HN Explorer

Getting Acquired as an Agency

1 points by teddyroosevelt1 ↗ HN
hi,this is my first time posting here and am looking for some advice. I own a headhunting/recruiting firm that works with many startups and vcs across the globe (some enterprise as well). we've grown in the last two years from 0 people and 0 USD in revenue to +50 people and over 1M in annual revenue with very good margins. It has certainly been fun, but it's not my passion.

how should I go about getting acquired/selling? I'm mostly used to hearing about deals in the tech space for very different type of companies- not usually agencies/firms.

thanks in advance

2 comments

[ 46.8 ms ] story [ 165 ms ] thread
brntsllvn
Just curious: How can you have very good margins if you have 50 people and only 1mm in annual revenue?

Selling an agency is challenging. You need to figure out what you're actually selling: Do you have unique IP? A killer brand? Hard-won sales channels already in place?

You also need to figure out what the buyer can do with your agency: They probably want to grow the margins or scale. How does your agency enable whatever goal they want to achieve?

Once you have your pitch together, you can Google around for sites like micro acquire, which connect buyers and sellers.

Hope this helps.

teddyroosevelt1
We've built a globally scattered team, so even though we work with tons of people, profit margins are roughly 70%. Cashflow is pretty consistent and terms payment terms are net 30, so no financing is required.

I'm guessing the best way to sell it is to go for a big enterprise company who is looking to hire a lot, and want to reduce their average cost. Any suggestions on how to go about that?

I think that's more probable than to sell to other firms wanting to scale.