Professional services sector landscape
M&A Activity & Aggregate Deal Value: Q2-19 – Q2-21
- Global aggregate deal value for the Professional services sector increased to $80.3bn* in Q2-21, up from $66.2bn in Q1-21
- Aggregate global M&A deal volume for the sector however saw a decline of 11.5% in Q2-21 compared to Q1-21
- In Q2-21, the U.S. Professional services aggregate M&A deal value increased to $66.4bn*, up from $47.0bn in Q1-21. During the same period, M&A deal activity fell by 12.8% to 506 deals
- The U.S. accounted for 37.4% of global professional services M&A activity in Q2-21, slightly down from 38.0% witnessed during the prior quarter
Professional Services Public Company Sector Overview
Sector | LTM Trading Multiples | Description | |
---|---|---|---|
EV / Revenue |
EV / EBITDA |
||
Business Process Outsourcing | 2.85x | 17.3x | Outsourced, offshore, or third-party service providers |
Diversified Data & Information Services | 5.97x | 21.6x | Providers of data, analytics, and business information services |
Data & Information Services: Financial & Media | 5.51x | 23.6x | Companies offering research, insights, and analytics related to financial market data |
Governance, Risk, and Compliance | 4.95x | 16.9x | Providers of compliance and risk management solutions |
HR Staffing & Professional Services | 1.83x | 16.7x | Workforce solutions and other professional services |
Human Resource Outsourcing | 3.71x | 17.0x | Outsourced and managed human resource service offerings |
IT Consulting | 3.34x | 16.2x | Providers of information technology solutions |
Speciality Consulting | 1.72x | 15.8x | Advisory, consulting, and analytic solution offerings |
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Footnotes
* During Q2-21, Microsoft Corporation entered into a definitive agreement to acquire Nuance Communications, Inc. for $19.8bn, which comprised 24.7% of global and 29.8% of U.S. aggregate deal value for the Professional Services sector.