Greater optimism among recruiters has sparked an increase in merger and acquisition (M&A) activity as agencies prepare for an upturn.

Firms introducing recruitment businesses to potential buyers have reported a jump in the number of enquiries they have received.

John Bissell, director of Linsey Bissell Associates, said there had been an upsurge in interest in buying all types of recruitment businesses, whereas two or three years ago the most saleable firms had been in the public sector.

Julie O’Neill, director of rec-to-rec firm McCall, has also experienced significant growth in her firm’s M&A business in recent months. “On the M&A side we’re very busy across all sectors. Lots of people are now considering their exit strategies, and there’s a lot of consolidation,” she told Recruiter.

O’Neill added that prices were still relatively low for those looking to buy recruitment agencies, as companies’ values were reflected by last year’s profit figures.

However, Vasim Haq, of business adviser Numerica, cautioned that many agencies would hang on until prices went up. “The market’s on the upturn so it’s not the best time to get a good price. But there is a certain amount of pent-up demand: people who wanted to sell their business a couple of years ago but weren’t able to,” he said.