Blog Author

Nicole Kiriakopoulos

E: nicolek@pcecompanies.com

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Industry Trends

AI Revolution in Business Services

In 2024, 85% of customer interactions in FinTech are expected to be automated, streamlining processes like data entry and reconciliation. Reports from Garter found that 76% of HR leaders believe AI implementation will be needed in the next 12-24 months to avoid lagging behind the competition. These trends highlight pivotal shifts in business services, where technological integration enhances operational efficiency and redefines the landscape for businesses aiming to thrive in a dynamic market environment.1

Legal Services See Enhanced Profitability Amid Economic Shifts

Over the past two years, law firms experienced a 6.3% increase in service rates, the highest since the pandemic. This comes alongside controlled expense growth of 4.8% in the trailing twelve months of Q3 2023. Looking ahead, law firms are poised for growth, with increased transactional demand fueled by economic confidence. To capitalize on these trends, strategic adaptations will be necessary to meet the anticipated surge in transactional activities and ensure sustained growth.2

Clean Harbors Acquires HEPACO

Clean Harbors has acquired HEPACO from Gryphon Investors for $400 million, a deal that is expected to strengthen its environmental services segment. HEPACO's strategic presence in 17 states, along with its fleet of over 900 vehicles and a national operations center, enhances its emergency response capabilities—aligning well with Clean Harbors’ expansion goals. This acquisition marks a significant development in the business services sector, highlighting the value of companies with robust environmental and emergency response capacities.3

New Opportunities in Training Services

AI applications like Large Language Models are reshaping Education & Training Services, offering personalized learning and efficiency. The shift to E-Learning and hybrid models has improved educational and corporate training methods, allowing for expanded offerings through subscription models. Reports from Voxy found that only 29% of CEOs believe their organization has the expertise to incorporate AI adoption. This gap underscores the significant potential for growth in AI-based business services.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • HEPACO, LLC
  • Clean Harbors, Inc.
  • $400.00
  • Abington Reldan Metals, LLC
  • Sibanye Stillwater Limited
  • $211.50
  • Akerna Corp.
  • Gryphon Digital Mining, Inc.
  • $124.78
  • Startek, Inc.
  • Square Partners Pte Ltd
  • $74.59
  • CMI Management, Inc.
  • Dexterra Group Inc.
  • $23.00
  • All Traffic Data Services, LLC
  • Rekor Systems, Inc.
  • $20.73

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • J&B Family Enterprises, Inc./TaxIncennovations, LLC
  • Align Capital Partners, LP
  • n/a
  • GreenSky, Inc.
  • KKR & Co. Inc.; CardWorks, Inc.; Bayview Asset Management, LLC; Sixth Street Partners, LLC
  • n/a
  • Flight Crews Unlimited Inc.
  • Reliance Aerotech Inc
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Lambert & Co.
  • Llorente & Cuenca, S.A.
  • $18.20
  • Reflexivity Research LLC
  • DeFi Technologies Inc.
  • $2.76
  • Two Dot Consulting, LLC
  • Montrose Environmental Group, Inc.
  • $0.07
  • BetterCare, Inc.
  • Wonderschool, Inc.
  • n/a
  • Rocky Mountain Advisory, LLC
  • Marshall & Stevens Incorporated
  • n/a

 

Source S&P Capital IQ as of 4/16/2024 and PCE Proprietary Data

PCE Transactions

Contacts

Nicole Kiriakopoulos

Chicago Office

224-520-1068 |

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Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

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Joe Anto

New York Office

407-621-2141 |

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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
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Peck, A. “5 Business Services Trends to Watch in 2024.” Clutch, 13 December, 2023.
  2. 2. King, S. “Profitability metrics are improving for law firms.” RSM, 21 February, 2024.
  3. 3.Wallace, J. “Clean Harbors acquires environmental services firm HEPACO for $400M.” Waste Dive, 25 March, 2024.
  4. 4. Plechinger, R. “Education & Training Services | Industry Report.” MCF Corporate Finance, 29 February, 2024.
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