Staffing Agency businesses typically sell for 2.0–4.0× SDE (small agencies) in 2026. This guide covers verified staffing agency valuation multiples, key value drivers, typical deal structures, and market trends for brokers and buyers.
Last verified: 2026 | Sources: IBBA Market Pulse, BVR, BIZCOMPS transaction database
| Metric | 2026 Range |
| SDE multiple | 2.0–4.0× SDE (small agencies) |
| EBITDA multiple | 5–7× EBITDA |
| Revenue multiple | 0.2–0.5× annual gross revenue |
| Average deal size | $500K–$10M |
| Time to sell | 6–12 months |
| SBA eligible | Yes — SBA 7(a) eligible; factoring facilities common |
SBA 7(a) most common; factoring facility often assumed by buyer; earnouts tied to revenue retention (6–12 months); temp staffing requires working capital facility (payroll advance); seller note common for contingent portion.
↔ Stable — staffing industry M&A active but at measured pace. Temporary staffing multiples compressed vs perm-placement. Healthcare staffing (travel nurses, allied health) achieving premium multiples (6–8× EBITDA).
Staffing agencies typically sell for 0.2–0.5× annual gross revenue or 5–7× EBITDA. Gross revenue multiples are low because staffing revenue includes pass-through payroll costs — gross margin (typically 18–25%) is the more relevant profitability metric. Permanent placement-focused agencies achieve higher multiples than temp-only models.
Staffing agencies bill clients for labor costs (wages + markup) — so gross revenue includes significant pass-through costs. A staffing agency with $5M in gross revenue may only generate $1M in gross profit (20% margin). Buyers focus on gross profit (gross margin × revenue), not top-line revenue, when valuing staffing agencies.
Healthcare staffing (travel nursing, allied health, locum tenens) achieves the highest multiples in the staffing sector — 6–8× EBITDA — due to persistent healthcare labor shortages and premium billing rates. Technology and finance staffing also command above-average multiples. General administrative temp staffing achieves the lowest multiples.
Yes — SBA 7(a) is commonly used for staffing agency acquisitions under $5M. One key consideration: staffing agencies often carry payroll factoring facilities that must be addressed in the transaction. The buyer must qualify to assume or refinance these facilities as part of the acquisition.
Staffing agencies pay workers weekly before billing clients (typically net-30 to net-60). This working capital gap is bridged by payroll factoring or a line of credit. When buying a staffing agency, the buyer must have access to sufficient working capital to fund the payroll gap — this is the most common financing challenge in staffing acquisitions.
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