For M&A investors, 2021 will be a year to remember. How will 2022 stack up? As we head into the new year, Harris Williams Industry Group Heads share their views on which trends will drive growth, key investor considerations, and the opportunities to be found in each of the industries we cover. We look forward to pursuing these opportunities in partnership with our clients in the months to come.
How do you feel about M&A conditions heading into 2022 within your industry?
While the total number of deals in the business services market is likely to be down relative to 2021, our view is that 2022 will likely be an incredibly strong year. There is plenty of capital to invest, ample debt capacity, strong business performance, and decreasing hold periods, all of which support a robust M&A market. In addition, we continue to be believers in the ongoing economic recovery. These positive trends will face headwinds from time to time, but our confidence in the industries in which we specialize is very high.
What should M&A investors keep top-of-mind in your industry this year?
Investors are deciding more quickly whether they want to spend time, energy, and money on a given opportunity. They are becoming more thematically disciplined, so they are ready to move when an opportunity arises. Gone are the days when buyers had time to get up to speed on sectors they didn’t already know well.
Name a few of the most significant trends that will drive growth in your industry in 2022.
The labor shortage in commercial and industrial services is driving companies to invest in technology to manage their labor force more efficiently, monitor and measure employees, and prioritize what needs to be done and what doesn’t.
Because the labor shortage is global, companies that historically utilized lower cost offshore labor are increasingly making investments in robotic process automation and artificial intelligence to do more with fewer people.
How has your team delivered exceptional client service in this busy market?
Client service is at the core of who we are and how we do our jobs, so the fundamentals haven’t changed. You’re only as good as your last deal, and we’ve worked hard this year to put clients first. One thing that has made a real difference this year is the way we collaborate across industry groups. The free and open exchange of ideas and approaches has helped all of us move more quickly than groups that operate in a more siloed way.
The Harris Williams Business Services Group has experience advising companies that provide a range of commercial, industrial and professional services. For more information on the firm’s Business Services Group and other recent transactions, visit the Business Services Group’s section of the Harris Williams website.
To learn more, please contact our senior bankers.