Analysis
Business and financial services M&A update: Q2 2024
ChatGPT’s rise has sped up AI adoption across industries, especially in the banking industry, which plans to invest more than $500 billion in AI tools, significantly affecting sales, marketing, and risk management.¹
Business and financial services trends
- Business process outsourcing (BPO)
By the end of 2024, global IT outsourcing is expected to hit $512.5 billion and grow steadily at a CAGR of 10.99%, reaching $777.7 billion by 2028.2
- Consulting
Despite global challenges, the positive economic trends indicate a robust year for M&A in marketing and technology services.3
- Education and training
Managed Services in education are expanding as companies seek dynamic, scalable training solutions.4
- Insurance, legal, and risk services
Insurance mergers and acquisitions saw minor declines in both deal volume and average deal value in 2024 to date, yet there was an unexpected rise in the valuation multiples for insurance agencies.5
- Staffing and recruiting
In 2024, staffing firms may leverage Generative AI to enhance data-driven recruiting, speeding up candidate–job matching by analyzing thousands of resumes and aligning them with specific job orders.6
This newsletter is a periodic compilation of certain capital markets information.
Endnotes
1 RSM US, “Financial services industry outlook," May 31, 2024.
2 Serhil Osadchuk, “Outsourcing Statistics in 2024: Key Trends & Forecasts,” Doit Software, June 27, 2024.
3 Tristan Rice, “M&A Q2 2024 Insights into the Resurgent M&A Landscape,” SI Partners, May 10, 2024.
4 Learnster, “6 Learning & Development (L&D) trends 2024,” accessed May 2024.
5 Mike Fletcher, “The State of Insurance M&A: 2024 Outlook,” Sica | Fletcher, May 2024.
6 PMC Insurance Group, “2024 Trends in the Staffing Services Industry,” May 8, 2024.
Previous editions
- Business services M&A update: Q1 2024
- Business services M&A update: Q4 2023
- Business services M&A update: Q3 2023
- Business services M&A update: Q2 2023
- Business services M&A update: Q1 2023
- Business services M&A update: Q4 2022
- Business services M&A update Q3 2022
- Business services M&A update Q2 2022
- Business services M&A update Q1 2022
- Business services M&A update Q4 2021
- Business services M&A update: Q3 2021
- Business services M&A update: Q2 2021
- Business services M&A update: Q2 2019
- Business services M&A update: Q1 2019
- Business services M&A update: Q4 2018
- Business services M&A update: Q3 2018
- Business services M&A update: Q2 2018
- Business services M&A update: Q1 2018
- Business services M&A update: Q4 2017
- Business services M&A update: Q3 2017
- Business services M&A update: Q2 2017
- Business services M&A update: Q1 2017