B2B, Industrial & Distribution · Seller readiness
Selling a Staffing & Recruiting business
Published · Reviewed by The Diligence Standard Team · Updated
Owners should prepare client-level gross profit, worker/payroll, recruiter production, AR and workers-comp data and show that client relationships are not owner-dependent.
How the business works
Client concentration, bill/pay spread, recruiter production, worker classification, payroll funding and workers compensation drive value.
Issues to resolve
- Revenue is shown without gross-profit quality
- Loss runs are not organized
- AR aging is weak
- Top clients are owner-held
- Recruiter production is not measured
Evidence to request and reconcile
- Client-level revenue/gross profit
- Bill/pay rate detail
- AR aging
- Recruiter production
- Workers-comp loss runs
- Worker classification/payroll
Decision questions
- What gross profit comes from the top five clients?
- How much cash is needed to fund payroll before collection?
- What happens if the top recruiter leaves?
- Are worker classifications defensible?
- How has spread changed by client over time?