Industry Report: Home-Based Care Q4 2024 [Mertz Taggart]
Home-Based Care Q4 2024 | www.mertztaggart.com Mertz Taggart is a Florida-based M&A advisory firm specializing in healthcare services and has…
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M&A Industry Report: Business Services
Q3 2024 | www.focusbankers.com
FOCUS Investment Banking is a trusted name in M&A advisory services with a nationwide footprint and a global reach. An Axial member since 2010, FOCUS works across a broad range of industries and has marketed more than 225 deals on the Axial platform.
FOCUS is a member of the Axial Partnership Program and contributes content and industry insights to Axial’s Middle Market Review. The following report is a FOCUS publication, which has been approved for Axial to share with its network.
This report includes:
- FOCUS Overview
- Market Activity
- Case Study
- News and Insights
- In-the-Market Deals
FOCUS Overview
Year Founded: 1982
Bankers on the U.S. Team: 48
Researchers, Marketing, and Support Staff: 10+
Office Locations: D.C. Metro (HQ), Atlanta, Los Angeles
Years of Experience: 40+
Industries Covered: 11+
Typical Transaction Size: $5M – $300M
Recent Transactions:
Contact:
Overview
Despite economic headwinds and market uncertainty, Q3 2024 proved that the middle market is still buzzing with deal activity.
In Q3 2024, several key trends have become very important:
- Increase in Deal Volume: Middle-market M&A activity saw a 15% increase compared to Q2 2024, with heightened interest in sectors like IT services, HR solutions, and professional services.
- Private Equity on the Rise: Private equity firms continued to drive a significant portion of deals, particularly through platform investments and bolt-on acquisitions in fragmented markets like staffing and BPO.
- Strong Valuations for Tech-Enabled Firms: Companies offering tech-driven services, including cloud computing, cybersecurity, and automation solutions, maintained strong valuations, with multiples remaining elevated for high-growth assets.
- Cross-Border Transactions Steady: Despite global economic concerns, cross-border deal activity remained resilient, particularly between the US and Europe, with strategic buyers seeking international expansion.
- Focus on Talent Acquisition: Labor shortages continued to influence dealmaking, as acquirers targeted firms that offer staffing, training, and workforce solutions to address pressing human capital needs.
Business Services Market Activity
- Business Service transactions decreased by 7% from Q2 200 2024; however, 2024 has consistently shown an increase in transactions over last year. Much of this is due to lower inflation and decrease in interest rates.
- While overall transactions were slightly down in Q3, Environmental Service transactions showed an increase of 16% for over the last quarter. There continues to be significant interest in landscaping companies, waste disposal, water and wastewater management and environmental remediation and consulting.
- Strategic acquisitions backed by private equity are driving consolidation in the landscaping industry with several players including LawnPro Partners backed by HCI Equity Partners making over seven acquisitions this year – two of which were in Q3 when they bought Highest Quality Lawn and Pest and Fairway Lawn & Tree Service.
- Casella Waste Systems is actively expanding its footprint in the mid-Atlantic region in the waste disposal industry with two acquisitions in Q3 with more planned for the end of the year and first quarter in 2025.
Source: S&P Capital IQ and FOCUS Investment Banking research
Case Study: TSR Acquired by an Affiliate Company of BCforward
Process & Overview
TSR Consulting Services (“TSR”) has been acquired by Vienna Parent Corporation an affiliate company of BCforward. Vienna Parent Corporation, a special purpose entity newly formed by Justin Christian (“Vienna Parent”), through its wholly owned subsidiary, Vienna Acquisition Corporation (the “Purchaser”), has successfully completed its cash tender offer to purchase all of the outstanding shares of common stock of TSR (NASDAQ:TSRI). FOCUS represented TSR in this transaction.
TSR was founded in 1969, reported Revenues of $101mil per its 2023 Form 10-K, and is a well-recognized national provider of information technology staffing solutions. Christian is the CEO and founder of BCforward, one of the largest Black-owned professional services and workforce management solutions firms in the United States. Currently, BCforward employs more than 5,000 people globally and serves multi-national clients in the finance, life science, technology, healthcare, and government sectors.
FOCUS ran a thorough and detailed process which brought us multiple offers and they were able to find the best partner for us in Justin Christian and BCforward.
– Thomas Salerno, President and CEO of TSR
Transaction Results
BCforward acquired a sufficient number of TSR shares to consummate the second step merger. The total consideration payable to TSR’s shareholde
rs represents a 73.8% premium to TSR’s closing price on May 14, 2024. Upon completion of the merger, TSR became a privately held company
controlled by Vienna Parent and BCforward. Tom Salerno, TSR CEO, and his management team will continue to run the TSR business as part of BCforward.
News & Insights
M&A Spotlight “Building the Right Team Makes the Complex Seem Simple”
When it comes to mergers and acquisitions, your investment banker shouldn’t be the only member of your team you are closely vetting. A great M&A team should also be made up of a great set of attorneys—both inside and outside your organization.Click here to read now
Human Capital Management M&A Report – First Half 2024
This report discusses M&A activity to date in the HCM market with a focus on transactions involving contract staffing and recruiting firms; outsourced HR services firms including background screening, compliance, employer of record (EOR), payroll, and professional employer organization (PEO); and HR consulting firms.
Click here to read now
TSR Acquired by an Affiliate Company of BCforward
TSR Consulting Services (“TSR”), a well recognized national provider of information technology staffing solutions has been acquired by Vienna Parent Corporation an affiliate company of BCforward. This case study highlights the unique process of this transaction.
Click here to read now
Deals in the Market
- Accelerate (Sell Side)
Business consulting business to high tech & startup companies - Surface 2 (Sell Side) | Signed LOI
Specializes in creating renowned equestrian surfaces - Engage (Buy Side)
Accounting firm looking for acquisition targets - Monument (Sell Side)
Operates in the internet service providers, website hosting, and internet-related services industry - Delivery (Sell Side)
Multi-line dealer of lawn equipment - Diligence (Sell Side) | Signed LOI
Financial services firm - Gladiator (Sell Side)
Telecom/skilled trade and IT staffing services
Download the FOCUS Business Services Information Sheet here
FOCUS is a leading national M&A brand for the lower middle market. With over 40 years of experience a global footprint and hundreds of successful deals across myriad industries, FOCUS continues it’s mission to redefine the banker/client relationship.
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