We are pleased to be launching our third sector report of the year, focussing on the key themes that we believe will continue to shape the success of the business services sector.

Given the size and diverse nature of the business services sector, which represents over three quarters of all businesses in the UK, it provides significant opportunities for mergers and acquisitions. Despite global deal activity in the sector decreasing during 2022, after record highs the year before, aggregate deal values increased by 26% and the average deal size nearly doubled over the same period. This can be attributed to a flight towards high quality businesses that have demonstrated resilience and maintained profitability despite the global macro-economic challenges.

As a result, across the next 12 months, we believe there are three key themes that will continue to provide opportunities for high quality businesses in the sector – ESG & Energy Transition, Testing Inspection and Certification, and Digitalisation of Services. Throughout this report we will look at the key trends driving each theme, whilst also highlighting the experience we have gained across our own portfolio, including case studies from Correla, Prohire, Future Industrial Services and ICP.

Despite the current wider macro-economic challenges, reports have placed the business services sector amongst the fastest growing industries globally. Therefore, we look forward to playing our part in supporting the continued growth of the sector, backing ambitious management teams to build better businesses, together.

Click here to read the full report.