Q1 2025 Overview
The staffing M&A market opened 2025 with a strong showing: 32 announced transactions, marking a notable uptick in both volume and quality compared to recent quarters. After several quarters dominated by smaller add-on deals, Q1 saw a return of larger, more strategic transactions — a welcome change that exceeded our expectations.
While we had anticipated a busier second half of the year, Q1’s deal flow was a pleasant surprise and suggests that buyers are increasingly prepared to re-engage earlier than expected. This sentiment is supported by findings from our 2025 Staffing M&A Buyer Survey, where respondents indicated sustained appetite for acquisitions — so long as quality opportunities come to market. At the Staffing Industry Analysts’ Executive Forum in March, we heard the same message consistently: buyer appetite is strong, but the pipeline of high-quality deals remains limited.
At Momentum Advisory Partners, we experienced strong engagement across the deals we currently have in market — reinforcing that demand is very much present when quality aligns with expectations. The quarter’s standout transactions included ASGN’s $340 million acquisition of TopBloc, TrueBlue’s acquisition of Healthcare Staffing Professionals, and Akkodis’ acquisition of Raland Compliance Partners.
Looking ahead, visibility is increasingly limited. New tariffs implemented in March have added uncertainty to the economic outlook, compounding concerns tied to inflation, interest rates, and geopolitical instability. The outlook for staffing M&A will continue to be closely tied to broader economic conditions and policy shifts — though a stronger-than-expected Q1 and clear buyer interest provide reason for measured optimism.
“Buyer appetite remains strong, but the pipeline of high-quality deals remains limited. Many buyers shared they’re actively looking — they’re just not seeing the caliber of companies they want to invest in.”
Akash Taneja, Founder & Managing Partner, Momentum Advisory PartnersSector Highlights
IT staffing and consulting led all sectors with 11 transactions, reflecting continued demand for digital transformation, enterprise infrastructure, cybersecurity, and Workday/Salesforce ecosystem expertise. Healthcare staffing contributed 7 transactions — a notable return after its relative absence in Q1 2024 — spanning travel nursing, dental staffing, and home care. Other professional staffing accounted for 8 transactions, covering engineering, legal, finance, and life sciences compliance. Executive search contributed 5 deals, while light industrial activity was modest at just 1 transaction.
The composition reflected a broader market theme: buyers are targeting specialized providers with defensible niches and differentiated capabilities, particularly in areas aligned with secular growth tailwinds like healthcare delivery, enterprise IT modernization, and life sciences compliance.
Private Equity and Notable Deals
Private equity was completely absent from Q4 2024, making its return in Q1 2025 significant. Eight of the 32 transactions involved PE-backed buyers — four add-ons and four new platform investments — a signal of cautious but meaningful re-engagement by financial sponsors. This contrasts sharply with Q4 2024 and marks the most active quarter for PE in the staffing space in over a year.
Three transactions stood out for their scale and strategic significance. ASGN acquired TopBloc — a high-growth, tech-enabled Workday consultancy — for $340 million, positioning ASGN as a key player in the Workday ecosystem and adding an estimated $150 million in 2025 revenue. TrueBlue acquired Healthcare Staffing Professionals, expanding its footprint in high-demand healthcare verticals as part of a deliberate diversification strategy. Akkodis acquired Raland Compliance Partners, strengthening its consulting capabilities in life sciences and regulatory compliance across North America.
What This Means for Staffing Founders
Q1’s results are directly relevant for founders considering a sale in 2025:
- Buyers are re-engaging earlier than expected. The return to 32 transactions — one of the most active quarters in recent memory — signals that buyers who sat on the sidelines through 2024 are ready to move. For well-prepared sellers, the timing is favorable.
- Quality scarcity is your advantage. The consistent message from buyers and from the SIA Executive Forum is that high-quality acquisition targets are hard to find. A well-prepared, well-positioned business coming to market today faces less competition from other sellers than at any point in recent years.
- PE platforms are open again. Four new platform investments in a single quarter — after a complete absence in Q4 2024 — signals that financial sponsors are back. For founders in the right size range and sector, PE-backed buyers represent a meaningful and often competitive part of the buyer universe.
- Macro uncertainty warrants urgency. New tariffs and broader policy uncertainty introduced in March could dampen deal activity in subsequent quarters. Founders who are ready should not assume current conditions will persist indefinitely.