Exit and Growth Strategies for Middle Market Businesses

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.


Industry Indicators

  • US corporate profits, an indicator of corporate demand for business services, rose 5.4% in the third quarter of 2017 compared to the same period in 2016.
  • The value of US nonresidential construction spending, a driver for business services demand, dropped 0.5% year-to-date in November 2017 compared to the same period in 2016.
  • Total US revenue for administration and support and waste management and remediation services rose 8.5% in the third quarter of 2017 compared to the previous year.

Posted by Brad Purifoy.

Read the Entire Business Services M&A 1st Quarter Newsletter Here

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