Insights 
VT 
Heidrick & Struggles, a global executive search and consulting firm, saw a 19.6% increase in its stock price after announcing a $1.3 billion go-private acquisition. The offer of $59 per share reflects a substantial premium over the previous closing price and is a key step in the company’s transformation strategy.
This acquisition reflects ongoing private equity interest in firms focusing on human capital. Over the past year, HSII, which holds a Zacks Rank #2 (Buy), has seen a 58.5% growth, outperforming its peer group’s 18.7% rise.
Expanding Company Offerings
HSII has diversified its offerings, incorporating digital transformation and talent analytics to compete more effectively. The company’s expected earnings growth for the next year is 17.6%, with the Zacks Consensus Estimate for current-year earnings up by 2.4% in the past 60 days. The buyout’s value was quickly recognised, with the stock closing near the deal price despite mixed broader market results.
The acquisition is expected to close in the first half of 2026, pending regulatory approvals. The company will be delisted from Nasdaq and will operate as a privately held entity upon completion.
Following the announcement of the Heidrick & Struggles (HSII) go-private deal, we see a clear merger arbitrage opportunity. With the acquisition price set at $59 and the stock currently trading around $58.25, there is a small but well-defined spread to capture. We can consider selling cash-secured puts with a strike price near $57.50 for expirations in early 2026 to collect premium, betting that the deal will close successfully.
Sector Implications
This buyout sends a strong signal about the perceived value in the entire human capital sector, especially with private equity dry powder recently reported to have reached a record $2.5 trillion. Peers like Korn Ferry (KFY) and ManpowerGroup (MAN) could now be seen as undervalued and potential targets for similar deals. We should look at buying medium-term call options on these names to speculate on further industry consolidation.
Despite the Nasdaq and S&P 500 reaching new highs, underlying risks from the potential government shutdown are making investors nervous. The CBOE Volatility Index (VIX) has reflected this, climbing above 18 last week, a notable increase from the lows we saw over the summer of 2025. Buying protective puts on broad market ETFs like SPY is a prudent hedge against a potential downturn in the coming weeks.
The same shutdown fears, coupled with expectations of interest rate cuts, are fueling a powerful rally in precious metals. Gold has surged toward the $4,000 mark, continuing a trend that began with the Federal Reserve’s dovish pivot late in 2024. We see this momentum continuing, and buying call spreads on gold ETFs like GLD allows for a capital-efficient way to participate in further upside.
