Q3 2025 Overview
After two surprisingly strong quarters, North American staffing M&A deal volume fell sharply in Q3 2025. Only 16 transactions were announced or completed — down from 38 in Q2 and 32 in Q1 — marking one of the weakest quarters since the pandemic era.
The 58% quarter-over-quarter decline was notable by any measure, but it did not reflect a retreat in buyer interest. Buyer appetite for high-quality assets remained robust throughout the quarter — one of Momentum’s current sell-side mandates generated record-setting buyer interest during this period. The volume decline was driven by a scarcity of actionable, well-prepared sellers rather than any withdrawal of acquirer demand.
Private equity participation was notably muted. All three PE-involved transactions were add-ons to existing platforms; no new staffing platforms were launched in the quarter. Strategic buyers — including Tandym Group, Accenture, and Ascend Staffing — remained active but none completed transformational deals. Staffing Industry Analysts revised their 2025 growth outlook from +5% to flat-to-declining, adding to the macro caution weighing on deal flow.
Early Q4 data offered little encouragement, with only 7 acquisitions tracked through early November — mirroring Q3’s subdued pace. The window for a meaningful end-of-year surge was narrowing.
“Buyer appetite remains robust for high-quality assets. One of Momentum’s current sell-side mandates generated record-setting buyer interest — demonstrating that the right business, positioned correctly, still commands extraordinary attention.”
Akash Taneja, Founder & Managing Partner, Momentum Advisory PartnersSector Highlights
Deal activity was distributed across five primary segments. IT staffing and consulting, executive search, and light industrial/commercial staffing each accounted for four transactions. Healthcare staffing and other professional staffing each contributed two. The absence of large-scale platform deals in healthcare — a typically active segment — was consistent with the broader market caution of the quarter.
The search segment remained active, driven by roll-up strategies at firms including ZRG and 512Financial. Light industrial activity reflected regional geographic expansion by operators such as Ascend Staffing and BlueWorx. The Accenture acquisition of Maryville Consulting Group was the most recognizable strategic name on the buyer side.
What This Means for Staffing Founders
The Q3 data reinforces a critical truth: the market for exceptional businesses has not softened. Volume declined because of macro uncertainty and buyer selectivity — not a collapse in acquirer appetite. Several themes stand out for founders considering a sale:
- Preparation remains the differentiator. Sellers who come to market well-prepared — with clean financials, diversified client bases, and clear growth narratives — continue to generate strong competitive outcomes regardless of broader volume.
- PE activity may accelerate. The absence of new platforms in Q3 suggests sponsors are consolidating existing investments. When that window reopens — likely tied to interest rate trajectories — it could trigger a meaningful acceleration in deal flow.
- Industry performance is under a microscope. Buyers are scrutinizing revenue trends and margin profiles closely. Companies showing stability against an industry backdrop of flat-to-declining revenue will stand out significantly.
- Strategic buyers remain the backbone. Larger staffing firms pursuing bolt-on growth continued to drive volume throughout 2025 and are expected to remain the primary source of deals heading into the year-end.