Highlights from the report:
- Q2 M&A activity in HCM held level with recent quarters, with 96 total transactions—led by Staffing (57) and Core HR (19)—as buyers prioritized strategic fit, profitability, and recurring revenue models.
- Transaction trends shifted toward fewer, larger deals, as buyers scaled, strategically aligned acquisitions over smaller, high-growth targets. These trends are most prevalent in IT and Healthcare Staffing.
- The quarter recorded active consolidation across sub-sectors, with large strategics like UKG and Aya Healthcare deepening specialization and expanding geographically.
- Venture Capital signals were mixed. Deal volume dropped 38% YoY to 68 transactions; however, capital raised surged to $1.5B, driven by three $100M+ rounds and the creation of another HCM unicorn.
- The IPO backlog continues to build, as investor appetite for scaled HCM platforms remains strong, supported by multiple late-stage VC investments and strategic deals positioning companies for future public offerings.
DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
