Highlights from the report:
- 2024 has been a relatively soft year for HCM, as the public HCM index has traded consistently below the S&P 500.
- HCM M&A has improved over 2023 and we are seeing more confidence in the outlook.
- Valuation trends are slightly mixed - modestly up for Talent Acquisition and modestly down for Core HR.
- Core HR remains the most active as M&A demand and the “Rule of 40” performance are driving the highest valuations in the sector (5.2X Revenue, 18.1X EBITDA).
- As a leading indicator, we see VC funding stabilizing at $1B per quarter as the market is still making up lost ground after the Silicon Valley Bank collapse.
- Widespread adoption of outsourced professional services serving PE and VC-backed firms – e.g. The Offices of the CFO and CRO.
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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.
