Insight

Professional Services M&A update Q3 2021

Read more about the M&A activity in the professional services sector

Stephen Guy

Stephen Guy

Managing Director, KPMG Corporate Finance LLC

+1 410-949-8909

Professional services sector landscape

M&A Activity & Aggregate Deal Value: Q3-19 – Q3-21

  • Global aggregate deal value for the Professional Services sector decreased to $65.0bn in Q3-21, down from $80.3bn1 in Q2-21
  • Aggregate global M&A deal volume for the sector increased 6.4% in Q3-21, relative to Q2-21
  • In Q3-21, U.S. Professional Services aggregate M&A deal value decreased to $39.2bn, down from $66.4bn1 in Q2-21. Over the same period, U.S. M&A activity increased 6.1% to 537 reported transactions
  • The U.S. accounted for 37.3% of global sector M&A activity in Q3-21, flat on a quarter-over-quarter basis relative to Q2-21 (37.4% )


Professional Services Public Company Sector Overview

Sector LTM Trading Multiples Description
TEV /
Revenue
TEV /
EBITDA
Business Process Outsourcing 2.85x 16.8x Outsourced, offshore, or third-party service providers
Diversified Data & Information Services 6.35x 21.2x Providers of data, analytics, and business information services
Data & Information Services: Financial & Media 5.05x 22.2x Companies offering research, insights, and analytics related to financial market data
Governance, Risk, and Compliance 5.04x 17.4x Providers of compliance and risk management solutions
HR Staffing & Professional Services 1.67x 14.9x Workforce solutions and other professional services
Human Resource Outsourcing 3.82x 18.5x Outsourced and managed human resource service offerings
IT Consulting 3.54x 17.2x Providers of information technology solutions
Speciality Consulting 1.73x 15.1x Advisory, consulting, and analytic solution offerings


We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.


Footnotes

  1. 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.


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KPMG Corporate Finance LLC’s Business Services team provides investment banking and financial advisory services to a broad range of outsourcing service providers.