Recruitment agencies that want the maximum value for the sale or flotation of their business need to prepare at least two years in advance, a Recruiter Masterclass heard.

Christopher Clark, a director at BDO Stoy Hayward's corporate finance team, said agencies often miss out because they fail to implement long-term strategies that increase value.

Enterprise value is calculated by multiplying adjusted annual earnings with a number based on predicted profitability. The multiplier for recruitment agencies often varies between four and eight, depending on type, size and the structure of a business.

Recruitment agencies are asset-light. Business employees are key to their value. Buyers need to be reassured that staff will remain loyal. Long-term preparation should include instilling brand loyalty and properly structuring bonus schemes.

Attendee Jason Luckhurst, managing director at Practicus, plans to float the firm on AIM in 2010. He set up a training programme at its launch in 2006 to prepare.

"It's the brand; it's an induction and training programme, which enables us to take consultants on board quickly," he told Recruiter.