Recruitment Agency Valuation
Discover what your recruitment agency could be worth today
Typical Valuation for a Recruitment Agency Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 3.5-6.0× |
| EBITDA Margin | 15-30% |
Market Overview
Recruitment agencies typically sell for 3.5-6.0× EBITDA in the UK market. The range reflects temp vs perm revenue mix, sector specialization, consultant quality, and systems. Agencies with balanced temp/perm revenue command premium multiples (5.0-6.0×) due to recurring temp income plus perm placement fees, while pure perm agencies trade lower (3.5-4.5×). Key differentiators include temp/contract revenue percentage (40-60% ideal), sector specialization (IT, healthcare, engineering vs generalist), consultant retention (billers staying 2+ years), client concentration (<15% top client), modern recruitment software (Bullhorn, Vincere), and PSL/framework positions. Corporate consolidators actively acquire specialist agencies. Contractor/temp revenue provides margin stability.
How to Value a Recruitment Agency Business
The standard methodology for valuing a recruitment agency 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 agency businesses, that multiple typically ranges from 3.5-6.0×.
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