Big M&A Appetite in Recruitment Industry
Benchmark International a US based business broker, posts that, “…record levels of profit generated in the global recruitment sector in the last few years has worked as a catalyst for high levels of M&A activity.”
Apart from the large deals, like the £429m deal revealed by Randstad to buy job site Monster Worldwide, the #2 and #3 players in this market, Adecco and Manpower Group, have also been on the hunt and actively making acquisitions in addition to investments by numerous smaller firms.
Aside from the industry’s key players, Japan’s Recruit Holdings has been on something of an M&A spending spree since raising a staggering $1.94 billion on the Tokyo Stock Exchange in 2014 and it is now embarking on a quest to become the world’s biggest temporary jobs provider by 2020. Its largest deal so far is the €1.61 billion purchase of USG People of the Netherlands earlier this year in a move that they hope will allow them to expand into the lucrative European market.
Indeed, current M&A activity in recruitment is dominated by corporates that are looking to expand their reach geographically or enter into new markets … read the full story.