2H 2024 Professional Services M&A Report
As much as any other sector, AI and automation is impacting the Professional Services sector as organizations increasingly outsource mundane tasks through what has been tabbed business process outsourcing (BPO) as providers rush to keep up with demand. Information technology (IT) services in particular have shown a continued rise in revenue (up 7% in 2024 by one estimate). But it’s interesting to see revenue in that space rising faster than headcount, indicating perhaps automation is...
Previous Professional Services Reports
Very often, when the elephants charge, it’s a good idea to follow the elephants. Watch what the biggest players are doing; they probably know something. In the professional services sector, we are watching big private equity money flow into these services, including law firms in some states (a very new development), consulting, accounting, and HR management. Law firms alone present a $400 billion market that has been shielded, for a long time, from outside investment by bar regulations, including private equity. In most states, only lawyers can own law firms…
