The business services industry encompasses a wide range of business operations including advertising, marketing, consultancy, logistics, waste management, personnel services, shipping, administration, and security services. Almost every firm requires at least one of the services provided by this industry.
The industry is fuelled by the fact that it consists primarily of asset-light, people-heavy enterprises with minimal entry barriers.
Globalisation continues to fuel M&A activity in the sector as service providers expand worldwide to access and build market share in higher growth and underdeveloped regions of the world as these companies mature and competition intensifies.
Furthermore, as technology continues to generate value inside the industry and outsourcing becomes more common, private equity’s interest in the sector grows.