Human Capital M&A Market Review Q4 2019

Gambit Corporate Finance announces the publication of its Human Capital M&A Market Review for Q4 2019.

To read the full report, click here.

Global M&A Activity Summary:

  • Globally, deal volumes in the Human Capital sector rebounded in Q419, reflecting the improved sentiment of corporates. The upward trend in dealmaking volume and value indicates that corporates have a higher degree of confidence in political and economic stability.
  • Q419 was the strongest quarter for deal volumes since Q417, influenced by a higher proportion of domestic transactions, which rose by 7%, as acquirors within Continental Europe became increasingly wary of the effects of potential regulatory divergence from the UK.
  • Private equity funds’ reignited interest in the Human Capital sector was evidenced in Q419, with a series of large ticket deals increasing average deal values four-fold between Q319 and Q419.

 

Public Company Valuation Trends:

  • The sector has historically followed a very predictable seven year cycle; concerns around Brexit, implementation of IR35 and wider political uncertainty have delayed the peak in the market with the cycle now in its ninth year. Timing of M&A activity is becoming increasingly critical in order to avoid the peak of the cycle.
  • Sector cyclicality continues to weigh heavily on the strategic decisions of corporates, providing a barometer for demand that is otherwise intrinsically connected to variable elements such as the economic cycle, confidence levels and employee turnover.
  • Sellers will be encouraged by the current upward trend, with those considering an exit well positioned to act at short notice with unprecedented levels of available capital chasing high quality opportunities.

 

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