Season 7 | Ep35 Paul Smith on completing the MBO to buy out his original partners and take full ownership of his recruitment agency!

The RAG Podcast - Recruitment Agency Growth Podcast

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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