Q2 2025 Overview
Activity in the staffing M&A market during Q2 2025 came in stronger than most expectations. Despite persistent macroeconomic headwinds — sticky inflation, geopolitical uncertainty, and unpredictability around interest rate policy — the quarter saw 38 transactions announced, up from 32 in Q1.
While the quarter included its share of smaller deals, several large, high-impact transactions shaped the narrative. Inspyr Solutions’ acquisition of BGSF’s professional staffing segment was a meaningful carve-out that reshapes BGSF’s strategic focus. AtkinsRéalis made a significant investment in David Evans Enterprises, adding depth to its engineering and technical consulting capabilities. Mainline’s acquisition of Converge Technology Solutions stood out as one of the most substantial deals of the quarter, expanding its footprint in managed IT services and infrastructure.
Momentum Advisory Partners advised Silver Search Consulting Services on its sale to Saicon Consultants. What stood out during that process was the level of buyer competition — we received eight letters of intent, with many buyers citing the limited number of quality opportunities in the market. For firms experiencing slowing organic growth, acquisitions are becoming a necessary path forward, and when the right asset becomes available, the result is a highly competitive process.
On the economic front, the July jobs report came in well below expectations, with downward revisions reducing average monthly Q2 job growth to approximately 35,000 — the slowest pace outside of a recession since at least 2010. The unemployment rate ticked up to 4.2%, increasing expectations for a potential Fed rate cut as early as September. Given this backdrop, Momentum remains cautious heading into H2, though staffing M&A activity has proven more durable than anticipated.
“We received eight letters of intent on Silver Search — many buyers citing the limited number of quality opportunities in the market. When the right asset becomes available, the result is a highly competitive process.”
Akash Taneja, Founder & Managing Partner, Momentum Advisory PartnersSector Highlights
IT staffing and consulting led all sectors with 12 transactions, reflecting ongoing demand for digital infrastructure, software development, cybersecurity, and consulting capabilities. Healthcare staffing followed with 9 transactions, showing relative resilience despite broader softness in some delivery segments. Other professional staffing accounted for 8 transactions, spanning finance, compliance, and education. Executive search contributed 6 deals, while light industrial/commercial staffing was modest at 3 — consistent with prior quarters.
This distribution aligns with broader market themes. Buyers continue to target specialized providers with differentiated capabilities, particularly those aligned with secular growth areas like healthcare, life sciences, and enterprise IT transformation. The composition of Q2 deals shifted slightly from Q1, with a greater number of larger, more strategically significant transactions — particularly in IT and infrastructure services.
Private Equity and Buyer Behavior
Private equity was completely absent from Q4 2024, returned modestly in Q1 2025, and continued its measured re-entry in Q2 with six transactions — five add-ons and one new platform investment. While still below historical highs, this activity suggests a gradual return of sponsor interest in staffing assets. Strategic buyers remained the primary drivers of deal flow but increasingly displayed willingness to move quickly and competitively on high-quality sell-side mandates.
What This Means for Staffing Founders
The Q2 data reinforces several themes that are directly relevant for founders considering a sale:
- Quality commands competition. The Silver Search process — eight LOIs for a well-prepared, well-positioned business — demonstrates that buyer demand for the right asset remains intense regardless of macro conditions.
- Large strategic deals are back. The Inspyr/BGSF carve-out and Mainline/Converge transaction signal that buyers with strong balance sheets are willing to pursue scale. Platform-level sellers are in a strong position.
- PE is warming up. Six PE-involved transactions in Q2 suggests sponsors are becoming more willing to deploy capital again, particularly for add-ons that extend existing platforms into new geographies or capabilities.
- H2 caution is warranted. The softening jobs market and macro uncertainty mean sentiment can shift quickly. Founders who are considering a near-term sale should not assume Q2’s strength will persist indefinitely into the second half.