For Recruitment Agencies

How to Sell your Recruitment Company at a Higher Price

business for sale recruitmentMany people who are doing business would very much like to have a high takeover by investor and earn a good profit from the buyout. As a 20 years of experience business person where I buy and take over companies be it big or small, let me share with you some insights on how to create a recruitment company that is valuable that you can sells high price.

Professional Image

Put this very simple, your company name, logo, image, website MUST be professionally done. Get the best people out there to have it done. Remember that getting the best does not mean that it will be expensive, there are many third parties providers that can get your things up and running at a very reasonable price. You might even get a bargain if you ask the right person!

Get Your Books Clean

All investors will be very keen if your books are in profits every year, that is to say that you must keep your revenue as high as possible and your expenses as low as possible.  Even if your profit margin is low, as long as it is profitable, in the eyes of the investor, it is still worth to put in the money.

Clients and Job Orders

Secure as many clients and job orders as much as possible, this is going to give the investor the confidence that the order generation is high and when the number of job orders are high, the closure rate will also be proportionally high.

Get organised

As a recruitment company, you will have a lot of data to be computed and compiled, from clients, candidates’ database, job orders and even consultants activities, all these information must be compute and store in a system or database so that when anyone wants to track anything, it can be easily done. You may want to try a third party system that helps in managing recruitment activities.

Spread your Sales Team

Ideally, you should have 3 to 5 or more sales teams, each will run independently and manages its own profit centre. With that, the investors will have the assurance that in the in the event any of the team were to leave after the buyout, the risk of the whole operation coming to a halt will be minimum. This will also give more confidences to the investor as it seems like the revenue generation department is taking care of itself and investing in a company that is self-sufficient is worth the money.

Retain your staff

Always make every effort to retain your staff, investors will never want to see a company staff turnover too high, of course the reasons why the staff leaves could be variable but many times the problems lies in the company and the management itself, hence ensure your staff turnover is as minimum as possible. You might want to consult a third party provider who specialised in retaining people; they will be able to give you a better picture on what is really wrong.

Develop a Standard Process

Every company should have standard process of doing things, especially when the company gets too big, everyone must know the steps of doing things after every step, with that standard procedure in place, the investor will be able to come in, take over and even replace some team members with minimum effort.

Have a 5-10 years Business Plan

Well, since you are already in the business and planning to sell them, it is more essential to have the next 5-10 years business plan so that the investors will be able to visualise what is going to happen in 5-10 years down the road. Remember that many people are “visual” person, they will only be “excited” when they see it.

Have a deal with Your Top Sales Team

Give your TOP sales team a deal that is very good and ask them to commit to the company for X number of years. With this, you will have better bargaining chips with the investors and push your selling price of the company by at least another 20-30% higher.

Create a USP

Ask yourself this critical question, what makes your company stands out from the rest of the other competitors around the region? What do you have that that no other people or company has that you stands out from the rest. I mean REALLY stand out?

What makes you so special that clients, candidates and potential staff will want to be with you willingly? You will need to create that USP and build them within the company, with that, you will be able to see the company to be sold at 5 to 10 times more than market price. If your USP is so good and unique, it could fetch even more!

Invest in Training

This might look like a cost on paper, however, when you invest money in getting professional to train your staff, you not only build goodwill, build bounds, retain staff and more important, it creates DEPTH within the company, the investor will feel that the people that they are going to invest in are quality people within the industry itself. Investors loves quality people!

Overall, if you intent to sell your company, there are many things need to be done properly so that the investors will be willing to pay more. Remember that there are plenty of investors out there that are looking for opportunities; you just have to paint the picture which they want to see or hear.

Cheers and be Cheerful Always!

Douglas copyDougles Chan – The Recruitment Guru, Provides personal and business advises and mentorship in the recruitment industry with over hundreds of clients from Singapore, Malaysia, Australia, UK, USA, Canada, Saudi Arabia, Spain, Ukarine, China, South Korea, Ireland, South Africa, Vietnam, South Korea, India, Bangladesh and many others. Labelled as the  “Zhuge Liang” of recruitment agencies, also known as The Recruitment Guru and he mentors individual and groups in The 200K Formula to achieve ultimate success in the recruitment business.

He is also the author of the following popular books in the recruitment industry throughout the world:

He can be contacted at @ (65) 93880851 or email to




Previous post

Recruitment Agencies with a PLUS +

Next post

Hard Facts Every Recruitment Agency Boss Doesn't Want the Recruiters to Know

Dougles Chan - The Recruitment Guru

Dougles Chan - The Recruitment Guru

Mentor, coach and advisor for recruitment & staffing agencies in their marketing, branding and SEO sales, leads generation and recruitment consulting training.

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *