Does anyone know a good general formula for valuating a recruiting company?

I know that it depends on many factors, and I am not really looking for a discussion of what all those factors are... I just want a rough estimate.

For example:
annual perm revenue x 1.5
or
annual profit x 5

annual contract revenue x 3

I just made these up off the top of my head, so if anyone has experience dealing with selling or buying a staffing firm, I would appreciate your insight.

Thanks!

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Permalink Reply by cody voellinger on June 22, 2011 at 3:44pm
Ok, so I heard from one source that a good formula is 5-6 x EBIT. Can anyone confirm or offer another suggestion based on experiences buying or selling their recruiting companies??

Thanks!!!

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