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July 9, 2025

Business Services Industry Report - Q2 2025

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Explore Business Services M&A Trends In Depth

Industry Trends

In Q2 2025, overall M&A deal volume in the Business Services industry modestly declined, driven by macroeconomic uncertainty and a more cautious approach from investors. But not all segments slowed:

  • Sectors like Consulting & IT Services, Risk & Insurance, and Environmental & Facility Services continued to attract strong interest, driven by sustained demand and strategic interest in these sectors.
  • Companies offering AI-enabled solutions, tech-enabled services, and risk advisory drew heightened attention, highlighting the sector’s resilience even amid a moderate overall slowdown.



Market Dynamics

  • Environmental & Facility Services firms saw continued consolidation in Q2, supported by earlier regulatory leniency and a still-accommodative antitrust environment.
  • IT services is maintaining growth momentum in Q2 2025, powered by global investments in digital infrastructure and strong tailwinds from digital transformation, cloud migration, and AI-driven innovation.
  • Consulting demand remains strong in Q2, fueled by enterprise transformation efforts, with cybersecurity and ESG compliance emerging as top priorities for clients seeking efficiency and regulatory alignment.
  • Real Estate Services is seeing moderate recovery in Q2 2025, aided by easing financial conditions and consumer resilience, though high interest rates and policy uncertainty persist as headwinds.
  • Insurers faced rising claims costs in Q2 amid an aggressive legal climate, with escalating litigation and large jury awards driving up liability payouts and sustaining premium increases through 2025.
  • In Q2, staffing firms intensified their adoption of automation and hybrid workforce models in response to persistent labor shortages and ongoing macroeconomic and regulatory volatility. 



Contacts

Reach out to Dinan Capital Advisors Managing Director Will Downing for more report insights.

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