Business Services M&A update: Q2 2017
Companies are increasingly introducing new approaches to staffing, performance management, and digital learning, in an effort to increase productivity, engagement, and motivation among employees. At the same time, ad agencies are focusing on dynamic marketing to on-the-go consumers in pursuit of increased revenues compared to traditional out-of-home media. This Business Services M&A update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the Business Services industry.
Business Services trends
- Out-of-home advertising1: Digital out-of-home advertising (DOOH), encompassing everything from digital billboards to LCD signage, grew 30.5 percent over the last year as ad agencies focus on dynamic marketing to consumers who are constantly “on the go.” DOOH can generate increased revenue compared to traditional out-of-home media by utilizing dynamic pricing and selling.
- A new outlook on staffing2: Total Talent Management (TTM) is a new and growing theory in the staffing industry. This theory combines third-party workers, potential new-hires, and automation to increase efficiencies in the workplace. TTM provides a method for third-party workers to align their interests with those of the company they represent. Aligning interests enables managers to increase productivity by integrating each facet of the workplace.
- Nature of management3: A key issue facing organizations is evaluating and managing employee performance. Many organizations are thinking outside the traditional performance review system to develop methods to improve employee engagement and company culture. Companies have started to shift towards continuous performance management, in an effort to increase employee performance.
- Game-focused approach4: A growing millennial workforce is driving the proliferation of game-based learning, as workers seek more efficient and effective means of education via digital platforms. Game-based education modules appeal emotionally through story-telling, which enhances motivation and knowledge retention. These models are being increasingly employed in public school systems and corporate learning environments.
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1 “OOH advertising set to hit new heights in 2017,” Business2Community. December 24, 2016.
2 “Total Talent Management: The need to think big(ger),” Spend Matters. April 4, 2017.
3 “SIOP announces top 10 workplace trends for 2017,” SIOP Administrative Office. December 20, 2016.
4 “Key trends for 2017: Innovation in educational technology,” Training Industry Magazine. December, 2016.