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Nicole Kiriakopoulos

E: nicolek@pcecompanies.com

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Industry Trends

M&A Drive Growth in Legal and Accounting Sectors

Professional service firms increasingly engage in mergers and acquisitions, particularly in legal and accounting services, with over 43% of high-growth firms reporting acquisitions. Private equity interest is high, driven by AI, automation, and market consolidation, and law firms saw a 25% increase in M&A activity in Q1. These industries attract buyers due to similar business models and long-term loyal clients, positioning them as prime targets for strategic acquisitions and growth.1

Halff Expands Water Resources Expertise

Halff, an engineering company that prides itself on being employee-owned, specializing in full-service engineering, architecture, environmental, planning, and surveying, has acquired Orlando-based Singhofen & Associates, enhancing its water resources expertise and expanding its footprint in central Florida. Singhofen, known for its sustainable civil infrastructure design and surface water modeling, will now operate as Singhofen Halff, adding 30 employees to Halff's. This acquisition reflects the industry's trend towards consolidation to leverage specialized expertise and improve service offerings across diverse regions.2

Revolutionizing Staffing: Embracing AI for a Competitive Edge

The staffing industry is poised for change in 2024, with 37% of middle market executives planning to increase their cybersecurity budgets, driving demand for specialized skills. Advanced AI technology is set to revolutionize recruitment, improving efficiency and candidate matching. By embracing these innovations, staffing firms can enhance both employee and customer experiences, ensuring they stay competitive and add value in a changing market.3

M&A Boosts Environmental Services

The environmental services industry is seeing significant M&A activity, with Republic Services acquiring US Ecology and Clean Harbors expanding through multiple deals, highlighting a trend towards consolidation. These acquisitions aim to enhance service capabilities and address capacity constraints in hazardous and industrial waste management. This surge in strategic moves is crucial for meeting growing customer demands for sustainable solutions and positioning firms for continued innovation and growth in a competitive market.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Carlisle Interconnect Technologies Inc.
  • Amphenol Corporation
  • $2,025.00
  • SP Plus Corporation
  • Metropolis Technologies, Inc.
  • $1,689.74
  • Motion Recruitment Partners, LLC
  • Kelly Services, Inc.
  • $485.00
  • WESCO Integrated Supply, Inc.
  • Vallen Distribution, Inc.
  • $338.30
  • HireRight Holdings Corporation
  • General Atlantic Service Company, L.P.; Stone Point Capital LLC
  • $301.63
  • ND Industries, Inc.
  • H.B. Fuller Company
  • $255.73
  • The L.S. Starrett Company
  • MiddleGround Management, LP
  • $136.04
  • Southwest Data Products, Inc.
  • Nucor Corporation
  • $115.00
  • Wiley Edge
  • Inspirit Management Ltd
  • $62.20
  • Payments Testing Business of UL Solutions Inc.
  • Gallant Capital Partners, LLC
  • $30.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Assets of CoolTool Inc.
  • RIWI Corp.
  • $1.00
  • Portfolio Creative, LLC
  • Stafford Resources LLC
  • n/a
  • McGowan - Guntermann
  • NDH Group, Ltd.
  • n/a
  • IT Enhanced Managed Services division of CliftonLarsonAllen LLP
  • Marcum Technology LLC
  • n/a
  • Teraverde Financial, LLC
  • Strategic Mortgage Finance Group, LLC
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Lucas Public Affairs, LLC
  • Public Policy Holding Company, Inc.
  • $30.00
  • Range Impact, Inc.
  • Continental Heritage Holding Company LLC
  • $7.48
  • NSL Analytical Services, Inc.
  • Levine Leichtman Capital Partners, LLC
  • $0.54
  • Buffalo Groupe, LLC
  • ClubWorks, LLC
  • n/a
  • Mendiratta Consulting Company, LLC
  • Data Search NY, Inc.
  • n/a

 

Source S&P Capital IQ as of 7/9/2024 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. Harr E. “2024 Professional Services M&A Trends.” Hinge, 7 June, 2024.
  2. 2. Luna R. “Halff Expands Central Florida Presence with Acquisition of Singhofen & Associates.” PR Newswire, 2 April, 2024.
  3. 3. Bilotta T. “Staffing firms need to keep pace with their evolving market.” RSM, 31 May, 2024.
  4. 4. Rosengren C. “Environmental services segment still has plenty of M&A runway.” Waste Dive, 13 June, 2024.
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