Recruitment agencies in Australia are a genuinely attractive acquisition target — when they are structured correctly. Recurring revenue from retained clients, a strong candidate database, and a team that operates without the owner on every desk are the hallmarks of a business that sells well. The ones that don't sell well are the ones where the owner is the agency — every key client relationship, every senior candidate placement, every retained search runs through one person.
What recruitment agencies sell for in Australia
Recruitment agencies in NSW and QLD typically sell at 3.0× to 5.0× EBITDA for established businesses with a team in place. Smaller owner-operated agencies trade at lower multiples or on a revenue basis.
| Agency type | Typical multiple | Key driver |
|---|---|---|
| Owner-operated, contingency only, no team | 1.0–2.0× EBITDA | Key-person risk — buyer is buying a job |
| Small team, mixed contingency and retained, some recurring clients | 2.0–3.0× EBITDA | Some transferability, depends on consultant retention |
| Established team, retained client base, documented processes | 3.0–4.0× EBITDA | Recurring revenue, lower key-person risk |
| Specialist niche (industrial, tech, healthcare, executive), strong brand | 4.0–5.5× EBITDA | Niche premium + defensible candidate database |
Permanent vs contract revenue
Contract and labour-hire revenue — where the agency places workers on an ongoing basis and earns a margin on their hours — is significantly more valuable than contingency placement revenue. Contract revenue is recurring, predictable, and does not depend on a new placement being made each month. Buyers pay a premium for it.
A recruitment agency with $2M in annual contract revenue and $500,000 in contingency placements is a more attractive asset than one with $2.5M in contingency revenue alone — even though the second agency has higher total revenue. The predictability of the contract book is what buyers are paying for.
The consultant retention problem
The biggest risk in a recruitment agency sale is consultant attrition. If the senior consultants leave post-sale, the client relationships and candidate pipelines go with them. Buyers know this and price it into every offer.
Agencies that have documented processes, a strong brand identity, and client relationships that are tied to the firm (not to individual consultants) are more defensible. Retention arrangements for key consultants — whether through employment contracts, equity participation, or earn-out structures — are a standard part of most recruitment agency transactions.
Industrial and B2B recruitment in Western Sydney
Recruitment agencies specialising in industrial, logistics, manufacturing, and trades placements in Western Sydney — Eastern Creek, Wetherill Park, Erskine Park, Smithfield, Chullora, Silverwater, Moorebank — are in strong demand from both trade acquirers and private equity consolidators. The labour market in these precincts is tight, and agencies with established relationships with the major industrial employers in the corridor have a defensible competitive position that buyers will pay for.
Next steps
If you are considering selling your recruitment agency in NSW or QLD, contact Richard Matthews at Link Business NSW for a free, confidential appraisal. The conversation starts with an honest assessment of what the business is worth and what, if anything, needs to change before going to market.
