While researching recruitment industry trends and how it has been performing recently, I found this really thought provoking article from one of the investment companies on what attracts stakeholders to invest in recruitment industry. They noted that usually Investment Managers try to evaluate the growth potential and future earnings of a recruitment agency and this is based on the specialism, scale and business model they chose. There isn’t much information on any other aspects that would be recruitment industry specific as investing in technology or other “tangible” industries is a more popular option at the moment.
Who’s winning the investment game?
The recruitment industry as a whole has a strong history of performing well compared to other industries, but not all agencies have been able to secure funds or implement their mega growth plans through Mergers & Acquisitions. Agencies that support digital and engineering recruitment have received the most attention from investors so far due to rise of the ‘technology economy’. On the other hand, recruitment companies working in more traditional industries such as finance, healthcare or oil & gas will have to look at other ways of attracting investment because those markets are becoming more regulated and more difficult to recruit in.