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Human Capital M&A Review Q1 2017

23 May 2017

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.