succession planning: how to get "big bucks" from your recruiting firm when it's time...

How to Get “Big Bucks” for Your Recruiting Firm …..

…When It’s Time to Leave!

Michael Gionta TheRecruiterU.com

Why Should You Listen to Me?

Ú BIG Disclaimer! I’m NOT a: –  Lawyer –  Accountant –  Business Broker…. Seek Professional Advice.

I Did Transition out of Most of My Business in 2010.

© TheRecruiterU.com

Know This First: What’s Next?

Ú Full Retirement NOT All it’s Cracked up to be!

Ú Lifestyle

Ú What are You Doing, What Role are You Playing?


How Big Does the “Pile” Need to Be?

Ú Your “Number”?

Ú Evaluate Different Scenarios – Partial Employment – Full Retirement

What I Learned that SHOCKED ME!

The Way to Grow a GREAT

Business is To Set It Up As If You Wanted to Sell It!


Key Elements That Maximize Value

Ú 5 Biggest Assets to a Potential Buyer 1. Clients look for DEPTH vs. Tenure 2. Employee Tenure 3. Quality of Database 4. Operational Systems/Metrics 5. Goodwill


Maximize Your Value Starting NOW

Ú Annual Business Plan –  Better Planned = Higher Valuation!

Ú Employment Agreements –  Offer Letters –  Non-Competes/Non-Disclosures

Ú Value Added Services –  RPO –  Temporary Staffing –  Consulting


Maximize Your Value Starting NOW!

Ú Begin to “Wean” off Your Desk – Start Delegating Marketing and Recruiting – Build a real Business

•  Become the “Guru” •  Leverage What You Do Best & Train Others How

to do EVERYTHING Else! •  Others CAN do It Just as Well as You, Sometimes

BETTER! © TheRecruiterU.com


Ú Have Documented Systems For: –  Hiring –  Training –  Career Path –  Database Management –  Leadership Development

Ú Have “Curb Appeal” for Your Office –  Attractive to Employees –  Services Near by (i.e. Lunch, Shopping, etc)



Ú Most People DON’T Know/Do This:

Ú Track and KNOW Key Operational Metrics! –  P&L’s going back 5 Years –  Revenue Predictability Metrics Opposing Attorneys will GRILL you On This!


Succession Planning

Ú Again, What is Your Time Frame? Ú  Increase Your Visibility

–  In the Recruiting Industry– Write and/or Speak –  In Your Community

Ú Potential Buyers –  Family Members –  Employee(s) –  Outsider


Succession Planning

Ú Develop MULTIPLE Potential Scenarios –  Identify Internal Buyers –  Identify External Buyers

Ú Regardless of Scenario… You NEED: – Leadership/Management Development

Program •  Sell in Interview Process •  Create Career Path

Succession Planning

Documentation of “Institutional Knowledge” •  Forms (JO, CDS, Ref Chk, etc.) •  Fee Agreements •  Planning Tools


Valuation

Ú Factors Used to Calculate Business Value (In addition to everything so far) – Cash Flow – History of Increasing Sales and Profits

•  Will look back 3 to 5 years •  Keep DETAILED Financial Records

– Tangible Assets


Valuation

Ú The MORE the Owner Self Finances The Higher the Valuation AND the Easier the Sale. – Downside:

•  What if New Owner Defaults? •  What if New Owner wants to Renegotiate? •  Do you want the Business Back?


The Deal

Ú Before You Spend too Much, Get Buyer’s Financing Approved

Ú Plan on 6 to 12 months for Transition Ú If Buyer is from Another Recruiting Firm,

Visit THEIR Business Ú Speak with Financial Planner about Using

Pension Program as Buyout Vehicle for Employees

Summary

Ú Define What is NEXT in Your Life. Ú Whether You Want to Sell or Not, Grow your

Business with the Mindset to Sell Your Business to Build a Great Business

Ú Measure and Document Everything in Small, Manageable Amounts Over Time.

Ú Systems, Systems, Systems!!!


www.TheRecruiterU.com

Ú Free Audio Series at www.TheRecruiterU.com

Ú If you want to Learn More about Systematizing Your Business so It Runs without you… Complete Form or email [email protected]


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