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Mike Rosendahl

E: mrosendahl@pcecompanies.com

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Industry Trends

Unemployment Rates in Professional and Business Services Keep Climbing

According to data from the U.S. Bureau of Labor Statistics, the unemployment rate for the professional and business services sector witnessed a significant jump in February, rising to 4.2% from 3.5% the month before. The increase in unemployment comes as companies across the economy reduce part of their workforce amid tightening margins, driven by a cooling economy and the Federal Reserve's continued rate hikes.1

Waste Industry M&A Activity Expected to Continue in 2023

The waste industry’s acquisition trend is expected to continue in 2023 due to labor and supply chain challenges and ESG-driven private equity investors. In addition, a decline in new companies entering the market may contribute to market consolidation. This raises questions about how material will be manged, whether technology and service will improve, and the cost of services for customers.2

EY Pausing Split

EY's multibillion-dollar breakup has been paused as its U.S. arm demands a reworked blueprint to give auditors a bigger share of the tax practice. The unexpected revolt, jeopardizing the deal, has caused infighting and rifts within the firm. The audit-focused firm, weakened by the sale of the consulting arm, may not generate enough earnings to meet the $7bn promised payouts to retired U.S. partners, causing concern among EY partners.3

Kinderhook Acquire CARDS

Kinderhook Industries acquired CARDS Recycling, which provides collection service for over 30 municipal contracts and has an estimated 26,000 customers in five states. The company also operates multiple transfer stations and a portable restroom business and has been developing a recycling facility. Kinderhook Industries previewed "significant expansion opportunities" for CARDS in the Mid-South region, where multiple companies have recently been active with M&A. Financial details were not disclosed.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • EVO Payments, Inc.
  • Global Payments Inc.
  • $2,376.49
  • The Stoller Group, Inc.
  • Corteva, Inc.
  • $1,200.00
  • Personnel Decisions Research Institutes, LLC
  • Pearson plc
  • $190.00
  • MultiState Associates Inc.
  • Public Policy Holding Company, Inc.
  • $70.06
  • Startek, Inc.
  • MCI Capital, LC
  • $12.35
  • TIC-MS, Inc.
  • Transcat, Inc.
  • $9.70

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • PolySign, Inc.
  • tokentus investment AG
  • $0.05
  • Stonnington Group, LLC
  • Prime Capital Investment Advisors, LLC
  • n/a
  • Argot Partners, LLC
  • Danforth Advisors, LLC
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Environmental Alliance, Inc.
  • Montrose Environmental Group, Inc.
  • $5.16
  • All of the assets of Simpliconnect, Inc.
  • Ackroo Inc.
  • $1.79
  • Frontier Analytical Laboratories
  • Montrose Environmental Group, Inc.
  • $1.15
  • Marvin and Company
  • Mengel Metzger Barr & Co. LLP
  • n/a
  • Inspirage, LLC.
  • Accenture plc
  • n/a

 

Source S&P Capital IQ as of 4/10/2023 and PCE Proprietary Data

 

PCE Transactions

Contacts

Nicole Kiriakopoulos

Chicago Office

224-520-1068 |

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Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

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Joe Anto

New York Office

407-621-2141 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. “Professional and Business Services: Employment, Unemployment, and Openings, Hires, and Separations.” U.S. Bureau of Labor Statistics, 24 March 2023.
  2. 2. Rosengren, Quinn, & Rachal. “6 waste and recycling trends to watch in 2023.” Waste Dive, 12 January 2023.
  3. 3. Eaglesham, Jean. “EY Breakup Plan’s Fate May Rest on Executive Showdown This Week.” The Wall Street Journal, 28 March 2023.
  4. 4. Rosengren, Cole. “CARDS Recycling acquired by private equity firm Kinderhook Industries.” Waste Dive, 20 March 2023.
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