After another tepid year for staffing M&A, many in the industry are wondering what it will take to get deals moving again. As of this writing, SIA projected 92 transactions closed in 2025 — on par with 2024, but far below the 116 logged in 2023. That stability might suggest a market finding its footing, but in reality, it reflects a deeper tension: While 44% of executives say they’re open to pursuing acquisitions, according to SIA’s North America Executive Outlook Survey, there is a widening gap between what sellers believe their firms are worth and what buyers are willing to pay.

As buyers and sellers look for ways to close this gap, understanding how public markets value staffing firms offers an important benchmark. Valuations of public staffing firms reflect a mix of financial performance, operating execution and strategic positioning.

Finances. Financially, investors focus on profitability and the direction of gross margins. Particularly, they look at whether margins are improving and how they compare with peers, not just whether they are healthy today. Growth is equally important, specifically organic growth — i.e., how well a firm is expanding within existing clients, winning new accounts and sustaining momentum over time. Additionally, after a challenging few years for the staffing industry, investors are weighing whether the downturn is primarily cyclical or indicative of a more permanent shift in hiring patterns and client buying behavior.  

Operations. Operational factors can be just as influential as financial results in shaping a staffing firm’s valuation. Technology is increasingly central as firms navigate both disruption and upside from talent platforms and AI. But simply “having tech” rarely earns a premium. Investors look for sophistication and differentiation. This means having tools that genuinely improve recruiting speed, quality, compliance, sales effectiveness or candidate engagement which competitors cannot easily replicate.  

Scalability is another core value driver because it determines whether growth can be realized smoothly. Firms built on streamlined workflows, consistent operating processes and well-structured data systems are better positioned to expand without adding complexity, overhead or execution risk.  

Data itself is becoming a strategic asset as well. Organizations with clean databases, strong analytics and disciplined governance can make faster, better decisions on pricing, client mix, talent supply and market expansion.  

Finally, adaptability matters. In an industry where demand patterns and skill hotspots shift quickly, investors favor companies with flexible delivery models that can capitalize on emerging trends, adjust their mix of services and exit underperforming segments without destabilizing the core operation. One example of a firm using technology to enhance its valuation is Timee, a Japan-based staffing platform. Despite serving the challenging commercial segment, the firm trades at a price-to-revenue multiple roughly four times higher than any other commercial staffing firm as investors reward the advantages its platform-based model provides, including greater scalability, higher data quality and increased flexibility.

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