Business Services M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the S&P CSE Commercial & Professional Services Index increased by 15.1% and outperformed the S&P 500, which decreased by 4.4% over the same period.
• The median EV/EBITDA multiple for reported private equity deals decreased to 15.0x in Q1 from 17.2x in 2024, but increased for strategic deals to 10.8x from 6.7x in the prior year.
• The median EV/EBITDA multiple for reported private equity deals decreased to 15.0x in Q1 from 17.2x in 2024, but increased for strategic deals to 10.8x from 6.7x in the prior year.
• As a % of total capital invested in M&A transactions, PE participation increased significantly in Q1 to 89.1% from 61.8% in 2024.
• North America was the most active region in Q1 with 420 deals. Notably in North America was HPS Investment Partners’ $9.4 billion acquisition of GardaWorld, a Canadian provider security services, AI-enabled security technologies, integrated risk management, and cash automation solutions, in March 2025.