Q2 2022 Overview
Q2 2022 showed the first clear signs of deceleration in what had been a historically strong M&A market: 31 announced transactions, a 20% decline from Q1’s 39. The slowdown reflected a convergence of macroeconomic forces — rising inflation, central bank liquidity tightening, public markets turning bearish, ongoing supply chain disruptions, and the continued conflict in Ukraine — that collectively drove down transaction value and volume across all industries, not just staffing.
Despite the pullback, the underlying buyer appetite for quality assets remained strong, particularly in IT staffing and consulting. The segment actually accelerated in Q2, rising from nine transactions in Q1 to eleven — the most active of any segment in the quarter. Digital transformation spending by enterprises continued at pace regardless of the broader market uncertainty, sustaining acquirer interest in firms with specialized technology talent and client relationships.
Healthcare staffing contributed seven transactions in Q2, second only to IT staffing. Multiple professional staffing — firms operating across more than one segment — added five deals. Executive search fell from nine transactions in Q1 to just four as the tight labor market dynamics that had driven search activity began to show early signs of softening. Light industrial and commercial staffing recorded three transactions.
Active acquirers signaled that their threshold for approvals was rising as they navigated the macro uncertainties — particularly for larger transactions where board-level confidence is required. The Planet Group, one of the most acquisitive organizations in the space, noted it would continue pursuing acquisitions but with a higher bar for targets as it navigated the changing environment. The market was bifurcating: quality assets in high-demand segments continued to attract strong interest, while lower-quality or cyclically exposed businesses faced increasing buyer skepticism.
“We continue to see strong tailwinds for digital transformation staffing and consulting services. In the first half of 2022, we completed two acquisitions and saw strong deal flow. We will continue to be acquisitive over the next 6–12 months, but our threshold for M&A targets will be higher as we navigate through some uncertainties in the current macro environment.”
Dustin Abbs, Director of Corporate Development, The Planet GroupSector Highlights
IT staffing and consulting led Q2 with eleven transactions — up from nine in Q1 and accounting for 35% of all deal activity. The segment’s acceleration even as the broader market slowed reinforced its status as the most structurally attractive segment for acquirers: digitalization, cloud migration, and enterprise software implementations continued regardless of macro conditions. Healthcare staffing contributed seven transactions, spanning travel nursing, anesthesiology staffing, locum tenens, and healthcare RPO. Multiple professional staffing — diversified firms serving IT, finance, and other verticals together — added five deals. Executive search recorded four transactions, down sharply from Q1’s nine. Light industrial and commercial added three, while other professional contributed two.
Notable Transactions
Planet Group acquired Launch Consulting Group and Future State Consulting in Q2, executing on its stated strategy of building out digital transformation staffing and consulting capabilities. Both deals brought specialized expertise in digital enablement and technology staffing — exactly the profile Planet Group identified as having the strongest secular tailwinds. ASGN acquired GlideFast Consulting, a ServiceNow-focused consulting firm — deepening ASGN’s presence in the enterprise service management ecosystem and adding a dedicated practice in one of the fastest-growing enterprise software platforms. Acacium Group acquired R&D Partners, expanding the UK-based healthcare and life sciences staffing group’s U.S. capabilities in biotech, pharmaceutical, and medical device staffing with over 200 collective years of sector expertise.
What This Means for Staffing Founders
- The bifurcation between segments is widening. IT staffing accelerated while executive search fell 56% from Q1. The difference is structural, not cyclical: digital transformation budgets are sticky even in downturns, while tight labor market conditions (which drove search activity) were beginning to normalize. Founders in IT staffing, healthcare, and life sciences face a fundamentally different buyer conversation than those in more cyclically exposed segments.
- Buyer thresholds are rising — which rewards preparation. As macro uncertainty increases, buyers become more selective. The firms that transact successfully in a tightening market are those that arrive well-prepared: clean financials, documented recurring revenue, diversified client bases, and management teams committed to transition. Founders who invest in process quality before going to market consistently outperform those who don’t.
- Digital transformation is a durable acquisition thesis. Planet Group’s two Q2 acquisitions, ASGN’s GlideFast deal, and Futuris’s Savantis Solutions acquisition all reflect the same conviction: enterprise digital transformation is a multi-year, budget-protected initiative that creates structural demand for specialized IT talent. Firms positioned in this space carry a premium regardless of macro conditions.
- Healthcare and life sciences remain acquisition priorities. Seven healthcare transactions in Q2 — plus Acacium’s R&D Partners deal in biotech/pharma staffing — confirm that clinical talent shortages are an enduring structural problem that acquirers are willing to pay to address. For healthcare staffing founders, the buyer universe is motivated by factors that don’t go away in a recession.