Footnotes
- Valuation Multiples represent Enterprise Value to LTM Revenue and LTM EBITDA at 2/28/2023
- The Pritzker Organization acquired Epic Staffing Group for a total consideration of $675m at a valuation of 11.3x EV / LTM EBITDA
Professional Services Sector Update - Spring 2023
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Professional Services Sector Update
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Professional Services: Public Markets Update
Global professional services industry participants include providers of consulting services, on-shore and off-shore outsourced solutions, data and information services, human capital management and workforce solutions, and risk and compliance services. Key public industry players in each sub-sector are categorized as follows:
Sub-sector | Mean Public Trading Multiples(1) | Description of Business Platform | Key Select Industry Leadership | |
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| Business Process Outsourcing | TEV / LTM Rev: 2.13x TEV / LTM EBITDA: 13.1x | On-shore and off-shore outsourced third-party solutions |
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| Diversified Data & Information Services | TEV / LTM Rev: 6.22x TEV / LTM EBITDA: 20.4x | Providers of data, analytics, and business information services |
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| Data & Information Services: Financial & Media | TEV / LTM Rev: 5.95x TEV / LTM EBITDA: 20.0x | Companies offering research, insights, and analytics related to financial market data |
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| Governance, Risk, and Compliance Services | TEV / LTM Rev: 4.56x TEV / LTM EBITDA: 15.1x | Providers of compliance and risk management solutions |
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| HR Staffing & Professional Services | TEV / LTM Rev: 0.89x TEV / LTM EBITDA: 8.3x | Workforce solutions |
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| Human Resource Outsourcing | TEV / LTM Rev: 3.58x TEV / LTM EBITDA: 14.8x | Outsourced human capital management service offerings |
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| IT Consulting | TEV / LTM Rev: 2.16x TEV / LTM EBITDA: 12.7x | Providers of information technology solutions |
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| Speciality Consulting | TEV / LTM Rev: 1.88x TEV / LTM EBITDA: 14.1x | Advisory, consulting, and analytic service offerings |
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Sector Perspectives: U.S. Staffing & Human Capital Services
Staffing services remains an attractive sector for investors for multiple reasons:
- The staffing industry is characterized by high fragmentation, which offers significant growth potential through strategic M&A opportunities
- Visible and recurring revenue streams, and a flexible cost base provides for predictable cash flows
- Low capital intensity (asset-light model) allows for growth opportunities with limited capital investment
- Sustained industry demand is driven through the increasingly common strategy for corporations to utilize temporary staffing as a flexible way to scale operations
U.S. financial sponsor M&A activity and aggregate reported deal values ($s in billions)
Source: Market statistics sourced from Capital IQ and based on 2/28/2023. Industry data sourced from publicly available information
Notable recent staffing services M&A activity by financial sponsors
Date | Target | Acquiror |
|---|---|---|
| Jan-23 | Queen Consulting Group | Talent Group / Osceola Capital |
| Jan-23 | Agency WorX | WorkGenius Group / SFO - Swiss Family Office SA |
| Dec-22 | Rayne Staffing | Critical Energy Infrastructure Services / White Wolf Capital |
| Dec-22 | SpringBoard Healthcare Group | Ingenovis Health / Trilantic North America |
| Oct-22 | DecisionPathHR | PeopleShare / Trivest Partners |
| Aug-22 | Barton & Associates | H.I.G Capital |
| Apr-22 | Epic Staffing Group(2) | The Pritzker Organization |
| Apr-22 | VISTA Staffing Solutions | Ingenovis Health / Trilantic North America |
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