Highlights from the report:
- The U.S. staffing market finally seems to be finding its floor after a rough three-year climb. While we're still looking at a 3% contraction for 2025, that’s actually an improvement over earlier forecasts, and the industry is broadly eyeing a return to growth by 2026.
- M&A activity remains characterized by extreme buyer selectivity, as buyers are passing over generic staffing firms to hold out for high-quality, specialized assets that have clear momentum and a "differentiated" story to tell.
- Modern tech is no longer optional if you want a premium valuation. If a firm is still bogged down by clunky legacy systems, they’re going to get discounted. Buyers want unified, cloud-native platforms that are "bolt-on ready" and easy to scale.
- AI has shifted from a buzzword to a must-have productivity tool. The focus isn't on replacing people, but on using AI as a "multiplier" for recruiters. Firms that have successfully embedded AI into their workflows are seeing a significant boost in their enterprise value.
- A persistent "labor recession" is creating sharp divergence across sub-sectors, with talent supply constraints—rather than weak demand—driving robust growth and investor interest in specialized verticals such as Executive Search, Education, and Locum Tenens.
- The outlook for 2026 points to a significant M&A reacceleration. As the macro environment stabilizes and the "technology arms race" heats up, we expect to see a significant reacceleration in M&A activity across the entire sector.
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.
