Has anyone seen good deals in staffing or executive recruiting?

searcher profile

December 01, 2022

by a searcher from United States Military Academy in Haddonfield, NJ, USA

Hello everyone! I am curious to see what say this great group of searchers thinks about the staffing/recruiting industry. So many niches, so many small firms. Anyone rolling these up? Or targeting particular areas like aviation mechanics or other skilled trades?

Thank you,

Bryan

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commentor profile
Reply by a searcher
from University of Cambridge in Nashville, TN, USA
I just finished looking in this industry, and would say two things. There are great companies in this industry, but there are not great deals in this industry. Most companies received a nice bump in revenue over the last few years, and recent deals in particular sub-sects of the industry were at very high multiples. In my opinion and my opinion alone, this led to many business owners looking for extremely high multiples that did not match the true value of their company.
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Reply by an intermediary
from New York University in Menlo Park, CA, USA
Some excellent small firms are out there, but most are owner-dependent businesses based on personal relationships nurtured over a decade or more. If the owner wants to sell and walk away, it is tough to convince them they'll need to take a large portion of the proceeds as an earn-out. Of course, if they have a well-entrenched team with the clients, that is a different story.
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