The Human Capital industry closed out a robust first quarter of 2022 as it continued to benefit from the recovering of the labor market.
The fourth quarter of 2021 closed out what was an exceptionally strong year for human capital M&A activity. After deal activity plummeted by ~50% as a result of the COVID-19 pandemic in early 2020, activity has recovered to pre-pandemic levels.
Through the first half of 2021, the human capital industry has seen nearly as many deals completed as it did in all of 2020, with transaction activity picking up enough that it is likely to return to the lofty levels set from 2017 through 2019.
The human capital M&A market has rebounded nicely so far in 2021, with Q1 2021 transactions accounting for approximately 45% of total 2020 deal count. The increase in activity is a result of pent-up demand from buyers who put acquisitions on hold for most of the previous year.
The M&A market for human capital companies remained muted in 2020, posting a record low number of transactions, primarily due to pandemic-related shutdowns, supply chain slowdowns, and weakened demand for staffing labor.