Recruitment Agency Valuation
Discover what your recruitment agency could be worth today
Typical Valuation for a Recruitment Agencies Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 3.5-6.0× or 0.4-0.8× revenue |
| EBITDA Margin | 12-25% |
Market Overview
Recruitment agencies typically sell for 0.4-0.8× revenue or 3.5-6.0× EBITDA in the UK market. The range reflects temp vs perm mix, client retention, sector specialization, and team capability. Agencies with strong temp/contract desk (60%+ of gross profit), specialized sector focus, PSL positions, and multi-consultant teams command premium multiples (0.6-0.8× revenue or 5.0-6.0× EBITDA), while perm-only or generalist agencies trade lower (0.4-0.5× revenue or 3.5-4.5× EBITDA). Key differentiators include temp/contract vs perm mix (temps = recurring GP), client retention and PSL positions, specialization focus, consultant team and desk structure, margin quality (GP% matters more than revenue), and compliance (AWR, IR35). Consolidators and PE-backed groups actively acquire specialized agencies with recurring GP.
How to Value a Recruitment Agencies Business
The standard methodology for valuing a recruitment agencies business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For recruitment agencies businesses, that multiple typically ranges from 3.5-6.0× or 0.4-0.8× revenue.
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