Specialized workforce platforms and technology continue to underpin consolidation across European HR services
HR Services Europe Spot On
HR services in Europe are continuing to attract investors as 2026 progresses, although various factors are leading buyers to be more selective, as we explain in our latest Spot On. Overall, the environment remains mixed as some sectors, such as manufacturing, are picking up whereas others, like certain services, face continued challenges due to high energy costs and geopolitical uncertainty.
Our report covers these trends, as well as the impact of a stable labor market with unemployment levels near record lows, and looks at M&A activity to explore which areas are generating the most interest and the central role of technology when it comes to deal rationales.
Investors are still interested in European HR services, but buyers are now more selective. They look for companies with specialized workforce skills, strong client ties and advanced technology instead of focusing on scale. This trend is clear in healthcare, engineering and AI-driven recruitment, where investor interest and valuations are high. The overall environment remains mixed. Manufacturing is picking up in some parts of Europe, helped by spending on infrastructure and defense, while some service sectors still struggle with high energy costs and uncertainty from global events. However, labor markets remain tight, especially for specialized staffing and workforce solutions.TOM VAN DE MEIRSSCHE, HR SERVICES EUROPE SPECIALIST, OAKLINS
In addition, we feature a round-up of recent HR-related transactions involving European players and an overview of valuation trends. You can also read a case study looking at the acquisition of Kollabo AG, a digital platform that leverages AI-powered matching algorithms to connect professionals and employers and staffing agencies, by enovetic AG, which develops and operates software solutions to simplify and digitize complex administrative processes related to temporary employment and staff leasing. Oaklins’ team in Germany acted as an exclusive sell-side advisor throughout the process.
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