Highlights from the report:
- In Q3 2024, HCM transactions rose 14% YOY, which is down sequentially but on track for the five-year trendline of 120 transactions per quarter.
- Trading multiples were up in each segment of HCM with notable strength in Staffing (up 39% to 11.1X EV/EBITDA) and Talent Acquisition (up 49% to 15.9X EV/ EBITDA). The most valued sector continues to be Core HR at 24.8X (up 14%).
- The Staffing sector showed the most M&A activity with 30 transactions, driven by demand for specialized IT and healthcare talent.
- We shine a spotlight on HRTech and tools for the Frontline Workforce, noting how companies like Beekeeper, Fountain, and Workstep serve workers who deal directly with customers and clients.
- Looking out to 2025, we expect M&A activity to improve and VC funding to strengthen as investors seek opportunities in HRTech tools, Specialized Search & Staffing, Workforce Management, and Core HR.
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DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
