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

By Brad Purifoy

August 28, 2023

The report below gives a good overview of the Summer 2023 M&A activity in the Business Services Industry Sector. The global business services industry is still considered to be impacted by the highly volatile macroeconomic environment, exacerbated by persistent demand fluctuations, unsettled labor markets, and rising geopolitical tensions. Furthermore, there is a growing need for sustainable operating models to meet ESG compliance requirements. However, the business service operations adapted quickly to new demands by embracing digital solutions such as chatbots and control interfaces for remote work and contactless practices. This has allowed them to operate effectively in distributed global organizations. The resilience of the industry has been greatly supported by digital solutions, particularly cloud-based approaches that have proven effective for both in-office and remote work setups. These digital solutions have fostered innovation, enabling real-time collaboration and connectivity among customers and stakeholders. The business service models have evolved to become more capable, sophisticated, and influential, providing support for global operations. While the International Data Corporation predicts a direct impact on professional services due to the recession, the strong growth experienced in 2022, particularly in business consulting, suggests that the slowdown in 2023 and 2024 will be less severe than previously anticipated. This positive trend is further aided by lower attrition rates, inflation-adjusted price adjustments, and the increasing need for digitization in both corporate and governmental operations. According to a CNBC report, the US unemployment rate has decreased to 3.5%, indicating a narrowing labor shortage problem. The global waste management and recovery services market is projected to grow from $169.3 billion in 2022 to $180.6 billion in 2023, with a CAGR of 6.7%. By 2027, it is expected to reach $216.4 billion, with a CAGR of 4.6% as per the report published by the business research company. The global business support services market has witnessed growth from $624.8 billion in 2022 to $681.7 billion in 2023, with a CAGR of 9.1%. It is expected to reach $931.4 billion in 2027, with a CAGR of 8.1%, according to a report by Research and Markets.

Posted by Brad Purifoy.

Read the Entire Summer 2023 Business Services Report Here