Private Equity
Business Services

An increasing number of businesses are outsourcing their non-core and support activities to achieve a leaner and more cost-efficient operating structure. This trend has expanded from outsourcing basic activities such as cleaning and landscaping to more value-added services such as employee recruitment, brand management, sales and marketing, and healthcare-related services. Given the current economic climate, more firms are likely to outsource larger portions of their activities to reduce costs and this should accelerate growth.

Within the business services sector, we target companies that are asset light, technology-enabled, and deliver essential services on a broad geographic scale. The non-discretionary nature of such companies’ services helps provide resilience against unforeseen economic downturns, and its asset light, tech-enabled features provide management with operating leverage and the ability to adjust their cost base more rapidly to their operating environment. Furthermore, we target companies in sectors that are highly fragmented and lend themselves well to a roll-up strategy. Platforms that have national scale typically trade at a premium to regional or local operators, allowing bolt-on acquisitions to be completed at relatively attractive multiples.