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Spring 2023 | M&A Report In The Business Services Industry Sector

By Brad Purifoy

June 05, 2023

The report below gives a good overview of the Spring 2023 M&A activity in the Business Services Industry Sector. The post-pandemic normalization of the economy in early 2022 had a positive impact on various industries. The recruitment services industry experienced a boost as the wider economy began to open up. However, the rapid rise in inflation and the cost-of-living crisis that engulfed the world in the second half of 2022 had a negative impact on the business services industry. In 2023, the business and professional services industry is expected to face recessionary pressures, just like the wider global economy. Instead of investing in developing business with new clients, companies are focusing on deepening their relationships with existing clients. With downward pressure on fees rates from clients, high salaries are not sustainable, and market correction in salaries over the next year or two is expected. In 2023, organizations are expected to focus more on cost optimization and limiting discretionary spend. As interest rate hikes draw to a close, inflation eases, supply chains stabilize, and the US dollar drops from its recent highs, it is anticipated that companies possessing sturdy business models, strong balance sheets, and sound financial controls will perform well and achieve their growth objectives. Business services revenue is expected to witness a 5.7% year-over-year growth, according to the International Data Corporation (IDC) Worldwide Semiannual Services Tracker. The global consulting market is estimated to be valued at $64.4 billion in 2023 as per research published by Statista.

Posted by Brad Purifoy.

Read the Entire Spring 2023 Business Services Report Here