Once you’ve decided to sell, the work shifts to making your agency as attractive as possible to potential buyers. Preparation isn’t just about tidying up — it’s about strategically showcasing value, removing friction, and presenting a business that feels turnkey from day one. Well‑prepared agencies routinely sell faster and for higher multiples.
Financial Hygiene
Buyers will comb through your financials looking for patterns, predictability, and credibility. Strong, transparent books help justify premium valuations and build trust early in the process.
- Audit 2–3 years of financials to ensure accuracy and consistency.
- Clean out personal expenses to reflect true operating costs.
- Highlight recurring revenue streams like contract staffing or retained search agreements.
- Calculate adjusted EBITDA to normalize one‑time costs or owner‑specific expenses.
- Aim for healthy margins: 15–25 % is common for well‑run agencies.
Operational Efficiency
- Streamline workflows with ATS/CRM tools and automation.
- Integrate technology: AI for candidate matching now used by ~70 % of recruiting pros (LinkedIn, 2025).
- Diversify client base to reduce overreliance on any single account or sector.
- Standardize processes for onboarding, compliance, and invoicing.
Compliance & Contracts
- Ensure client and candidate contracts are current and enforceable.
- Stay ahead of regulations like FLSA updates, EEO requirements, and state‑specific employment laws.
- Resolve any pending legal matters before going to market.
Brand Positioning
- Document key systems and operational SOPs for handover.
- Gather client testimonials and case studies to demonstrate value delivery.
- Highlight differentiators — niche expertise, rapid fill rates, or exclusive client relationships.
Timeline & Next Step
- Preparation typically takes 3–6 months. This upfront investment can significantly shorten time on market and reduce buyer negotiations.
- At SAB, we connect sale‑ready staffing agencies with qualified buyers in the U.S. and Canada to help you move quickly when the timing is right.
Missed Post 1? Read Deciding to Sell: Strategic Considerations