Does your company meet the classic characteristics of an acquisition target?

Recruitment industry analysts at Plimsoll Publishing have identified eight specific criteria that earmark companies as ripe for takeover. In a new report, Plimsoll names 36 of the UK’s top 2,000 employment agencies which it claims meet the criteria and hence fit the bill as potential targets.

Plimsoll reviewed more than 3,000 firms over the past three months, assessing their overall financial strength and scoring them according to the measures of acquisition attractiveness.

A company scored a point for each of the following criteria:

• sales growth above the industry average

• a low financial rating

• generating high actual earnings, yet losing money

• a big difference between current and future values

• directors’ fees taking a high proportion of profits

• having a high average directors’ age

• not having a parent company

• being controlled by a small board of directors

Overall, 36 companies scored at least six points in the study.

“What we have done here is the donkey work,” said David Pattison, senior analyst on the project.

“The full analysis is ideal for curious acquirers. They almost certainly will have some targets in mind. This analysis will help them to consider these and other options objectively.”

For more information, visit www.plimsoll.co.uk