Professional Services
Deals Activity: Moderate
Restructuring Activity: Moderate
Deals activity in Professional Services
1. The sector historically experiences high levels of deal activity as smaller local operators consolidate to build scale and market share.
2. Though borrowing costs may create an obstacle to deal activity, we anticipate strategic M&A to remain a key feature of this sector.
Restructuring activity in Professional Services
As the economy emerged from the pandemic, there was a rush of activity across a range of sectors. Pent-up demand for M&A and real estate deals kept lawyers, accountants and other professional advisors busy.
There has been significant uplift in wage demands and a marked uptake in churn, as employees moved from one firm to another. Costs have been pushed higher, including one-off recruitment and training expenses, placing pressure on margins. Some firms have sought to invest in expanding their capacity and/or capabilities, or dispose of non-core offerings.
The current economic uncertainty may result in a decrease in demand for professional service providers, impacting on profitability.
Professional Services
As the economy emerged from the pandemic, there was a rush of activity across a range of sectors. Pent-up demand for M&A and real estate deals kept lawyers, accountants and other professional advisors busy.
It resulted in a significant uplift in wage demands and a marked uptake in churn, as employees moved from one firm to another. Costs have been pushed higher, including one-off recruitment and training expenses, placing pressure on profitability.
Firms with particularly expensive cost bases may find maintaining bottom-line performance more challenging as the economy weakens.
Find Your Expert
Rick Harrison is Interpath Sector Lead for 'Services'. This includes Professional Services as one of two core segments. Chris Wise leads Interpath's approach to the Professional Services sector nationally. For a full list of our senior people with experience in this sector use the button below.
Our senior team
