In just the past few weeks there have been a number of announcements regarding companies in the recruiting space either getting additional financing or being acquired. With unemployment near 10% many employment marketing companies and agencies are really struggling right now which makes them cheaper to buy. I was happy and sad to see one of my favorites get acquired recently, Cheezhead. I’ll miss Joel’s industry insight and comments.
The other big thing I see affecting this activity is that recruiting is going through a change as more and more companies are moving some of their time and budgets towards social media methods. As usual in our great economy, it’s generally the smaller, if not start up companies that tend to lead the field in new technologies, just ask Microsoft. That said, as many of the larger more established recruitment marketing companies try to figure out how to make social media a viable strategy for themselves and their clients, many are finding out it is easier and faster to buy the smaller companies who already get it.
The good news is that a flurry of acquisitions tend to occur when there are bargains or when the price for the business assets is at a low point due to economic conditions in an industry. If this is true, maybe we will begin to see a return to real job growth sometime soon.
Stay tuned, I think we’ll see at least a half dozen more acquisitions in the recruiting space before the end of the year. Let’s hope all of this activity ultimately makes it easier for people to find good jobs!