Gambit Corporate Finance LLP announces the publication of its Human Capital Market Review for Q4 2020. This edition reflects on what has transpired over the course of Q4 2020 and considers the implications of the key trends, statistics and macroeconomic drivers that are in play as we enter 2021.
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- EV/EBITDA valuations in the Gambit Human Capital Index rose for the third quarter in a row, nearly doubling from Q120 and now significantly exceed the levels seen pre-pandemic.
- UK deal volumes rose by 33% in Q420, driven by increased domestic activity from strategic acquirers that have been encouraged to undertake acquisitions by an increasingly positive economic and sectoral outlook.
- With stability and growth returning to the share prices of listed recruiters, the defensive strategies observed in 2020 will shift towards the prioritisation of growth, with the M&A market earmarked to play a pivotal role in post-pandemic strategic initiatives in 2021.
- Anticipated changes to Capital Gains Tax, compounded by a shift in shareholder priorities as a result of Covid-19 will have expedited succession plans further, leading to value maximisation opportunities for sellers to benefit from tax relief and buyers to capitalise on a rise in available assets.
- In line with a growing appetite for Executive Search services, refreshed management teams will look to achieve operational scaling through successful acquisitions and the disposal of non-core assets to drive renewed strategic focus in the next economic cycle.
- As a direct result of the pandemic, Human Capital companies are now actively searching for acquisition targets, with assets operating in Covid-19 resilient sub-sectors offering significant value and protection against future downturns.