Recruitment Holds Strong Amid Economic Shifts - Especially in Niche Markets
Resilient Performance in Tech, Education, and Specialist Verticals
Despite ongoing economic headwinds and increasing budgetary pressures - particularly within the Healthcare sector - the Recruitment industry continues to demonstrate notable resilience. This is especially true in niche and specialist markets, including Tech and Education, where demand remains consistent and business models are proving robust.
Valuations Remain Healthy Despite Market Cooling
While overall deal valuations have softened from their pandemic-era highs, they remain solid across the sector. Typical multiples currently sit in the 8x–10x EBITDA range, reflecting only a modest decline from previous peaks. Investors continue to show confidence in well-positioned recruitment businesses with strong operational models and sector focus.
Active M&A Landscape Led by PE and Strategic Buyers
Current M&A activity is being driven primarily by private equity and specialist strategic buyers seeking to expand within targeted segments of the recruitment space. Meanwhile, the large global recruitment groups appear to be shifting their focus toward M&A further up the value chain. Their attention has turned to parallel service areas such as:
- HCM (Human Capital Management) Technology
- Outsourced HR Solutions
- Corporate Training
A Strategic Moment for Owners and Investors
This report by IMAP UK explores the key trends shaping M&A in the Recruitment sector, identifies the drivers behind continued investor interest, and outlines why now may present a smart window for business owners considering:
- Strategic exits
- Growth funding
- Cross-border partnerships
