Q1 Staffing Industry M&A activity January to April 2016. Below is a sample of our firms list of sellers who are currently available for purchase, as well as several key buyers. I’m hopeful you find this update useful. We look forward to hearing from you if ever you’re looking to purchase or sell a staffing-recruiting firm.
There were 37 staffing and related M&A transactions announced in Q1 2016, a 21% increase over the same quarter last year. We expect the uptick to continue through the remainder of 2016.
Exigo Ventures has 19 Staffing and or Search firms for sale currently, below is a sample list
- IT staffing firm located in Washington. $24.8M revenue $3.3M net profit
- Admin staffing firm located in the South. $7.2M revenue $645k net profit
- Healthcare allied staffing firm located in NYC. ~ SOLD ~ $6.3M revenue $1.1M net profit
- Engineering/Admin/AF staffing firm located in California. $13.M revenue $1.6M net profit
- Med and Clerical staffing firm located NYC. $33M revenue $1.45M net profit
- IT staffing firm with blue chip client’s base located in SD. $17.6M revenue $1.8M net profit
- Staffing firm Eng & Admin Staffing California $21.3M revenue $1.9M net profit
- IT consulting/staffing firm with 21 offices. ~LOI SIGNED~ $188M revenue $14.M net profit
- Clerical/Light Industrial staffing located Rockies ~SOLD~ $6.74M revenue $1.2k net profit
- Engineering staffing firm located in the Texas $44.2M revenue $450K net profit
The Staffing Industry M&A market continues to thrive with a tremendous amount of active buyers, qualified buyers are seeking to acquire successful staffing firms with a focus on IT, Healthcare, Admin Finance as well as Engineering listed as the specialties most in demand. We believe the current and future economic conditions will continue to support this level of Staffing Industry M&A activity for at least the next 12 months, because of a number of positive important economic indicators, as well as our firsthand experience with a large number of private and public sector buyers.
The positive economic indicators include job creation, household income, consumer sentiment, demand for housing, corporate borrowing and continued growth in payrolls. Our observations of buyer behavior include the fact that at the peak of the market turbulence in January, three transactions, in which we advised the sellers, were successfully completed.
While the market is receptive now, conditions can change quickly below is a sample of the quality buyers represented by Exigo who are motivated and well positioned to purchase staff-recruiting firms nationwide.
| 1. Private Equity group based in NYC with $350M available is adding to their existing staffing portfolio and is interested in purchasing mid-size clerical and healthcare staffing firms nationwide. |
| 2. 40+ year old staffing firm with revenues over $150M is looking to purchase clerical & IT/AF/LI staffing firms. |
| 3. Japanese based staffing company with $100M+ available is highly motivated to pay top dollar for successful IT and Executive Search firms in the states with sales over $8M annually. |
| 4. Highly successful NYC based staffing and executive search firm with over $75M available is looking to purchase staffing firms on the east coast in the IT/AF and Bio Sciences niches with annually revenues over $10M.
5. Large Midwest IT Staffing firm is expanding and looking for successful IT or Healthcare IT staffing firms on both the west and east coasts with annual revenue |
For those staffing or search owners who are considering to sell your business. We would be happy to plan a discussion to determine if now is the right time to secure the best deal. I recommend owners take the time to learn about the current market trends and valuations. Sellers that are well educated and prepared when entertaining buyers have a much higher success rate in securing a quality deal,
Exigo Ventures is an M&A consulting firm who is dedicated to the staffing-recruiting industry.