Ep 9 – Greg Savage on Why Most Recruitment & Staffing M&As Fail and How to Prevent This
Watch the Full Episode (40 mins)
Recruitment Transactions International (RTI) is the first global matching platform for buyers, investors, and sellers in the recruitment and staffing industry. For our 9th podcast, we welcome back one of the most legendary voices in the recruitment and staffing industry, Greg Savage. RTI Managing Partner Simon Childs speaks with Greg about his vast experience and observations about why most recruitment & staffing M&As fail — and how to correct this.
Greg is a 40-year recruitment veteran, founder of four highly successful businesses, and widely respected as a trusted advisor and respected voice across global recruitment on the subject of M&As in the industry given his first-hand experience on both the buyer and seller side of global transactions.
Key Talking Points:
[02:45] Why most recruitment & staffing M&As fail. Greg emphasizes the importance of trust and alignment between key stakeholders in M&A deals.
[09:27] Defining what a ‘good’ M&A looks like.
– Understanding pre- and post-merger integration. Is the target purchase strategically smart?
– How earnouts are a crucial consideration. Greg points out that most earnouts are linked to profit, leading to a misalignment in short-term and long-term goals.
– Due diligence is crucial, and buyers should carefully examine risk factors such as client and consultant concentration risks, client mix distribution, and system usage before acquiring a recruitment company.
[36:08] Greg offers free resources such as blog posts, e-books, and podcasts, as well as video training through his Academy. He also shares his personal and professional journey in his book “The Savage Truth” and advises on how to be a great recruiter in “Recruit The Savage Way.”
Watch the Highlights: The Importance of Fair, Carefully Thought-Out Earnouts