UK recruitment companies find themselves in a challenging position in 2025, as they face rising costs and persistent economic uncertainty – headwinds that are also impacting the wider UK jobs market. In spite of these challenges, the sector has continued to see strong M&A activity, with deal volume in 2024 up by close to 50 per cent compared to 2023.
Trade buyers, private equity firms, venture capital investors and overseas buyers continue to target deals in the UK’s recruitment market, attracted by the strong core value drivers that the sector has exhibited over recent years in extremely tough conditions.
In the exclusive full-length version of this month’s insight, available to BSR subscribers, we take a deep dive into the trends currently shaping M&A in the recruitment sector, including:
How trade buyers have established themselves as the most active acquirers
Tech integration, niche expertise and strong management team – The range of factors that are attracting private investors to the sector
How bolt-on deals have become private equity’s M&A model of choice
The growing prominence of overseas investors
In addition, we also examine the various challenges the sector faces, from a weak job market, rising costs and the impact of Trump’s tariffs, to sluggish valuation multiples and the growing competition trade buyers could contend with over the coming years.
This long-established accountancy practice, operating in the North and North East, presents an exceptional opportunity for acquisition due to the current owner's retirement.
This well-established multi-partner accountancy solutions practice in Yorkshire presents a lucrative opportunity with a diverse client base, focusing primarily on non-audit limited companies.
This multi-partner accounting practice offers a diversified client base and a strong revenue. With a well-experienced team and support for a smooth transition, it presents an excellent opportunity for expansion.
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