GCG Business Services Update Q3 2023

This document is a report detailing the performance of the Business Services sector for the third quarter of 2023. It outlines the public market performance, noting that equities in most segments remained flat or slightly declined due to the tightening monetary policy by the Federal Reserve. Despite this, many segments, including Infrastructure Services and Environmental & Waste Services, outperformed the broader U.S. equity markets. The report also discusses middle-market M&A activity, which remained consistent with the previous quarter, highlighting an increase in average deal value. Strategic buyers were prominent in transactions, focusing on enhancing service offerings and expanding market share. Additionally, the report presents trading multiples for publicly traded companies within key sectors, noting significant variations. The average EBITDA multiple was reported at 10.1x, with Environmental & Waste Services showing the strongest multiples. Overall, the report provides a comprehensive analysis of market trends and financial metrics within the Business Services sector.