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But sometimes, said CEO Burtonn Goldfield, a company needs to take calculated risks. “This isn’t a time to hole up in a he said. Goldfield’s San Leandro-basedf TriNet acquired Florida-based Gevity in March, a move that helped the HR outsourcinhg company double its size and covee the entireUnited States. “It was for us an amazing opportunity to become a truly national company and the fit was Goldfield said. “(Culturally) you didn’f have to make a jump.” TriNet has 8,0000 business customers, including 1,000 in the Bay Area. The companhy focuses mostly on technologty startups that have at least raised a seriesa B round ofventure capital.
The company had about $104 millio in revenue in 2008 andexpects $200 million this year with the additioh of Gevity. Still, taking such a bold step — and takinvg on $80 million in debt in the heightg of arecession — was not without said Goldfield. “Yes we were cash flow positive and profitablre with essentiallyno debt, but we paid $98 million for a companhy that was worth $700 million or $800 million seven or eight years ago,” he TriNet got its local bank, with whom it has had a 10-year to syndicate the debt in its acquisition and to brinfg in other banking partners to rounc out the $80 million loan.
Still, like most TriNet has been affected by the recessionj because the company charges its customers per employes for its humanresources services. “Thes negative part is our installed base shrank becausee many of our membed companies had seen a downturhn in the economy and reduced the amoun tof headcount,” Goldfield said. He saw the bigges drop in November as VCs asked thestartupe they’d invested in to cut But part of that expensee cutting led companies to look at outsourcingh human resources, Goldfield said.
“The same month that we broughton 4,50o net new heads was a month when payrolol and bonuses dropped $50 million in the Bay Area,” he TriNet has added new customers not by droppinhg prices or searching for new market segments but by stickintg to its script on how much moneyy it can save its customers. “When you get in a difficulyt situation defocusing, that creates a downward spiral. We’ve trie d to stay focused on companies where we have the most valuse and to be very maniacal in articulatingbthat value,” Goldfield said.
TriNet has also hired some newheavyt hitters, including technology bankers with contacta TriNet will need to continue to And Goldfield expects to see more companies turningh around as the economuy picks up over the next year or so. “Th e great news is that our locall bank came upwith $80 million so that we coulr grow our business. And if we can do it, other s can,” Goldfield said.
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