2025 M&A Buyer Outlook Report
Introduction
The M&A landscape in the staffing industry has undergone significant shifts in recent years, influenced by macroeconomic conditions, industry trends, technological advancements, and regulatory changes. Following a slower deal environment in 2023 and 2024, strategic staffing organizations and investors are now looking ahead to 2025 with renewed focus. Understanding buyer sentiment and strategic priorities is critical for sellers who may be considering a transaction.
As a leading M&A advisory firm exclusively focused on the staffing industry, Momentum Advisory Partners maintains strong relationships with the most active buyers in the space. Leveraging this access, we conducted a survey of staffing industry M&A participants to gain insights into deal activity, acquisition strategies, valuation considerations, and post-acquisition challenges in 2025.
This report summarizes the perspectives of buyers currently evaluating or executing acquisitions in the staffing sector. Whether you are a prospective seller preparing for an exit or a buyer assessing market conditions, we hope these findings offer valuable intelligence to help you navigate the evolving M&A landscape.
M&A Activity & Growth Plans
Was M&A part of your company’s growth strategy in 2024?
Is M&A a part of your company’s growth strategy for 2025?
Has your organization made acquisitions in the past 3 years?
Do you have plans to increase, decrease, or maintain your M&A activity levels in 2025 compared to 2024?
Market Outlook & Economic Influences
How would you describe your overall outlook for the staffing industry in 2025?
Do you believe the post-election environment provides more clarity for business planning and investment?
How do you expect the Federal Reserve’s interest rate cuts to influence M&A activity in 2025?
What factors do you believe will have the most significant impact on the staffing industry in 2025?
Acquisition Criteria & Considerations
What are the most important factors in a target company when evaluating an acquisition?
What is the biggest negative that impacts valuation in a target company?
Post-Deal Success & Integration Challenges
What do you consider the biggest challenges in ensuring post-deal success?
How are you preparing to address these challenges in your future acquisitions?
Selected Quotes from Participants
What factors influence valuations the most?
Participants overwhelmingly pointed to client relationships, financial stability, and growth potential as key factors in valuing a staffing business. Client concentration risk and declining financial performance were cited as major negatives.
“The companies best positioned to achieve premium valuations in 2025 will be those who remained focused and avoided the temptation to broaden their scope in order to show revenue growth during the more challenging staffing market of 2023 and 2024.”
What is the outlook for M&A in 2025?
Most buyers expect continued consolidation of smaller players who struggle with growth after the highs of 2022 and declines in 2023 and 2024. There’s a cautious outlook due to economic uncertainty, but many anticipate improved conditions later in the year.
“2025 should see a lot of consolidation of smaller players as they will find it difficult
to sustain growth, having seen highs of 2022 and declines in 2023 and 2024. More targets should be available with reasonable valuation expectations.”
CONCLUSION
The results of this survey provide a clear outlook for 2025 staffing M&A activity. While optimism remains tempered by macroeconomic conditions, the majority of buyers expect deal-making to increase or stay consistent. Valuation concerns, seller expectations, and post-acquisition integration remain top challenges. Buyers are particularly focused on financial stability, client relationships, and retaining key talent.
At Momentum Advisory Partners, we will continue to monitor the evolving M&A landscape and provide insights to help staffing firm owners successfully navigate the transaction process. We hope this report serves as a useful resource for both buyers and sellers considering M&A in the year ahead.
