The UK’s dwindling number of privately-owned recruitment agencies are becoming potential takeover targets, according to a report by business analysts Plimsoll Publishing.

The research shows that 974 of the UK’s top 1,500 recruitment agencies companies remain in private hands, and their values are increasing faster than those of their corporate competitors. Their exclusivity, niche products and unique services are adding to their attractiveness, Plimsoll says.

Plimsoll senior analyst, David Pattison, says: “The increasing age of owners and principals at some of these companies is causing them to consider their choices. “While many family firms have succession plans in place, an offer for the company at the crucial moment is often listened to sympathetically, as the new generation review their options,” he says.