Full-Year 2025 Overview
2025 proved to be a year of two halves for staffing M&A. The first half surprised to the upside with strong deal flow and several notable larger transactions. The second half told a different story, with volume falling sharply as macroeconomic headwinds, industry softness, and buyer selectivity combined to slow activity.
For the full year, Momentum Advisory Partners tracked approximately 118 announced or completed transactions in the North American staffing and workforce solutions space. While this figure is broadly in line with 2024, the quarterly distribution was notably uneven — a pattern that carries important implications for founders considering a sale in 2026.
Quarter-by-Quarter Breakdown
Q1 2025 (32 transactions) opened the year on a strong note. Deal activity exceeded expectations, with a meaningful uptick in larger-scale transactions after several quarters dominated by smaller bolt-on acquisitions. Both strategic and financial buyers showed renewed engagement.
Q2 2025 (38 transactions) was the standout quarter, representing the highest single-quarter volume since Q1 2022. Activity was broad-based across sectors, and recognizable names on both the buyer and seller side signaled confidence in the market. One of Momentum’s own sell-side mandates generated record-setting buyer interest during this period.
Q3 2025 (16 transactions) marked one of the weakest quarters since the pandemic era. The sharp decline was not driven by a lack of buyer interest — buyer appetite remained robust for high-quality assets — but rather by a scarcity of actionable, well-prepared sellers meeting buyers’ increasingly selective criteria.
Q4 2025 continued the subdued trend observed in Q3, with early data suggesting volume remained below the first-half pace. Buyers remained active but disciplined, engaging only on opportunities that aligned precisely with strategic or financial goals.
“High-quality assets continue to attract significant buyer interest. The bar to act has risen, but for well-prepared sellers with differentiated businesses, the market is very much open.”
Akash Taneja, Founder & Managing Partner, Momentum Advisory PartnersSector Highlights
IT staffing and consulting remained the most active segment, followed by healthcare, light industrial/commercial, and executive search. The mix of sectors was broadly consistent with prior years, though healthcare staffing showed increased interest from both strategic consolidators and PE-backed platforms.
Private equity played a measured role throughout 2025. The majority of PE-involved transactions were add-ons to existing platforms rather than new platform investments — a continuation of the trend observed since mid-2023. No major new PE platforms were launched in the staffing space during the year.
What This Means for 2026
Several themes are likely to shape staffing M&A activity in the year ahead:
- Preparation is the differentiator. In a market where buyers are more selective, sellers who come to market well-prepared — with clean financials, diversified client bases, and clear growth narratives — will continue to command premium outcomes.
- Interest rates and economic conditions. The trajectory of interest rates and broader economic health will influence PE appetite and deal financing. Any rate relief could unlock pent-up activity.
- Industry performance matters more. Buyers are scrutinizing revenue trends and margin profiles more closely. Companies showing stability or growth against an industry backdrop of flat-to-declining revenue will stand out.
- Strategic buyers remain the backbone. While PE activity has been muted, strategic acquirers — particularly larger staffing firms pursuing bolt-on growth — have remained consistently active and are expected to continue driving volume in 2026.