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.Chapters00:00 Introduction to the RAG podcast00:29 Overview of Deploy Recruitment01:27 Paul's decision to buy out the company03:23 Paul's experience with laser eye treatment04:21 Overview of Deploy Recruitment's services05:20 Expansion into other industries and territories06:17 Challenges and opportunities in the industry07:15 The importance of infrastructure maintenance08:12 Issues with technology and connectivity09:08 Benefits and challenges of electric vehicles10:34 Introduction to Paul Smith and Deploy Recruitment11:04 Paul's background and decision to join Deploy Recruitment12:19 Joining a non-recruitment company and leveraging their resources13:44 The growth of Deploy Recruitment14:41 Finding clients by observing train stations18:12 The challenges of cash flow in the industry20:08 Expanding into different sectors and offering additional services22:14 The importance of process and procedure in the rail industry23:13 Servicing internal projects and external clients24:09 The 24/7 nature of the business26:06 Managing on-call responsibilities27:44 Understanding turnover, gross profit, and net fee income28:14 Offering flexible payment options to clients30:09 Expanding services and finding new ways to work with clients31:55 Using data to provide real-time insights to clients35:11 Taking over the business36:12 Timing and circumstance37:07 Impact of COVID-1938:41 Opportunity to buy the business39:05 Transition and management buyout42:02 Executing the buyout44:14 Personal risk and commitment46:00 Challenges and considerations49:30 Being a leader50:26 Vision for the future57:26 Hiring good people58:11 Streamlining operations01:00:03 Importance of content on LinkedIn01:02:51 Continuous learning and growth__________________________________________Hoxo MessageReady to find 25+ warm leads within 7 days on LinkedIn?As a recruiter, most of the working day is spent chasing people via cold outreach on LinkedIn.This method is super time-consuming and most people don’t reply because they simply don’t know or trust you.But it can be different...If you follow the process in this document you will hack the LinkedIn Algorithm in just 15 minutes per day and drive warm leads whenever you want...