Fardeen Nariman, director, corporate finance, Quantuma, takes a look at the business sector.
The business services sector is a significant contributor to the UK economy, accounting for approximately 10% of gross domestic product and employing roughly 3.3 million people.
Despite prevailing headwinds, the sector has witnessed robust growth over the last decade.
Market uncertainty is driving businesses in this sector to reduce organisational complexity and create flexible, scalable operating models that are capable of swiftly responding to new market opportunities at lower costs. In addition, emerging technologies such as artificial intelligence are enabling this sector to transform their clients’ operations in terms of staff engagement as well as experience.
The ensuing demand is driving investment to refocus the sector and develop solutions to deliver services to organisations with smaller employee bases. It is also driving mergers and acquisitions, as corporates would rather acquire than develop solutions due to the rapid pace of change. We see growth via this consolidation and the continued provision of private-sector skills into the public sector to drive down costs.
So, what does this mean for business services?
Those businesses unable to embrace change quickly enough may find themselves with insurmountable challenges. In ancillary sectors like facilities management, we continue to see smaller operators and the carve-outs of in-house services as transactional opportunities. For larger businesses, this might not only reduce the future ongoing costs but also generate capital for investment elsewhere.
Some of our recent successes
Having successfully completed a variety of deals in this sector, the corporate finance team at Quantuma are in an ideal position to help you understand the market and achieve your ambitions. We can work with you to identify acquisition targets, support you in raising funds, or help you if you are looking to exit and maximise your returns.
If you or a client are an ambitious, entrepreneurial business looking to explore growth opportunities in this sector we would be delighted to share our expertise and experiences with you.