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
- 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.
