KBS - Human Resource Management and Human Capital Management - Market Insight

M&A ACTIVITY CONTINUES TO RISE WITHIN THE HR AND HUMAN CAPITAL MANAGEMENT INDUSTRY The UK human resources (HR) and human capital management (HCM) industry is on a trajectory of continued growth. This sector comprises companies that deliver outsourced HR services, talent management, benefits administration, compliance support and workforce strategy solutions. These Human Resources Outsourcing (HRO) providers manage essential functions such as recruitment, onboarding, payroll, performance management, employee relations, training and regulatory compliance. The sector is growing rapidly due to changing workforce expectations, rising regulatory complexity, and the demand for flexible, scalable HR solutions. Organisations of all sizes are outsourcing HR to cut costs, enhance employee experience, ensure legal compliance and focus on strategic goals. This has increased the demand for subscription-based, recurring revenue models, making HRO providers highly attractive to investors and acquirers. KBS Corporate’s extensive experience in managing successful transactions, allied to our ongoing engagement within this dynamic market, has provided us with a unique perspective. We have conducted an in-depth analysis of the company sales landscape within this sector, offering valuable insights into the key trends shaping sales activity. This includes the strategic moves of leading acquirers and the vital role of private equity in driving industry consolidation. We present significant industry transactions, highlighting notable deals and market dynamics that are reshaping the competitive landscape - along with a detailed overview of completed transactions facilitated by KBS Corporate - offering a practical look into real-world M&A examples within the human resources and human capital management space.