For Business Services companies, people and relationships are crucial. Acquirers will often pay close attention to factors such as new customer acquisitions, customer retention, and management succession plans. Negotiations frequently involve discussions around mitigating the risks associated with the fact that the company’s people are its most valuable asset.
Companies can be more attractive to buyers if they have high levels of recurring revenues or can package services into products, in order to scale more quickly. Software-as-a-Service business models have generated some of the strongest transactions we have seen in recent years.
Some of our transactions in the sector are highlighted below.