This 8-year-old outsourced HR firm is asking $1M against $894.5K in TTM revenue and $251K in profit, a 4.0x profit multiple, despite currently reporting 0% annual growth. The listing is also Under M&A advisory, meaning the listing is being managed by a professional M&A Advisor through Acquire.

The numbers: Acquire reports $894.5K TTM revenue / $251K profit, an approximately 28% margin, pricing the business at 1.1x revenue and 4.0x profit. The firm serves roughly 25–30 clients, with the largest accounting for just 5% of revenue, reported retention of 90%, and an average contract value of about $33K.

How it works: The company provides outsourced HR services through a mix of ongoing retainers and project work, including employee handbooks, HR program reviews, compliance guidance, and HR technology support. Roughly one-third of engagements are project-based, which is important when evaluating the quality of the reported retention and earnings. The business does not currently generate revenue from benefits, recruiting, staffing, or HR technology resale.

The seller situation: The seller is leaving to pursue a new venture, but the listing does not clearly disclose their current hours or responsibilities. At 4.0x profit, that matters: the multiple is easier to support if most of the $251K in earnings comes from recurring client relationships that can transfer without significant owner involvement.

Worth asking: How much of the $251K in profit comes from recurring retainer clients that can transfer without the seller, versus project work or responsibilities a buyer would need to replace?