The RAG Podcast - Recruitment Agency Growth Podcast Season 7 | Ep35 Paul Smith on completing the MBO to buy out his original partners and take full ownership of his recruitment agency!
I'm joined by an old client of mine, Paul Smith. Paul is the Managing Director of Deploy Recruitment, a specialist infrastructure and technology recruitment business heavily invested in the rail sector.
Paul started the recruitment side of this business just over 10 years ago.
In this episode, he tells me about the last year and how he completed the MBO to buy out the original Partners and fully own the company.
Today, so many recruitment founders partner with other people — whether business partners, back office providers, solutions providers, or investors.
And I see so many get to a point when, a little bit down the line, it doesn't feel like the right fit anymore.
Paul is open about why he decided to buy out his partners, the risks (personal and professional) he faced, and how he ultimately got it done. He also shares the emotional side of the process and how he’s felt since taking ownership.
A super honest guy who does not mince his words. That's what I love about Paul.
For anyone who's thinking about selling to their employees as an MBO, completing an MBO in the future, or buying out a business partner, you've got to listen to this episode.
Chapters
00:00 Introduction to the RAG podcast
00:29 Overview of Deploy Recruitment
01:27 Paul's decision to buy out the company
03:23 Paul's experience with laser eye treatment
04:21 Overview of Deploy Recruitment's services
05:20 Expansion into other industries and territories
06:17 Challenges and opportunities in the industry
07:15 The importance of infrastructure maintenance
08:12 Issues with technology and connectivity
09:08 Benefits and challenges of electric vehicles
10:34 Introduction to Paul Smith and Deploy Recruitment
11:04 Paul's background and decision to join Deploy Recruitment
12:19 Joining a non-recruitment company and leveraging their resources
13:44 The growth of Deploy Recruitment
14:41 Finding clients by observing train stations
18:12 The challenges of cash flow in the industry
20:08 Expanding into different sectors and offering additional services
22:14 The importance of process and procedure in the rail industry
23:13 Servicing internal projects and external clients
24:09 The 24/7 nature of the business
26:06 Managing on-call responsibilities
27:44 Understanding turnover, gross profit, and net fee income
28:14 Offering flexible payment options to clients
30:09 Expanding services and finding new ways to work with clients
31:55 Using data to provide real-time insights to clients
35:11 Taking over the business
36:12 Timing and circumstance
37:07 Impact of COVID-19
38:41 Opportunity to buy the business
39:05 Transition and management buyout
42:02 Executing the buyout
44:14 Personal risk and commitment
46:00 Challenges and considerations
49:30 Being a leader
50:26 Vision for the future
57:26 Hiring good people
58:11 Streamlining operations
01:00:03 Importance of content on LinkedIn
01:02:51 Continuous learning and growth
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