Client: Action First Recruitment Consultants
Counterparty: Public Recruitment Group plc
Sector: Healthcare, Human Capital
Deal Type: Sale
Assay Corporate Finance advised on the sale of Action First Recruitment Consultants (“Action First”) to Public Recruitment Group PLC (“PRG”) for a total consideration of up to £16.5 million.
Action First is a London based supplier of social workers to public sector bodies across the South of England. Established in 1984 it operates from premises in central London and employs 24 staff.
Public Recruitment Group is a quoted recruitment and services group specialising in the public sector – education, healthcare and social work in particular. This acquisition is its first entry into the London social work market and gives PRG a national presence and a top 5 position in the social worker recruitment market.
Assay Corporate Finance was retained by Paul Godfrey, 43, founder and owner of the business, to advise him on this exit after receiving a number of unsolicited approaches from potential acquirors. Several months of negotiations with these parties led to the selection of PRG as an ideal acquiror. Terms of the transaction were:
Initial consideration of £11.3 million, satisfied by the issue of 739,437 ordinary shares in PRG equivalent to £1,050,000 and the balance by a mixture of cash and bank guaranteed loan notes.
Additional consideration may become payable subject to the achievement of EBIT targets for the two years post acquisition to be satisfied by a mixture of cash and loan notes and the allotment of ordinary shares in PRG. The maximum consideration payable is £16.5 million.
The transaction therefore represents an exit multiple of up to times 11.8 times historic EBIT, with an up front consideration amounting to circa 8 times historic EBIT.