Gambit Corporate Finance LLP announces the publication of its Human Capital M&A Market Review for Q1 2017.
Outlook for M&A Activity:
- There remains a shortage of sellers in the Human Capital market, driving higher valuations for sought after assets
- Increasing transaction multiples are resulting from more intense competition for assets between growth focussed strategic buyers and cash rich financial buyers
- Share prices of companies in the Human Capital Index tracked by Gambit reached a historic high in Q1 2017, generating liquidity, market confidence and M&A appetite
- Public interest companies’ improving valuation multiples are increasing the value they can pay for acquisitions whilst remaining immediately earnings enhancing for their shareholders
- Global Human Capital transaction volumes in Q1 2017 remained stable following the rebound from the decline witnessed due to the Brexit political uncertainty
- Unemployment in key economies remains historically low. With the availability of cheap debt and finance we expect to see this lead to a strengthening of M&A activity throughout 2017
- Public sector focused sub-sectors may see subdued activity in adoption of new IR35 legislation
- Candidate availability is an increasing issue for both permanent and temporary vacancies with a particular shortage in IT, healthcare, engineering and construction sectors
To read the full report click here.