The business services sector includes advertising and recruitment, and professional services such as law and accountancy. It’s a sector where digital transformation can cause disruption, but global factors tend to have less immediate effect.
A business services takeover can be the catalyst for progress in efficiency and customer experience, and the development of new business models.
Mergers and acquisitions activity in this sector is often resilient because companies often provide non-discretionary services, generating include high levels of recurring revenue. Business services sub-sectors are sometimes viewed as low risk during periods of economic uncertainty.
The business services sector is quick to see profits from economic growth. Companies in this sector generally have a relatively low need for investment as they have modest requirements for office space and equipment. This low barrier to entry can lead to rapid growth in the number of active companies.
Staff shortages and the increasing demand for sustainability are important challenges, and entrepreneurs must keep pace with digitisation and automation in order to stay competitive. Recruitment and accountancy are particularly sensitive to regulatory and legislative changes.
Logistics, distribution, technology, and healthcare businesses remain attractive for a business services takeover after the upheavals of the pandemic, as do companies that derive a high percentage of revenue from the public sector.
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Companies in this industry tend to be small companies or large players, with fewer medium-sized businesses. The trend in mergers and acquisitions in business services tends to reinforce this pattern. Consolidation allows companies to achieve growth and expansion by acquiring smaller businesses. Scaling is increasingly important in order to achieve a good return on investment in the current climate.
The fragmented character of the sector favours consolidation and restructuring as companies try to improve margins by divestment from non-core activities.
There are plenty of good reasons to buy or sell a company in a business services takeover. Are you a large player in this industry and ready to execute a buy-and-build strategy? We will guide your search for suitable potential companies. Are you considering selling partial or full sale to release retirement income, or to make your company ready for the future? We will help you find the right buyer.
Each year, more than a thousand entrepreneurs in this sector use the Marktlink Multiple to calculate their business value. We regularly guide the transaction process for companies providing business services and have unrivalled market knowledge and a substantial portfolio of potential buyers and sellers.
Marktlink can help you realise your ambitions. Always committed, independent and professional, we have a large national and international network, and detailed knowledge of local and global markets. Our specialists will use their knowledge and experience proactively to help you find the right successor or implement your growth strategy in this dynamic industry.
Contact us now for more information.