De-Merger of HR Practice For The Bonadio Group

Just a year ago, Rose Miller, the owner of the DR Group, merged her HR consulting firm into Pittsford, N.Y.-based The Bonadio Group (FY09 net revenue of $36.7 million).

Now, according to The Business Review (Albany, N.Y.), Miller has split from the acquiring firm to form, Pinnacle Recruiting and HR Solutions in November.

Miller, who had been part owner of Bonadio Source, says the split was amicable.

According to The Business Review, Bonadio Group’s ownership of 51% of Bonadio Source put restrictions on the human resources firm. Miller and her staff were prohibited from working with some clients – those known as “yellow book” clients because of the level of audit services they received – because of conflict of interest rules.

“It was frustrating,” she says. “Here were as a group, advertising that we had HR services. Clients would call up and say they needed HR services, and I had to check if they were yellow book clients. If they were, I had to tell them I couldn’t help them.”

Bonadio Source was technically dissolved and Pinnacle was created in its place.