In this episode of RecTalk, Nitin Sharma is joined once again by Matt Fox, founder of Exitus Advisory, for a no-nonsense deep dive into what it really takes to sell a recruitment business – and why most agency owners get it wrong. Matt has become one of the most trusted voices in the recruitment M&A and advisory space, and this conversation pulls back the curtain on exit planning, valuation myths, and how recruitment founders can significantly increase the value of their business before they ever think about selling. Together, Nitin and Matt unpack why only a small percentage of recruitment agencies ever successfully exit, what buyers actually care about, and how agency owners can reduce risk, increase profitability, and build a business that’s attractive to acquirers – whether they plan to sell in 12 months or five years. 🧠 Topics covered include:

• Why most recruitment businesses are never truly “exit ready”
• The biggest myths around recruitment business valuations
• What multiples really look like for perm vs temp agencies
• Why owner-led billing businesses are unattractive to buyers
• How risk (not revenue) drives valuation
• The importance of leadership teams and revenue spread
• Deferred consideration, earn-outs, and payment profiles explained
• How recurring revenue models and RPO-style services boost value
• The impact of PSLs, client concentration, and profitability
• When the best time to sell actually is (and why most miss it)
• Common reasons founders choose to exit – beyond just money
• Practical advice for owners starting to think about an exit

Matt also shares real examples from his advisory work, insights from the Recruitment Agency Expo, and introduces a free sale readiness checker designed to help founders understand where they stand today.