DEALS and securing both high-quality staff and new business are currently key issues for recruitment companies looking to post-recession growth.

That is according to a study by business advisory and accountancy firm BDO, which found that 46 per cent of all recruitment consultants surveyed thought their business looked set be involved in M&A activity in the next three years, while 41 per cent believed it was likely to be sold or go through an exit in the next five years.

Neil McGill, director of corporate finance with BDO in Scotland, said: "A strategic merger is a good option for those who want to expand the services that they offer clients, or diversify in to a different sector."

He also said incentivising staff "is paramount to attracting and retaining top talent," and of the recruitment bosses surveyed, 57 per cent cited attracting suitable employees to their own firms as a major concern.