InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Business Services’ Category

M&A News In The Business Services Industry Sector

By Brad Purifoy | May 09, 2018

The report below gives a good overview of the second Quarter M&A activity in the Business Services Industry Sector. M&A activity for North American based target companies in the Business Services sector for Q1 2018 included 897 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions of the quarter was Sentinel Capital Partners, a private equity firm that invests in companies at the lower end of the midmarket, announced the acquisition of UBEO Business Services, a provider of printer, copier and related office equipment sales and services in Texas. Terms of the deal were not disclosed. UBEO is the largest independent provider of document management equipment and related services in Texas. Through seven sales branches in the greater Austin, Dallas-Fort Worth, and Houston metropolitan areas, UBEO sells printers, copiers and other document management equipment bundled with premium maintenance contracts to mid-sized businesses, schools, municipalities and other customers.

The US business services sector generates combined annual revenue of about $1.7 trillion according to the US Census Bureau. The four largest business services segments are IT services (about 20% of industry revenue), architectural and engineering services (15%), legal services (15%), and consulting services (15%). Accounting services and scientific research each generate about 10% of revenue. Other segments include advertising and specialized design services.

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M&A News In The Business Services Industry Sector

By Brad Purifoy | Feb 28, 2018

The report below gives a good overview of the first quarter M&A activity in the Business Services Industry Sector. M&A activity for North American based target companies in the Business Services sector for Q4 2017 included 390 closed deals, according to data published by industry data tracker FactSet.
Rising awareness among executives about the negative business impact of security incidents and a need to keep up with regulatory changes is leading to an increase in global spending on information security, according to Gartner. Worldwide spending on information security products and services is forecast to grow 7% year-over-year to reach a total of about $86 billion in 2017, with such spending expected to grow to $93 billion in 2018. Spending on global cybersecurity is being driven by an increase in data breaches and a greater need for app security testing. The European Union’s General Data Protection Regulation, set to take effect in May 2018, is also sparking concern about IT security. The new rule is expected to drive 65% of data loss prevention buying decisions through 2018.

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M&A Quarterly News In The Business Services Industry Sector

By Brad Purifoy | Nov 07, 2017

The fourth quarter M&A below provides you a good overview on activities in the Business Services Industry Sector. M&A activity for North American based target companies in the Business Services sector for Q3 2017 included 172 closed deals, according to data published by industry data tracker FactSet. The average purchase price was $82 million.

The move by private equity firms into the broader professional services sector presents new competition and a potential long-term threat to consulting services firms, according to a recent blog post by Source Global Research. Private equity firms are investing in areas such as big data and analytics, digital transformation and cybersecurity, all of which are among the primary sources of growth for consulting firms.

One subsector growing considerably is cybersecurity. The U.S. Federal cybersecurity market is estimated to reach $22 Billion by 2022.

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Q3 – 2017 Business Services | M&A

By Brad Purifoy | Sep 01, 2017

M&A activity for North American based target companies in the Business Services sector for Q2 2017 included 590 closed deals, according to data published by industry data tracker FactSet.

One of the largest middle market deals of the quarter was announced in April when Belgacom International Carrier Services SA, a subsidiary of Proximus SA, ultimately owned by the Government of Belgium, entered into a definitive agreement to acquire TeleSign Corp, a portfolio company of Summit Partners LP, Adams Street Partners LLC, March Capital Partners and Telstra Ventures, for US$230 million in cash with an undisclosed amount in contingent payout. TeleSign provides internet, mobile and cloud authentication and verification services. The company was founded in 2005 and is headquartered in Marina del Rey, CA.

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CFA Advises Sunrise Enterprises

By Jim Zipursky | May 21, 2008

sunrise sedona

Case Study

Situation: In 1991 Carol and Jim Townsend acquired a small employment agency and entered the world of entrepreneurs. Quickly, they moved into providing temporary employees and eventually built their business into a regional powerhouse. Their company, Sunrise Enterprises, based in Dubuque, Iowa had 13 offices in a three-state area and billed over 2 million hours of work per year.

Solution: Based on a referral from their CPA, Carol and Jim retained CFA to sell their business to a buyer who would continue to develop Sunrise. Ultimately, CFA found a complementary, strategic buyer who would not only acquire the business, but would, in turn, sell part of the company to Sunrise’s key executive. The sellers got the value they wanted for the business and achieved their retirement goal.