Little Engine,
I have not been able to find a staffing company with margins as high as you assume. I have not, however, been able to find much about companies as small as FAMH was in 1997. HOWEVER, if you add Myriad's gross revenues for 1997 to what we believe Firamada's were, and add what we believe to be Myriad's net revenue to what we've been told Firamada's net revenue is, you get net profits below 10% -- just what you want. It's quite possible that, because of its size, Firamada was focusing only on the more profitable aspect of the employment business (placement) and not the aspect that generates the huge gross revenues, but low net, (payroll.) Myriad would bring this second type of business to FAMH, and would bring the margins in line with other employment companies of comparable size, would it not?
Jim
PS -- I'm not sure why I'm arguing with you, since you seem utterly closed off to any possible conclusions aside from the most pessimistic, but hey, there's nothing good on TV tonight in this dreary weather. |
