Staffing / Recruiting Agency Acquisition & SBA Underwriting Financial Model — Bill-Pay Spread, DSO / Payroll-Funding Working Capital & DSCR (Excel + Google Sheets)

Bill-Pay Spread + DSO / Payroll-Funding Working-Capital engine. Most staffing-agency templates are startup/operating forecasts, and brokers headline a big revenue number. This is a single-agency acquisition underwrite built on the numbers a bank and a disciplined buyer actually use:

• Read the earnings on the SPREAD, not the revenue. Revenue is a vanity metric — ~70% of the top line is pass-through contractor wages. Gross profit is built bottom-up from bill rate − loaded pay rate (temp), placement fees (perm) and managed services. On ~$6.21M of revenue only ~$1.68M is gross profit (~20% temp spread).
• The DSO / payroll-funding gap the SBA loan won't cover. You pay contractors weekly but collect at DSO ~50 days → ~$850k of AR, ~$766k of net working capital, funded on a separate payroll-funding / ABL facility whose ~$78k interest hits cash flow before DSCR.
• DSCR true vs naive. A market-rate recruiter replaces the owner-biller + the payroll-funding cost → true DSCR 1.53x next to the broker's naive 2.48x.
• Cyclical down-case. Staffing has severe operating leverage and is deeply cyclical → a modest demand + spread contraction drops DSCR to 0.64x, below the 1.25x floor (real recessions were far worse — 2024 staffing sales −27/−42%, 2008 temp −70%).

Plus: recurring-vs-lumpy re-rates the one-off direct-hire fees (~$227k overpay-avoided); SBA 7(a) capital stack with the seller-note standby lever, a goodwill $500k valuation-trigger flag, and a 5-year MOIC exit (no IRR).