Current economic conditions suggest that the recruitment and staffing sector is set to experience a period of consolidation and a contraction in the number of players in the market.

Many recruitment companies will be looking for opportunities to acquire smaller businesses and those in sub-sectors which are thriving are considering their longer term exit strategies. Either way, it is important for companies to look for ways to either maximise their value to prospective buyers or to ensure that they get value for money from their target.

valuing your business

Much of the value of businesses in this sector lies in their contracts. It is of utmost importance to ensure that these assets 'work' when valuing a recruitment company. 

Sellers who can present a 'clean' company are more likely to achieve a higher price for their businesses. Those who take steps to put their affairs in order now will save time and money when they come to sell their businesses. Prospective buyers need to be aware of compliance and liability issues which may have a significant impact on the value of the target they are looking to acquire.

Blake Lapthorn has over 15 years’ experience providing specialist advice to the recruitment sector and advises on more corporate transactions involving staffing companies than any other law firm.

our corporate legal services

We can advise on a range of issues, including:

  • how to get the best value for your recruitment business, even in a challenging climate
  • 'grooming' for sale when the conditions are right
  • identifying areas which may reduce attractiveness to a buyer
  • M&A, joint venture and other strategic alliances
  • public and private fundraising, including IPOs, private placings, VC investment
  • turnarounds/'distress' sales
  • private equity

Our team is led by Lawrence Phillips, a partner in the firm’s corporate finance department. Lawrence works together with a team of corporate lawyers and our market leading Recruitment sector group to ensure that we provide sector-focused and commercially relevant advice. 

tailoring our services for you

The Recruitment sector group team has a range of complementary legal experience relating to recruitment and resourcing, including expertise in outsourcing, recruitment, litigation, corporate finance and mergers & acquisitions, tax, property, employment and commercial work.

Because of the volume of recruitment and resourcing work we have done over the years, we are able to supply most services on a fixed price basis using extensive specialist know how and precedent banks.  Our clients receive regular industry leading briefings. We also offer seminars on topical issues such as compliance with new regulation and tax regimes, avoiding employment claims, the implications of new directives, VAT mitigation models, best practice cost saving and insurance/liability issues.

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For further information, please contact:

Bridget Wood on +44 (0)20 7814 5426 or by email at bridget.wood@bllaw.co.uk.

Lawrence Phillips on +44 (0)20 7814 5420 or by email at lawrence.phillips@bllaw.co.uk