HireQuest: Superior Model and Merger

HireQuest was a private staffing company with $190 million in system sales and over 90 locations. In 2019, they merged with a then-public company to enlarge their franchising network and started an M&A spree. Five years later, they have over $600 million in system-wide sales with 430+ branches.

HireQuest franchising model makes acquisitions be much more profitable transactions than they seem to. Instead of rolling up the industry, they are actually rolling it down. The procedure they follow is very peculiar and a fundamental pillar of the thesis on HireQuest.

In this article, I go over:

• How HireQuest operates at much higher margins than peers

• Intricacies about their M&A system

• Analysis of the merger with Command Center

• Breakdown of all acquisitions made since going public

• How they convert company-owned locations into franchisee-owned