How do I explain my recruiting agency’s candidate sourcing methods to a buyer?
Describe each channel in plain terms: where candidates come from, who does the work, what it costs and how many placements it produces. Be clear about which parts are systems and which rest on one person’s network. A buyer will trust a method they can follow and test far more than a claim of talent.
List your channels one by one: job boards, referrals, your own database, outreach, events. For each, say who runs it, what it takes in time and spend and what it has led to. Back this up with a few examples drawn from real placements, with names removed.
Then separate what is a process from what is a person. A recruiter whose contacts bring in much of the supply is an asset, but also a risk. Say so before the buyer finds it. Explain what you have done, or would do, to keep that knowledge in the business. Be ready for the question of what happens when your own contacts are no longer there. A sensible answer names who inherits them, how introductions would be made and how long the agency expects that to take.
Show the tools. A buyer will want to see the database, the search methods and any templates used for outreach. Offer a walk-through rather than a document alone, and let them ask questions. Be willing to say what does not work. Finally, consider what candidates were told about their data. Your lawyer can advise on what may be passed to a buyer and in what form.
Key takeaways
- Describe each channel, who runs it, what it costs and what it produces.
- Separate repeatable systems from what depends on one recruiter’s network.
- Offer a walk-through of the tools and be candid about weak channels.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
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