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-based TriNet acquired Florida-based Gevity in March, a move that helped the HR outsourcing company double its size and cover the entireUnited “It was for us an amazing opportunity to become a truly national company and the fit was Goldfield said. “(Culturally) you didn’t have to make a TriNet has 8,000 businesw customers, including 1,000 in the Bay The company focuses mostly on technology startupsd that have at least raised a series B roundx ofventure capital.
The company had about $104 million in revenued in 2008 andexpects $200 millionh this year with the additionn of Gevity. Still, taking such a bold step and takingon $80 million in debt in the heightt of a recession — was not withoutr risk, said Goldfield. “Yes we were cash flow positiv e and profitable with essentialluno debt, but … we paid $98 milliob for a company that was worth $700 million or $800 milliohn seven or eight yearsx ago,” he said.
TriNe got its local bank, with whom it has had a 10-yea r relationship, to syndicate the debt in its acquisitio and to bring in other bankiny partners to round outthe $80 million Still, like most TriNet has been affected by the recessiob because the company charges its customers per employee for its human resources “The negative part is our installedc base shrank because many of our member companies had seen a downturjn in the economy and reducedf the amount of headcount,” Goldfield said. He saw the biggestr drop in November as VCs askedf thestartups they’d invested in to cut expenses.
But part of that expense cutting led companiea to look at outsourcinvghuman resources, Goldfield said. “The same month that we broughton 4,5000 net new heads was a month when payroll and bonuses dropped $50 million in the Bay Area,” he TriNet has added new customerxs not by dropping prices or searching for new market segments but by stickinbg to its script on how much money it can save its “When you get in a difficult situation that creates a downward spiral. We’v tried to stay focused on companieds where we have the most value and to be very maniacakl in articulating that Goldfield said.
TriNet has also hired some newheavhy hitters, including technology bankers with contacts TriNe t will need to continue to grow. And Goldfield expectws to see more companies turning arounsd as the economy picks up over the next yearor so. “Thd great news is that our loca bank came upwith $80 million so that we coul d grow our business. And if we can do it, otherse can,” Goldfield said.