M&A and valuation in recruitment for H1 2024

Our report examines and analyses merger and acquisition (M&A) activity across the recruitment sector in the first six months of 2024.

Similar to general market trends, we’ve observed a slight increase in value compared to the first half of 2023. The number of transactions in the first six months of 2024 remained stable as compared to in 2023, with 48 deals publicly announced in both periods.

From election uncertainty to potential market stability

After the uptick in the number of completed transactions in the final two months of 2023, Q1 2024 followed suit with 31 transactions involving UK targets.

Statistics for June 2024 suggested that permanent placements declined at their steepest rate in eight months due to election uncertainty, reduced demand for permanent workers in the UK, and candidates seeking greater flexibility.

However, some commentators are suggesting that the UK election outcome being in line with expectations may result in market stability, and the Labour Party has been clear in setting out its priorities of reducing NHS waiting times, investing in infrastructure and driving forward renewable energy initiatives. This could present investment opportunities for recruiters into healthcare, renewables and construction.

Tech businesses remain key acquisition targets

IT, technology and digital continue to be buoyant areas for recruitment transactional activity, comprising 20.4% of all deals in the sector in H1 2024.

The surge in popularity of AI tools and software has also increased company valuations and the perceived attractiveness of businesses either placing candidates into this space, or successfully leveraging these technologies in their operations. In turn this has contributed to recruitment platforms and software agencies being the most prominent and attractive acquisition targets, ahead of generalist agencies.

Read our full report

For any queries on how we could help your business, please get in touch with Niraj Patel, Head of Corporate Finance, or Jamie Cassell, Head of our Recruitment Group.