Evaluating US workforce management

Human Resources Americas Spot On

This year, one of the key challenges facing the US economy is undoubtedly the question of human resource management (HRM). With the effects of the COVID-19 pandemic, including the “Great Resignation”, still being felt across all sectors, employers are having to fill a growing number of job openings while also seeking to keep existing talent. As we note in our latest HR Americas Spot On, this situation, coupled with the fact that many private equity buyers have abundant dry capital and strategic buyers are continuing to look for bolt-on platform acquisitions, is creating an exciting dynamism in M&A activity for this industry.

M&A activity in the human resource management (HRM) space will remain robust during the remainder of 2022 for both strategic and financial buyers as the economy continues to emerge from the pandemic, and employers face talent and hiring challenges. Private equity buyers have dry capital in abundance, waiting to be deployed, and strategic buyers continue to look for bolt-on platform acquisitions. Q1 2022 M&A activity has already been very dynamic, and we expect the trend to only increase. Valuation multiples remain high as we head into Q2 2022, and many owner/operators are exploring the potential sale of their HRM businesses. MARSHALL MURPHY, HR AMERICAS SPECIALIST, OAKLINS

In our report, we summarize current macroeconomic factors in the USA, including consumer confidence, wage growth and GDP. We also take a look at recent M&A trends within the HRM sector along with labor force indicators, and include an overview of transactions from the past year. In addition, we look at specific deals closed in the second half of 2021, historical valuations and recent public trading valuation data for a range of different HRM segments and companies.

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Marshall murphy
Marshall Murphy Dallas, United States
Managing Director
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