According to the July 2019 M&A market snapshot for the recruitment sector from accountancy and business advisory firm BDO, deal volumes are similar, if not slightly ahead, of those seen in 2018. 

While deal flow has remained constant, the figures point towards a trend of overseas expansion by UK companies, both through agencies launching from scratch in new locations and through acquisition of overseas recruitment agencies. Despite deal volumes being generally consistent in 2018 and 2019, around a third (35%) of deals in the six months to 30 June 2019 involved a UK vendor, compared to 91% in the 12 months to 31 December 2018.

BDO’s report also shows that following a period of sharp decline in Q4 of 2018, they have seen a stabilisation and also slight rebound in growth of both their FTSE All Share Index, and their BDO Recruitment FTSE Index.

The findings were against the backdrop of the adverse influence of a potential impending Brexit in Q4 2018 appearing to have waned in the early part of 2019 and as the prospect of a 29 March Brexit came and went.

BDO adds that while uncertainty around Brexit, a Tory leadership contest and a global dispute between the US and China has not helped, UK recruitment firms have returned to growth, including outperformance against the FTSE Index as a whole.

• Comment below on this story. You can also tweet us to tell us your thoughts or share this story with a friend. Our editorial email is [email protected]