0.1
    • On EBITDA: N/A

13. Industry Segment: Background and Tenant

  • Company: World Information Network
  • Sales: $325,000
  • EBITDA: $173,000
  • Multiple Received
    • On Sales: 1.4
    • On EBITDA: 9.6
    • On Net to New Owners: 2.8

14. Industry Segment: Data Provider to the Industry

  • Company: Confidential
  • Sales: $23,500,000
  • EBITDA: $2,200,000
  • Multiple Offered
    • On Sales: 0.6
    • On EBITDA: 6.8

Note: Seller received LOI for 50% more than his asking price, but chose to not sell.

15. Industry Segment: Criminal Wholesaler

  • Company: Confidential
  • Sales: $5,100,000
  • EBITDA: $1,400,000
  • Multiple
    • On Sales: 1.2
    • On EBITDA: 4.8

Note: Seller received LOI for his asking price, but would not sell.

16. Industry Segment: Background Checks

  • Company: HR Plus
  • Sales: $9,700,000
  • EBITDA: $2,000,000
  • Multiple Offered
    • On Sales: 1.6
    • On EBITDA: 8.0

Closed: 2008

17. Industry Segment: Background Checks

  • Company: IntegrityWorks, Inc.
  • Sales: $300,000
  • Multiple
    • On Sales: 1.5
    • On EBITDA: N/A

Closed: 2012

18. Industry Segment: Field Researcher

  • Sales: $350,000
  • Multiple
    • On Sales: 0.9
    • On EBITDA: 5.5

19. Industry Segment: Background Checks

  • Sales: $1,000,000
  • Multiple
    • On Sales: 1.5
    • On EBITDA: 5.5

20. Industry Segment: 3rd Party Software Platform

  • Sales: $300,000+
  • Multiple: 1.0 on Sales

21. Industry Segment: Criminal Research

  • Sales: $220,000+
  • Multiple: Confidential

22. Industry Segment: Background Checks

  • Sales: $1,250,000
  • Multiple
    • On Sales: 1.25
    • On EBITDA: 5.0

Other Deals Done

1. Industry Segment: Background Checks

  • Sales: $2,000,000
  • EBITDA: Unknown
  • Multiple
    • On Sales: 2.1
    • On EBITDA: Unknown

Closed: 2007. Note: Premium price because company has unique vertical market with huge potential.

2. Industry Segment: Background Checks

  • Sales: $3,000,000
  • EBITDA: Unknown
  • Multiple
    • On Sales: 2.1
    • On EBITDA: Unknown

Closed: Mid 2007

3. Industry Segment: Background Checks

  • Sales: $8,000,000
  • EBITDA: $1,800,000
  • Multiple
    • On Sales: 1.35
    • On EBITDA: 6.0

Closed: 2005. Note: After increasing sales by 25% and improving EBITDA by 8%, this company was resold in early 2008 for $15,000,000.

4. Industry Segment: Background Checks

  • Sales: $1,300,000
  • EBITDA: $200,000
  • Multiple
    • On Sales: 1.35
    • On EBITDA: 6.0

Closed: 2006. Note: Purchase price was based on certain sales goals being met, which did not happen.

5. Industry Segment: Background Checks

  • Sales: $750,000 Estimated
  • EBITDA: Unknown
  • Multiple
    • On Sales: 2.0
    • On EBITDA: Unknown

Closed: May 2007

6. Industry Segment: Background Checks

  • Company: HireRight–Public Co.
  • Sales: $88,000,000
  • Sell Price: $249,000,000
  • Cash: $40,000,000
  • EBITDA: $13,600,000
  • Multiple
    • On Sales: 2.8+
    • On EBITDA (less cash): 18.3

7. Industry Segment: Background Checks

  • Company: Certigo
  • Sales: $2,300,000
  • Sell Price: $3,300,000
  • EBITDA: $800,000
  • Multiple
    • On Sales: 1.43
    • On EBITDA: 4.1

Closed: 2003

8. Industry Segment: Background Checks

  • Company: Intellifacts
  • Sales: $1,300,000
  • Sell Price: $2,200,000
  • Multiple
    • On Sales: 1.69
    • On EBITDA: Unknown

Closed: 2003

9. Industry Segment: Background Checks

  • Company: American Backgrounds
  • Sales: 0.6 Multiple, Meaning Less Multiple on Earnings
  • Sell Price: $15,000,000

Closed: 2010

10. Industry Segment: Background Checks

  • Company: ABSO
  • Sales: $18,000,000
  • EBITDA: $3.2 ($12M debt)
  • Sell Price: Not Published

Closed: December 2009

11. Industry Segment: Employer Services

  • Company: Lexis-Nexis, former ChoicePoint
  • Sales: $180,000,000
  • Sell Price: Not Published

12. Industry Segment: Background Checks, Assessments, Other

  • Company: Global HR Research
  • EBITDA (Anticipated 2016): $6,500,000
  • Sell Price: $24M in cash and $18M in Stock = 6.5 Times Anticipated 2016 Adjusted EBITDA

 

Selling or Acquiring a Business?

Berg Consulting Group facilitates Mergers and Acquisitions exclusively for the Background Screening Industry. Get in touch today!