ERGO Comps provides industry insights on payroll accounting and tax sector multiples and requirements. According to the document, multiples for payroll service bureaus range from 1.75 to 2.55 times revenue. To command a premium multiple, a service bureau needs proprietary software, industry preconfigured solutions, modern cloud technology specifications and integrations across tax, accounting, ecommerce, payments and HR. It also provides a landscape overview of payroll software players focused on startups and small to medium businesses, including user counts for Gusto, Millennium, PrismHR, iSolved and Evolution platforms.

1. ERGO Comps, LLC
O: 281.756.7178
www.ERGOcomps.com
Category Sector / Payroll Accounting Tax
Industry Snapshot
 Multiples range from 1.75 to 2.55 for service bureaus
 Requirements for a premium multiple
o Proprietary software
o Industry preconfigured solutions
o Modern cloud tech specs & stack
o Integrations across tax, accounting, ecommerce, payments, HR
o Portfolio of recurring solution partners
Payroll Software Landscape
Payroll Service Bureau Landscape with focus on startup to SMBs
Platform Resellers
Gusto 3,000 accountants
Millennium >150 sold, <50 active >$1m
PrismHR >250 sold
iSolved >200 sold
Evolution <30 active
Excludes legacy PEOs, individual service bureaus, legacy pre cloud software