Industry Trends
Largest Transactions Closed
- Target
- Buyer
- Value($mm)
Advised Western Milling in their sale to the Western Milling ESOP Trust
Executive Summary
M&A activity in the Business Services sector remained strong in Q3 2025, with 847 transactions closed over the trailing 12 months representing a 13.5% increase from the prior year. Strategic buyers continued to drive consolidation, accounting for 88% of deal volume and targeting subsectors such as compliance, advisory, tax, and human services. Private equity remained selective yet active, concentrating on scalable platforms with recurring revenue. Valuations held robust, with median revenue multiples climbing, underscoring sustained investor confidence. The sections below detail the trends shaping this performance.
Market Dynamics
Business Services deal activity remained solid in Q3 2025, with 847 transactions closed over the trailing twelve months, up from 746 a year earlier. Valuations softened modestly, as median TEV/EBITDA eased to 11.38x from 11.96x and TEV/Revenue rose to 1.91x from 1.67x. Buyers continue to emphasize profitability, recurring revenue, and operational resilience, supporting steady demand for well-positioned businesses with scalable models.
Buyer Landscape
Strategic Acquirers: Strategic buyers led the market with 728 transactions (88% of total). Notable examples included Stantec’s $535M acquisition of Page Southerland Page and Grant Thornton’s purchase of Auxis, reflecting strong interest in expanding advisory and compliance capabilities.
Financial Buyers: Private equity firms completed 98 deals (12% of total), continuing to target recurring revenue, asset-light businesses. Clearlake Capital’s $7.7B acquisition of Dun & Bradstreet and Integrum Holdings’ investment in Stout Risius Ross illustrate sponsor appetite for scalable data, advisory, and outsourcing platform.
Industry Comparison
In Q3 2025, the Business Services sector completed 213 deals, representing 7.3% of overall M&A transaction volume, up from 6.1% within the LTM. This steady expansion underscores continued investor confidence in scalable, service-based business models.
Geographic Expansion
Top U.S. States: California (82 deals), Texas (79), and New York (60) led transaction volume, supported by large business ecosystems and strong demand for compliance and advisory services.
Rising Activity: Georgia (30 deals), Ohio (37), and Virginia (33) posted notable activity, reflecting growing momentum in secondary markets with competitive cost structures and access to skilled workforces.
Notable Transactions
Largest Transactions Closed
| Target | Buyer | Value ($mm) |
| Dun & Bradstreet Holdings, Inc. | Clearlake Capital Group, L.P. | $7,695.93 |
| Reorganized ISA S.A. | SES S.A. | $3,419.24 |
| Everi Holdings Inc. | Apollo Global Management, Inc. | $2,234.29 |
| NV5 Global, Inc. | Acuren Corporation | $1,799.76 |
| Radius Recycling, Inc. | Toyota Tsusho America, Inc. | $1,478.57 |
| Hilco Trading, LLC | ORIX Corporation USA | $776.00 |
| Page Southerland Page, Inc. | Stantec Inc. | $535.00 |
| HMC Partners - LLC | The Retirement Planning Group, LLC | $425.0 |
| Old Point Financial Corporation | TowneBank | $204.71 |
| Asset Entities Inc. | Strive, Inc. | $165.01 |
Other Strategic Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Keystone Perfusion Services, P.C. | Strata Critical, Inc. | $147.00 |
| TRC Advisory | Elixirr International plc | $125.00 |
| Auxis | Grant Thornton | n/a |
| Stephen A. Kepniss & Associates | L.M. Cohen & Company | n/a |
| Barkin, Perren, Schwager & Dolan | Citrin Cooperman & Company | n/a |
Other Financial Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Kabat Schertzer & Company Pa | Ascend Partners | n/a |
| The Paul Group | United Capital Financial Advisors | n/a |
| Perspective 6 Wealth Advisors | Savvy Advisors, Inc. | n/a |
| Stout Risius Ross, LLC | Integrum Holdings LP | n/a |
| Ultimus Fund Solutions, LLC | GTCR LLC; Stone Point Capital LLC | n/a |
Source S&P Capital IQ as of 10/1/2025 and PCE Proprietary Data
Emerging Trends
Key trends shaping Business Services M&A:
- Compliance Modernization
The global AML market is set for rapid growth, driven by FinCEN’s proposed rules for investment advisers and ongoing sanctions pressure. Firms with automated monitoring and AI-enhanced compliance tools are gaining a competitive edge. - Tax Complexity and Governance
New tax legislation and evolving IRS guidance, is increasing compliance burdens. Firms offering governance-focused tax services and automation tools are well positioned as compliance costs rise for businesses nationwide. - Cybersecurity & Data Integrity
Regulators are tightening cybersecurity expectations, with NYDFS finalizing new rules and financial institutions facing stricter oversight. Business services providers that can demonstrate data protection, resilience, and risk management capabilities are becoming more attractive in M&A. - Subsector Spotlight: Compliance
Heightened regulatory scrutiny and a surge in financial crime risks are driving sustained demand for AML, KYC, and sanctions-screening services. Active M&A reflects strong buyer interest in compliance platforms that integrate AI-driven monitoring and automation. - Subsector Spotlight: Advisory
Economic uncertainty and restructuring needs continue to boost demand for management consulting and turnaround advisory services. Firms are consolidating to expand capabilities and deliver scalable platforms across cost optimization and risk management. - Subsector Spotlight: Tax & Accounting
Consistent industry growth is supported by regulatory changes, heightened audit risk, and increasing complexity in reporting requirements. Consolidation is accelerating as firms acquire niche practices to strengthen their position against larger competitors.
Outlook for Next Quarter
Opportunities: Regulatory change is fueling deal activity, particularly in compliance and tax. Expansion of AML oversight, the Big Beautiful Bill, and rising tax complexity create strong demand for firms offering automation, governance, and scalable compliance solutions.
Risks: Heightened compliance costs and evolving rules (AML/CFT, cybersecurity, tax reform) may pressure margins, especially for labor-intensive advisory models. Firms that lack digital resilience or automation could face valuation headwinds.
Predicted Activity: Deal activity is expected to remain strong across compliance, advisory, and tax, supported by regulatory change, digital adoption, and recurring revenue models. Subsector growth forecasts range from modest 1.1% CAGR in advisory to robust 16.5% in compliance, with tax and accounting positioned in the mid-range at 4.7% pointing to steady consolidation opportunities through the next decade.
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