What’s the median multiple of EBITDA when it comes to mergers and acquisitions in the staffing industry? A new report by Staffing Industry Analysts found that buyers of staffing firms paid, at the median, 5.0 times EBITDA for the companies in 2021-2022. That’s up from 4.0 times in 2019 to 2020.
The report asked: “If your company closed or will close any acquisitions in 2021 or 2022, approximately what was the multiple of the sale price relative to EBITDA?” It included responses from 90 North American staffing firms.
Larger firms typically received a higher multiple of EBITDA. A similar pattern was observed in previous SIA surveys.
“Reported valuations have been gradually increasing since 2012,” said Jon Osborne, VP, strategic research and the author of the report. “This year’s list of staffing firms looking to acquire another firm included 220 prospective buyers, so interest would appear to be strong.”
The full report, part of the “North American Staffing Company Survey 2022,” is available to corporate members of SIA.