Insight By HHMC - M&A, Business Advisory Blog for Recruitment Industry

The Owner Dominant Organisation

Written by Rod Hore | 12-Feb-2024 10:56:53

In conversations with business owners in the recruitment industry we often use the term “Owner Dominant” to characterise a business and its position in the market.  

We are seeking to differentiate from the “Lifestyle” and “Corporate” businesses. 

"Owner Dominant" is a highly positive and empowering term. It describes a business that, at its present stage of evolution, bears the significant imprint of its shareholders and often has the founders as leaders.  

What sets this type of business apart is not only the influential involvement of the shareholders but also their commitment to evolving a business from its current state. Rather than resting on their laurels, these shareholders have developed a strategy and are executing that with purpose.  

We identify and recognise that the owner has strategic intent, investment strategies and a continuous improvement attitude. 

These might be: 

  • Sustainable size – the business has grown from “single points of failure” to a business with a spread of management, sales and delivery resources. 
  • Strategic planning – the business can articulate its strategy and can show progress towards the implementation of that strategy. 
  • Investment in management level staff – the business is developing a sustainable next level and next generation of management to reduce the reliance of the shareholders or founders. 
  • Investment in marketing and sales – the business does not rely on past relationships but has a defined marketing strategy and actively pursues new sales opportunities. 
  • Investment in new business models – the business is not relying on past business models to be sufficient in the future and actively seeks new business models to provide service to its chosen clients.
  • Strong analytical focus – the business measures itself and seeks to continuously improve performance and productivity.
  • Seek external input – the shareholders and directors do not assume they have all the answers or even all the questions. They read extensively, travel outside their own region, and seek input on their current performance as well as future options. 

The Australian and New Zealand staffing and recruitment industry continues to provide an environment for Owner Dominant agencies to emerge and prosper. In many ways, they are the backbone, and the source of innovation, for the industry. 

HHMC Global operates within the staffing and recruitment industry on equity transactions, market valuations and business growth advisory. Contact us to discuss further.