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M&A activity returns to same levels as before the recession: SIA

April 26, 2019

Staffing merger and acquisition activity accelerated last year, according to Staffing Industry Analysts’ “Staffing Mergers & Acquisitions: 2019 Update” report. The analysis found 112 publicly announced transactions in North America last year, a 27% year-over-year increase and a return to prerecession levels.

Firms within professional staffing segments were most frequently targeted, led by healthcare and IT staffing firms, which comprised 24% and 15% of deal volumes, respectively.

Specialization was a theme in 2018 as activity gravitated toward firms that specialize in either professional, up 18% year over year, or commercial staffing segments, up 38%. There were only five transactions of staffing firms that serve both professional and commercial segments, down slightly from six in 2017.

Activity also increased last year in international transactions — where one firm is based in North America and a counterpart is based outside North America; 13 such acquisitions of staffing companies occurred in 2018, up from four in 2017. 

Transaction activity in the Southeast region was particularly brisk in 2018, accounting for 35% of US deals. 

M&A insight

In a View From the Boardroom column in Staffing Industry Review magazine, ASGN Inc. CEO Peter Dameris says firms on the hunt should take note that acquisitions are challenging.

Dameris discusses what to look for in potential targets and explains that his successes always involve “great management teams that are running healthy companies.”

The full Staffing Industry Review article is available online, while SIA corporate members can access the Staffing Mergers & Acquisitions report and its database tool here.

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