Business Services M&A Update

RESOURCE HIGHLIGHTS

• In Q3, S&P CSE Commercial & Professional Services Index decreased by 2.9% and was outperformed by the S&P 500, which increased by 5.3% over the same period.
• The median EV/EBITDA multiple for reported private equity deals decreased to 9.6x in YTD Q3 from 14.5x in 2023, and decreased for strategic deals to 6.6x from 7.7x in the prior year.
• M&A deal volume in the Business Services sector decreased 3.0% in Q3 to 917 deals from 945 deals in Q2, but increased 23.6% from 742 deals in Q3 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation increased substantially in YTD Q3 to 65.7% from 50.8% in 2023.
• Europe was the most active region in Q3 with 420 deals. Most notably in Europe was Cinven’s $5.3 billion acquisition of Alter Domus, a Luxembourg-based provider of corporate advisory services, in July 2024.