Recruiting / Executive Search Firm businesses typically sell for 1.5–3.0× SDE in 2026. This guide covers verified recruiting / executive search firm valuation multiples, key value drivers, typical deal structures, and market trends for brokers and buyers.
Last verified: 2026 | Sources: IBBA Market Pulse, BVR, BIZCOMPS transaction database
| Metric | 2026 Range |
| SDE multiple | 1.5–3.0× SDE |
| EBITDA multiple | 4–7× EBITDA |
| Revenue multiple | 0.4–0.8× annual revenue |
| Average deal size | $200K–$3M |
| Time to sell | 6–12 months |
| SBA eligible | Yes — SBA 7(a) eligible |
SBA 7(a) most common for sub-$3M transactions; earnouts tied to revenue retention (12 months); seller stays on for transition; retained search firms sell at premium to contingency; database and CRM quality verified in due diligence.
↔ Stable — recruiting firm M&A activity steady. Executive search (C-suite, VP-level) achieving higher multiples than staff-level contingency recruiting. Technology recruiting firms saw compressed demand post-2022 tech layoffs but recovering. Healthcare recruiting active.
Recruiting firms typically sell for 4–7× EBITDA or 0.4–0.8× annual revenue. Retained executive search firms (upfront fee paid regardless of placement outcome) achieve multiples 20–40% higher than pure contingency firms (fee only on successful placement) due to more predictable revenue.
Retained search: client pays upfront to engage the firm exclusively — revenue recognized whether or not a placement is made. Contingency search: firm only gets paid when a placement succeeds. Buyers pay premium multiples for retained models because revenue is more certain and relationship-based. Contingency firms have higher revenue volatility and lower multiples.
A high-quality, actively maintained candidate database (CRM with current contact info, recent placements, sourcing history) is a core asset of any recruiting firm acquisition. Buyers verify database quality in due diligence — looking at number of records, last-contacted dates, placement history, and whether the database is owned by the firm or maintained through a third-party ATS subscription.
Specialized recruiting firms (technology, healthcare, finance, legal) command 15–30% valuation premiums over general recruiting firms. Specialization allows higher fee rates (specialty placements command 20–30% of first-year salary vs 15–18% for generalist), deeper candidate networks, and more defensible competitive positioning.
Yes — SBA 7(a) is commonly used for recruiting firm acquisitions under $5M. Lenders review revenue consistency and client concentration carefully. Retained-search-heavy practices are more financeable than pure contingency models. The CRM/database is typically included in the collateral valuation for SBA purposes.
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