Gambit’s Human Capital Market Review highlights the continued attractiveness of the Human Capital sector to both financial and strategic acquirors as a defensive and stable investment during recent geopolitical and macroeconomic volatility.
Key Points in Focus:
- The primary focus of acquirors continues to be on recruiters specialising in sub-sectors that can offer sustained levels of growth through periods of economic volatility.
- Despite a slight reduction in the number of completed transactions in the sector in H222, deal values rose to a five-year high.
- Although there has been the recent tightening of credit conditions, acquirors remain well capitalised and continue to proactively seek acquisitions in the Human Capital sector.
- Sustained levels of ‘dry-powder’ amongst Private Equity firms will drive continued appetite and will support both deal volumes and deal values throughout 2023.
- The Human Capital market remains under the spotlight for international acquirors as UK assets continue to be sold at a relative discount due to the strength of major global currencies relative to Sterling.
- With anticipation of a General Election and subsequent rise in the UK Capital Gains Tax rate in 2024, Human Capital business owners should consider their options whilst the current tax environment remains favourable and acquiror appetite remains high.
To read the full report, click here.