Introduction
fractional HR consulting is exactly where I chose to buy, operate, and grow. I’m Marci LaRouech, and this is my first-person Q&A on acquiring and scaling CHR (Seay HR)—a 60-year-old HR consulting firm—why I said no to CEO roles, yes to ownership, and how I’m using association partnerships, a 60/40 recurring-to-project mix, and seller financing to build a durable, lifestyle-aligned business.
Founder Success Story QnA
Can you share your background and how buying a business got on your radar?
I grew up in the Midwest, started in HR around 2006 in Orlando at a PEO called CoAdvantage, then moved to Hawaii to work at ProService. That’s where I first learned you could buy a business to become an owner. Later, I returned to Hawaii as a hired gun CEO at Makai HR, led growth, and we exited in 2023. After that exit, with some capital and leadership experience, I committed to searching to buy my own business.
Why not raise a traditional search fund or do a PE-backed roll-up?
I had offers, especially in the PEO space, but I wanted control over timelines and a longer-term hold. The sale process at Makai HR was hard, even though it was smooth, and I didn’t want to be on a 4–5 year exit treadmill. Lifestyle and autonomy mattered to me right now.
What were your lifestyle criteria in the search?
Smaller team, smaller book, ideally remote-first, established and independent operators—not a group I’d have to babysit day-to-day. I targeted under $1M SDE range to avoid fundraising, and I wanted full ownership if possible.
What makes PEOs appealing, and how does that differ from fractional HR consulting?
PEOs offer co-employment, payroll, benefits, workers comp, EPLI, and can be very sticky with high multiples and recurring revenue. CHR is different: we don’t touch payroll or benefits. We provide high-touch HR compliance, strategy, processes, handbooks, investigations, and day-to-day guidance. Some clients use a PEO and still hire us for deeper, high-touch HR support.
What’s the business model and revenue mix at CHR?
We’re roughly 60% recurring (fractional HR) and 40% project work. I like this mix—projects have solid margins and convert into recurring relationships. AR exists but is manageable with typical 30–45 day terms. We’re a little under $1M in revenue and about 85 recurring clients plus ~100 reoccurring project clients.
How did you find CHR (Seay HR)?
After doing all the right search steps—outreach, conferences, cold letters, leveraging a full PEO list—I found CHR through a casual lunch with a former colleague in Orlando. He asked if I’d be interested in an HR consulting firm owned by Sandy Seay, who was nearly 80 and ready to sell. We had immediate trust via mutual connections, and it came together quickly.
What risks did you see in the deal?
Contracts were very loose—clients had signed amounts but no enforceable terms. On day two, in theory, anyone could walk. I was comfortable with that risk given our long client tenures (average 10+ years), diversified client base (no concentration risk), and continuity with key team members. I moved contractors to W2s and began tightening operations.
What made CHR a must-buy versus building from scratch?
The installed base—85 recurring clients—and the association channel partnerships. For example, the National Pest Management Association (NPMA) pays us for an HR hotline for members. It’s a trusted vendor channel that drives inbound and conversion to recurring or projects. Buying accelerated me 3–4 years versus starting at zero. That, plus lifestyle fit, made it a slam dunk for me.
How do those association partnerships work?
We have about 15 associations and broker partners. They pay a fee for member HR hotline access. We contribute content, do webinars, speak at events, and build trust. While the hotline alone isn’t highly profitable, it reliably converts to paid projects and recurring engagements. I want more calls—it increases conversions and LTV.
Deal structure: how did you finance the acquisition?
Mid–6 figures purchase price at about 2.2x SDE; I paid ~60% at close and negotiated a 40% seller note over five years with no prepay penalty. No SBA loan. The seller was highly motivated, and we closed roughly two months from first call to close. I also brought in light QofE to keep me objective.
How are you growing CHR today?
We’re up ~30% YoY through organic networking and referrals. Now I’m adding predictable pipeline: working with a B2B agency (Clarity) to refresh positioning and test niche campaigns—pest control, Central Florida, linen rental, and the Florida Roofing Association. I hired a second W2 consultant and put in CRM and a vetted HR-specific generative AI research tool to speed compliance research.
Where does AI or offshoring fit in HR consulting?
Consultative HR is context-heavy and doesn’t map cleanly to scripts. We use a specialized generative AI tool (fed with current federal, state, local employment regs) to accelerate research—not to replace judgment. Some firms offshore frontline HR queries, but I’m focused on high-touch delivery by seasoned US-based consultants.
How do you package fractional HR consulting for lumpy demand?
We sell annual blocks of hours, billed monthly, so clients can use hours when issues spike. It fits better than rigid monthly hours because HR needs fluctuate. Blue/gray-collar clients often need frequent support; others are more ad hoc. Projects often convert to recurring, so I keep that door open.
Could someone buy a firm like this without HR experience?
It’s possible, but I had a strong advantage: deep HR and CEO experience, plus knowing what great HR consultants look like. Critically, the seller wasn’t the main delivery person, which is unusual in small HR consulting firms. That let me work on the business—sales, marketing, ops—while my team delivered.
Marci LaRouech Method
I focus on owning a business that fits my skills and life, then compound value through channels, predictable offers, and disciplined operations—one lever at a time.
- Buy in my lane: HR operations and leadership experience translate directly.
- Leverage association channels for trusted, scalable demand.
- Maintain a 60/40 recurring-to-project mix to maximize margin and conversions.
Marci LaRouech Tools
I use a CRM for pipeline visibility, a vetted HR-specific generative AI research tool for fast compliance answers, and a B2B agency to drive focused demand in niches. These help me sell predictably and deliver faster without sacrificing accuracy.
- CRM: Track deals, proposals, and referral sources.
- HR-specific Generative AI: Accelerate research across federal/state/local regs.
- Clarity (Agency): Positioning, niche campaigns, and site refresh.
Key Notes
Owning fractional HR consulting means building trust at scale and packaging services to match lumpy demand. Channels, clear offers, and operational discipline compound results.
- Association hotlines convert effectively to paid work.
- Annual hour blocks align incentives and usage patterns.
- Light QofE kept me objective through closing.
Get Started in Just 5 Steps
Here’s exactly how I’d approach buying into fractional HR consulting today—focused, relationship-driven, and de-risked.
- Define lifestyle and ownership goals first.
- Map channels: associations, brokers, and local networks.
- Assess delivery: contracts, client tenure, and team independence.
- Structure fairly: seller note, simple diligence, fast close.
- Install CRM, niche positioning, and research tools on day one.
Conclusion
fractional HR consulting let me own a durable, growing, high-touch business on my terms. With CHR, I’m compounding trust built over decades, leveraging association channels, and balancing recurring and project work to grow predictably—without giving up control.