bubble

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. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy, or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

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.

Fullwidth SCC. Do not delete! This box/component contains JavaScript that is needed on this page. This message will not be visible when page is activated.

Did you find this useful?