HR firm TriNet puts faith in calculated risk - bizjournals:

http://www.devdir.biz/index.php?s=D&c=241
But sometimes, said CEO Burton Goldfield, a company needse to take calculated risks. “This isn’t a time to hole up in a he said. Goldfield’s San Leandro-based TriNetf acquired Florida-based Gevity in March, a move that helpec the HR outsourcing company double its size and covefr the entireUnited States. “It was for us an amazing opportunituy to become a truly national company and the fit was Goldfield said. “(Culturally) you didn’t have to make a TriNet has 8,000 business customers, including 1,000 in the Bay The company focuses mostly on technology startups that have at leastf raised a series B rounfd ofventure capital.
The company had about $104 million in revenue in 2008 andexpectsw $200 million this year with the addition of Still, taking such a bold step and taking on $80 million in debt in the height of a recessiom — was not without risk, said “Yes we were cash flow positive and profitable with essentially no but … we paid $98 millionb for a company that was wortb $700 million or $800 millionh seven or eight yearsd ago,” he said.
TriNet got its locall bank, Comerica, with whom it has had a 10-year to syndicate the debt in its acquisition and to bring in other banking partners to round outthe $80 million Still, like most companies, TriNety has been affected by the recessiob because the company charges its customers per employewe for its human resources services. “The negativ e part is our installed base shrank because many of our membed companies had seen a downturn in the economgy and reduced the amount of Goldfield said.
He saw the biggesyt drop in November as VCs askef thestartups they’d invested in to cut But part of that expense cutting led companies to look at outsourcinf human resources, Goldfield said. “The same monty that we broughton 4,500 net new headd was a month when payrollp and bonuses dropped $50 million in the Bay he said. TriNet has added new customers not by droppinfg prices or searching for new market segmente but by sticking to its scriptt on how much money it can saveits “When you get in a difficuly situation defocusing, that creates a downward We’ve tried to stay focused on companies wherd we have the most valu e and to be very maniacal in articulating that value,” Goldfield said.
TriNet has also hiree some newheavy hitters, including technologty bankers with contacts TriNet will need to continue to And Goldfield expects to see more companiesz turning around as the economy picks up over the next year or so. “Thw great news is that our local bank came upwith $80 millionm so that we could grow our business. And if we can do it, otherxs can,” Goldfield said.