Staffing & Workforce Solutions Industry M&A Report

Q4 2024 Overview

The North American staffing M&A market closed 2024 with 24 transactions in Q4 — flat with Q3 and consistent with the moderate pace that characterized the second half of the year. Full-year 2024 reached approximately 103 announced transactions, broadly in line with 2023 volume and above the depressed levels of early 2024 that many had feared would persist.

Healthcare staffing dominated Q4 with eight transactions, the most of any segment and a continuation of the counter-cyclical conviction we observed throughout 2024. Despite ongoing revenue pressure in the broader staffing industry, acquirers continued to bet heavily on the structural shortage of clinical talent — a theme that played out consistently across all four quarters of the year.

The most significant development in Q4 was the complete absence of private equity. After modest PE activity in Q2 and Q3, financial sponsors sat out Q4 entirely — zero PE-involved transactions in the quarter. This is consistent with year-end dynamics when PE firms focus on portfolio management and year-close activities, and it sets up a potentially meaningful rebound in PE deal-making as 2025 begins.

The quarter was also notable for consolidation activity among healthcare staffing acquirers. Health Advocates Network completed three separate acquisitions in Q4 alone, and Aya Healthcare completed its landmark acquisition of Cross Country Healthcare — one of the industry’s most significant combinations in recent years. On the sell side, several transactions involved divestitures of non-core business units, suggesting that larger staffing groups are rationalizing their portfolios heading into 2025.

Sector Highlights

Healthcare staffing led Q4 with eight transactions, including three by Health Advocates Network and the landmark Aya/Cross Country combination. Other professional staffing contributed seven deals spanning tax consulting, financial compliance, engineering services, and human capital management. IT staffing and consulting accounted for five transactions, including Eliassen Group’s acquisition of Via Technical and Stand 8’s acquisition of Peergenics in the Salesforce ecosystem. Light industrial and commercial staffing contributed three deals. Executive search recorded just one transaction, its quietest quarter of the year.

Notable Transactions

Aya Healthcare’s acquisition of Cross Country Healthcare was the quarter’s defining transaction, combining two of the largest travel nursing and healthcare staffing providers in the country. Cross Country brings nearly 40 years of per diem staffing, permanent placement, and school-based services expertise. The deal reshapes the competitive landscape for healthcare staffing and signals continued consolidation at the top of the market. SolomonEdwards completed two acquisitions in Q4 — Dominion Advisory Group (AML and financial crime compliance) and Steele Consulting (tax consulting for Fortune 1000 companies) — deepening its professional services capabilities. Eliassen Group acquired Via Technical, expanding its infrastructure and technical talent capabilities across IT, network, and end-user support.

What This Means for Staffing Founders

• PE’s absence in Q4 sets up a strong re-entry in 2025. Zero PE transactions in Q4 2024 reflects year-end dynamics, not a loss of interest. Financial sponsors who sat out Q4 are entering 2025 with capital to deploy and thesis conviction intact — particularly in healthcare, IT, and specialized professional services. Founders in those segments should expect active PE engagement in H1 2025.
• Healthcare consolidation is accelerating. Eight transactions in a single quarter — topped by the Aya/Cross Country combination — confirms that the top of the healthcare staffing market is consolidating rapidly. Founders in healthcare staffing are increasingly looking at a buyer landscape where the largest players are growing through acquisition and have the balance sheet to move decisively.
• Portfolio rationalization creates seller opportunities. Several Q4 transactions involved divestitures of non-core business units from larger staffing groups. This trend — larger organizations shedding peripheral divisions — creates M&A opportunities and also signals that buyers are becoming more disciplined about strategic fit. Well-positioned, focused businesses with clear niches are more attractive than ever.
• 2024 full-year volume confirms market stability. 103 transactions for full-year 2024 — broadly in line with 2023 despite the headwinds of Q1 — establishes a stable baseline. Heading into 2025 with rate cuts underway, PE re-engagement anticipated, and buyer appetite confirmed, the setup for 2025 deal activity is constructive.