You want to sell your recruitment agency? Then it's good to know what the acquisition market in the field of recruitment agencies looks like. The job market is tightening as more people found jobs, changed jobs and the supply is shrinking.
The number of mergers and acquisitions in the industry was well below average in 2023.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the business services sector, to which a recruitment agency belongs, an indicative EBITDA multiple range of 4.6 to 5.5 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the business services sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the business services sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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In figures, the number of recruitment agencies in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes over the next few years, but also offer recruitment agencies many growth and acquisition opportunities:
Automatic matching of supply and demand is an emerging trend in the industry. Matching competencies, jobs and supply through automatic data analysis leaves more time for networking and identifying candidate (or business) competencies, according to the platform Flexmarkt.
In some fields, just that one degree or certificate is needed, but otherwise the demand for people with excellent soft skills is increasing. Communication, time management, being able to work in a structured way and entrepreneurship: this is the future.
The whole world is waking up after a two-year crisis. And the biggest mistake employers then make is that they want to go back to the way things were. That is no longer possible, a new normal is emerging, according to Werf.nl. One of working from home, more digital opportunities and global connections. As a recruitment agency, you will have to jump on this to keep finding candidates.
