Recruitment Sector Insight

DEAL VALUE DRIVERS

BUSINESS Positives

Negatives

1. Contractor-focused business (minimum 40% contractor revenue)

1. More permanent based business

2. Low number of clients / concentration of income limited to those clients

2. In-demand sector

3. Low churn of staff & high tenure experience 3. Low margin / high churn contractor book

4. Lumpy revenue generation / seasonality of workers

4. Overseas routes to market & strategy

CANDIDATES Positives

Negatives

1. Highly skilled candidates

1. Short term placements

2. High drop out / clawbacks on perm placements

2. High margin contractor sectors

3. Long term placements

3. Low-skilled temp labour

4. Recurring placements

4. Low demand sectors / lack of specialism

STAFF Positives

Negatives

1. High performing consultants

1. Inconsistent performance

2. LTIP (Long term incentive plans)

2. High volumes of hires or high churn

3. High concentration of billings across top billers

3. Experienced management team / low churn

4. Strong ramp profile of new hires

4. Lack of succession planning

CLIENTS / PORTFOLIO Positives

Negatives

1. Diverse client base & low concentration 1. High concentration of revenue per client 2. High value clients / contractors / margins 2. Decreasing or inconsistent spend 3. Recurring contracts / retainers / ongoing income 3. Low value brands / small business 4. Geographical spread & growth potential 4. History of bad payments / bad-debt