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Human Capital M&A Review Q2 2017

19 September 2017

Gambit Corporate Finance LLP announces the publication of its Human Capital M&A Market Review for Q2 2017. 

Outlook for M&A Activity:

  • Global Human Capital transaction volumes in Q2 2017 remained stable which gives cause for optimism considering to global economic headwinds
  • There remains acquistive trade and financial buyers actively looking for quality assets due to the availability and low cost of capital
  • Transaction multiples remain high across the sector, with the healthcare and executive search sectors being of particular interest to acquirers
  • The Human Capital Index tracked by Gambit shows an increase in average valuations to 9 times EBITDA up from 7.5 times in Q2 2016
  • Public interest companies’ improving valuation multiples are increasing the value they can pay for acquisitions whilst remaining immediately earnings enhancing for their shareholders
  • Candidate availability is an increasing issue for both permanent and temporary vacancies with public sector organisations like the NHS increasingly relying on agency staff 
  • MBOs are becoming a more prevalent route for exit with a doubling in activity levels in Q2 2017, offering a viable alternative to trade sales

To read the full report click here.