Award winning private company backoffice star performers

1. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Backoffice Administration FaaS Star Performers
Star Performers attributes include:
 Award Winners
 Outperform their industry competitors
 Demonstrate greater profits per employee
 Maximize the NLTV of each customer beyond basic accounting
 Tech-enabled beyond professional services, staffing, outsourcing
creates higher revenues per FTE
Backoffice Portfolio Capabilities
Startup to Small Business
 Backoffice Administration
 ~$4k MRR
Funded & Midmarket
 Trusted Advisor
 ~10k MRR

2. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Backoffice Administration FaaS Star Performers
SMB focused North American Companies1
Services
F&A, Consulting, Virtual Strategic CFO
Administration
Cloud Backoffice Accounting
Status
Addison Group
[Odyssey Investment Partners]
3+ deals: 2019 – acquired DLC
$354k Rev/FTE
VACO
[Olympus Partners]
4+ deals: – 2019 – acquired Aventine Hill
$82k Rev/FTE
AcctTwo
[$2m, multiple]
2018‐ acquired Leap the Pond
$134k Rev/FTE
Consero [$55m, BV] $200k Rev/FTE
ScaleFactor [$43m] $62k Rev/FTE
Ceterus [$20m] $45k Rev/FTE
Signature Analytics [$9m] $134k Rev/FTE
Bookkeeper360 [$1m] NY 30 FTE $85k Rev/FTE
Buyers &
Funded
Services
F&A, Consulting, Virtual Strategic CFO
Administration
Cloud Backoffice Accounting
B2BCFO 200 EE $119k Rev/FTE
TechCXO 100 EE $212k Rev/FTE
Belay 300 EE $329 Rev/FTE
EGFS 100 EE $132k Rev/FTE
Scaled
Interim CFO or Fractional CFO
9Gauage TX $138k Rev/FTE
ARG CA $158k Rev/FTE
Accelerated Growth Advisors IL $100k Rev/FTE
CFO AllianceFL HQ (20 EE) $228k Rev/FTE
CFO Selections WA $127k Rev/FTE
CFO Systems NE $134k Rev/FTE
Credo GA $113k Rev/FTE
GSquared PA HQ , 20 EE $176k Rev/FTE
OutoftheBox OR $133k Rev/FTE
ProbackofficeCA HQ + AZ, 90 EE $66k Rev/FTE
Relevante PA $53k Rev/FTE
Sayva Solutions CA $340k Rev/FTE
ScaleFinance NC $177k Rev/FTE
Stokes SC $115k Rev/FTE
TGG Accounting CA HQ (4) $106k Rev/FTE
AccountfullySC $100k Rev/FTE
Arthur Lawrence ConsultingTX (2)
$170k Rev/FTE
CharlesRiverCFO MA HQ $133k Rev/FTE
Fully Accountable $76k Rev/FTE
Global Value Add TX $158k Rev/FTE
GrowthforceTX (1) 50 EE $107k Rev/FTE
IgniteSpot$68k Rev/FTE
KruzeCA (1) $161k Rev/FTE
LTBD VA $117k Rev/FTE
Nomad Financial NYC $74k Rev/EE
Patrick Accounting TN $174k Rev/FTE
PCG CA (1) 18 FTE $166k Rev/FTE
ProfitBuilders KS $118k Rev/FTE
SmartBooksMA HQ $75k Rev/FTE
VenturityTX $90k Rev/FTE
Award
Winning
Private
Co
Vendor Subscription Partners
Carta CA $88k Rev/FTE
ThinkHR CA $148k Rev/FTE
Tools
Neat PA $702k Rev/FTE
Solution
Partners
The above list is not intended to be exhaustive but merely illustrative.
1
Notes: 1. The list is merely illustrative of award‐winning firms and is not intended to be exhaustive. 2.
Funding based on CrunchBase 3. EE # based on LinkedIn employee count , FTE based on award rankings

3. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Industry Model Alternatives
FaaS versus traditional models
Model Type Services Outsourcing FaaS
Business
Model
Nonrecurring project‐
based services
Outsourced functional
services based on cost
savings via “Lift and
Shift” staffing model
Managed solutions
delivered via the cloud for
transaction processing
and recurring services
Contract
Length
Project based 1 to 3 years 3+ years
Rev/FTE $200k <$100k >$200k
Recurring
Revenues
<10% 20% to 60% >60%
Gross Profit
Margin
25% to 45% 35% to 55% >65%
Valuation
(Revenue)
<1X 2X >2X
Source: Based on private company award winning top performers.
Traditional professional services
 42,800 accounting firms in the United States, plus staffing and professional services
with a mix of project, retainer, hourly transactional service pricing
Outsourcing firms include
 Domestic fractional, interim, part‐time support onsite or remote
 Domestic help desk + shared service model
 Nearshore
 Offshore
 Hybrid model
FaaS attributes include
 Virtual services model
 Greater than 10% of revenues
spent on technology beyond R&D
investments

4. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Average Revenue Per Employee
Private Small to Midmarket
Industry Avg Rev/FTE Count
Financial Services $ 346,504 2392
Within the financial services industry, analysis of the top private company INC5000
award winners that provide outsourced finance and accounting services highlights
various industry service models.
Industry Service Model Avg Rev/ FTE
BPO with FAO Backoffice $159,305
CPA with VAR and FAO $188,818
FAO focused on SMBs $121,801
F&A Staffing & Consulting $229,264
VAR with FAO services $197,916
Avg Rev/FTE $171,270
Revenue per Employee by Business Model Star Performers
Industry
Model
Avg Rev/FTE for
private companies
Star
Performers
Professional Services $200k Grobstein Teeple $263k Rev/FTE
The Siegfried Group $256k Rev/FTE
Corporate Tax Advisors $250k Rev/FTE
Credo $400k Rev/FTE
F&A Staffing <$150k Addison Group $354k Rev/FTE
Sayva Solutions CA $340k Rev/FTE
Belay 300 EE $329 Rev/FTE
Embark TX $307k Rev/FTE
CFO AllianceFL HQ (20 EE) $228k Rev/FTE
Outsourcing <$100k Consero [$55m, BV] $200k Rev/FTE
FaaS >$200k [Multiple funded]
The above list is not intended to be exhaustive but merely illustrative.
Industry Commentary.
 From the ERGO database: of the 550 “cloud accounting” providers there is an
avg revenues of $105,000/per FTE versus $171,270 avg for INC5000 award
winners, and the top 20% star performers exceed $200,000 in annual revenues
per full‐time employee.
 Of the top private INC5000 award winners, on average they increased revenues
by $1.2m per year since they were founded.
2 Rev/FTE by Industry for 2019 INC award winners

5. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Reasons to Contact Charles Bedard
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→ CONTACT ERGO by email at ERGO@ERGOcomps.com or simply call
us direct: 1‐281‐756‐7178