Staffing Agency Valuation
Staffing Agency Business Valuation Calculator & Exit Planning Built for Agency Owners
We built one platform that tracks your staffing agency business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Staffing Agency Owners Have No Idea What Their Business is Actually Worth
Current Staffing Agency Valuation Multiples (2026)
Staffing Agency values are strong due to increased buyer demand from staffing consolidators, PE platforms, strategic acquirers. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Staffing Agency Business Value
Revenue and earnings are the two most influential factors in your staffing agency business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Gross Margin
25%+ GM
Gross margin percentage determines profitability. 20%+ margin indicates strong bill/pay rate management. Staffing agencies live on spread—low margins mean you're competing on price.
Low margins = no pricing power
Specialization
Defined Niche
Temp-to-perm and contract staffing create ongoing relationships. Direct hire only agencies have project-based revenue—contract staffing creates recurring billings that are more valuable.
Generalist = racing to bottom
Client Diversification
None Over 20%
Specialization in specific industries commands premium pricing. Niche staffing (healthcare, IT, accounting) has higher margins than general labor because expertise is valued.
Concentrated = deal-breaker
Perm Placement Mix
20%+ Direct Hire
Any client over 15% of revenue creates concentration risk. Diversified client base means no single loss devastates the business—buyers stress-test concentration carefully.
Temp-only = commodity
Technology Systems
Modern ATS/CRM
Modern ATS and payroll systems show professional operations. Bullhorn, Avionte, or similar platforms demonstrate proper candidate tracking, compliance, and scalable processes.
Paper-based = nightmare
Recruiter Retention
Low Turnover
Experienced recruiters who stay create sustainable value. Recruiter relationships with candidates and clients are the real asset—high recruiter turnover means starting over constantly.
Recruiter churn = lost relationships
How to Value a Staffing Agency
The U.S. staffing industry generates approximately $220 billion in annual revenue across more than 25,000 staffing firms. Staffing companies range from local temporary agencies to specialized professional recruitment firms, each with distinct valuation dynamics.
Seller's Discretionary Earnings (SDE) is used for smaller staffing companies, while EBITDA is standard for larger firms. Staffing agencies typically sell for 2.0x to 5.0x SDE, or 4.0x to 8.0x EBITDA. Specialized staffing firms (healthcare, IT, engineering) consistently command higher multiples than general light industrial or clerical staffing.
Revenue multiples for staffing firms generally range from 0.20x to 0.60x annual revenue, but gross profit multiples are more commonly used — typically 1.5x to 3.0x gross profit — because revenue includes significant pass-through payroll costs.
The unique valuation factor in staffing is the gross margin structure and client diversification. Buyers look at gross margins by staffing vertical (light industrial at 20-25%, professional staffing at 30-40%, healthcare travel at 25-35%) and evaluate how concentrated the client base is. A staffing company with 3 clients representing 70% of revenue carries significant risk. Direct hire and permanent placement revenue, while less predictable, carries near-100% margins and is valued separately at a premium.
The staffing industry has seen significant PE activity and consolidation, particularly in healthcare, technology, and skilled trades verticals where talent shortages drive sustained demand. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do staffing agency businesses sell for?
Most staffing agency businesses sell for 2.0x – 3.5x SDE or 0.3x – 0.6x annual revenue. However, the range is wide. Companies with strong gross margin can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does gross margin affect my company's value?
Gross Margin is one of the biggest value drivers for staffing agency businesses. Staffing consolidators, pe platforms, strategic acquirers specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my staffing agency business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your gross margin, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys staffing agency businesses?
Common buyers include staffing consolidators, PE platforms, strategic acquirers, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for staffing agency businesses?
Most staffing agency businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.3x – 0.6x) are sometimes used as quick reference.
What's the fastest way to increase my staffing agency business value?
The fastest improvements typically come from: 1) Improving your gross margin to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.