GCG’s Q1 2024 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 Q1 2024, public equities across most segments of the Business Services sector performed strong as the broader market continued its year end rally from 2023 into 2024. Business services continues to showcase significant resiliency amid an elevated interest rate environment and a cooling U.S. labor market.
  • On a 3-year period ending March 31, 2024, the S&P 500 has returned 30.7%. Segments such as Infrastructure Services, Environmental & Waste Services, and Facility Services were among the leading performers, returning 71.9%, 66.6%, and 49.8%, respectively.
  • In Q1 2024, M&A activity within the Business Services sector experienced slight growth in deal volume when compared to the prior quarter. Average deal value expanded meaningfully, 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 11.6x EBITDA and 1.7x revenue.

Click here for the full update.

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