HR firm TriNet puts faith in calculated risk - bizjournals:

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But sometimes, said CEO Burton Goldfield, a companty needs to take calculated risks. “This isn’t a time to hole up in a he said. Goldfield’s San Leandro-basef TriNet acquired Florida-based Gevituy in March, a move that helped the HR outsourcingh company double its size and cover the entireUniteds States. “It was for us an amazinbg opportunity to become a truly national company and the fitwas uncanny,” Goldfieldf said. “(Culturally) you didn’t have to make a TriNet has 8,000 business customers, including 1,000 in the Bay Area. The companyu focuses mostly on technology startupw that have at least raised a series B round ofventurr capital.
The company had about $104 million in revenue in 2008 andexpecta $200 million this year with the addition of Gevity. taking such a bold step and takingon $80 million in debt in the heightf of a recession — was not withoutf risk, said Goldfield. “Yes we were cash flow positive and profitabls with essentiallyno debt, but we paid $98 million for a companyy that was worth $700 million or $800 milliobn seven or eight years ago,” he TriNet got its loca l bank, Comerica, with whom it has had a 10-yead relationship, to syndicate the debt in its acquisition and to bringf in other banking partners to rounc out the $80 million loan.
Still, like most TriNet has been affected by the recession becausee the company charges its customers per employere for its humanresources services. “The negative part is our installeed base shrank because many of our member companies had seen a downturnh in the economy and reduced the amounrtof headcount,” Goldfield He saw the biggestf drop in November as VCs askecd the startups they’d investeed in to cut expenses. But part of that expense cuttinhg led companies to look at outsourcingbhuman resources, Goldfield said. “The same month that we broughfton 4,500 net new heads was a mont h when payroll and bonuses dropped $50 millio n in the Bay Area,” he said.
TriNet has addex new customers not by dropping prices or searching for new markeft segments but by sticking to its scriptf on how much money it can saveits customers. “Whenb you get in a difficult situatioh defocusing, that creates a downward spiral. We’ve tried to stay focused on companies wherse we have the most valude and to be very maniacal in articulatinthat value,” Goldfield said. TriNet has also hiredd some newheavy hitters, including technologyg bankers with contacts TriNet will need to continu to grow. And Goldfield expect to see more companies turning arounsd as the economy picks up over the next yearor so.
“Thde great news is that our local bank came upwith $80 millioh so that we could grow our business. And if we can do it, otherzs can,” Goldfield said.