2024 Staffing Industry M&A Activity Report
2024 Overview
2024 proved to be another challenging period for the broader staffing industry, continuing the trends observed in 2023. Macroeconomic uncertainty, technological advancements (artificial intelligence), geopolitical tensions, and sector-specific challenges weighed heavily on both staffing performance and M&A activity throughout the year. While there were moments of resilience, such as the rebound in Q2, overall transaction volumes remained subdued, and deal sizes were relatively smaller compared to prior years.
Key Hightlights of 2024
1. Transaction Volumes:
- North American staffing M&A activity totaled 102 announced transactions in 2024, a slight decline compared to the 114 transactions in 2023.
- Quarterly deal volumes fluctuated, with a strong Q2 (34 deals) offset by more muted activity in Q1, Q3, and Q4, which collectively averaged around 23 transactions per quarter.
- Q4 2024 saw 24 announced transactions, primarily smaller deals without private equity involvement, echoing the cautious sentiment that dominated the year.
2. Market Sentiment:
- The broader staffing industry struggled with declining demand across key segments, as evidenced by reductions in staffing hours worked and subdued revenue growth.
- Buyers remained cautious throughout the year, with many prioritizing smaller, strategic acquisitions over larger, transformative deals. This hesitancy was driven by concerns over economic headwinds, inflation, and tightening credit conditions.
3. Sector Activity:
- IT Staffing and Consulting: Continued to be a focal point, accounting for a significant share of transactions, particularly in Q2.
- Healthcare Staffing: Despite ongoing revenue pressures in the segment, strategic buyers demonstrated sustained interest, particularly in acquiring specialized and high-demand assets.
- Light Industrial/Commercial Staffing: Activity remained modest, consistent with historical trends.
4. Private Equity Activity:
- Private equity involvement declined significantly in 2024 compared to prior years. While there was notable participation in Q2, particularly with platform and add-on acquisitions, Q4 saw no private equity-involved transactions—a clear indication of cautiousness among financial sponsors.
Comparison to 2023
While overall deal counts were similar, the nature of transactions differed:
- 2023 saw higher private equity participation and a more balanced distribution of deal sizes across quarters.
- 2024 was marked by fewer large-scale transactions, with the majority of deals falling into the smaller end of the market.
Despite the challenges, 2024 showcased the resilience of strategic buyers in navigating a tough market and seizing opportunities to bolster their capabilities. However, the year’s performance underscores the broader difficulties facing the staffing industry, with M&A reflecting these systemic pressures.
Q4 2024 Overview
In Q4 2024, the North American staffing industry experienced notable M&A activity, with a total of 24 announced transactions, consistent with Q3 2024 and slightly below the 27 transactions recorded in Q4 2023.
Key Highlights
Aya Healthcare's Acquisition of Cross Country Healthcare:
On December 4, 2024, Aya Healthcare, the largest healthcare staffing firm and one of the largest staffing firms globally, announced its agreement to acquire Cross Country Healthcare for approximately $615 million in cash. This strategic move solidifies Aya’s position as the market leader in healthcare staffing, combining two industry giants to enhance service offerings and expand market reach.
Health Advocates Network's Multiple Acquisitions:
Health Advocates Network (HAN) completed four acquisitions during Q4 2024, including the purchase of Staff America Medical Staffing. These strategic acquisitions have significantly expanded HAN’s footprint in the healthcare staffing sector.
Absence of Private Equity Involvement:
Notably, Q4 2024 saw no private equity-backed transactions, indicating a cautious stance from financial sponsors during this period.
No "Search" Transactions:
Q4 2024 was notable for the absence of “Search” transactions, a segment that had shown significant activity in prior quarters. This marks a shift in focus within the staffing M&A landscape for the quarter.
Transaction Size and Nature:
The quarter was characterized by smaller, strategic acquisitions, aligning with trends observed in previous quarters. This reflects a continued focus on targeted growth and consolidation within specific market segments.
Comparative Analysis
Quarter-over-Quarter:
The number of transactions in Q4 2024 remained steady compared to Q3 2024, maintaining a total of 24 deals. This stability suggests a consistent level of M&A activity in the latter half of the year.
Year-over-Year:
When compared to Q4 2023, there was a slight decrease from 27 to 24 transactions, indicating a modest decline in deal volume year-over-year.

M&A Transactions by Sector
Summary
In summary, Q4 2024 maintained a steady pace of M&A activity within the staffing industry, highlighted by strategic acquisitions such as Aya Healthcare’s purchase of Cross Country Healthcare and Health Advocates Network’s multiple deals. The absence of private equity involvement and the prevalence of smaller transactions reflect a cautious yet deliberate approach to growth and consolidation as the industry navigates ongoing economic and market challenges.
Hightlight: Health Advocates Network
We recently spoke with industry veteran and co-founder of Health Advocates Network (HAN), Eddie Albert. Founded in 2020 and based in Boca Raton, Florida, HAN is a leading healthcare staffing provider specializing in clinical and non-clinical supplemental staffing for healthcare systems and governmental agencies. HAN has rapidly expanded through strategic acquisitions completing eight acquisitions since its founding and four in Q4 2024 alone.
Many “buyers” might hesitate to pursue acquisitions during a period of contraction in the healthcare staffing space, yet HAN completed multiple deals in 2024. What gave you and your team the confidence to take such an aggressive approach to M&A during this period?
Great question. My longtime partner, Kevin Little (COB/CEO), and I have been consolidating this industry for nearly 30 years. We have lived through many cycles. Being investors in the healthcare staffing industry, we believe that we must continue to invest within all cycles and not attempt to pick “tops” or “bottoms.” Kevin and I have always been price sensitive buyers so if there is an opportunistic deal, we are not afraid to write the check.
What are your expectations for M&A activity in the broader staffing industry in 2025? What leads you to that conclusion?
Specifically for healthcare staffing, the tone of M&A for Travel Nursing is likely to remain muted in 2025. So many companies that rely on the MSP players (who will continue to hoard their orders and not downstream same) will see the business continue to suffer. The only M&A coming out of this subset will likely be “distressed” type deals. Certain Allied verticals, Advanced Practice, and Locums are doing fine so there is a heartbeat for M&A in this group.
2025 M&A Outlook
Momentum Advisory Partners anticipates a more optimistic trajectory for M&A activity in 2025, particularly in the second half of the year. While the first half of the year may reflect a period of adjustment as the market digests key factors under the new administration, we expect conditions to improve as economic and geopolitical uncertainties become clearer.
Key Drivers For Increased M&A Activity
1. Post-Election Confidence:
- With the U.S. presidential election concluded, CEO and boardroom confidence has risen markedly.
- The prevailing sentiment is that the Trump administration will foster a more business-friendly environment, prioritizing reduced regulatory burdens and facilitating larger-scale transactions.
2. Interest Rates and Inflation Dynamics:
- Initially, the Federal Reserve signaled multiple rate cuts for 2025, which would reduce financing costs and spur M&A activity.
- However, during the Fed’s December meeting, caution was expressed due to persistent inflation, potentially slowing the pace of rate reductions.
- The 10-year Treasury yield—a key benchmark for borrowing rates —has been climbing recently, complicating the cost of financing deals despite expectations of rate cuts. This dynamic will be a pivotal factor influencing deal-making in 2025.
3. Strategic Necessity in the Staffing Industry:
- The staffing industry faces a crossroads. Either the sector begins to recover, or even if it continues to level off or experience modest declines, strategic buyers will need to step in.
- For many firms, M&A remains the most viable path to growth in a challenging environment. As the adage goes, “If you’re not growing, you’re dying.”
4. Regulatory Clarity:
- The Federal Trade Commission under new leadership is expected to take a more permissive stance, allowing previously stalled or highly scrutinized deals to proceed.
- This clarity, coupled with streamlined approval processes, sets the stage for heightened M&A activity.
Q4 2024 Announced Transactions
About Momentum Advisory Partners
Momentum Advisory Partners is a leading M&A broker specializing in advising and representing founders of North American staffing companies in a sale. Founded in July of 2020 by Akash Taneja—who brings over 16 years of staffing M&A experience, including 12 years at a leading advisory firm — Momentum has quickly become a trusted partner for staffing founders considering an exit.
Our Team
Recently Completed Staffing Transactions









