October 22, 2013
San Diego employers could expect a change in staffing resources since national technology, consulting and employment firm Corporate Resources Inc. purchased Cameo Employment Services in a bid to expand its profile in Southern California. The acquisition of the Cameo corporation was complete at the time of the announcement, but financial terms of the deal were not disclosed. The chief executive of CRS said that he expected the company to see immediate incremental revenues and profitability due to the purchase of Cameo's operations.
CRS, which is based in New York and is traded on the Nasdaq, provides hosting services as well as cloud-based enterprise operations as well as enterprise applications that are based in the cloud to staffing companies in 42 states and the District of Columbia. They also supply recruiting, staffing and consulting services from their 231 on-site and staffing facilities.
The president of sales for CRS said that he believed the company would increase their realized gross margins due to the acquisition of Cameo. He added that this was expected in part because Cameo had a business base that generated a higher average bill than did CRS's traditional business. The company would continue to show stakeholders in the business world its ability to incorporate business with higher margins into its existing service regions and also offer new services to clients throughout the Golden State.
Business formation in California can seem like a huge headache because of the state's many laws and regulations governing a start-up company. However, a lawyer with solid experience in regulatory compliance during entity formation may be able to smooth out the process for clients. Whether it's a joint venture, buyout or business merger, any expanding corporation might benefit from the services of an attorney.
Source: New York Business Journal, "Corporate Resource Services buys California staffing firm", October 18, 2013