Selling A Recruitment Business | KBS Corporate

Selling A Recruitment Business

Selling your recruitment business can be a straightforward process with KBS Corporate’s support. Operating at the forefront of the business 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 business 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.

Key Considerations When Selling A Recruitment Business

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 business’s:

  • Specialist capabilities
  • Client and candidate portfolio
  • Database and technological resources
  • Strong second-tier management and workforce

A smooth business 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 business valuation expert to manage your expectations and identify the factors within your company that will appeal to buyers.

Why Sell A Recruitment Business?

Selling your recruitment business 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 business 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 business 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 A Recruitment Business

The value of your recruitment business 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 business’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 businesses 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 business can enhance their existing capabilities.

Make A Recruitment Business More Attractive To Buyers

Over recent years, we have seen niche recruitment businesses 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 A Recruitment Business

KBS Corporate has the skills, experience and resources you need to maximise the value of your recruitment business sale.

We have cemented ourselves as the No 1 adviser in the UK with an extensive buyer network and reliable approach to negotiations.

Our experience in the recruitment industry ensures you will have the support and knowledge required to find the right buyer and the right deal.

RECENT BUSINESS SALES IN THE RECRUITMENT SECTOR

X
Completed Sale

On Track Recruitment

On Track Recruitment provides professional, dependable temporary and permanent recruitment solutions for clients within a wide range of buoyant sectors based across Surrey and Hampshire. The company maintains strong, long-standing client relationships, benefitting from a high volume of repeat and referral custom.

Having been with On Track Recruitment since its founding in the late 1990s, the founder Shirley Cripps, approached KBS Corporate with the sale of their business to enable their retirement plans.

During initial discussions, it became apparent that staff retention and continuing a high level of service to customers were of utmost importance. This shaped KBS Corporate’s research strategy toward sourcing a UK trade buyer. This proved a popular approach and resulted in multiple offers. The ultimate offer came from The Sammons Group, the acquisition will enable the group to broaden its geographical footprint and strengthen its client base.

Post completion the current Business Director at On Track Recruitment will be promoted to Managing Director ensuring continuity of service quality.

Matthew Sibley, Corporate Deal Executive at KBS Corporate, advised On Track Recruitment throughout and commented: “I am happy to have secured a great future for On Track Recruitment, their employees, management, and client base. The acquisition proved highly mutually beneficial as it also enabled The Sammons Group continued growth via their current acquisition strategy.”

Harriet Smith, Sammons CEO said: “As companies embrace the change driven by Covid-19, there has never been a better time to both broaden and deepen the recruitment offering of Sammons. We’re executing on our strategic growth plan through attracting highly complementary businesses and market-leading talent to meet the demands of our current and future clients.”

acquired by

On Track Recruitment
Sector: Recruitment
Location: Surrey
Buyer: The Sammons Group

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
On Track Recruitment

Sector: Recruitment
Location: Surrey
Buyer: The Sammons Group

X
Completed Sale

I.P. Recruitment Limited

I.P. Recruitment Limited is an independent recruitment agency supplying temporary and permanent staff to a variety of sectors within its area. The company was established in 1994, and over the years has developed an excellent reputation and an enviable client base including several blue-chip organisations, some of whom have provided business for 20 years.

Sally Rowley and Daniel Rowley, the shareholders of I.P. Recruitment Limited, instructed KBS Corporate with the sale to allow for lifestyle changes. It became apparent during initial discussions that sourcing a synergistic buyer who would facilitate further growth of the business including the workforce, was of upmost importance. KBS Corporate’s research strategy was formed to find the prospective buyer who would ideally have experience in recruitment, and the knowledge and resources to push the company to new heights. This resulted in a focus on UK and European recruitment agencies, which attracted over 25 interested parties.

Kenect Recruitment Limited produced the final offer. This acquisition will support Kenect’s overall operation and growth expectations over the coming years.

Aadesh Patel, Corporate Deal Executive, at KBS Corporate commented: “Strong shared values between I.P. Recruitment Limited and Kenect Recruitment Limited enabled the deal to progress as quickly as it did. I am confident that this transaction will be a success for both parties.”

acquired by

I.P. Recruitment Limited
Sector: Recruitment
Location: Hertfordshire
Buyer: Kenect Recruitment Limited

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
I.P. Recruitment Limited

Sector: Recruitment
Location: Hertfordshire
Buyer: Kenect Recruitment Limited

X
Completed Sale

Silven Recruitment

Silven Recruitment is a highly respected recruitment company that specialises in the supply of contract and permanent staff to the food and drinks manufacturing sector. Over the years the company has developed an excellent reputation with multiple blue-chip clients.

During the initial meeting it became clear that the shareholder was interested in pursuing an MBO, which would enable the majority shareholder, Ian Simkins, to leave the business with Jeremy Pierce, the current Managing Director, to take his place. 

KBS Corporate was able to secure funding from Close Brothers in order to back the MBO.

Post completion, Ian Simskins will remain with the business in order to ease the handover period.

Silven Recruitment was advised by Guy Haynes, Corporate Director at KBS Corporate.

acquired by

Silven Recruitment
Sector: Recruitment
Location: Greater Manchester
Buyer: Mangement Buyout

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
Silven Recruitment

Sector: Recruitment
Location: Greater Manchester
Buyer: Mangement Buyout

Speak to our expert team on 0161 258 0118 to arrange a consultation

Find out more
dwn-br

download a brochure

Make a confidential enquiry

    Subject

    Message