Experts say that Brexit, IR-35 and other concerns created a tougher M&A market for UK staffing firms this year, but there remains interest in firms in sectors such as IT and engineering as well as recruitment providers with operations in international markets outside the UK, reports Senior Managing Editor Craig Johnson in Staffing Industry Review’s Online Showcase. SIA data shows there were 328 acquisitions of UK-based recruitment firms in 2018, up from 235 in 2017; however, there have only been 213 acquisitions so far this year.

Organizations using the services of staffing suppliers should keep an eye on M&A activity in their supplier base. Staffing firms make deals for a variety of reasons — including economic necessity as well as to expand services, geographic footprint and verticals served — which could affect services offered and impact existing buyers.