It is heartening to see the interest in the PEO industry has been caused by a splash in our economy known as the Affordable Care Act (ACA).
The volume of rules and regulations associated with the ACA, the impact on the healthcare market and the potential for inflation has created a very fertile and attractive market for those that see the PEO industry as a vertical for their existing business.
McHenry Consulting has been a leader in assisting more than thirty start-up and developmental stage PEOs over the past dozen years.
To bring this into perspective, we have had over two dozen new inquiries in the past two quarters. The parties have come from a wide array of sources which have ranged primarily from:
- Surge of New PEOs (Start-up stage)
- Health insurance brokers
- Payroll companies
- Experienced PEO professionals that desire the entrepreneurial challenges of having their own business.
- Staffing companies
A trend that started as a ripple in the PEO industry last summer has accelerated into a wave of interest that has flooded into 2014, flowing through the first quarter and into the second with no end in sight.
Author information: Dan McHenry is the Business Advisory Group Practice Leader at McHenry Consulting, Inc. and is a leading national authority on PEO profitability, healthcare strategies, performance and transaction optimization.
