Blog Author

Nicole Kiriakopoulos

E: nicolek@pcecompanies.com

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Industry Trends

Law Firms Ramp Up Mergers to Stay Competitive in Changing Market

Law firm merger announcements are heating up, with 41 completed through Q3 2024—on par with last year—and at least seven more planned for 2025. High-profile tie-ups, like A&O Shearman, reflect mounting pressure to expand, compete for talent, and diversify services. These deals signal growing demand for advisory, integration, and strategic support for the business services industry as firms race to secure market leadership and operational efficiency in an evolving legal landscape.1

Engineering Firms Confident but Strained

Engineering firms maintain a positive outlook, with 85% net confidence in finances and 83% for the overall industry. Over half (53%) report at least a year’s backlog, signaling sustained project demand. Still, concerns persist: 59% remain worried about inflation, and 51% have turned down work due to workforce shortages. These findings highlight continued demand for advisory, staffing, and strategic support for the business services sector to address labor constraints and manage economic uncertainty.2

Marketing & Advertising Firms Poised for Growth

The Federal Reserve’s 50-basis-point cut in September to 4.75%–5% is expected to free up cash flow for marketing agencies, which typically spend 10%–15% of sales on advertising. Lower borrowing costs could boost M&A activity into 2025 and fuel strategic investments in AI and connected TV—areas poised to deliver up to a 40% productivity boost. These shifts translate into surging demand for integrated advisory, deal-making, and innovation-driven solutions for business services providers.3

KPMG Trims Audit Workforce

This past October, KPMG began laying off about 330 U.S. audit staff—nearly 4%—amid persistently low turnover and cautious client spending. This follows similar cuts by Deloitte, EY, and PwC in their advisory and support teams. For the business services industry, these moves reflect shifting demand, increased offshoring, and the rising influence of technology and AI. As competition tightens, firms appear focused on aligning workforce size and skills with evolving market realities.4

The PeterSan Group Joins Forces with TalentoHC

The PeterSan Group, with 30 years of legal recruitment expertise, has merged with Talento Human Capital (an Inc. 5000 minority business enterprise), broadening its footprint across three continents and boosting resources nearly fivefold to serve 25+ industries. This strategic move for the business services sector reflects escalating demand for integrated talent solutions, blending legal, HR, and executive search capabilities to address global workforce and leadership needs.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Stericycle, Inc.
  • Waste Management, Inc.
  • $7,797.50
  • Non-Attest Business of Marcum, LLP
  • CBIZ, Inc.
  • $2,381.10
  • Sterling Check Corp.
  • First Advantage Corporation
  • $2,223.30
  • POWER Engineers, Incorporated
  • WSP Global Inc.
  • $1,780.00
  • FGS Global Inc
  • KKR & Co. Inc.
  • $775.00
  • Iteris, Inc.
  • Almaviva, S.p.A.
  • $345.10
  • Iconex, LLC
  • Domtar Corporation
  • $210.00
  • Martin Calibration Inc.
  • Transcat, Inc.
  • $78.90
  • Bloom Engineering Company, Inc.
  • Westinghouse Air Brake Technologies Corporation
  • $69.00
  • Cogito Corporation
  • Verint Systems Inc.
  • $61.40

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • The Petersan Group Inc.
  • Talento Human Capital
  • n/a
  • Crest Retirement Advisors LLC
  • National Associates, Inc.
  • n/a
  • McClancy Foods & Flavors LLC
  • NovaTaste Austria GmbH
  • n/a
  • Snagajob.com, Inc.
  • JobGet Inc.
  • n/a
  • GGF LLP
  • Green Hasson & Janks LLP
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • GSE Systems, Inc.
  • Pelican Energy Partners LP
  • $18.10
  • CoreWeave, Inc.
  • Blick Global Group AB
  • $0.30
  • Employee Benefits Of Virginia, LLC
  • Choice Financial Group, LLC
  • n/a
  • Windrock Enterprises, Inc.
  • CES Family of Companies
  • n/a
  • Talent War Group
  • OVERWATCH Mission Critical
  • n/a

 

Source S&P Capital IQ as of 1/17/2025 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. Maloney A. “Wake Up Call: Pressure for Law Firm Mergers Grows in 2024.” RSM, 19 December, 2024.
  2. 2. ACEC research Institute. “Engineering Business Sentiment 2024 Q4.” ACEC research Institute, 31 October, 2024.
  3. 3. Bilotta T. “Business services industry trends: Fall 2024.” RSM, 8 November, 2024.
  4. 4. Bramwell, J. “KPMG to Cut Audit Staff By About 4%.” CPA Practice Advisor, 4 November, 2024.
  5. 5. Largin M. “The PeterSan Group Merges with TalentoHC.” PR.com, 20 December, 2024.
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