Staffing Market M&A Report: Q4 2025

The U.S. staffing industry’s mergers and acquisitions (M&A) landscape reflects cautious optimism amid economic headwinds. Following a dip to 93 deals in 2024 —the lowest in four years —the sector is rebounding with elevated activity. Q1 2025 saw a 25% year-over-year (YoY) increase in deal volume, the highest since Q4 2022, driven by strategic consolidations and private equity (PE) add-ons. Analysts forecast 85-100 deals for the full year, maintaining the post-2018 average of over 105 annually, though below the 2022 peak of 139. Valuations remain stable, with middle-market firms (EBITDA $3–4M) trading at 4.0x-4.5x for light industrial/commercial segments, 5.0x-6.0x for professional staffing, and 5.5x-7.0x for high-growth areas like IT and healthcare. Overall transaction volume in HR and staffing rose 9.3% YoY through Q1, outpacing 2024’s 9.4% gain, while equity values ticked up slightly.

Key Takeaways

• AI and Automation: Widespread use in sourcing, screening and analytics to cut time-to-hire by 20-30%.
• The year has featured high-value transactions emphasizing technology integration and specialized talent pools
• There is a considerable buyer interest in locums, skilled trades and IT staffing firms

For more information, please contact Chad Gardiner, Senior Managing Director.