Exit and Growth Strategies for Middle Market Businesses

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.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for business services, rose 7.0% in the second quarter of 2017 compared to the same period in 2016.
  • Total US revenue for professional, scientific, and technical services rose 3.3% in the second quarter of 2017 compared to the previous year.

Posted by Brad Purifoy.

Read the Entire Business Services 4th Quarter Newsletter Here

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