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Human Capital M&A Review Q3 2017

13 December 2017

Gambit Corporate Finance LLP announces the publication of its Human Capital M&A Market Review for Q3 2017.

  • Global Human Capital transactions increased in Q317 despite economic headwinds across key economies, as employment fundamentals remained strong
  • Brexit is a factor that could supress cross-border transactions in the short-term. Q317 showed that even with the current uncertainty and delays in negotiations the Human Capital market remained resilient
  • In the UK Human Capital market candidate availability is decreasing, those with good quality candidate pools may see interest from both strategic and financial acquirers
  • With UK transaction volumes down by 32% and a shortage of sellers, there remain acquisitive strategic and financial buyers actively looking in the market for quality assets
  • Transaction multiples continue to remain high across both general and niche assets which provides a timely opportunity for those owners looking to realise value
  • Publicly quoted companies have continued to enjoy the benefits of increasing stock market values across the globe which is pushing up market ratings and increasing the prices they can pay for acquisitions
  • The Gambit HC index shows that valuations in general have increased with an average valuation of 10.3x EBITDA compared to a valuation of 8.2x EBITDA in Q316
  • If the shortage of sellers in the market remains then valuations could increase further going into 2018

To read the full report click here.