Recruiting Business Valuation: Is 3x SDE a Good Deal?

In this episode the hosts analyze a niche executive recruiting firm serving the printing, packaging, and paper industries, debating whether its deep relationships and proprietary network create a durable moat—or a dangerous key-man dependency. Special thanks to Tighe Burke with SRCH for joining us on today's pod! Check out more here: https://www.srchpartners.com/ Business Listing – http://bizbuysell.com/business-opport... Welcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them. Looking to build a professional website in minutes? Try Wix: https://wix.pxf.io/c/6898629/3115214/... HubSpot is the backbone for how businesses scale without chaos. Try them out here: https://go.try-hubspot.com/OeG9Vr Subscribe for more episodes:    / @acquisitionsanonymouspodcast   Subscribe to our Newsletter: https://www.acquanon.com/newsletter Connect with us on Social Media: Twitter:   / acquanon   LinkedIn:   / acquanon   👋 Follow the Hosts Michael Girdley – Entrepreneur & investor. Twitter:   / girdley   Bill D’Alessandro – CEO of Elements Brands. Twitter:   / billda   Heather Endresen – SBA lending expert & advisor. Twitter:   / endresenheather   Mills Snell – Small business investor & advisor. Twitter:   / thegeneralmills   💰 Sponsored by: CapitalPad is a private equity co-investment group for lower middle market deals. Accredited investors invest in searcher and independent sponsor transactions on a deal-by-deal basis, with minimums starting at $25K. Acquisition entrepreneurs with a deal under LOI can raise equity through CapitalPad's single-SPV structure, closing with one partner and one wire. Raise capital or invest at https://capitalpad.com Acquisition Lab – Your fast-track to business ownership. Get hands-on support, world-class resources, and join a top-tier community of acquisition entrepreneurs. Schedule your free consultation at https://www.acquisitionlab.com and mention Acquisitions Anonymous! The hosts break down a niche executive recruiting business focused on the printing, packaging, and paper industries. The company generates approximately $1.1M in annual revenue with $365K in seller discretionary earnings and is listed for roughly 3x SDE. What initially looks like a straightforward recruiting agency quickly turns into a fascinating discussion about retained vs. contingent search, proprietary databases, and the true value of industry-specific relationships. Key Highlights: Executive recruiting firm focused exclusively on printing, packaging, and paper industries with ~$365K SDE on ~$1.1M revenue Hosts debate retained vs. contingent recruiting economics and why the split is unusual in executive search Major diligence concern: founder generates 60% of client engagements and key recruiters may hold most relationship value Discussion on whether the company’s 200,000-profile CRM database is truly proprietary or just scraped public data Deep dive into how AI tools may improve recruiting efficiency but still struggle with nuanced executive sourcing