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

EBITDA MULTIPLE RANGES IN THE HUMAN RESOURCES AND HUMAN CAPITAL MANAGEMENT SECTOR

Source: Delancey Street Partners

TALENT ACQUISITION (EV/ REVENUE)

WORK TECH (EV/ REVENUE)

50.0x - 45.0x - 40.0x - 35.0x - 30.0x - 25.0x - 20.0x - 15.0x - 10.0x - 5.0x - 0.0x -

0.0x -

DSP Index: Talent Acquisition

Nasdaq

DSP Index: WorkTech

Nasdaq

5.0x -

0.0x -

7.6x

6 Yr Average 17.2x 10 Yr Average 14.3x

9.8x 7.6x

5.0x -

6 Yr Average 6.1x 10 Yr Average 4.9x

3.5x

0.0x -

Jul - 21 -

May - 23 - Jul - 23 -

May - 22 - Jul - 22 -

May - 24 - Jul - 24 -

Jan - 23 -

Jan - 22 -

Jan - 24 -

Sep - 21 -

Sep - 23 -

Nov - 21 -

Sep - 22 -

Mar - 23 -

Mar - 22 -

Mar - 24 -

Nov - 23 -

Nov - 22 -

Jul - 21 -

Jul - 23 -

Jul - 22 -

Jul - 24 -

Jan - 23 -

Jan - 22 -

Jan - 24 -

Sep - 21 -

Sep - 23 -

Nov - 21 -

Sep - 22 -

Mar - 23 -

Mar - 22 -

Mar - 24 -

Nov - 23 -

May - 23 -

Nov - 22 -

May - 22 -

May - 24 -

WORKFORCE MANAGEMENT (EV/ REVENUE)

DSP Index: Workforce Management

Nasdaq

9.0x -

7.6x 7.3x

10 Yr Average 7.4x 6 Yr Average 7.2x

4.0x -

Jul - 21 -

May - 23 - Jul - 23 -

May - 22 - Jul - 22 -

May - 24 - Jul - 24 -

Jan - 23 -

Jan - 22 -

Jan - 24 -

Sep - 21 -

Sep - 23 -

Nov - 21 -

Sep - 22 -

Mar - 23 -

Mar - 22 -

Mar - 24 -

Nov - 23 -

Nov - 22 -

In the UK Human Resources sector, EBITDA multiples for company sales typically range from 5x to 15x.

Globally, participants in the HR and staffing services sector have continued to garner strong M&A pricing as acquirers have increasingly submitted competitive bids for quality assets with loyal customer bases. From 2021 through to July 2024, the average sector M&A multiple was 8.2x – maintaining a consistent level since 2015.

AVERAGE HR & STAFFING SERVICES M&A MULTIPLES REMAIN STRONG

(EV/EBITDA)

8.2x

2021 - YTD 2024 2018 - 2020 2015 - 2017

8.0x

8.2x

8.2x

0x

2x

4x

6x

8x

10x

12x

14x

Year-to-date (YTD) ended March 31 Source: Capital IQ FactSet, PitchBook, and Capstone Partners