Q4 2025

Business Services M&A Update

In Q4, the S&P Commercial & Professional Services Index increased by 12.5%, outperforming the S&P 500 which saw a 2.0% increase over the same period.
The median EV/EBITDA multiple for reported private equity deals in the Business Services sector decreased to 12.7x in 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 sector increased 1.2% in Q4 to 1,018 deals from 1,006 in Q3, and increased 3.3% from 968 in Q4 of the prior year.
Total capital invested in M&A transactions increased 127.0% in Q4 to $37.9B from $16.7B in Q3, due primarily to several large transactions, including Omnicom Group’s $15.9 billion acquisition of The Interpublic Group of Companies.
Europe was the most active region in Q4 with 470 deals. Most notably in Europe was Workday’s $1.1 billion acquisition of Sana, a Stockholm-based developer of an artificial intelligence learning platform.