SOURCE: Brown Gibbons Lang & Company LLC

Brown Gibbons Lang & Company

July 15, 2015 07:00 ET

Brown Gibbons Lang: The Breakout of the PEO Industry

The BGL Business Services Insider Addresses Capital Markets and Mergers and Acquisitions Activity, Financial and Operating Performance of Certain Publicly-Traded Companies, and Trends and Issues Affecting the Industry

CLEVELAND, OH and CHICAGO, IL--(Marketwired - July 15, 2015) - The Professional Employer Organization industry is seeing a dramatic escalation in growth and valuations, according to the Business Services Insider, an industry report released by Brown Gibbons Lang & Company (BGL)

The BGL report, now available online, examines the key drivers of the recent breakout, as well as the future growth prospects for the PEO sector, supported by findings from a roundtable survey of leading industry executives and investors in the space.

Small- and medium-sized businesses (SMBs) are the bread and butter of the U.S. economy but remain a largely untapped market for the PEO industry, which has reached an inflection point in growth and market penetration:

  • Healthcare reform is driving more resource-constrained SMBs to seek the expertise of PEOs in areas such as ACA compliance, risk management, and benefits administration, as technology takes on an ever-increasing role in human resources outsourcing.
  • Drivers of regulatory change and an improving labor market are expected to fuel outsourcing demand, with the potential to more than double the size of the PEO market over the next five years.
  • Public and private capital is flowing into the market. Industry participants are aggressively pursuing strategic acquisitions, with growing investor interest a primary catalyst in valuation multiple expansion.

BGL publishes periodic Insider research publications. The middle market investment banking firm based in Cleveland and Chicago releases reports on a variety of industries including automotive; business services; consumer products; building products and construction materials; environmental and energy services; healthcare and life sciences; industrials; metals; and plastics and packaging. Download BGL Insider reports at

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