The latest trends in staffing M&A from Danescor are in! Our Q1 2025 update below provides key insights into deal activity, private equity engagement, and sector performance as we look ahead to the rest of the year.
Key Takeaways
• Staffing & Recruitment M&A shows strong growth in Q1 2025
• 34 deals completed, a c. 65% YoY increase from Q1 2024, with larger strategic deals making a return
• Private equity re-engaged with 10 deals (up from 6 YoY), while healthcare and IT staffing led the activity
• Buyer appetite remains high, but quality targets are scarce amid macroeconomic headwinds
• 2025 forecast: healthcare (+6%) and IT/consulting (+5%) growth, with more activity expected in H2
• Valuation multiples remain sector-driven – IT staffing held strong at 12.0x, healthcare lagged at 6.5x, while market leaders traded at 13.5x+
“Redsquid greatly benefited from the expert support provided by Danescor during the IT Hotdesk transaction. Their team excelled in researching, identifying, and initiating discussions with IT Hotdesk, who perfectly align with our culture and strategic goals. Danescor’s industry knowledge and dedication ensured we found the right company.
Having collaborated with the Danescor team over the last year, we can confidently recommend their services and look forward to partnering with them on future opportunities.”