How to sell a recruitment agency
Recruitment firms are valued on the split between one-off placement fees and recurring or retained revenue, plus consultant retention.
The value drivers
Retained or recurring (RPO, temp/contract) revenue
A billing team that stays post-sale
A defensible niche with repeat clients
What drags the price down
The risks a buyer discounts
- Permanent-placement revenue that resets each period
- Top billers who could leave and take clients
Typical valuation
typically 3–6× EBITDA, higher for contract/temp recurring revenue.
Usual buyerstaffing groups and PE-backed recruitment platforms
Indicative only — your defensible range is built from your actual numbers.
How to prepare a recruitment agency for sale
Know your number
Get a defensible valuation grounded in your normalised earnings and how buyers actually price businesses like yours.
Close the value gaps
Fix what discounts the price — the risks above — and strengthen the drivers buyers pay a premium for.
Clean the books & data room
Normalise financials and assemble a buyer-ready data room so nothing derails the deal in due diligence.
Run a managed process
Approach several qualified buyers to create competitive tension and protect both price and your leverage.
FAQ
What is a recruitment agency worth?
Usually 3–6× EBITDA, driven up by recurring temp/contract revenue and consultant retention, and down by reliance on one-off permanent placements.
How do I prepare a recruitment agency for sale?
Grow recurring contract/temp revenue, lock in key billers, and diversify clients and sectors to reduce concentration.
Selling a recruitment agency?
We help owners value, prepare and sell — quietly, and for the best achievable price.