Q3 2023

Business Services M&A Update


  • The S&P/BMV Commercial Services Index decreased 7.7% in Q3 and was outperformed by the S&P 500, which decreased 3.8% over the same period.
  • The median EV/EBITDA multiple for reported private equity deals increased to 14.5x in YTD 2023 from 9.7x in 2022, and increased for strategic deals to 7.4x from 7.1x over the same period.
  • M&A deal volume in the Business Services sector decreased 1.1% in Q3 to 742 deals from 750 in Q2, and decreased 34.6% from 1,135 deals in Q3 of the prior year.
  • As a % of total capital invested in M&A transactions in YTD 2023, PE participation decreased significantly to 45.0%, down from 48.8% in 2022.
  • Europe was the most active region in Q3 with 314 deals. Most notable in Europe was Concentrix’s $4.8 billion acquisition of Webhelp, a provider of customer relationship management (CRM) services, in September 2023.

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