Thomas Scott & Co possess deep insights and expertise necessary to facilitate the successful sale of your professional services business. Whether you’re looking to start a new venture or retire, selling your business can be the best method to realise a capital exit and continue the business’s legacy. Professional services businesses, including recruitment agencies, accountants, wealth managers, estate agencies and surveyors play a crucial role in the UK economy. Nonetheless, the transaction process for these firms is often complex and demanding.
Traditionally, ownership of professional services firms passed to family members or senior employees upon the retirement of the founder. Recently, however, there has been a shift, with an increasing number of these businesses being sold to third parties or acquired by external companies as more SME and mid-market companies look to grow via acquisition as opposed to organic methods.
Our service is delivered to precisely match the unique needs of our clients, whether they are navigating the complexities of selling a business or planning for a long term exit. We are dedicated to delivering superior outcomes for our clients, ensuring their satisfaction and success every step of the way.
We pride ourselves on offering a quality service, tailored to exceed expectations. We believe in building relationships that stand the test of time. With each interaction, we strive not only to meet but to surpass our clients’ needs and aspirations, ensuring their journey with us is one characterised by excellence and lasting satisfaction.
We specialise in guiding clients through M&A landscape with clarity. Our team of advisors leverage their understanding of M&A to support at every stage of the process, from initial strategy development to due diligence and seamless execution, we offer tailored solutions that allow our clients to make informed decisions.
The UK M&A market for professional services is currently exhibiting robust activity, driven largely by a surge in institutional and strategic buyers actively deploying capital into acquisitions. In 2023, the professional services sector saw deal values exceeding £30 billion, reflecting a significant portion of the UK’s total M&A landscape. This activity is underpinned by an increased presence of private equity, which has become a major force in the market. Private equity-backed firms accounted for over 35% of all acquisitions in the sector, highlighting their pivotal role in driving consolidation. This has led to a marked trend where most sub-markets within professional services are increasingly characterised by consolidation, with deal volume rising by 12% year-on-year.
Some key statistics emphasise the sector’s attractiveness. For example, the professional services market is expected to grow at a compound annual growth rate (CAGR) of 6% over the next five years, underscoring its stability and long-term potential. Strategic buyers continue to be highly engaged, leveraging a combination of cash, debt, and vendor financing to facilitate their acquisitions. This approach has allowed them to remain competitive and sustain their growth trajectories, even in a bustling market.
The resilience of the professional services sector is further highlighted by its relative immunity to economic downturns. Essential services, ranging from legal and financial advisory to consulting, are crucial for both business and personal needs, making them less susceptible to economic fluctuations. This inherent stability is reflected in the sector’s performance, with M&A activity remaining strong even during periods of broader market uncertainty.
Foreign investment also plays a critical role, with international acquirers contributing to nearly 25% of deal value in 2023. This influx of foreign capital has strengthened the UK’s professional services infrastructure, enhancing its capacity for continued growth and consolidation.
Overall, the professional services M&A market is poised for continued dynamism, with industry experts projecting sustained interest and a 15% increase in deal volume through 2024. This optimism is driven by the sector’s resilience, ongoing consolidation trends, and the strategic deployment of capital by both institutional and strategic buyers, positioning the market as a fertile ground for future M&A activity.
We are an independent Sell-Side M&A advisors who are driven to deliver outstanding results for their clients regardless of the size of business or scope of work. As we are sector agnostic we can leverage our buyer base and knowledge to a larger range of clientele on an international scale. As of 2024 we now have operations across 3 countries with global servicing capabilities meaning that we can draw in more acquirers and investor when supporting clients on M&A projects.
