1.9.3.2Vertical

Global Employer of Record (EOR)

EOR providers co-employing international workers for multinational clients.

Market snapshot

These figures describe Payrolling & Employer of Record (EOR) (1.9.3), the segment that Global Employer of Record (EOR) sits within. They are not figures for Global Employer of Record (EOR) on its own.

Market size
~$198B
Growth
~2.2%CAGR (2017–22, nominal)
Companies
~2,959 firms
Firms by employee count

48% of firms have fewer than 20 employees: 1,421 micro-businesses, below most mandates.

The investable universe1,538 firms with 20+ employees
20–99
63141%
100–499
44029%
500+
46730%

~3.7M worksite employees. Receipts largely reflect pass-through co-employment costs, not value-add.

NAICS 561330. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Per-employee administration fees plus benefits margin and float

Key economics

Revenue per firm
$66,869,927
Revenue per employee
$66,196
Employees per firm
1,255.1
Recurring revenue
High

embedded co-employment relationships with low churn

EBITDA margin
Thin on gross revenue; meaningful on net admin/benefit revenue
Capex intensity
Low

Characteristics

  • Labor-intensive: payroll is 77% of revenue, so margin comes from utilization, not scale
  • Deep strategic-buyer pool: 467 firms exceed 500 employees, so a scaled asset has trade buyers
  • Reported revenue is largely pass-through; value-add is the admin/benefit margin.
  • Co-employment depth makes the relationship sticky and switching costly.
  • Global EOR platforms have rapidly expanded cross-border employment.

NAICS 561330. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Geographic concentration

AlabamaAlaskaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaPennsylvaniaSouth DakotaTexasWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiIowaKentuckyMarylandMississippiMontanaNew HampshireNew YorkOhioOregonTennesseeVirginiaWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandArizonaOklahomaMichiganUtah

PEOs concentrate in business-friendly, low-regulation states rather than population centers: Oklahoma carries 2.6 times its expected share and Michigan 2.1 times, with Utah and Arizona close behind. The pattern reflects where small employers most value offloading payroll, benefits and compliance, and where PEOs have historically built their books; it is notably not the coastal HR-services map.

OklahomaMichiganUtahArizona

NAICS 561330. U.S. Census Bureau, 2022 Statistics of U.S. Businesses (firms by state). Concentration shown by location quotient.

M&A deal context

Deal activityHigh

Who’s acquiring

  • PEO consolidators
  • Global-EOR & payroll platforms
  • PE-backed HR-services roll-ups

What’s driving deals

  • Consolidation of regional PEOs for benefits-purchasing scale.
  • Rapid growth of global EOR for cross-border hiring.
  • Recurring, sticky revenue attractive to financial buyers.

Find Global Employer of Record (EOR) acquisition targets

Search Acquisera’s index for companies classified under Global Employer of Record (EOR) (1.9.3.2) and build a targeted deal pipeline.

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