Q1 2025 Staffing & Recruiting Industry Exit Update

What Owners Need to Know Before Selling Their Staffing Firm

Buyer Activity Is High, but Deal Quality Matters More Than Ever

The staffing and recruiting sector continues to attract serious buyer attention in Q1 2025. With continued labor shortages and high demand across healthcare, trades, logistics, and tech, well-run agencies with recurring clients and internal teams are commanding premium valuations.

But not all staffing firms are treated equally. We’re seeing a clear divide in the market: firms with systems and team structure are thriving, while owner-dependent operations struggle to get strong offers.

What Are Staffing Firms Selling For in Q1 2025?

Valuations remain steady, with higher multiples going to companies with strong client retention, low turnover, and scalable systems.

💡 Buyers favor firms with a strong ATS/CRM, documented SOPs, and at least 2–3 client-facing team members besides the owner.

What’s Hurting Deals in 2025?

We’re seeing good businesses lose value, or fail to close at all, due to the following:

1. The owner is still the top recruiter or account manager

2. All client relationships are verbal, not under contract

3. No back-office systems for time tracking, payroll, or invoicing

4. No documented candidate database or CRM structure

If you’re planning to sell within the next 12–24 months, cleaning these things up now can make a six-figure difference at the closing table.

What Buyers Want Right Now

The most active buyers in Q1 include:

• Independent operators expanding into new regions

• Former executives or recruiters seeking their first acquisition

• Strategic acquirers looking for niche book-of-business deals

• Investor-backed roll-up platforms with regional or vertical focus

They’re prioritizing:

• Established client base (minimum 3–5 recurring accounts)

• Recruiters or delivery staff willing to stay post-sale

• Clear systems for candidate pipeline, submittals, and compliance

• Gross margin visibility and contractor pay ratios

Texas Hotspots & Regional Activity

We’re seeing the most M&A activity in:

• Dallas-Fort Worth – Light industrial and healthcare staffing groups are in demand

• Austin – Direct-hire and tech staffing firms seeing premium interest

• Houston – Oil & gas-adjacent staffing and trades-focused agencies gaining traction

• San Antonio & Lubbock – Underserved mid-size markets with growing investor attention

Thinking of Selling in 2025?

You don’t need to sell this quarter, but if you’re thinking about retiring, stepping back, or planning for an exit in 2025–2026, now is the time to start preparing.

Early planning lets you:

• Maximize valuation

• Clean up books and billing systems

• Document your pipeline and recruiter roles

• Structure the right deal, on your timeline

Let’s Start With a No-Pressure Exit Strategy Call

Whether you’re curious about valuation, wondering if your firm is “sellable,” or want to quietly test the market, we’re here to guide you.

👉 Schedule Your Free Confidential Exit Consultation
Or email us at info@lionbusinessbrokers.com

Lion Business Brokers helps founder-led staffing and recruiting firms across Texas and the Southeast exit with confidence, structure, and a clear plan forward.

Stay tuned for our Q2 2025 Staffing & Recruiting Exit Report.