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.
Industry Indicators
- US corporate profits, an indicator of corporate demand for business services, rose 2.7% in the fourth quarter of 2017 compared to the same period in 2016.
- Total US revenue for professional, scientific, and technical services rose 1.3% in the fourth quarter of 2017 compared to the previous year.
Posted by Brad Purifoy.
Read the Entire Business Services M&A 2nd Quarter Newsletter Here