1、February 2024Annual Report2024 Recruitment M&A2RECRUITMENT M&A REVIEW|BDO UKIntroduction3UK recruitment market:The industry in 20234UK recruitment market:Unemployment v job vacancy5UK recruitment market:Business confidence6UK recruitment market:Capital markets7Deal overview9M&A activity10Integration

2、 and value creation considerations14Recruitment Q&A15Use of AI for recruiters22Tax IR35&labour supply chain24Listed recruitment companies26Selection of UK recent deals28BDO mergers and acquisitions30HighlightsTOTAL OFBDO FTSE RECRUITMENT INDEX MARKET CAP DOWN 5%IN 2023 ANNUAL COMPOUND GROWTH OFAVERA

3、GE EV/EBITDA MULTIPLE IN 2023 GREW IN THE YEAR TO 6.9X34%SUSTAINED INVESTMENT ACTIVITY WITH PE ACCOUNTING FOR OF ALL UK DEALS5.4%UK RECRUITMENT REVENUE RECORDED ATFORECAST OVER THE NEXT SEVEN YEARS 17.9BN DEALS COMPLETED70UK DEALS DOWN28%WITH A 2RECRUITMENT M&A REVIEW|BDO UK3BDO UK|RECRUITMENT M&A R

4、EVIEW Welcome to the 2024 edition of our annual M&A recruitment report.During discussions with a number of recruitment clients and contacts its clear that 2023 had been a challenging year for most.It has now been confirmed that the UK entered recession during the latter half of 2023,which alongside

5、persistently high levels of inflation has halted growth resulting in a lack of confidence and reduced hiring from businesses during the period.With this backdrop its fair to say that weve been bracing ourselves for a relatively downbeat deals review and potentially scratching around to try and draw

6、some trends and analysis from a handful of transactions.However,this is far from the case and were pleased to report that despite these challenging economic trading conditions that transaction levels have continued at a robust level during 2023,ending the year approximately 28%behind the previous pe