Valuation multiples within the Business Services subsectors covered by BGL have also increased, and at a higher rate than the public markets. All three BGL Business Services composite indices are outperforming the S&P 500 year-over-year, averaging slightly over 9%.
Volatile equity markets and credit availability have tempered M&A activity in the Business Services sector. However, the ample supply of equity capital will continue to serve as a catalyst for M&A, with both corporate and private equity buyers competing for high-quality assets. Heading into the second quarter, market indicators suggest that sector transaction activity will continue to outperform the broader market.
BGL’s Quarterly Business Services Update highlights public company operating metrics and M&A activity in the Human Resources Outsourcing, Contact Center Services, and Fixed Asset Management subsectors. BGL remains committed to informing clients of the current state of the Business Services market and is always available to discuss appropriate M&A strategies and financing alternatives with its clients and prospects.
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