Why Side joined the Randstad ranks

Randstad France got the Side

Launched in 2016, Side, which uses digital to facilitate temporary recruitment, has joined the ranks of Randstad France. The operation, conducted for an unspecified amount, aims to advance the development of the company thanks to the networks and resources of the sector giant. ” Let’s join the world leader in recruitment, we will have a tenfold impact “, believes Pierre Mugnier. The new entity, named Randstad’s Side, will remain among the 60 members that Side has in April 2022.

Two of the four co-founders, Gaspard Schmitt and Hugo Michalski, chose to leave the adventure. David Benzaken and Pierre Mugnier prefer to stay to facilitate this merger and advance Side’s development in accordance with the founders ’initial values. ” The idea is to maintain our autonomy in the group as a subsidiary while benefiting from their expertise, their business knowledge from a commercial perspective. And this, without distorting the product or the vision » . Side management will be placed under the responsibility of Christophe Montagnon, Chief Digital Officer of Randstad Group. Operational management is in the hands of the co-founders Pierre Mugnier at David Benzaken.

The Side by Randstad team is supposed to grow to reach one hundred people by 2023. Different profiles – developers, salespeople, products – are looking.

The choice of merger acquisition

A year ago, coming out of the first two waves of Covid-19, Side met Randstad. ” The idea was to meet, to see what we could do together. We realize we have a common view of what digital can bring to the recruitment industry ” , details Pierre Mugnier. ” Randstad was able to project himself into a new model, to understand the new tools that can be made with digital technology ” .

At a time when many companies are choosing to raise fun amounts, the four co-founders have chosen a different path by joining a large group. ” We have always wanted to have as much impact as possible. We have attracted over 300,000 applicants since our launch and over 2,000 companies. We had several options: to raise funds, to thrive while making a profit … If we can’t find the right partner, we will consider other options “ , acknowledges Pierre Mugnier. ” But we had a tremendous opportunity from a strategic point of view. Join the global recruitment leader, we can make a big impact ” .

There are many comparisons to consider. We specialize in retail, logistics and services. It’s possible we have a lot to do with the industries Randstad has opened up. We will benefit from their expertise, the business knowledge of the group’s various subsidiaries, a network of agencies with which we can collaborate, etc. “ .

Long journey

Starting such an operation is a real marathon that requires endurance. Because unlike some fundraisers that are completed within a few weeks, a merger acquisition is prepared and set up over time. If the two entities met last year, it took them six months to agree on terms.

It’s not too stressful at one time in the sense that we’ve done a great job so far, squarely. Audits have been smooth, from technological to legal. , composed by Pierre Mugnier. The more complex government for the CEO is the time. In large groups, the file must go through and be validated by different people before starting the audit stages and then the negotiation stages. ” In the audit, the company is viewed from every angle. You realize how to observe certain things of a gain without you thinking it is very important. We have no big surprises. “ . But it’s still stressful, the CEO acknowledges. ” You have to know how to hold on emotionally ” .

This merger is also a meeting between the two worlds. ” There is a world of tech and a world of startups that are very different. In large groups, there are risk management specialists who aim to reduce risks to zero, which is not uncommon for startups that are accustomed to taking risks in order to succeed. confession of Pierre Mugnier.

Look forward to this option

“It’s fun to get to know the players in your sector to understand how they think. Often there’s a wall between startups and large groups that don’t communicate enough with each other. Startups often seek to elevate of big to grow big without having to think about what it can offer in terms of exit.A company has several solutions: IPO, be profitable or turn to mergers and acquisitions » , says the CEO of Side. ” Some companies make money because they follow the good canon of investors and they suit what they are looking for with a very low price. But strategic acquirers are not looking for zero margin. How did these companies make so much money on metrics that the earners didn’t care about? It’s not that simple “ .

Another piece of advice given by the CEO of Side, is to have a solid team. ” I was so caught up in the process that the team was strong enough to handle all the rest of the business in a good six months. The pandemic allowed us to have a close and solid team to focus on this operation. It’s impossible to have a successful merger without a reliable team. “ .

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