Q2 2025

Business Services M&A Update

In Q2, the S&P CSE Commercial & Professional Services Index increased by 0.6%, but was outperformed by a 10.2% increase in the S&P 500 over the same period.
The median EV/EBITDA multiple for reported private equity deals increased to 23.3x in 1H 2025 from 17.2x in 2024, and increased for strategic deals to 8.7x from 6.7x in the prior year.
M&A deal volume in the business services sector increased 8.4% in Q2 to 979 deals from 903 in Q1 and increased 3.6% from 945 in Q1 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased significantly in 1H to 85.0% from 61.8% in 2024.
North America was the second most active region in Q2, behind Europe, with 355 deals. Most notably in North America was Baker Tilly’s $7.0 billion acquisition of Moss Adams, a Washington-based provider of accounting, tax, and advisory services, in June 2025.