Whether you’ve built your recruitment business ideally to sell, fund your retirement, or pay off debts, you’re going to want one thing: to get the best possible price when you make the sale. While the whole ordeal of transacting itself is no easy task, there are some things you can do to prepare for it.
These tips will keep your recruitment business in good shape as you gear up for a clean exit on the best possible deal you can hit with your buyer.
The first question to ask here is, “What is your recruitment business worth?” It’s important to ground yourself with the reality of the situation before making any decisions, as these will determine what kind of options you have for selling—if you can look into higher bids or compromise your ideal price.
After locking down your business valuation, you can then sort out what makes your company appealing to the eyes of your target and prospective buyers. Start consulting with companies that have access to national data on private transactions in recruitment—such as accounting firms, investment banking firms, and regional business brokers.
Business sale requires a lot of consideration with regards to who you’re appealing to. Understand who you want to sell to and what price this buyer can afford. Here are the types of buyers you may want to look into:
Beyond your business’s financial numbers, taking a good look at your pillars of strength, weakness, and room for improvement will prepare you for any buyer’s questions. This way, you’ll also be able to brace yourself in how to position or phrase a response to put the spotlight on your strengths, defend your weaknesses, and explore your opportunities.
In a survey conducted on the Philippine start-up industry, it was found that the availability of talent is one of the factors that have helped business owners successfully build their start-up. For this instance, you can upsell how highly valued the staffing and recruiting industry is. Look into successes that can make your case for buyer’s confidence and a higher sale price.
Have an auditing firm do a clean sweep of your financials. M&A processes may require a review of several years’ worth of your statements. Keeping this aligned also boosts a buyer’s likeliness of following through on the sale, and could potentially increase your chances of negotiating for a better price.
Buyers would want to review your business’s financial information. For this reason, you must be able to file and track your financial statements.
If you know that there are essential filings that need to be addressed, try your best to resolve them before dealing with your buyer. If not, it’s good practice to be upfront about any concerns. It also helps to have a brief explanation as to why it might have been overlooked.
Aside from your financial history, it’s also good to consult your financial advisor on a three-year forecast. Setting realistic goals that are more likely to be achieved and successfully following through will boost your value.
Have your M&A advisor review your company’s current standing. See how you can strategically build up your business value before setting it up for sale. Ideally, an advisor would have several action plans feasible over 6–12 months. Here are some general tips that can aid in growing your business value:
Check out how you can improve lead generation. You can expand beyond your regular job hunt platforms and emails. You can use social media platforms and market trends to revise and enhance your recruitment strategies.
With a strong EVP, you’ll get better employee engagement and better work performance.
Aside from complying with your advisor’s recommendations, you can also take the opportunity to build your business value by curbing the chances of low turnover rates. Here are some ways you can strengthen your recruiters’ preference to stay with your company longer:
When you’re dealing with your potential buyers, it’s imperative to put your best assets forward and package it in a way that helps them rather than merely to sell your business. Your sales process is what will undoubtedly determine the true success of the transaction. Here are some ways you can keep your sales process successful:
While it may be great that there are organizations that expressed interest in your business, that doesn’t necessarily mean that they are fit to acquire your company. Do they have experience in handling a recruitment business? How do they plan to manage the company after the sale? Are their goals similar or wildly different from yours?
Have your M&A advisor screen your buyers to check for their qualifications before moving forward with any other kind of discussion. This way, you’ll save time and be able to keep the focus on growing your business worth before striking a deal.
If you’ve locked down the transaction, make sure to ease your business into the changes that may happen. This not only involves your buyer, but your stakeholders, clients, and employees, too. This ensures that everyone is prepared to make the transition a successful one, free of any confusion.
Here are some things you can do to introduce the transition:
The Social Hire team don't just do social media.
Is it important to you to increase the digital footprint of your business by utilising online promotion, but can't work out how to begin?With the professional understanding of our digital experts working in your business, you can begin to see interaction, brand loyalty and enquiries get better without having to take your team out to spend time on ineffective marketing strategies, or spend money on a internal marketing manager with a view to get results that may not deliver!
We create and implement original social media marketing plans that help our customers accomplish their organisational objectives and build up their online footprint.
Our team of managers are a team that assists our partners improve their presence online by producing online marketing services on a regular basis. Our service is transparent and economical, which ensures that you get a great service and results that make a difference when you utilise our services. We arrange many different marketing services for enterprises from small businesses to large corporations to help make the most of of your company's social media marketing.
You might like these blog posts Branding that Attracts Millennials, 3 Things You Need To Add To Your Christmas Campaigns, Remote work and GDPR: What small businesses should do to ensure compliance, and How Does Real-Time Performance Feedback Improve Employee Performance?.