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.
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.
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 $7.7B acquisition of Dun & Bradstreet and Integrum Holdings’ investment in Stout Risius Ross illustrate sponsor appetite for scalable data, advisory, and outsourcing platform.
In Q3 2025, the Business Services sector completed 213 deals, representing 7.3% of overall M&A transaction volume, up from 6.1% within the LTM. This steady expansion underscores continued investor confidence in scalable, service-based business models.
Top U.S. States: California (82 deals), Texas (79), and New York (60) led transaction volume, supported by large business ecosystems and strong demand for compliance and advisory services.
Rising Activity: Georgia (30 deals), Ohio (37), and Virginia (33) posted notable activity, reflecting growing momentum in secondary markets with competitive cost structures and access to skilled workforces.
| Target | Buyer | Value ($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. | $165.01 |
| Target | Buyer | Value ($mm) |
| Keystone Perfusion Services, P.C. | Strata Critical, Inc. | $147.00 |
| TRC Advisory | Elixirr International plc | $125.00 |
| Auxis | Grant Thornton | n/a |
| Stephen A. Kepniss & Associates | L.M. Cohen & Company | n/a |
| Barkin, Perren, Schwager & Dolan | Citrin Cooperman & Company | n/a |
| Target | Buyer | Value ($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
Key trends shaping Business Services M&A:
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.
Nicole Kiriakopoulos |
Michael Rosendahl |
Joe Anto |
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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 Sources:
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