Why now is a good time to sell your recruitment business

Demand for recruitment services in 2021 remains strong and the market outlook is increasingly positive due to significant staff shortages and the growing UK skills gap in key industries.

At Redwoods Dowling Kerr, we have recently agreed a deal to sell Project Sapphire to an existing market operator who is looking to diversify and expand into a new recruitment specialism. Project Sapphire is a specialist healthcare recruitment agency operating in a fast growth market with strong longer-term prospects.

In addition to Project Sapphire we have also agreed multiple deals for recruitment businesses and are looking for new sale mandates to meet our buyers requirements.

The REC’s latest UK recruitment industry status report found that in 2019 the sector contributed £42.3bn to the UK economy. The sector has undoubtedly been affected by the pandemic and proven resilient.

The outlook consequently remains positive across this robust sector. Research from leading cloud-based tracking website Tracker states that 45% of recruitment business owners expect their revenue to increase by more than 25% as other sectors re-open.

Redwoods Dowling Kerr is currently witnessing several key market trends across the sales of recruitment businesses. We have broken these down into three key factors to highlight why now is the perfect time for owners to sell their recruitment business. 

1) Existing Operators

Existing recruitment operators are constantly looking to expand their capacity with strategic acquisitions. Our buyer intelligence informs us that experienced operators are looking for expansion into new locations and new specialist recruitment sectors. In contrast, others are focussing on acquiring recruitment firms that specialise in high-demand areas.

2) Approved Suppliers to the Public Sector

There is a strong appetite for acquiring recruitment businesses that are approved suppliers to the public sector. The pandemic presented the opportunity for some recruitment businesses the opportunity to adapt, learn lessons and the chance to evolve their business. The pandemic also highlighted the importance of the public sector. With an increase in public services, acquiring approved suppliers to the public sector is seen by buyers as a lucrative opportunity. 

3) Buy & Build

Private equity and international buyers are displaying substantial interest in recruitment businesses with a stable client base. We have seen how businesses with a solid database of clients are attracting buyers to commence a “buy and build” strategy. 

If you are looking to sell your recruitment business and wish to learn more about how we can help you achieve your business sale aspirations, and ensure you receive maximum value for your recruitment business, then please call us on 01772 418 426 or via [email protected].