Ep1 – The Savage Truth Behind M&As in the Recruitment & Staffing Industry with Greg Savage

Recruitment Transactions International is the first global matching platform for buyers, investors and sellers in the recruitment and staffing industry. In our inaugural podcast, RTI Director Simon Childs speaks with Greg Savage on “The Savage Truth Behind Mergers & Acquisitions in the Recruitment and Staffing sector.

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 in both the buyer and seller side of noteworthy transactions.

Some key points of discussion:

[01:38] – Introduction

[04:50] – Sellers: Most important things to consider when considering to sell

[06:00] – Certainty of Profit

[06:55] – Annuity Revenue

[07:55] – Client Mix & Relationships

• Deep, embedded clients
• Multiple earners
• Systems and processes
• Replicable Training Process
• Margins, PSAs, PSLs
• Fee Structure, Exlusivity, Pay History
• Succession Plan, Reward Structure
• Compliance and Financial Management

[18:05] – Run your recruitment business like a big company even if you’re small

[19:43] – Paths for smaller perm recruitment businesses

[23:29] – In hindsight, what would you have done differently?

• The Deal Structure
• The Size Irony
• Understand the Buyer Profile
• Cut the Emotions
• Bring the Senior People On Board
• Watch the Economic Cycles

[31:46] – Simon’s experience in selling a recruitment business: The Lehman Shock of 2008

[34:38] – Beyond the Numbers: Other Factors to Consider

• 1 + 1 = 3
• The Marriage Metaphor
• Weaknesses and Pain Points

[43:01] – What’s exciting in the Australian and New Zealand Markets?

[47:51] – The Savage Truth (Book) and The Savage Recruitment Academy (Training)

[51:17] – Closing