M&A expertise in our HCM market update
(October 2024)

In recent years, the market for human capital management (HCM) has changed significantly, leading to a transformation of business models in the HR sector and a strong increase in deal activity.

In our HCM market report, we analyse the following issues:

• Market overview: The pandemic acted as a catalyst for change by accelerating digitalisation and adaptation to new work methods.In addition, labour shortages are driving a fundamental rethink in the HR sector, forcing companies to revise their recruitment and retention strategies and to develop innovative approaches to meet labour market challenges.
  
• M&A activity: The personnel market saw a high number of transactions between 2019 and 2022. Although M&A activities in the HR sector in Europe declined in 2023, a positive trend is observed in 2024, indicating a promising year 2025. The recent multi-billion dollar private equity takeovers have highlighted the sector's increasing importance despite macroeconomic challenges.
  
• Valuation environment: The HR tech sector in particular has managed to maintain a consistently high valuation level in recent years thanks to its innovative software solutions, impressive SaaS sales and strong growth curves.

We would like to thank you for your interest in our HCM market update.