2025 has delivered its first big surprise for the staffing and executive search world. Heidrick & Struggles, one of the most established global names in executive search, is being taken private. A consortium led by Advent International and Corvex Private Equity is acquiring all outstanding shares and delisting the company from the stock exchange.

This transaction is not just a financial event. It symbolizes the transformation of the leadership advisory and executive search sector fueled by technology investments, private equity money, and increasing pressure on margins.

For mid-sized search firms and advisory boutiques, the question is obvious:
What does this mean for us?

Heidrick & Struggles Goes Private: A Wake Up Call for the Executive Search Industry

The Deal in Short

• Purchase offer: USD 59 per share, paid in cash
• Total valuation: approx. USD 1.3 billion enterprise value
• Buyers: Advent International & Corvex Private Equity (financed by Deutsche Bank, UBS, Santander)
• Closing expected: Q1 2026
• Leadership continuity: CEO Tom Monahan and the management team remain
• Several executives become co-investors, strengthening long-term accountability

Once completed, Heidrick & Struggles will no longer be listed on NASDAQ hence returning to “private ownership.”

Why Private Equity Is Interested

This deal marks a shift: Leadership advisory and executive search are now viewed as investable and scalable asset classes.
Heidrick is no longer just a search firm it is turning into a leadership and culture transformation platform, including interim executives and organizational advisory solutions.

For private equity investors, this opens a clear strategy:
Buy, integrate, and scale.

Why Going Private Matters

Publicly listed search firms are constrained by quarterly earnings expectations, even though search is a cyclical business. Going private removes that pressure. The company can now invest in:

• Digital platforms
• AI-enabled leadership intelligence
• Data-driven assessment tools

Advent has already stated that it wants to strengthen partner ownership structures, meaning more entrepreneurial freedom within the firm.

Partner Equity Is Becoming a Strategic Lever

One of the most important elements of this deal:
Partners and executives will co-invest in the new ownership structure.

This creates alignment, retention and performance accountability. For many search firms, especially in the DACH region, this is a model worth studying.

We’ve seen similar moves in recent years in the staffing and HR services industry. Each time, it triggered more consolidation.

Expect the same here. Private equity investors will now look for:

• Profitable
• Niche-focused
• Digitally capable
• Search and advisory firms, ideally with 5–25M EUR in yearly fees

Executive search has a future, but not in its old form. | Thomas A. Sola CEO HUCAI AG

Impact for the DACH Region

The DACH executive search market is still highly fragmented with over 1,500 firms competing for market share.

This deal will accelerate:

1. Buy-and-build strategies (combining several strong boutiques into regional platforms)
2. Partner-equity models to attract and retain talent
3. Professionalization of reporting & profitability metrics

Firms that can demonstrate transparency, scalability, and profitability will achieve better valuations. After a flat economic year, declining interest rates, and plenty of private equity capital waiting for deployment, the market is ready. This deal hits the sweet spot where liquidity meets strategy.

HUCAI Insight: What You Should Do Now

Know your valuation.
Mature advisory/search firms can realistically achieve 8.5–9× EBITDA, not generalist staffing firms. Create your valuation here: www.staffingrechenschieber.de

• Position for buy-side opportunities.
  Niche firms (Tech, Life Sciences, Legal) with ≥ €5M fee revenue are attractive acquisition targets.
• Prepare for equity structures and transparent reporting.
  This increases valuation multiples and exit readiness.
• Use the platform wave strategically.
  International investors are searching for a foothold in DACH.

At HUCAI, we support founders and investors with market entry, buy-side screening, and sell-side preparation, from strategy to execution.