Human Resources & Staffing Services Industry - Coverage Report March 2021

Published on: 03/02/2021

Capstone Headwaters’ March Human Resources & Staffing Services Coverage Report has been released, available for free download below.

COVID-19 headwinds and the historically high unemployment rate have fostered bifurcated demand in the HR & Staffing Services industry.  Companies serving noncyclical end markets such as Healthcare and IT have experienced continued demand amid the pandemic, while HR & Staffing companies serving industries that have suffered like Retail, have experienced decreased demand.  Although 2020 deal volume is down substantially year-over-year (YOY), the HR & Staffing Services industry experienced a mild resurgence in Q4 transaction volume lending to a favorable outlook for 2021.

Report highlights include:

  • The U.S. labor market has demonstrated sequential improvement lending to increased demand for staffing services providers in defensible end markets.
  • Rapid adoption of remote work has exacerbated the necessity of digital solutions in talent placement and recruiting.
  • Strategic buyers in the industry have acquired companies in noncyclical end markets to spur inorganic growth, accounting for 67.7% of deals announced or completed in 2020.
  • Private equity (PE) add-on activity remained relatively robust accounting for 23.7% of total deal volume in 2020, as PE-backed HR & staffing services providers sought to bolster service offerings.

To learn more about the contents of the report, please reach out to Todd McMahon or Bob Balaban.

 

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Key Contacts

Todd McMahon

Head of Investment Banking

Bob Balaban

Managing Director