Selling a Recruitment Business: Surviving an ‘Earn Out’ and Maximising Value

    View Author September 2015

    Recruitment companies that have access to acquisition and investment capital are now returning to the M&A market for bolt-on acquisitions as a strategy for growth.

    Tim Stead explores the ten steps recruitment companies can take to protect the Earn Out and maximise the price in Recruitment International. For service or people businesses (such as those in recruitment or professional services), where much of the value of a commercial is tied to its key personnel, the majority of acquisitions will include some form of deferral of the purchase price contingent on the future performance of the business (known as an “Earn Out”).