GCG Business Services Update for Q2 2023

This document is a report detailing the performance of the Business Services sector as tracked by GCG for the second quarter of 2023. It outlines the public market performance, indicating that public equities in the sector have outperformed the broader U.S. equity market, demonstrating strong demand for outsourced services. The report notes a significant increase in M&A activity, with a total of 123 deals closed, despite a decline in volume compared to the previous quarter. The average deal value increased by 55.9%, suggesting a return of larger transactions. Infrastructure Services led the transaction volume, followed by Environmental & Waste Services and Real Estate Services. The report also presents trading multiples for publicly traded companies in the sector, highlighting variations across categories. The findings reflect the ongoing consolidation and strategic acquisitions within the Business Services market, driven by both strategic and financial buyers seeking to enhance service offerings and market share.