Staffing Industry Analysts track each mainstream staffing industry M&A deal that takes place.
They have recently published “Staffing Mergers & Acquisitions Annual Report: 2016”. This is an extensive report using data has been built over the year by aggregating and analysing publicly announced M&A transactions. The report lists each identified transaction of 2016 along with the acquiring company, target-company and the size of the deal.
The pie-chart shows deals by sector for transactions that occurred within North America. Firms in the IT and Healthcare sectors being the most targeted of all, accounting for 41% of all deals. The healthy interest in IT and Healthcare is reflected in HHMC’s business in Asia Pacific and in other reports prepared for the UK and Europe markets.
The data is enhanced by showing “cross-border” transactions. This highlights the massive size and strength of the US domestic market, with only a further 21% of transactions identified involving a non-North American party.
There is also a list of transactions between companies that provide services related to the staffing industry but are not staffing companies. For example, IQ Navigator, a VMS business, acquired a majority stake in Beeline. Within North America, 26 such transactions were identified.
SIA reports that in 2016, the industry witnessed a decline of 25% in year-on-year M&A activities in North America. The number of M&A transactions in 2016 was in line with that of 2013 and 2014, while 2015 recorded the highest number of deals post 2007.