Q3 2023 Business Services Industry Update

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GCG’s Q3 2023 Business Services Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.

Key findings include the following:

    • In Q3 2023, public equities across most segments of the Business Services sector that GCG tracks remained flat or pulled back slightly during the quarter. However, most Business Services segments continue to outperform the broader U.S. equity markets.
    • On a 3-year period ending September 30, 2023, the S&P 500 has returned 28.1%. Segments such as Infrastructure Services, Environmental & Waste Services, and Facility Services were among the leading performers, returning 118.0%, 44.7%, and 39.8%, respectively.
    • M&A activity in the Business Services sector in Q3 2023 was consistent with the prior quarter, with only a few less deals completed. Average deal value expanded meaningfully though, signaling that larger transactions are starting to come back around.
    • Select publicly traded companies representing the key sectors across the Business Services industry traded at an average multiple of 10.1x EBITDA and 1.5x revenue.

Click here for the full update.


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