Staffing Industry Insights – Spring 2020

Staffing Industry Insights

U.S. staffing industry M&A activity continued to flourish until COVID-19 related business shutdowns ramped up in mid-March. The number of completed staffing M&A transactions in the near term will no doubt be impacted, as many deal processes have now paused.

Even before the pandemic, many of the U.S. public staffing companies were absent from notable M&A activity, as staffing industry acquisition activity remains primarily driven by private equity-owned strategic buyers seeking to scale their existing platforms to create value for subsequent exits.

Staffing Industry Insights – Spring 2020

Strategic buyers accounted for 84% of the staffing industry acquisitions in the first quarter of 2020, with private equity funds (financial buyers) investing in new platform acquisitions accounting for the other 16% of transactions.

– Private equity acquired six new platform staffing investments in the first quarter of 2020. This follows the 65 new platform investments in the staffing industry made by private equity from 2017-2019.

Professional staffing companies (including IT, healthcare, finance/accounting and life sciences) typically see the most demand from buyers and private equity investors.

Most buyers have very specific criteria as they evaluate acquisition targets. Acquirers desire companies with a strong blend of both recurring revenue growth and profitability, with significant attention paid to customer diversification and the gross margin impact of potential acquisitions. Proven management teams desiring to stay on post-transaction also remain highly sought after.

Staffing Industry Insights – Spring 2020 2020-04-16T00:00:00.0000000 /insights/publications/m-and-a/staffing-industry-insights-spring-2020 /-/media/assets/images/publications/featured-images/2020/staffing-industry-insights-300-200.jpg publication {D59CA77E-C551-45A3-BE89-F567210C5A60} {78037A7A-7340-4BE3-9AF2-2DAD5622EE3B} {4DACD310-421A-42AC-BEF4-8AA7E70484CD} {D3AE3EC6-3254-4441-B111-1AF8D558906C} {6B6F3B01-98A6-4BC2-B2CD-CBD127447FB5} {13E28841-C245-441D-8C3B-49E72DA5381C} {9B44E83A-E993-4902-AAE0-82849CEAD728} {5CE144D0-ADDC-43A3-95E4-3428CA819BF8} {B062D54C-1425-4A04-8F9F-95EA14068E6D}

Related Services

Duff & Phelps Corporate Finance

Corporate Finance

Comprehensive support throughout mergers and acquisitions and other corporate transactions.

Corporate Finance
Duff & Phelps Corporate Finance

M&A Advisory

Middle-market M&A advisory differentiated by industry expertise and superior deal execution.

M&A Advisory
Duff & Phelps Corporate Finance

Transaction Advisory Services

Seamless analytical advisory through the deal continuum, from transaction origination to closing.

Transaction Advisory Services
Duff & Phelps Corporate Finance

Financial Sponsors Group

Dedicated coverage and access to M&A deal-flow for financial sponsors.

Financial Sponsors Group
Duff & Phelps Corporate Finance

Private Capital Markets

Senior, subordinated and mezzanine debt and venture/private equity for a wide range of transactions.

Private Capital Markets
Duff & Phelps Valuation Advisory Services

Valuation Advisory

Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.

Valuation Advisory

Insights

Valuation

Big Oil’s Response to the Current Market Environment: Capex Cut Tracker Update

Valuation
M&A Advisory

Global Software Sector Update - Spring 2020

M&A Advisory
M&A Advisory

Healthcare Services Sector Update - April 2020

M&A Advisory
M&A Advisory

Food Retail Industry Insights - Spring 2020

M&A Advisory