Q4 2017 Business Products and Services Industry Spotlight
INSIGHT ARTICLE |
- PE investors increased their focus on SaaS and digitally focused services business in 2017, as B2B continues to shift its attention to tech advances in the sector
- Private equity has played a larger role in M&A more generally, largely due to a downswing in strategic acquisitions since early 2016
- Global B2B purchase price multiples were more modest last year, and global businesses that are reasonably priced with their growth trajectories are garnering attention from PE funds
- Barring any major macroeconomic or geopolitical developments, expect multiples and buy-side activity to stay consistent
Global growth is expected to be strong in 2018, and a relatively weaker dollar should help the manufacturing sector this year, as well. Any improvements in GDP should also positively impact US manufacturing production, which has shown modest increases in recent months. Investors are expected to be active again this year. PE firms are picking up where they left off in 2017, and B2B companies large and small are recognizing the imperative embracing of technological advances. We expect strength across the sector, with particular focus on acquisitions that help accelerate innovation.
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