Human Capital M&A Market Review H1 2023

Gambit Corporate Finance’s Human Capital M&A Market Review highlights significant competitive tension within the Human Capital market as both strategic and financial acquirors compete to secure high quality, resilient assets offering a highly scalable proposition.

Key Points in Focus:

  • Human Capital average deal values rose by 379.9% between Q123 and Q223 as acquirors seek safety and stability in their investments and focus on the most premium Human Capital assets available.
  • Human Capital acquisitions involving private equity acquirors increased from 37% to 39% in H123 as the dynamic debt landscape continues to alter the buyer landscape in the UK Human Capital market.
  • Cross border acquisitions grew to 36.4% of all UK Human Capital transactions in H123, demonstrating the UK Human Capital market’s continued attractiveness on a global scale.
  • Recruiters servicing high growth candidate short sub sectors, such as built environment and leisure and hospitality continue to be in the spotlight for domestic and international strategic and financial acquirors.
  • The attractiveness of the UK market was demonstrated yet again in H123, as one of most active Human Capital M&A markets globally, second only to the US and ahead of Japan.
  • Despite a slight fall in publicly traded Human Capital EV / EBITDA multiples in H123, private company transaction multiples remained strong, averaging 6.8x.
  • A fall in UK CPI inflation could signal the end of continued Bank of England base rate rises, ‘opening up’ the debt markets to facilitate leveraged transactions, driving increased M&A activity.
  • With anticipation of the upcoming UK General Election set to take place in late 2024, Human Capital business owners looking to consider their options should seize the opportunity to capitalise on the current Capital Gains Tax regime.

 

To read the full report, click here.

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