Business Name: Sign NDA to view at https://fih.com/listing/6854732
Business Website: Sign NDA to view at https://fih.com/listing/6854732
Business Start Date:  May 1^st, 2012
Business Location: Reeuwijk, The Netherlands
Business Valuation: $1,500,000 USD
Employee Number (Inc. Owners): 2 (owners) + 46 (ambassadors) + 2 search consultants
Business Model: Revenue Sharing, One Time Fees
Industry: Executive Search Firm for IT Industry
Percentage Being Sold: 100%
Sales (TTM): $750,000
Net Profit (TTM SDE): $300,000
Business Multiple (TTM ARR): 2x
Business Multiple (TTM EBITDA): 5x
Social Media Followers: 10,000
Paying Clients (TTM): 12

Executive Summary

Company Overview

The business is an established executive search firm specializing in senior management, IT, and commercial roles on both a permanent and temporary basis. Founded on May 1, 2012, and based in Reeuwijk, The Netherlands, the firm has developed a strong network of clients and industry professionals. The business operates in the IT services sector, catering to both large IT users and service providers.

Key Metrics

• Sales (TTM): $750,000
• Net Profit (TTM SDE): $300,000
• Business Valuation: $1,500,000
• Business Multiple (TTM EBITDA): 5x
• Employees: 2 owners, 46 ambassadors, 2 search consultants
• Social Media Followers: 10,000
• Paying Clients (TTM): 12

Business Model & Revenue Streams

The business operates a high-margin, service-based recruitment business, focusing on executive search and placement. The firm generates revenue through:

• Permanent Placements: Recruitment fees averaging 25% of the candidate’s annual on-target earnings (OTE) salary.
• Temporary Placements: Commissions averaging 20% of the candidate’s hourly rate.

Market Opportunity

The demand for top-tier executive talent continues to grow, particularly in the IT sector. Key trends driving industry expansion include:

• Increased Need for Senior Talent: Companies are placing a premium on experienced executives to navigate market complexities.
• Growing IT Sector: As businesses embrace digital transformation, the demand for senior IT leadership remains strong.
• Expanding Economic Uncertainty: Organizations require strategic hires to maintain competitive advantage in a shifting economy.

Products and Services

The business offers:

• Executive Search & Recruitment for IT and commercial roles.
• Consulting & Advisory Services to assist businesses in identifying top talent.
• Temporary Staffing Solutions to provide flexible workforce solutions.

Competitive Advantage

• Well-Established Ambassadors Network: A vast network of senior executives ensures access to top talent.
• Strong Industry Expertise: Over a decade of experience in IT executive search.
• Turnkey Business Model: Low overhead, no payroll liabilities, and a streamlined, scalable structure.

Financial Performance

• Consistent Profitability: The business maintains a strong EBITDA margin.
• Resilience: Despite temporary COVID-related declines, the business has rebounded due to financial stability and lack of debt.
• Revenue Breakdown:
  • Permanent Placements: Average client value of $30,000 per hire
  • Temporary Staffing: Clients generate approximately $180,000 annually

Growth and Expansion

Potential growth opportunities include:

• Geographic Expansion: Entering new markets with high IT recruitment demand.
• Technology Integration: Leveraging AI-based recruitment platforms to improve efficiency.
• Marketing Investment: Enhancing social media and digital marketing strategies to attract new clients.
• Strategic Partnerships: Collaborating with IT service providers to expand business reach.

Operations & Team

• Lean Structure: No payroll employees; result-based compensation for ambassadors (30% of revenue).
• Owner Responsibilities: Managing ambassador network, closing sales deals, and overseeing delivery.
• Low Overhead Costs: Annual rent is $15,000; no significant additional expenses.

Sales & Marketing

• Customer Acquisition Strategy: Relies on an established ambassadors network.
• Marketing Spend: $20,000 annually.
• Sales Channels: Social media, networking, and direct outreach.

Ideal Buyer Profile

• Strategic Buyer: A larger recruitment firm looking to scale or acquire expertise.
• IT Services Firm: A company with high recruitment needs looking to integrate in-house talent acquisition.
• Private Equity Buyer: Investors seeking a high-margin business with expansion potential.

Reason for Sale

The owners are selling due to personal interests and plan to transition out of the business after a proper handover (3-12 months). They are open to providing transition support and becoming active ambassadors.

Transaction Structure & Valuation

• Sale Price: $1,500,000
• EBITDA Multiple: 7-10x
• Turnkey Transition: Includes all client contracts, intellectual property, brand assets, and operational processes.

Assets Included in Sale

• Domains & Brand Assets
• Website & Contents
• All Customer & Partner Accounts
• Social Media Accounts
• Trademarks & IP
• Financial Accounts & Client Contracts

About the Agent

FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of remotely-run successful digital companies (around the world) from $1M-100M in revenue, including apps, marketplaces, freemium + enterprise SaaS, ecommerce, affiliate/advertising groups, and more! We are proud to work with the very best entrepreneurs and investors, so if that’s you and you are in the market to acquire or sell a relevant business, then we encourage you to reach out for a complimentary consultation.