SELLING A RECRUITMENT COMPANY
Selling your recruitment company can be a straightforward process with KBS Corporate’s support. Operating at the forefront of the company sales market for 25 years, we have the knowledge and experience to find the right buyer for you.
To sell your recruitment business, you need to be prepared to communicate the strengths of your company to prospective buyers in key sectors. With KBS Corporate’s guidance, you will be able to get your affairs in order and maximise the value of the sale.
It is common for company owners in the recruitment industry to make the same mistakes, such as poor preparation or acting hastily. We will manage the process for you, ensuring you can make an informed decision on the future of your company.
SELLING A RECRUITMENT COMPANY
KEY CONSIDERATIONS WHEN SELLING A RECRUITMENT COMPANY
Before you consider selling your recruitment business, it is wise to ask yourself ‘is my company as refined as it can be?’
Recruitment is a growing industry, evolving with market trends on an international scale. When looking to acquire, potential buyers will be eager to see your company’s:
• Specialist capabilities
• Client and candidate portfolio
• Database and technological resources
• Strong second-tier management and workforce
A smooth company sale can be facilitated with effective communication. As such, prepare all the necessary materials which can demonstrate your operational and financial standing to interested parties.
Furthermore, you can liaise with a dedicated company valuation expert to manage your expectations and identify the factors within your business that will appeal to buyers.
WHY SELL A RECRUITMENT COMPANY?
Selling your recruitment company can allow you to fulfil your goals, whatever they may be. Perhaps you’re looking to retire, pursue new opportunities or simply wish to be financially rewarded – there is an array of buyers and investors who can facilitate the right deal for you.
A company sale can also allow you to benefit from existing market trends. Growth within specialist recruitment sectors, such as IT, healthcare and temporary staff, could lead to increased profit from a company sale.
The demand for skilled workers and experienced candidates continues to soar, demonstrating considerable resilience to sociopolitical factors. Reach out to KBS Corporate if you would like to hear more about M&A activity within your recruitment niche.
VALUING YOUR RECRUITMENT COMPANY
The value of your recruitment company will be influenced by many factors, such as the following:
• Permanent or temporary recruitment capabilities
• Sector focus and specialisms
• National and international client reach
• Candidate and client portfolio
• Management structure and culture
• Location and premises
• Technology and processes
• Certifications, approvals and compliance
In terms of the transaction fee you hope to achieve for the sale, your recruitment company’s revenue streams will be analysed. KBS Corporate will look to secure a sales multiple of your company’s earnings before interest, tax, depreciation and amortisation (EBITDA).
EBITDA is capable of communicating a business’s true operational profit before considering external factors which cannot be controlled by the company itself.
Shareholders and owners have typically achieved a 4x sales multiple for permanent recruitment companies and 8x for contract specialists; however, KBS Corporate prides itself on exceeding expectations and securing unparalleled sales multiples through our tried-and-tested approach.
Many acquirers are looking for firms with natural synergies with their own operations. Our goal is to find a buyer that not only sees your potential but recognises that your recruitment company can enhance their existing capabilities.
If you are looking to sell or buy a business we would absolutely recommend them.
Justin Williams
FireUS Ltd
“We employed KBS to sell our business FireUs Ltd last year. We has researched into this and they stood out as the best. We were so glad that we picked them whilst it was a very in depth process selling our business, but they supported us and made the experience much easier. The main people that stood out for us with the professionalism and approach were Guy Haynes and Daniel Greenfield. If you are looking to sell or buy a business we would absolutely recommend them.”
“Would definitely recommend them.”
Katherine Prigmore
Business Development Director of Prigmore Haulage
“We used KBS to help with our partial sale! They helped promote us and worked with us the whole way through. The true value for their work came after the offer and Adam worked smoothly with us and could hear that he had our best interest at heart! Would definitely recommend them.”
“From start too finish their service was first class.”
Rodney Greer
Director of Photostatic Anglia
“We initially approached KBS and three other companies to handle the sale of our company. We choose KBS as they were very professional, knowledgeable and responded to all our queries in a timely manner. From start too finish their service was first class. Thank you KBS”
“I could not have completed this without the professionalism and personal interest that I have been afforded”
Simone Lawless
Director of Ibit Solutions
“My husband engaged with KBS in 2020 for the sale of our business. I completed a successful sale in October 2023. During the process my husband passed away and so the process became more complicated than I could have imagined. Luke Rae has been outstanding in his patience, communication and commitment to the sale of our business. I could not have completed this without the professionalism and personal interest that I have been afforded. Thank you Luke and the team.”
“The range of buyers that KBS introduced us to were of a high quality.”
Eric Luckwell
Technical Director of Datalink Electronics
“The range of buyers that KBS introduced us to were of a high quality. Throughout the sales process the shareholders were very pleased with the advice and help given to reach a good conclusion in the sale. Thank you KBS and the staff we worked with.”
MAKE A RECRUITMENT COMPANY MORE ATTRACTIVE TO BUYERS
Over recent years, we have seen niche recruitment companies with specialisms excel in the M&A market, benefitting from a wide and reliable client base.
Additionally, buyers will be attracted to well-managed operations. If you boast a leadership team which can demonstrate an ethical approach and compliance, you will be well positioned to interest potential buyers.
Most notably, buyers will want to see your company considers the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
As such, it is wise to avoid business practices which are typically frowned upon in the industry, including the use of employee benefit trusts (EBTs). HMRC introduced the EBT Settlement Opportunity in 2011, allowing shareholders to settle tax liabilities and avoid the risk of a costly enquiry.
EXPERT SUPPORT SELLING YOUR RECRUITMENT COMPANY
It may appear from what you have read above that selling your recruitment company is a lengthy, complex process – but it is certainly not something you would have to navigate all by yourself.
Instead, you can benefit from the expertise of KBS, a one-stop shop for anyone selling a recruitment company. Our superb track record over more than a quarter of a century’s experience in the business sales industry vindicates our approach in applying a bespoke, personalised service to every company we sell.
Besides understanding your aims for the sale, marketing your opportunity and finding the right buyer, we can connect you to all the services you may require, for example legal experts and tax advisers.
Our knowledge, contacts and use of the latest data and technology means we can maximise buyer reach whilst only considering those with the financial means, insight and desire to buy your company and push it forward.
Having established a proven history of delivering award-winning success, we can accompany you throughout the journey towards completing a company sale that fulfils all your objectives. Contact us on 0161 258 0118 for a confidential, no-obligation discussion.
SALES WE HAVE COMPLETED
IN THE RECRUITMENT SECTOR
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