Shield sector focus: Business Services

The Business Services sector comprises a diverse range of businesses providing a variety of services such as recruitment, estate agency, consultancy, marketing, accountancy, insurance brokers, office supplies, training, web design and many others.

Shield Corporate Finance's experience in this sector includes:

Several deals in the recruitment sector
Advising on the sale of a pharmaceutical consultancy
Advising on the sale of a letting agency chain
Advising on the sale of an outdoor advertising company
Advising on the sale of an estate agency
Advising on sale of office supplies company

Business Services sector M&A comment

Due to the nature of the businesses in this sector generally, many are SMEs, leading to a large degree of market fragmentation and the opportunity for industry consolidators to build scale.

Shield has seen that this is certainly the case with recruitment firms, with major concerns such as Vedior looking to acquire agencies specialising in niche areas. Consolidation in the insurance broking sector is also rife, while regional and national consolidation is prevalent in the office supplies sector.

Private Equity has been active in the estate agency sector, as witnessed by the recent sales of Countrywide to Apollo and Foxton's to BC Partners for £390m. We have also witnessed M&A activity amongst smaller estate agencies.